5.1 Credit Evaluation

The following table provides high level overview about the Credit Evaluation stage.

Information available for user Activities that can be performed by user
  • View the party summary
    • Liabilities requested
    • Facilities requested
    • Collateral offered
    • Covenants stipulated
    • T&C stipulated
    • Financials
    • Rating
    • Demographic details
  • View comments added in previous stages
  • Perform the Quantitative Analysis
    • View ratios and the scores generated
    • View Peer analysis
    • View trend analysis of the ratios
    • View scores generated by system
  • Perform the Qualitative Analysis by answering questions about
    • Debtor analysis
    • Creditor analysis
    • Sector analysis
    • Global Economic analysis
    • Domestic analysis
  • Add write up detailing addition information about the business
  • Capture comments about the credit evaluation done
  • Send back the application if additional info required

To perform Credit Evaluation for the proposal, perform the following steps:

  1. On Home screen, select Tasks. Under Tasks, select Free Task.
    The Free Task screen is displayed.

    Figure 5-1 Free Task


    Description of Figure 5-1 follows
    Description of "Figure 5-1 Free Task"

  2. Acquire & Edit the required Credit Evaluation task. The Credit Origination - Credit Evaluation page summarizing the proposal appears.
  3. To view the sector and industry information, click the Industry icon in Party information section.
    The Industry Details window is displayed.

    Figure 5-6 Industry Details


    Description of Figure 5-6 follows
    Description of "Figure 5-6 Industry Details"

    Table 5-1 Industry Details

    Fields/ Icons Description
    Close Click Close to exit the Industry Details window.

    To view the overview of the party, click the Entity Overview icon in Party Information section. The Entity Overview window is displayed.

    Figure 5-7 Entity Overview


    Description of Figure 5-7 follows
    Description of "Figure 5-7 Entity Overview"

  4. Click Allowed Customers For This Liability icon in the Party Information section, to view party's linked to the liability information.

    The Allowed Customers For This Liability window appears.

    Figure 5-8 Allowed Customers For This Liability


    Description of Figure 5-8 follows
    Description of "Figure 5-8 Allowed Customers For This Liability"

    Figure 5-9 Allowed Customers For This Liability


    Description of Figure 5-9 follows
    Description of "Figure 5-9 Allowed Customers For This Liability"

  5. Click Close, if you want to exit the Allowed Customers for this liability window.
  6. Click Linked to other liabilities icon in the Party Information section, to view other liabilities linked to the party information.
    The Linked to other liabilities window is displayed. If other liabilities are linked, the list of other liabilities details linked to the party window is displayed.

    Figure 5-10 Linked to other liabilities


    Description of Figure 5-10 follows
    Description of "Figure 5-10 Linked to other liabilities"

    Figure 5-11 Linked to other liabilities


    Description of Figure 5-11 follows
    Description of "Figure 5-11 Linked to other liabilities"

  7. Click Close, if you want to exit the Linked to other liabilities window.
  8. Click Layout icon at the top right corner, to change the layout of the Entity Overview. The Layout window is displayed.
  9. Select the required layout. Entity Overview is changed to the selected layout as shown below.

    Figure 5-13 Entity Overview


    Description of Figure 5-13 follows
    Description of "Figure 5-13 Entity Overview"

    For field level information refer the table below.

    Table 5-2 Entity Overview

    Fields/ Icons Description
    Close Click Close to exit the Entity Overview window.

    In Party Information section, the count of Share Holders, Contractors, Guarantors, and Bankers is displayed.

    Count Numbers To view the detailed information about the Share Holders, Contractors, Guarantors, and Bankers, click the respective count numbers.
    Layout Icon To change the layout of the Facility Summary, Collateral Summary, Existing Facilities held with Other Bank, Pricing, Covenants, and Conditions widgets in Summary page, click Layout icon and select the required layout.

    By default, Financial Profile of the party and financial Projections for the party are listed for 3 years.

    Financial Profile and Projections To view the Financial Profile and Projections for five years, select Previous 5 years option from the Show results for drop-down list.
    Detailed Financial Profile and Projection To view detailed information about the Financial Profile and Projection, click View all in the respective sections.

    Click Next in the Entity overview Layout screen. The Credit Evaluation screen is displayed.

    Figure 5-14 Credit Evaluation


    Description of Figure 5-14 follows
    Description of "Figure 5-14 Credit Evaluation"

    In Credit Evaluation page, you can perform the following analysis for the party and the child parties by answering simple questions related to the analysis:

    • Quantitative Analysis
    • Qualitative Analysis
  10. To edit Account Conduct in Quantitative Analysis, click Edit in Account Conduct Action button.
    Account Conduct page is displayed.

    Figure 5-15 Account Conduct


    Description of Figure 5-15 follows
    Description of "Figure 5-15 Account Conduct"

    Click + in Working Capital Accounts screen to add new working capital account.

