e Ratio):** High-quality liquid assets / Net cash outflows over 30 days ≥ 100%
•NSFR (Net Stable Funding Ratio): Available stable funding / Required stable funding ≥ 100%
Priority Sector Lending (PSL)
Banks must direct 40% of Adjusted Net Bank Credit (ANBC) to priority sectors:
•Agriculture: 18% (8% small/marginal farmers)
•Micro/Small Enterprises: 7.5%
•Weaker sections: 12%
•Education loans, housing, renewable energy, social infrastructure
Credit Analysis — How Banks Evaluate Loans
5 Cs of Credit:
1.Character: Borrower's track record, reputation (CIBIL score 750+ preferred)
2.Capacity: Ability to repay — DSCR (Debt Service Coverage Ratio) ≥ 1.25x
3.Capital: Borrower's own stake in the project — typically 25–30% margin
4.Collateral: Security offered — primary (hypothecation of assets) + collateral
5.Conditions: Economic environment, industry health, purpose of loan
Key financial ratios banks check:
•DSCR = Net Operating Income / Total Debt Service ≥ 1.25x
•Current Ratio = Current Assets / Current Liabilities ≥ 1.33x
•Debt-Equity Ratio ≤ 2:1 (project finance) or 3:1 (working capital)
•Net Profit Margin, EBITDA margin trends
NPA Management
NPA (Non-Performing Asset): Loan where interest/principal overdue > 90 days
Classification:
•Sub-standard: NPA for up to 12 months
•Doubtful: Sub-standard for more than 12 months (Doubtful 1/2/3)
•Loss assets: NPA written off or unrecoverable
Provisioning requirements:
|----------|---------------|
| Standard | 0.25–1% |
|---|
| Sub-standard | 15% |
| Doubtful — secured | 25–100% |
| Doubtful — unsecured | 100% |
| Loss | 100% |
Recovery mechanisms:
•SARFAESI Act 2002: Banks can take possession and sell mortgaged assets without court order (commercial loans > ₹1 lakh, secured)
•DRT (Debt Recovery Tribunal): For loans > ₹20 lakh
•IBC 2016: Insolvency resolution for corporate borrowers at NCLT
•One-Time Settlement (OTS): Negotiated settlement with haircut
•Asset Reconstruction Companies (ARCs): Buy NPAs from banks at discount
RBI Exam Preparation (Grade B)
Phase I (Online): General Awareness (50), English (30), Quantitative Aptitude (30), Reasoning (60) — total 170 marks, 2 hours
Phase II (Online + Descriptive):
•Paper I: Economic & Social Issues — 100 marks, 90 min
•Paper II: English (Writing skills) — 100 marks, 90 min
•Paper III: Finance & Management — 100 marks, 90 min
Key topics for ESI paper: RBI monetary policy, banking regulation, government schemes (PM Jan Dhan, MUDRA, PMJJBY), inclusive finance, fintech regulation, inflation targeting.
Salary: RBI Grade B officer — ₹1,08,000–₹1,36,000/month (all-in, 2024)
