School: School Of Business Studies Batch :
Program: BBA_(B&F) Current Academic Year:2018-
19
Branch: Semester: VI
1 Course Code BBA_047
2 Course Title Credit Management
3 Credits 3
4 Contact 36 (3-0-0)
Hours
(L-T-P)
Course Type Compulsory /Elective/Open Elective
5 Course 1. To familiarize student with different types of loans given by banks.
Objective 2. To gain basics of Lending principles and policies of a bank
3. To understand nuances of Credit Management from pre sanction
stage to post sanction stage of a borrowal account by a bank
4. To develop competency for sound lending and monitoring so as to
ensure that the portfolio stays healthy and does not become Non
-Performing Asset.
6 Course CO1: The student will be able to recollect & reproduce basic concepts
Outcomes of credit management.
CO2: The student will be able to understand the need for policy
guidelines for taking sound lending decisions.
CO3: The student will be able to identify and choose the type of credit
facilities required by a borrower from the bank.
CO4: The student will be able to point out analytical tools to be used
for appraisal of loan proposals of MSME enterprises.
CO5: The student will be able to summarise the risks involved in loan
proposals and action needed to monitor health of credit portfolio.
7 Course This is a compulsory course for students undergoing specialization in
Description banking & finance.
Banks accept deposits, which are subject to withdrawal, for the purpose
of lending. Difference between interest earned on lending and interest
paid on deposits forms the core of revenue generation for a bank.
Lending is, thus an essential activity in a banking institution but it is
subject to risk of non recovery of interest as well as principle.
As such Credit Management forms an essential course for students.
8 Outline syllabus CO
Mapping
Unit 1 CREDIT MANAGEMENT – BASICs
A Introduction & Principles of sound lending (P 3-9) CO1, CO2
B Importance of Credit Policy for lending decisions (P 12- CO1, CO2
16)
C Types of borrowers & types of credit facilities (47-62, CO1, CO3
69-78)
Unit 2 TECHNIQUE & TOOLS OF CREDIT APPRAISAL
A Validation of proposal on factors like credit worthiness CO1, CO4
of borrower, purpose of loan, source of repayment (100-
107)
B Credit Risk Rating (basic Model for MSME only) , its CO4, CO5
objective and use of collaterals (118-129)
C Basic tools of appraisal- analysis of key financial CO1, CO4
parameters, key ratios & CIBIL rating (155-172)
Unit 3 APPRAISAL OF QUANTUM OF LOAN-Basic
A Concept of technical, marketing, management & CO1, CO4
financial appraisal. (206-220)
B Working Capital assessment- what is working capital/ CO1, CO4
operating cycle. (253-260)
C Assessing Working capital proposal of Micro & Small CO3, CO4
enterprises. ((260-264)
Unit 4 BASICS OF OTHER CREDIT FACILITIES
A Letter of Credit – Basics (333-336) CO1, CO3
B Letter of Guarantee-Basics ((350-354) CO1, CO3
C Export Credit – Basics (369-376) CO1, CO3
Unit 5 POST SANCTION MONITORING & CONTROL
A Objectives & need for post sanction monitoring. (500- CO1, CO5
502)
B Monitoring through periodic statements and monthly CO1, CO%
visits. (503-508)
C Concept of Non Performing Assets and their treatment CO1, CO5
for Income recognition and classification for
provisioning. (538-550)
Mode of Theory/Jury/Practical/Viva
examination
Weightage CA MTE ETE
Distribution 30% 20% 50%
Text book/s* CREDIT MANAGEMENT – IIBF & Mc’MILLAN
Publishers India Pvt Ltd (page nos indicated in bracket)
Other
References
POs PO1 PO2 PO3 PO4 PO5 PO6 PSO PSO2 PSO3
COs 1
CO1 1 2 1 1 3 3 3 2 1
CO2 2 1 1 3 3 1 2 1 1
CO3 1 1 1 3 3 2 3 2 1
CO4 1 2 2 1 3 1 2 3 1
CO5 2 2 3 3 3 1 2 3 3
1-Slight (Low) 2-Moderate (Medium) 3-Substantial (High)
