What is a multiple banking arrangement?
The multiple banking arrangements are similar to a consortium advance and loan syndication, wherein several lenders finance a single borrower. However, there are many structural and operational differences among them. In multiple banking arrangements, a borrower borrows simultaneously from more than one bank independent of each other. Each lending bank takes separate loan documents and…
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Principles of credit management
Credit management in simple words is the process of monitoring and collecting payments from the borrowers. A specialized credit management system eases the amount of capital tied up with debtors. The principles of credit management revolve mainly around the concepts of safety, Liquidity, Diversity, and Profitability. The banks all over the world examine following details…
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What are Funding Volatility Ratio and Market Liability Ratio?
The volatility ratio (VR) is a statistical metric that measures the price changes of a security or market index over a period of time. It’s a technical analysis tool that helps investors and traders. In banking parlance, volatile liabilities are ‘hot’ or ‘unstable’ funds that can disappear from bank’s balance sheet overnight. Demand deposits are…
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What are CASA deposits and Bulk deposits?
CASA stands for Current Account and Savings Account in banking parlance. Besides in India, the term CASA is popularly is used in West Asia and South-east Asia countries. The difference between the average yield of interest obtained from loans and the average rate of interest paid for deposits and other such funds (or the cost…
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What are Interest Capitalization and compounding frequency?
When borrowers unable to pay interest on time, it will add to principal amount of the borrower’s loan account at regular frequency. In the other words Capitalization frequency is the addition of unpaid interest to the principal balance of your loan. That means it is added to borrower’s Current Principal and interest will now be…
11th BPS: Discussions with IBA Joint Circular by AIBEA-NCBE-BEFI-INBEF-NOBW:
One more round of Bipartite Discussions was held between workman unions and IBA today at Mumbai. IBA was represented by Mr. Rakesh Sharma, (MD of IDBI Bank), Chairman of the Small Negotiating Committee, Mrs. Reeta Kaul, GM, PNB, Mr. S K Suri, GM, Allahabad Bank, Mr. B Rajkumar, Dy. Chief Executive, IBA, Mr. Sanjay Prakash…
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