Admin · Credit policy
Ratio and policy configurator
The ratios Continental Commercial Bank underwrites on, the thresholds that classify them, and the CCB-1 to CCB-8 grid. Change a number here and every appraisal's spread and rating follows — no code, no release.
Published policy
v6.2 · recalibrated 18 April 2026 · Credit Risk Policy
Draft
No unpublished changes
Applies to
142 live exposures · West Region
Watch band
CCB-4 and CCB-5
Underwritten ratio set
7 ratios · acceptable, marginal and adverse bands
| Ratio | Test | Acceptable | Marginal to | Adverse beyond | Northwind FY2025 | |
|---|---|---|---|---|---|---|
Current ratio Current assets ÷ Current liabilities All working-capital exposures Board floor 1.10x — cannot be set lower | Minimum | x | x | Below 1.10x | 1.28xAcceptable | |
TOL / TNW Total outside liabilities ÷ Tangible net worth All fund-based exposures above INR 5 cr | Maximum | x | x | Above 3.75x | 2.34xAcceptable | |
DSCR (PAT + depreciation + interest on term debt) ÷ (interest + principal repayments) Term exposures and any borrower with instalment obligations Hard floor 1.25x — sanction blocked below this | Minimum | x | x | Below 1.25x | 1.44xMarginal | |
Interest coverage EBIT ÷ Interest and finance charges All exposures | Minimum | x | x | Below 1.75x | 3.18xAcceptable | |
Buyer concentration Largest customer's share of gross sales Manufacturing and trading exposures | Maximum | % | % | Above 45.0% | 38.4%Marginal | |
Debt / equity Total debt ÷ Tangible net worth All fund-based exposures | Maximum | x | x | Above 2.50x | 1.12xAcceptable | |
Working-capital cycle Inventory days + receivable days − payable days Auto components and engineering goods | Maximum | days | days | Above 95 days | 82 daysMarginal |
Risk-rating grid
CCB-1 to CCB-8, the score bands behind them, and which grades sit in the watch band.
| Grade | Description | Band | Score from | to | Watch | Delegation |
|---|---|---|---|---|---|---|
| CCB-1 | Highest safety | Prime | Delegated to Credit Manager up to INR 25 cr. | |||
| CCB-2 | High safety | Prime | