5.1 Credit Evaluation

This topic provides systematic instructions about the Credit Evaluation

To perform credit evaluation for the customer, perform the following steps:

  1. From Home screen, click Tasks. Under Tasks, click Free Tasks.
    The Free Tasks page is displayed.

    Figure 5-1 Free Tasks


    Acquire and Edit action for Free Tasks

  2. Acquire & Edit the required Credit Evaluation task. The Credit Evaluation - Customer Summary screen is displayed

    Figure 5-2 Credit Evaluation - Customer Summary


    Graphs for Customer Summary

    Note:

    For information on actions that can be performed in the Customer Summary page, refer Credit 360 User Guide.
  3. Click Next after reviewing the Customer Summary.
    The Summary page is displayed.

    Figure 5-3 Summary


    Description of Figure 5-3 follows
    Description of "Figure 5-3 Summary"

  4. Click Facility Transfer to transfer the facility to another entity or merge with different facility.

    Figure 5-4 Summary

    Add, Edit and Delete actions for Summary
  5. Click the Add icon.
    The Transfer Facility window is displayed.

    Figure 5-5 Transfer Facility


    Transfer Facility Entity details

    For field level information refer the below table.

    Table 5-1 Transfer Facility

    Fields Description
    From Entity In the Transfer Facility window, Party ID is automatically populated in the From Entity field. You cannot modify the From Entity detail.
    To entity Select the entity to which the facility has to be transferred from the To entity drop-down list.
    From Facility Select the facility from which amount has to be transferred from the From Facility drop-down list. Facilities available under the From entity are displayed in the list.
    To Facility Select the facility to which the amount has to be transferred from the To Facility drop-down list. Facilities available under the selected To entity are displayed in the list.
    Transfer Currency Select the Transfer Currency in which the amount has to be transferred.
    Transfer Amount Specify the amount to be transferred in the Transfer Amount field.
    Effective From Click the calendar icon in the Effective From field and select the date on which the transfer should happen.
    Expiry Date Click the calendar icon in the Expiry Date field and select the date on which the transferred amount should expire
    Create Click Create. Specified amount will be transferred to the target facility and the transfer details will be displayed in the Facility Transfer page.

    To update the facility transfer details, select the required item and click the Edit icon. The Transfer Facility window appears.

    Update Modify the required details and click Update.
    Delete To delete the transfer details, select the required item and click the Delete icon.
    Table View To change the layout of Facility Transfer page to table view, click the Table View icon.
    Facilities To go back to the Facilities page, click Facilities next to the Facility Transfer. Facilities page appears.

    Note: For information on more actions that can be performed in the Facilities page and for Information on viewing and managing Collateral, Covenants and Terms and Conditions, refer Basic Info.

    Entities To view the party details, click the Entities tab in Summary page.
    On selecting the entity and facilities, the system displays the following information about the from and to facilities:
    • Line Code
    • Facility Amount
    • Available Amount
    • Facility Type
    • Facility Name
    • Start Date
    • Expiry Date

    You can optionally post comments while updating the transfer details, if required.

  6. To go to the Credit Evaluation page, click Next.

    Figure 5-6 Credit Evaluation


    Description of Figure 5-6 follows
    Description of "Figure 5-6 Credit Evaluation"

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

    • Quantitative Analysis
    • Qualitative Analysis

    The Quantitative Analysis comprises the following analysis for the customer:

    • Creditor Analysis
    • Debtor Analysis
    • Global Economic
    • Domestic Economic
    • Sector Analysis
  7. Click Evaluate in any of the tile, the Questionnaire window is displayed.

    Figure 5-7 Questionnaire

    Questionnaire analysis

    For information on fields Questionnaire screen, refer the below table.

    Table 5-2 Questionnaire

    Fields Description
    Next Category Select answers for the available questions and click Next Category.
    Right arrow Right arrow icon appears in case of multiple questions, click the Right arrow and answer all the questions in all the category.

    A score is generated and displayed for the sector based on each answer provided.
    Save Click Save. Cumulative score is displayed in the Quantitative Analysis page as shown below:

    Figure 5-8 Credit Evaluation

    Credit Evaluation details such as Creditor Analysis and Debtor Analysis

    For Creditor and Debtor Analysis, the Creditor and Debtor details can be added directly from the questionnaire window.

    Figure 5-9 Creditor Analysis

    Creditor Analysis Customer details
  8. Click the Creditor Details / Debtor Details in the Questionnaire window.
    The Creditor Details / Debtor Details window is displayed.

    Figure 5-10 Creditor Details

    Pie chart for Creditor Details

    For information on fields in Creditor Details screen, refer the below table.

    Table 5-3 Creditor Details

    Fields Description
    Fetch Fetch the Creditor / Debtor Details for the required period.
    Add To add Key Creditor / Key Debtor, click and expand the respective section and then click the Add icon.
    Save After adding the information, click Save.
  9. After performing the quantitative analysis, click Qualitative Analysis tab.
    The Qualitative Analysis page is displayed.

    Figure 5-11 Credit Evaluation

    Credit Evaluation details such as Peer analysis and Financial Analysis
  10. To analyze the account conduct of customer, click Evaluate in Account Conduct tile.

    Figure 5-12 Corporation - Amount conduct

    Overall comments Account overview

    For information about the fields refer the below table.

    Table 5-4 Corporation - Amount conduct

    Fields Description
    Account Overview To view the summary of current, loan and deposit accounts, click and expand Account Overview section.
    Add To add the current account, click Add.
    The Current Account Performance Details window is displayed.

    Figure 5-13 Current Account Performance Details

    Current Account Performance Details such as Current Account No and Branch

    For field level information refer the below table.

    Table 5-5 Current Account Performance Details

    Fields Description
    Current Account No Enter the Current Account No.
    Branch Search and select the Branch.
    Currency Search and select the Currency.
    OK Click OK. Details are added and displayed in Current Accounts page.
    Refresh To refresh the current account list, click Refresh.
    View To view the current account details, select the current account and click View.
    Edit To modify the current account details, select the current account and click Edit.
    Delete To delete the current account details, select the current account and click Delete.
    Details Specify the following details in corresponding fields:
    • Average Credit Balance
    • Average Debit Balance
    • Limit
    • Current Balance
    • No Of Excess in 6 Months
  11. To add the loan account, click the Loan Accounts tab and then click Add.
    The Loan Account Performance Details window appears:

    Figure 5-14 Loan Account Performance Details

    Loan Account Performance Details such as Loan Account No and Currency

    For field level information refer the below table.

    Table 5-6 Loan Account Performance Details

    Fields Description
    Loan Account No Enter the Loan Account No.
    Currency Search and select the Currency.
    Discrepancy If there is a discrepancy in payment, enable the Discrepancy option.
    OK Click OK. Details are added and displayed in Loan Accounts page.
    Refresh To refresh the loan account list, click Refresh.
    View To view the loan account details, select the loan account and click View.
    Edit To modify the loan account details, select the loan account and click Edit.
    Delete To delete the loan account details, select the loan account and click Delete.
    Add To add the deposit account, click the Deposit Accounts tab and then click Add.
    The Deposit Account Performance Details window is displayed.

    Figure 5-15 Deposit Account Performance Details

    Deposit Account Performance Details Deposit Account No and Account Type

    For field level information refer the below table.

    Table 5-7 Deposit Account Performance Details

    Fields Description
    Deposit Account No Enter the Deposit Account No.
    Account Type Select the Account Type from the drop-down list.
    Branch Search and select the Branch and Currency.
    Currency Search and select the Branch and Currency.
    Balance Specify the Balance in deposit account.
    OK Click OK. Details are added and displayed in Deposit Accounts page.
    Refresh To refresh the deposit account list, click Refresh.
    View To view the deposit account details, select the deposit account and click View.
    Edit To modify the deposit account details, select the deposit account and click Edit.
    Delete To delete the deposit account details, select the deposit account and click Delete.
    Post Post the Comments for the account conduct.
    Account Conduct Close the Account Conduct window. A score is generated for the account conduct and displayed in the Qualitative Analysis window.
    Evaluate To evaluate the customer’s performance against its peer, click Evaluate in Peer Analysis tile.
    The Peer Analysis window is displayed.

    Figure 5-16 Peer Analysis

    Peer Analysis details such as Period and Quarter

    For field level information refer the below table.

    Table 5-8 Peer Analysis

    Fields Description
    Period Select the Period and the Quarter for which you want to view peer analysis score.
    Quarter Select the Period and the Quarter for which you want to view peer analysis score.
    Select Customer Click Select Customer and fetch the required peer customer. The system displays the following details for the selected peer along with a score:
    • Liquidity
    • Efficiency
    • Profitability
    • Solvency
    Next Category To view each of the above details, click Next Category.
    Post Post the Comment for the Peer Analysis.
    Close Click Close. The score is displayed in the Qualitative Analysis window.
    Evaluate To evaluate financial performance of the customer, click Evaluate in Financial Analysis tile.
    The Financial Analysis window is displayed.

    Figure 5-17 Financial Analysis

    Financial Analysis details such as Period and Quarter

    For field level information refer the below table.

    Table 5-9 Financial Analysis

    Fields Description
    Period & Quarter Select the Period and the Quarter for which you want to view the financial analysis score. The system displays the following details of the customer for the selected period along with a score:
    • Liquidity
    • Efficiency
    • Profitability
    • Solvency
    Next Category To view each of the above details, click Next Category.
    Comment Post the Comment for the Financial Analysis.
    Close Click Close. The score is displayed in the Qualitative Analysis window.
    Evaluate To view the covenant compliance status of the customer, click Evaluate in the Covenant Analysis tile.
    The Covenant Analysis window is displayed.

    Figure 5-18 Covenant Analysis

    Covenant Analysis overall Comments
    In Covenant Analysis window, the following details are displayed:
    • New Covenant Proposed
    • Existing Covenant Past Performance

    For field level information refer the below table.

    Table 5-10 Covenant Analysis

    Fields Description
    Filter To filter the required new and existing covenants, click the Filter icon and specify the filter parameters or directly type the parameter in Type to filter text box.
    Table view To change the layout to table view, click the Table view icon.
    View Linkage To know with which entity a particular covenant is linked, click the hamburger icon in the covenant record and select View Linkage.
    Covenant History To view the covenant history, click the hamburger icon in the covenant record and select Covenant History.
    Close After viewing the covenant details, Post the Comments and click Close. Met and Breached covenants are displayed in Covenants tile.
    Review To view the terms & conditions compliance status of the customer, click Review in T&C Analysis tile.
    The T&C Analysis window is displayed.

    Figure 5-19 T&C Analysis

    T&C Analysis Comments

    In the T&C Analysis window, the following information are displayed:

    • New Terms And Conditions Proposed
    • Existing Terms & conditions compliance

    For field level information refer the below table.

    Table 5-11 T&C Analysis

    Fields Description
    Filter To filter the required terms and conditions, click the Filter icon and specify the filter parameters or directly type the parameter in Type to filter text box.
    Table view To change the layout to table view, click the Table view icon.
    D To delete a terms and conditions record, select the record and click the D icon.
    V To view more information about the terms and conditions, select the record and click the V icon.
    Post After reviewing the terms and conditions, Post the Comments and click Close. Count of New, Removed and Modified terms and conditions is displayed in the T&C Analysis tile.
    Edit To modify the terms and conditions record, click Edit in the corresponding tile.
    Comment To capture comments for the terms and conditions analysis, click Comment in the corresponding tile.
    Next After performing qualitative analysis for both the party and its child parties, click Next in the Credit Evaluation page.
    The Comments page is displayed.

    Figure 5-20 Comments


    Description of Figure 5-20 follows
    Description of "Figure 5-20 Comments"

    For field level information on Comments screen refer the below table.

    Table 5-12 Comments

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

    Figure 5-21 Policy Exception


    Description of Figure 5-21 follows
    Description of "Figure 5-21 Policy Exception"

    By default, policy exceptions are displayed for both the party and its child party.

    For field level information on Policy Exception screen refer the below table.

    Table 5-13 Policy Exception

    Fields/ Icons Description
    Child party To view the policy exception detail specific to party or child party, select the party from the drop down list at top left corner.
    Checklist Click the Checklist data segment.

    Figure 5-22 Checklist


    Description of Figure 5-22 follows
    Description of "Figure 5-22 Checklist"

    For field level information on Checklist screen refer the below table.

    Table 5-14 Checklist

    Fields Description
    Outcome Select the Outcome as Proceed, if additional information is not required. Otherwise select the Outcome as Additional Info.
    Submit Click Submit.

    Note:

    For information on Write up data segment, refer Proposal Initiation Chapter.

Parent topic: Proposal Evaluation