Finance Essentials

Capital market is a market for long-term debt and equity shares. In this market, the capital funds comprising of both equity, debt and hybrid instruments are issued and traded. Financial Instruments that are used for raising capital resources in the capital market are known as capital market instruments. The capital market includes private placement sources of debt and […]

Indian Financial System – Financial Institutions (Banks) Indian Financial System Financial Institutions – Types of Banks Type of Bank Description Examples Commercial Banks Provide retail and corporate banking services, including loans, deposits, and payment systems. State Bank of India (SBI), HDFC Bank, ICICI Bank Cooperative Banks Operate on a cooperative model, serving urban and rural

Indian Financial System Indian Financial System Financial Institutions Banking Non-banking Finance Investment Insurance Pension Fund IFSC Units Financial Markets Capital Market Money Market Financial Instruments Cash Instruments Derivative Instruments Financial Services Asset Based Fee Based Regulators Ministry of Finance Ministry of Corporate Affairs RBI SEBI IRDA PFRDA IFSCA Ministry of Corporate Affairs: The Ministry of

Meaning of Not-for-Profit Organisation There are certain organisations which are set up for providing service to its members and the public in general. Such organisations include clubs, charitable institutions, schools, religious organisations, trade unions,welfare societies and societies for the promotion of art and culture. These organisations have service as the main objective and not the

Credit Appraisal Overview Credit Appraisal Summary Objectives Understand credit appraisal, credit risk, and its components. Introduction Credit appraisal assesses borrower creditworthiness based on character, collateral, capacity, income, dependents, expenditure, and employment history. Credit Appraisal Critical evaluation to ensure safety, liquidity, and profitability. Aims to avoid NPAs by analyzing financials, business viability, and market prospects. Validation

To learn about: Different delivery channels Features of sole banking, consortium Credit acquisitons MODES OF DELIVERY The credit facilities can be arranged in one of the following methods:   Sole Banking Arrangements Multiple Banking Consortium Lending Syndication Sole Banking Arrangement This is a banking relationship where the entire credit needs of a borrowing unit are

Principles of Lending The process of lending money involves more than just giving funds and expecting them back with interest. For banks and financial institutions, lending must be done responsibly, securely, and profitably. This is where the time-tested Principles of Lending come into play. These principles serve as a guiding framework to ensure that loans

Journey of a Project – Developmental Phase Journey of a Project 1. Developmental Phase The developmental phase is the foundation of any infrastructure or large-scale project. It’s where the vision is born, plans are drawn, and risks are highest. No construction has begun, no revenue is generated, and yet, millions might already be invested in

Preparation of Financial Statements Preparation of Financial Statements Financial statements are official records that summarize a company’s business activities and financial performance. These include statements that reflect the profitability, liquidity, and solvency of a business. Primary Financial Statements Trading Account: Shows gross profit/loss by comparing sales and cost of goods sold. Profit & Loss Account:

Project Finance Explained Project Finance Definition: Project finance is a long-term financing structure used to fund large-scale infrastructure or industrial projects, where lenders primarily rely on the project’s future cash flows as the main source of repayment—rather than the sponsor’s balance sheet or existing assets. In Simple Words Project financing refers to the technique of