    New Working Capital Accounts screen is displayed.

    Figure 5-16 Account Conduct - Working Capital Accounts


    Description of Figure 5-16 follows
    Description of "Figure 5-16 Account Conduct - Working Capital Accounts"

    Figure 5-17 Account Conduct - New Working Capital Accounts


    Description of Figure 5-17 follows
    Description of "Figure 5-17 Account Conduct - New Working Capital Accounts"

    For field level information refer the table below.

    Table 5-3 Account Conduct- New Working Capital Accounts

    Fields/ Icons Description
    Product Type Select Product Type from drop-down list.
    Account Number Enter Account Number for new working capital account.
    Currency Search and select Currency.
    Sanctioned Amount Enter Sanctioned Amount.
    Sanctioned Date Select Sanctioned Date from Calendar icon.
    Limit Expiry in Months Enter Limit Expiry in Months. Select Decrement and Increment drop-down list option on right to decrease or increase the limit expiry.
    Rate of Interest Enter Rate of Interest. Select Decrement and Increment drop-down list option on right to decrease or increase the rate of interest.
    Current Utilization Enter Current Utilization.
    Account Classification Select Account Classification from drop-down list.
    Overdue Days Enter Overdue Days. Select Decrement and Increment drop-down list option on right to decrease or increase the overdue days.
    No of excesses in the past 6 months Enter No of excesses in the past 6 months. Select Decrement and Increment drop-down list option on right to decrease or increase the No of excesses in the past 6 months.
    Ultilization in the past 6 months Enter Ultilization in the past 6 months. Select Decrement and Increment drop-down list option on right to decrease or increase the ultilization in the past 6 months.
    Tenor (in months) Enter Tenor (in months). Select Decrement and Increment drop-down list option on right to decrease or increase the tenor.
    Maturity Date Select Maturity Date from Calendar icon.
    Repayment Frequency Select Repayment Frequency from drop-down list.
    Repayment Amount Enter Repayment Amount.
    Outstanding as per schedule Enter Outstanding as per schedule.
    Actual outstanding Enter Actual outstanding.
    Discrepancy Enable Discrepancy.
    Last Payment Date Enter Last Payment Date from drop-down list.
    Click Save. Working Captial Accounts details are dispalyed in Account Overview screen.

    Figure 5-18 Account Conduct - Account Overview


    Description of Figure 5-18 follows
    Description of "Figure 5-18 Account Conduct - Account Overview"

    Click + in Loan Accounts screen to add new loan account.

    New Loan Account screen is displayed.

    Figure 5-19 Account Conduct - Loan Accounts


    Description of Figure 5-19 follows
    Description of "Figure 5-19 Account Conduct - Loan Accounts"

    Figure 5-20 Account Conduct - New Loan Account


    Description of Figure 5-20 follows
    Description of "Figure 5-20 Account Conduct - New Loan Account"

    For field level information refer the table below.

    Table 5-4 Account Conduct - New Loan Account

    Fields/ Icons Description
    Loan Account Number Enter Loan Account Number for new loan account.
    Currency Search and select Currency.
    Sanctioned Amount Enter Sanctioned Amount.
    Sanctioned Date Select Sanctioned Date from Calendar icon.
    Tenor (in months) Enter Tenor (in months). Select Decrement and Increment drop-down list option on right to decrease or increase the tenor.
    Maturity Date Select Maturity Date from Calendar icon.
    Rate of Interest Enter Rate of Interest. Select Decrement and Increment drop-down list option on right to decrease or increase the rate of interest.
    Repayment Frequency Select Repayment Frequency from drop-down list.
    Repayment Amount Enter Repayment Amount.
    Outstanding as per schedule Enter Outstanding as per schedule.
    Actual outstanding Enter Actual outstanding.
    Discrepancy Enable Discrepancy.
    Last Payment Date Enter Last Payment Date from drop-down list.
    Next Payment Date Enter Next Payment Date from drop-down list.
    Account Classification Select Account Classification from drop-down list.
    Overdue Days Enter Overdue Days. Select Decrement and Increment drop-down list option on right to decrease or increase the overdue days.

    Click Save. Loan Accounts details are dispalyed in Account Overview screen.

    Figure 5-21 Account Conduct - Account Overview


    Description of Figure 5-21 follows
    Description of "Figure 5-21 Account Conduct - Account Overview"

  11. To edit Peer Analysis in Quantitative Analysis, click Edit in Peer Analysis Action button.
    Peer Analysis page is displayed.

    Figure 5-22 Peer Analysis


    Description of Figure 5-22 follows
    Description of "Figure 5-22 Peer Analysis"

    Enter/select the following details to view or edit the details.

