NaBFID Analyst / Officer flashcards
NaBFID Analyst / Officer · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- DSCR
- Debt Service Coverage Ratio equals cash available for debt service divided by scheduled interest plus principal in the same period. Lenders typically require 1.20x to 1.50x for infrastructure term loans.
- Takeout finance
- A commitment by a financial institution to purchase a defined portion of another lender's loan after a moratorium period, extending effective tenor and releasing bank capital for fresh lending.
- Credit enhancement
- A partial guarantee, letter of comfort, or similar support that improves a borrower's credit rating, lowering borrowing cost. The provider earns a fee and carries a contingent liability.
- Expected loss formula
- Expected loss equals Probability of Default multiplied by Loss Given Default multiplied by Exposure at Default. It estimates long-run average credit losses and feeds pricing and provisioning.
- Weighted average cost of capital
- WACC equals equity weight times cost of equity plus debt weight times post-tax cost of debt. A project creates value only when its internal rate of return exceeds WACC.
- Net present value
- NPV discounts all project cash flows at the hurdle rate and subtracts the initial outlay. A positive NPV indicates the project adds value at that discount rate.
- Internal rate of return
- The discount rate at which a project's net present value equals zero. Comparing IRR with WACC or a hurdle rate determines financial viability.
- Cash flow waterfall
- A contractual ordering of project cash flows: operating costs, debt service reserve, senior debt service, subordinated debt, then equity distributions. Each tier is tested for coverage separately.
- Debt service reserve account
- An escrow funded at financial close or from cash flow, typically holding one to two quarters of debt service, used to meet repayments during temporary shortfalls.
- Non-recourse financing
- Project finance where lender recourse is limited to project assets and cash flows, not sponsor balance sheets. Mitigants include completion guarantees and reserve accounts.
- Sensitivity analysis
- Re-running project financials under adverse changes to tariff, demand, capex, interest rate, or delay, then confirming DSCR remains above covenant thresholds.
- Concentration risk limits
- Caps on exposure to a single borrower, group, or sector relative to capital or loan book, preventing correlated losses from one economic shock.
- Asset-liability mismatch
- The gap between repricing or maturity dates of assets and liabilities. DFIs funding long-tenor loans with shorter bonds face refinancing and rollover risk.
- Duration gap
- The difference between the duration of assets and liabilities, scaled by liabilities, measuring sensitivity of net worth to interest rate changes.
- NPA classification
- A loan becomes non-performing when interest or principal is overdue more than 90 days. It is then classed substandard, doubtful, or loss, with corresponding provisioning.
- NaBFID Act 2021
- The statute establishing the National Bank for Financing Infrastructure and Development as a development financial institution, empowering it to lend, refinance, and provide credit enhancement for infrastructure.
- All India Financial Institution
- A category of institution regulated by RBI under the RBI Act, subject to prudential norms on capital adequacy, income recognition, provisioning, and exposure limits.
- Know Your Customer
- Mandatory customer due diligence under the Prevention of Money Laundering Act, covering identity verification, beneficial ownership identification, ongoing monitoring, and suspicious transaction reporting.
- External commercial borrowing
- Foreign currency borrowing by Indian entities governed by FEMA and RBI guidelines, subject to all-in-cost ceilings, end-use restrictions, and reporting requirements.
- Harmonised Master List
- A Government notification listing infrastructure sub-sectors eligible for long-tenor infrastructure lending and associated regulatory or tax concessions.
- Tripartite agreement
- An agreement among the lender, the borrower, and the Government or promoter that secures priority over project cash flows and grants step-in rights.
- Project appraisal pillars
- Standard appraisal covers promoter track record, technical feasibility, market and offtake, financial viability, legal clearances, and environmental and social safeguards.
- Business process model
- A BPMN swimlane diagram showing activities, decisions, and handoffs across roles. As-is and to-be versions expose bottlenecks and control gaps.
- MoSCoW prioritisation
- A scoping technique classifying requirements as Must have, Should have, Could have, or Won't have, used when schedule is fixed and scope must flex.
- User story format
- A requirement written as 'As a role, I want a feature, so that benefit', paired with acceptance criteria in Given-When-Then form for testability.
- RACI matrix
- A responsibility assignment chart marking each activity as Responsible, Accountable, Consulted, or Informed, with exactly one accountable owner per activity.
- Power-interest grid
- A stakeholder mapping tool dividing stakeholders by influence and interest into manage closely, keep satisfied, keep informed, and monitor quadrants.
- Loan management system
- The core application recording sanctions, disbursements, interest accrual, and repayments. It is the system of record and must reconcile to the general ledger.
- Data warehouse versus lake
- A warehouse stores structured, schema-on-write data for reporting; a lake stores raw structured and unstructured data with schema applied at read time.
- Recovery time objective
- The maximum acceptable downtime after a disruption before a system must be restored. Paired with recovery point objective, it sets backup and disaster recovery design.
- Data quality dimensions
- Completeness, accuracy, consistency, timeliness, validity, and uniqueness. Each dimension needs a data owner and an automated monitoring rule.
- Digital Personal Data Protection Act
- India's 2023 data protection law imposing purpose limitation, consent, data minimisation, and breach notification obligations on entities processing personal data.