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Credit Risk Management Policy Part 3

21. Which of the following is not excluded from CRR?
a) Staff Loans
b) Consumer Loans
c) Fully secured Advances
d) NPAs

22. All the existing and entry level borrowers ________ are eligible for the CRR.
a) Having Exposure above 50 lakh
b) Having Exposure above 10 lakh
c) Having Exposure above 2 lakh
d) Irrespective of Exposure

23. Credit Risk Rating shall be under taken at least ________ in a year for exposures up to Rs. 500.00 lakh and __________ a year for exposure above Rs. 500.00 lakh.
a) Once; Thrice
b) Twice; Thrice
c) Once; Twice
d) Once; Once

24. Total number of Retail Models available in CRR is:
a) 3
b) 4
c) 5
d) 1

25. If the borrower is assigned “AA” rating, then risk perception is:
a) Medium Risk
b) Average Risk
c) Low Risk
d) High Risk

26. If the assessment score of a borrower comes to be 78, then borrower will be assigned:
a) AAA rating
b) AA rating
c) A rating
d) BBB rating

27. Staff and Fully secured loans are assign rating by default as:
a) AAA
b) AA
c) A
d) BBB
e) No rating to be assign

28. In respect of borrowers with credit risk rating of BB, B and C, the credit risk rating shall continue to be ________ a year, irrespective of amount of exposure.
a) Once
b) Twice
c) Thrice
d) None of the above

29. As per Rating Override, overall rating of the borrower to be assigned as ‘HIGH RISK’ if:
a) Any two Risk Components are rated as BBB and Inferior.
b) Financial Risk or Business Risk is rated as BB or inferior.
c) Both a) and b) above
d) None of the above

30. The sanctioning authority may stipulate condition of charging penal interest @ ___ to all borrowers failing to obtain external credit rating within the stipulated time frame of 6 to 9 months from the latest date of sanction/review.
a) 0.50%
b) 1.00%
c) 1.50%
d) 2.00%

Other Links
Credit Risk Management Policy Part 1
Credit Risk Management Policy Part 2
Credit Risk Management Policy Part 4
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