Syllabus for SBI Manager (Credit Analyst)

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.