Why IndianBankers?
Chartered Accountant(s) are expert in keeping Accounting Standards and are the first source of generating Financial Data. Bankers evaluate Financial Data and come to conclusion about Maximum Permissible Bank Finance which can be lent to the borrower. We have acumen to make not only to make Financial Data , but have the ability to assess it from the point of view of Bankers . We are supported by experienced Bankers retired from Indian Banking Industry.
We have a large pool of Chartered Accountants and Advocates who are available for comprehensive dispensation of expert guidance to Entrepreneurs. Our team is high powered and committed . Our services are at the beginning of a transformational shift in India and we intend to lead it.
What we are getting for IndianBankers Fees?
We provide professional services from one single platform after evaluating needs of entrepreneurs from financial, taxation and legal angles. Many times disputes faced by entreneurs are not because of their fault but on numerous occasions even banks have seen to be wrong in their contentions . Our consultancy help solve disputes by mere word of mouth by presenting the cogent arguments with the bankers. Our integrated and actionable advice tools give you actionable guidance, which we help you execute immediately.
How secure is my personal information and identity at IndianBankers?
We guarantee extreme confidentiality of data entrusted as we are committed to giving value to your money.
Is IndianBankers a regulated financial institution?
IndianBankers has highly capable ex-bankers whose experience has always been meritorious and many among our team are professional bankers who are MBAs and have attained CAIIB Degrees. Our goal is to grow as an institution.
How is IndianBankers' services different from others?
Today's market scenario is very demanding in terms of innovation . Entrepreneurs are pressed time and again to provide to their lending banks various types of financial data for keeping their line of credit continuing. Companies may have their in house staff for keeping accounts but compiling data needed by banks is always challenging. We with a minimum of charges are capable to provide life line to entrepreneurs so as to not only to keep their credit continued but keep it with better credit rating, as we being expert ex-bankers can provide insight in to keeping operating practices of companies crisp and healthy . Our experience of having lived with the industrial practices can help guide entrepreneurs to adopt best business models for improving profitability and help them in doing strategic management of their businesses.
How secure is my personal information?
We have Banking experts who have had CAIIB degrees , MBA degrees and many have served in banking industry at senior executives level positions as well. We have a team of Chartered Accountants , Advocates who come from fields maintaining high professional discipline and ethics. So our motto is to maintain strict confidentiality of your affairs and our aim is to make you grow.
Does IndianBankers help in working with Credit Rating Agencies ?
A bank loan rating conveys the credit risk that the Bank is undertaking by lending to the borrower. Every Fund Based Limit [ External Commercial Borrowings, Term Loans, Working Capital Loans, Buyers Credit, Cash Credit / Packing Credit, Overdraft, Bill Purchased / Discounted ] and Non-Fund Based Limits [ Bank Guarantee , Letter of Credit ] are Reviewed , Renewed every year and each Bank Rates Credit of their clients, as per their own Loan Policies . Banks give concessions in interest rates based on betterment in Credit Rating.
Moreover for Big Corporate Borrowers Reserve Bank of India (RBI) issued guidelines in 2007, according to which banks are mandated to be get their Credit Rating done from Eligible Credit Assessment Institutions (ECAI) such as : CRISIL , ICRA , CARE , ONICRA, FITCH , SMERA , Brickwork Rating . Rating process adopted by the above Rating Agencies involves : Pre-Rating Process , Rating Process, Post-Rating Process.
This Rating is done on tons of parameters and according to Rating Numbers, Banks charge their lending Rates over and above Bank(s) Base Rates . Our experts are capable to take load off the clients as we are well equipped in understanding the criteria used for Credit Rating by Lending Banks themselves or by external Credit Rating Agencies, and thus we help our clients in bettering their Credit Rating for making them qualified for being charged lesser Interest Rates. Our insight in to getting better Credit Rating would help in securing cheaper rates of Interest rates.
Banking Products and Processes
What are the Sectors in which Commercial Banks provide lending?
The prime objective of lending banks is the welfare of the society at large. Banks are life line for large industrial units . Apart from this RBI has delineated various activities which fall under Priority Sector. The five main categories of Priority Sector are : Agriculture , Micro and Small Enterprises, Micro Credit, Education Loans and Housing Loans. Indian Banks have target of 40% for achieving under Priority Sector lending, whereas , foreign banks have to achieve 32% of their lending under Priority Sector. There are further sub-targets for taking care of various enterprises. For Housing, education and other retail loans, various banks have certain specified schemes.
Do individual Banks have their own Loan Policies , and what are the Exposure Norms?
All Banks have an in-house loan policy document . Such loan policy documents contain the ceiling level, the standards of appraisal, the decision making powers at different levels of hierarchy, the documentation standards and the premise on which lending decision should be taken by credit officers. The exposure ceiling is linked to the capital funds of the banks. Exposure ceiling is 15% of capital funds in case of single borrower and 40% in the case of a borrower group. Exposure norms are higher in case of Infrastructure projects. Banks lay down prudent lending policies in respect of exposure to segments such as Real Estate, shares, stock brokers.
