Consortium and Multiple Banking: Risks Every Banker Should Be Aware Of

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Consortium Lending Explained: Control vs Coordination Challenges Vinu: Manu, what is the basic difference between consortium and multiple banking? Manu: In a consortium, banks lend jointly with shared information and a lead bank. In multiple banking, different banks lend independently without full c...

Why Sales Growth Alone Does Not Guarantee Business Success

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Sales Growth vs Profitability: The Reality Every Entrepreneur Must Know Vinu: Manu, my sales have grown from ₹25 lakh to ₹40 lakh this year. That means my business is doing well, right? Manu: Not necessarily, Vinu. Sales growth is good—but it doesn’t guarantee profitability or survival. Vinu: How is...

Variance Analysis: How to Identify and Control Budget Deviations

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Variance Analysis: How to Identify and Control Budget Deviations Vinu: Manu, budgets are prepared every year, but where does variance analysis fit in? Manu: Variance analysis is the control mechanism, Vinu. It compares budgeted vs actual performance and highlights where things are going off track. V...

How to Analyze GST Returns for Credit Monitoring

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GST Returns Analysis for Credit Monitoring: A Banker’s Practical Guide Vinu: Manu, a borrower recently submitted GST returns to support a working capital renewal. Honestly, I don't know where to start. How do you even read these things from a credit angle? Manu: Start with GSTR-3B and GSTR-1. GSTR-3...

Early Warning Signals (EWS)

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Early Warning Signals in Banking: Detect Stress Before NPA Vinu: Manu, before an account turns NPA, what are the first early warning signals bankers should watch? Manu: Account behaviour. Persistent overdrawings, irregular credits, and delayed EMI of even ₹2–3 lakh are the earliest signs of stress. ...