Analyzing and Underwriting Corporate Credit in India

A commercial bank acts as a financial intermediary, balancing deposits and loans, with lending being central to its operations and profit. Unlike personal credit, corporate credit requires a thorough, individual assessment of the borrowing entity due to complex risk factors. This course provides a structured framework for corporate credit analysis, emphasizing key aspects relevant to the Indian market, such as secured lending and MSME credit. It addresses the critical need for robust credit analysis to prevent significant losses, highlighted by notable failures like the Nirav Modi Scandal and Yes Bank. This course is designed for new entrants in the finance industry, including junior credit analysts, relationship managers, and credit controllers. These professionals are often at the beginning of their careers or have recently transitioned into roles involving corporate credit assessment. Participants should have a basic understanding of financial statements, including how they are structured and the fundamental components they contain. This foundational knowledge is necessary to grasp the more advanced concepts of credit analysis that will be covered in the course, such as financial ratio analysis and the construction of credit assessment frameworks. By the end of this course, learners will be equipped to develop a comprehensive framework for effective corporate credit analysis, integrating critical aspects such as business, financial, and structural risk. They will be able to simplify the credit analysis process specifically for Micro, Small, and Medium Enterprises (MSMEs) by employing targeted tools and techniques to overcome challenges related to limited information. Additionally, learners will gain proficiency in measuring financial risk through ratio analysis, allowing them to accurately interpret key financial ratios and assess a company’s overall financial health and performance.