SBI Manager (Credit Analyst) Syllabus
The role of a Manager (Credit Analyst) at the State Bank of India (SBI) is crucial in assessing and managing credit risks. The syllabus for this position focuses on a deep understanding of credit appraisal, financial analysis, banking regulations, and risk management. Below is a detailed syllabus:
1. Credit Appraisal and Analysis
Credit Policy and Procedures:
- Understanding of SBI’s credit policy.
- Guidelines for sanctioning, disbursing, and monitoring loans.
Loan Types and Characteristics:
- Knowledge of various loan products (Retail, SME, Corporate).
- Characteristics, risk factors, and appraisal techniques.
Creditworthiness Evaluation:
- Assessing the creditworthiness of borrowers.
- Financial ratio analysis (liquidity, profitability, solvency).
Credit Rating and Scoring:
- Understanding internal and external credit rating models.
- Interpretation and application of credit scores.
2. Financial Statement Analysis
Balance Sheet Analysis:
- Interpretation of assets, liabilities, and equity.
- Analyzing liquidity, leverage, and capital adequacy.
Profit and Loss Statement:
- Understanding revenue streams, expenses, and net income.
- Analyzing profitability margins and operating efficiency.
Cash Flow Analysis:
- Understanding cash inflows and outflows.
- Analyzing operating, investing, and financing activities.
Ratio Analysis:
- Key financial ratios (current ratio, debt-to-equity, ROE, ROA).
- Application of ratios in credit risk assessment.
3. Risk Management
Credit Risk:
- Identification, measurement, and mitigation of credit risk.
- Techniques for managing non-performing assets (NPAs).
Market and Operational Risk:
- Understanding of market risk factors (interest rate, currency risk).
- Mitigation strategies for operational risks.
Basel Norms and Capital Adequacy:
- Understanding Basel I, II, and III norms.
- Risk-weighted assets and capital adequacy requirements.
Stress Testing and Scenario Analysis:
- Techniques for stress testing.
- Scenario analysis for credit portfolios.
4. Banking Regulations and Compliance
RBI Guidelines and Circulars:
- Key RBI guidelines related to credit management.
- Compliance with regulatory frameworks.
Legal Aspects of Lending:
- Knowledge of the Banking Regulation Act, SARFAESI Act, and other relevant laws.
Anti-Money Laundering (AML) & Know Your Customer (KYC):
- Compliance with AML/KYC norms in credit operations.
Recovery and Resolution:
- Strategies for loan recovery and resolution of distressed assets.
Corporate Governance and Ethics:
- Understanding the importance of corporate governance in credit decisions.
- Ethical considerations in credit analysis.
5. Industry and Sector Analysis
Sectoral Risk Assessment:
- Understanding risks associated with different sectors (e.g., agriculture, manufacturing, services).
- Sector-specific credit appraisal techniques.
Industry Trends and Dynamics:
- Awareness of current industry trends and their impact on credit.
- Analysis of macroeconomic factors affecting the industry.
Economic Indicators:
- Understanding GDP, inflation, interest rates, and their impact on credit portfolios.
SWOT Analysis:
- Conducting SWOT analysis of borrowers’ businesses.
6. Credit Documentation and Legal Aspects
Loan Documentation:
- Understanding various types of loan agreements and documents.
- Importance of proper documentation in credit operations.
Collateral and Security:
- Types of collateral (movable, immovable) and their valuation.
- Legal aspects of creating and enforcing security interests.
Legal Recovery Mechanisms:
- SARFAESI Act, DRT (Debt Recovery Tribunal) procedures.
- Insolvency and Bankruptcy Code (IBC) and its implications.
7. Project and Structured Finance
Project Appraisal:
- Techniques for evaluating project feasibility.
- Financial modeling and sensitivity analysis.
Structured Finance:
- Understanding of structured finance products like securitization, syndication.
- Risk assessment and management in structured finance.
8. Advanced Financial Management
Capital Budgeting:
- Techniques like NPV, IRR, Payback period for project evaluation.
Working Capital Management:
- Analyzing working capital needs and financing options.
Corporate Finance:
- Knowledge of mergers, acquisitions, and corporate restructuring.
Cost of Capital:
- Understanding the weighted average cost of capital (WACC) and its applications.
9. Information Technology in Banking
Credit Information Systems:
- Usage of credit bureaus and information systems in credit analysis.
Digital Banking and Fintech:
- Impact of digital banking and fintech on credit management.
Data Analytics:
- Role of data analytics in credit decision-making.
10. Case Studies and Practical Knowledge
Real-life Credit Scenarios:
- Analysis of case studies related to credit approvals, defaults, and recoveries.
Problem-Solving Exercises:
- Practical exercises on credit analysis and decision-making.
Workplace Ethics and Professionalism:
- Understanding ethical dilemmas in credit management and appropriate responses.
Preparation Tips:
- Deepen Financial Knowledge: Strengthen your understanding of financial statement analysis, credit risk, and banking regulations.
- Stay Updated: Regularly update yourself with the latest industry trends, RBI guidelines, and economic indicators.
- Practice Case Studies: Engage in case studies and mock assessments to refine your analytical and decision-making skills.
