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What are the 3 ratios a Banker first looks into ?

Asked by : Suryanarayan Murthy, Asst Vice President (Corporate Finance), A Hydro Power Project
Industry : Banking
Functional Area : Getting Started
Keywords : banker project finance project report ratio
Activity: Question posted: 02 12 2011 04:59:02 +0000, 6 answers, 264 views, last activity 02 14 2011 04:34:58 +0000
 
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This question is for the bankers and persons dealing with the Banks in their official capacity.

When you hand over the Business Plan to the banker, seeking Term Loan and Working Capital finance, what are the Three Ratios, he looks into first. Dont list out all of them. Only the first 3 he is interested in !!

 
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Well.... for me the most important will be :

1. Operational Ratios

2. CSR

3. SLR

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by   Anita Sawant, M & A Advisor, SBI Caps  | 02 12 2011 08:38:16 +0000
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6 Answers for "What are the 3 ratios a Banker first looks into ?"
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  Answered by     Ajay Monga, Partner in M/S RAKESH DHALL& ASSOCIATES (CHARTERED ACCOUNTANTS)  | 02 14 2011 04:34:58 +0000
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mainly three ratio

01.  DSCR

02. Debt equtiy

03. Currrent ratio

  Answered by     indrajit das, Sr.Manager, GSHL  | 02 13 2011 17:02:45 +0000
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1. NP ratio

2. Debt service coverage ratio

3 interest coverage ratio

  Answered by     Prasad kashinath Tidke, Financial Analyst, BVG pvt ltd pune  | 02 13 2011 05:47:09 +0000
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For term loan or working capital  purpose,

 

  • Current ratio to know the liquidity
  • G.P ratio to know the profit related with sales
  • Debt-equity ratio

  Answered by     Nilesh Gaykar, Equity Dealer, Anand Rathi  | 02 12 2011 16:30:23 +0000
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For Me

1)Cash ratio..(Liqudity Ratio)

2) NIM Ratio (Net Intrest Margin)

3)Debt Coverage Ratio..

Nilesh...

  Answered by     N. K. Avadhani, Freelancer  | 02 12 2011 13:12:11 +0000
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Debt-equity ratio

Debt Service Coverage Ratio for Term Loan

Current ratio for working capital.

 

N. K. Avadhani.

 

 
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