Abstract

Nirmal Kumar, a bank manager in a new age private sector bank in India, has been approached by a transport operator named Sajjan Singh for a loan. Nirmal has collected and reviewed all the relevant information. Now he has to calculate the debt service coverage ratio (DSCR) and, taking into consideration the various bits of information available to him, take a decision on whether to extend the loan to Sajjan.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Lending decisions – How they are taken at the branch/unit level. The various issues and factors (such as security offered, repayment period, etc.) to be considered in making a lending decision. The various factors to be considered in a prospective borrowe

Keywords

Lending decision, DSCR, security offered, repayment period, Age, Constitution, Education, Family background, due diligence