    • Period
    • Quarter
    • Select Customer
    • Comment

    Note:

    Based on the details selected - Score, Ratio, Benchmark, Value are displayed.
  12. To edit Financial Analysis in Quantitative Analysis, click Edit in Financial Analysis Action button.
    Financial Analysis page is displayed.

    Figure 5-23 Financial Analysis


    Description of Figure 5-23 follows
    Description of "Figure 5-23 Financial Analysis"

    Enter/Select Period and Quarter, the following Liquidity details are displayed.
    • Ratio
    • Benchmark
    • Value
    • Variable
    • % Variable
    • Score

    Note:

    The scores generated for each ratio contributes to the overall Quantitative analysis score generation.
  13. On Financial Analysis tile, Click Sensitive Analysis.
    The Sensitive Analysis screen displays.

    Figure 5-24 Sensitive Analysis


    Description of Figure 5-24 follows
    Description of "Figure 5-24 Sensitive Analysis"

    Note:

    For more information on each tab in sensitive analysis screen, refer to the Terms and Definitions section in Preface.

    Note:

    • Actual Value: The actual value represents the existing or current values based on real financial data for the choosen period.
    • New Value: The new value shows the recalculated amount after applying a percentage change to the actual value.
  14. Click any of the tab on sensitive analysis screen.
    The Sensitive Analysis Detail screen displays.

    Figure 5-25 Sensitive Analysis Detail


    Description of Figure 5-25 follows
    Description of "Figure 5-25 Sensitive Analysis Detail"

    For more information on fields, refer to the field description table below.

    Table 5-5 Sensitive Analysis

    Fields Description
    Ratio Category Displays the ratio category.
    Ratio Description Displays the ratio description.
    Ratio Code Displays the ratio code.
    Formula Displays the key ratio formula.
    Actual Value The actual value represents the existing or current values based on real financial data for the chosen period.
    Bench Mark Displays the benchmark value of the financial code.
    Current Result The ratio value calculated using the actual values.
    New Result The ratio value recalculated after applying the percentage changes.
  15. Click on View Impact on Other Ratios.
    The Impact on Other Analysis screen displays.

    Figure 5-26 Impact on Other Analysis


    Description of Figure 5-26 follows
    Description of "Figure 5-26 Impact on Other Analysis"

    Note:

    A pop up screen should display the complete list of financial ratios, with clear indicators highlighting the specific ratios impacted by the changes made in the sensitivity analysis.

  16. Click Qualitative Analysis tab. The Qualitative Analysis page is displayed.

    Figure 5-27 Credit Evaluation


    Description of Figure 5-27 follows
    Description of "Figure 5-27 Credit Evaluation"

    For field level information refer the table below.

    Table 5-6 Credit Evaluation

    Fields/ Icons Description
    Qualitative Analysis To perform Qualitative Analysis, click Qualitative Analysis in Credit Evaluation section. Qualitative Analysis window appears with following analysis.
    • Sector analysis
    • Domestic economic analysis
    • Global economic analysis
    • Other analysis
    • Creditor analysis
    • Debtor analysis
    Click Evaluate in respective analysis section and answer all the questions.
    Close Perform the analysis and click Close.
    Edit To perform the analysis again, click Edit.
    Comment To capture comments for the analysis, click Comment.
    After performing the qualitative analysis for both the party and its connected parties.
    Click Next in the Credit Evaluation page. The Comments page is displayed.

    Figure 5-28 Comments


    Description of Figure 5-28 follows
    Description of "Figure 5-28 Comments"

    For field level information refer the table below.

    Table 5-7 Comments

    Fields/ Icons Description
    Comments Enter the overall Comments for the credit evaluation and click Post. Comment is posted below the Comments box.
  17. Click Submit.
    The Policy Exception window is displayed.

    Figure 5-29 Policy Exception


    Description of Figure 5-29 follows
    Description of "Figure 5-29 Policy Exception"

    By default, Policy Exceptions are displayed for both the party and its child party.

    For field level information refer the table below.

    Table 5-8 Policy Exception

    Fields/ Icons Description
    Party details To view the policy exception detail specific to party or child party, select the party from the drop-down list at top left corner.
    Next Click Next, the Business screen is displayed.
  18. Click the Business data segment.

    Figure 5-30 Business


    Description of Figure 5-30 follows
    Description of "Figure 5-30 Business"

    Table 5-9 Business

    Fields/ Icons Description
    Next Click Next, the Checklist screen is displayed.
  19. Click the Checklist data segment.

    Figure 5-31 Checklist


    Description of Figure 5-31 follows
    Description of "Figure 5-31 Checklist"

    Table 5-10 Checklist

    Fields/ Icons Description
    Outcome Select Outcome as Proceed if additional information is not required. Else, select Outcome as Additional Info.
    Submit Click Submit.

    Note:

    For information on Write up data segment, refer Write Up section.

Parent topic: Proposal Evaluation