What are MSMEs?
Businesses that are declared as MSMEs , in India, which can enjoy fruit of having Business interest rate reduction and financial subsidy , are the enterprises that follow the following definition [ as per Section 7 of the Micro, Small and Medium Enterprises Development ( MSMED ) Act 2006 ] :
| Company Category | In case of enterprises engaged in manufacturing Investment in Plant and Machinery | In case of enterprises engaged in providing or rendering of services Investment in Plant and Machinery |
| Medium-sized | More than Rs5 Crores but less than 10 Crores | More than Rs10 Lakhs Rs2 Crores |
| Small | More than Rs25 Lakhs Rs5 Crores | More than Rs2 Crores but less than Rs5 Crores |
| Micro | < Rs25 Lakhs | < Rs10 Lakhs |
Practically speaking Micro enterprises are those where there are less than 10 employees, Small enterprises are those where there are less than 50 employees, Medium enterprises are those where there are less than 250 employees . It is because of this difficulty of attracting, engaging and retaining the right talent for such enterprises , such businesses continuously need to respond to shifting market needs by hiring our services for judging the required Banking Products, Financial Data , which are critical to success . Proper and apt guidance for Banking products that take the pain out of HR management are needed to empower both employees & future leaders. We have experience and expertise to provide products and services to help companies do just that. Ultimately, we are on a mission to improve the lives of millions of people , while helping our clients grow and succeed.
What are the Lending Rates of Banks?
Interest Rates of any bank are, mostly, linked to the 'Base Rate' of individual banks. Base Rate is the minimum rate of lending , below which banks are not allowed to lend , though there are certain exceptions in case of DRI advances, Loans to bank's own employees and loans to bank's depositors against their own deposits. Base Rate is subject to review by all banks at least once in a quarter but normal tendency is that these rate remain constant over a long period of time. Banks jack up their interest rates by adding 0% to as much as 5% above their Base Rate depending upon the Credit Rating profile of their customers. Beginning from 1 st April 2016 banks have been ordained to adopt to Marginal Cost of Fund Based Lending Rate ( MCLR ).
What is meant by MCLR and how it is different from Base Rate?
Effective from 1st April 2016, RBI has issued new guidelines , banks have to prepare Marginal Cost of Funds based Lending Rate ( MCLR ) which will be internal benchmark lending rates. Based upon this MCLR, interest rates for different types of customers should be fixed in accordance with their risk management. Banks have to revise their marginal cost on a monthly basis. The difference between Base Rate and MCLR is that Repo Rate changes effected by RBI are now being incorporated in to MCLR, earlier Repo Rate was explicitly considered under the Base Rate system.
What is the Lending Process of Banks?
Most of the Banks have their own schemes for the benefit of various small borrowers. After nationalization, commercial banks in India , especially the PSBs laid great stress on Priority Sector lending. Government of India took keen interest in evolving schemes for Small Scale Industry and other Village and Tiny Sector Industries.
From 2006 the Government of India through Small and Medium Enterprises Development ( MSMED ) Act defined the size of Micro, Small , and Medium Enterprises . Businesses that are declared as MSMEs and within specific sectors and criterias can then apply for "Priority Sector" lending to help with business expenses. Banks have annual targets set by Prime Minister's Task Force on MSMEs for year-on- year increases of lending to various categories of MSMEs. We, being a team of expert bankers are best equipped in guiding clients for coverage under such benevolent schemes.
What is Nayak Committee method of lending?
For SSI Lending Banks have adopted Nayak Committee Prescriptions - Turnover Method . The lending norms prescribe that the working capital limits provided by lending banks should be at a minimum level of 20% of the Projected Annual Turnover ( PAT ). This norm is applicable in case of all SSI units ( new as well as existing ) , Village and Tiny units with aggregate Fund Based Working Capital Credit Limit of Rs5 Crores and below from the banking system.
What are the CMA Forms and why they are necessary?
These are the Forms preferred by lending bankers . These contain : Details of borrower and the WC credit facilities, Operating Statement , assets and Liabilities , Holding period of Current Assets and also Trade Creditors, Computation of MPBF ( Maximum Permissible Bank Finance ), Funds Flow Statement. These forms have been made optional by RBI , the forms continue to be relevant and are being used by a large number of banks for the purpose of analysis.
What are QIS Statements and why they are necessary?
Banks Review Term Loans and Renew Working Capital Limits every financial year. After Disbursal of Limits , Banks require timely submission of Quarterly Information System , viz., QIS - I, QIS -II , QIS - IIIA, QIS - IIIB . Linkage of Financial Data of CMA with QIS - I, QIS -II , QIS - IIIA, QIS - IIIB Statements is known astutely to Bankers , thus our role is desirable for effective and efficient handling of Financial Data for our clients.
Does IndianBankers support in Foreign Exchange Matters?
Types of Letters of Credit, documents under letter of credit, stages of a letter of credit transaction , relationship between the various parties involved, using letter of credit in import transactions and export transactions, appraising a proposal for opening of an LC, cash budget as a tool of for appraising LC limits, onerous clauses of letters of credit, are the important fields of operation in matters of Foreign Exchange . We have experience and expertise in handling all such matters, and above all, knowledge of INCOTERMS are some of the important factors which distinguishes IndianBankers from others in the field.
Project Financing
What is a Project Report?
Financial experts carry forward the entrepreneurs' dream by making a Financial Report by documenting the Project & the Promoters. Beginning from Technology involved , inputs of : Raw Material, Selling and Distribution, Manufacturing Process , Financial Experts explain in detail the Economics of the Scheme which in turn incorporates economics of operation. The viability of the project is determined through PV, NPV, and IRR . The project is viable when IRR is far more than WACOC.
Is there 'Cost of Capital'?
A Company's assets are financed by Debt and / or Equity. Weighted Average Cost of Capital ( WACOC ) is the weighted average of the cost of debt and equity. Yes, there is Cost of Equity which in turn depends on Risk Free Rate, Market Risk Premium, Equity Beta, and Size Premium.
Is there relationship between IRR and WACOC?
Volume of Financing is a determining factor in computation of IRR. As against this , the determining factor for computation of WACOC is the cost of funds. Team of IndianBankers is capable to draw distinction between IRR and WACOC .
Is there Risk Appraisal In Project Financing?
Lenders may not agree to privide funds to a project unless they are convinced that that it will be viable going concern. Viability of a project is tested by putting the relevant factors in the financial analysis under stress and by studying the bottomlines of the project under such situations. Stress Testing ( sensitivity analysis ) by observing resulting changes in cash generation, operating profit, DSCR or the IRR of the project is done under the guidance of financial experts of IndianBankers. Another way to to asses Cushion ( or Margin of Safety ) is calculated by finding the difference between IRR and WACOC. Higher the cushion, better is the degree of acceptability of the project as a lending proposition.
All other forms of risk i.e. completion risk, technological nrisk, economic risk, force majeure risk, interest rate risk, currency risk, political risk etc. are assessed in consultation with the entrepreneurs , and hedged accordingly.
What is the role of IndianBankers in Project Financing?
We make compact Project Report complete with all financial data required by bankers . For example, if a corporate needs LC limits along with Cash Credit Limit then our team of experts knowing fully well how Bankers assess Working Capital Limits along with LC Limits, build comprehensive data initially itself so as to avoid loss of time. We facilitate understanding of financial data from lending bankers perspective. However, IndianBankers does not indulge in brokering for procurement of loans.
Taxation
Lower Taxes
We'll show you how your actions impact your taxes, and even help you take advantage of advanced tax strategies.
We have a team of Chartered Accountants led by one who has post qualification experience of over 36 years in the field of Taxation, Corporate Laws and Finance. He is regularly appearing before Appellate authorities like Commissioner of Income Tax (Appeals) and Income Tax Appellate Tribunal. He has great analytical and representation skills. He is a regular participant and speaker in Seminars and Conferences conducted by various Professional Bodies and Associations. He is presently member National Executive Committee of All India Federation of Tax Practitioners and was Vice Chairman of its North Zone for the term 2014 - 2015. He is also a member of the Executive Committee of the Income Tax Appellate Tribunal Bar Association, New Delhi and was Convenor of its Study Circle. He has been Chairman of Delhi Chapter of The Chamber of Tax Consultants (CITC). He has been a Special Invitee to the meetings of the Fiscal Laws & Direct Taxes Committees of the ICAI. He has been a member of the Executive Committees of International Fiscal Association – North Zone. He has also actively participated in meetings of FICCI, Assocham, Indian Merchants Chamber (IMC) and PHD Chamber of Commerce & Industry.
Dispute Resolution Mechanism
Not all borrowers are Wilful Defaulters. There can always be genuine reasons for delay or non payment of bank dues. There is always a need to save innocent persons/defaulting firms from undue harassment/ disastrous effects of wrong/ unjustified sale of assets etc. There is also a need to save the properties of some innocent persons who are bonafide purchasers for value and have neither been borrower/guarantoror mortgagor, but are sometimes proceeded under SRFAESI ACT for sale of their properties. Sometimes, banks wrongfully declare borrowers who have missed to pay some EMIs due to genuine business or other problems, as WILFUL DEFULTERS. In all such cases, there is a need for resolution of the problems within the framework of law, to avoid or reduce the hardships to the bare minimum.
Day by day, the Laws for Recovery of Bank loans are being made more stringent. RDDBFI Act provides for disposal of Recovery Suits within 180 days. SRFAESI Act has given powers to the Secured Lenders to take possession of & to sell the securities, without intervention of the courts, by just giving a notice for 60 days.
We extend legal & financial/ banking related guidance & support within legal framework/RBI guidelines, through our panel of retired senior bankers and seasoned advocates .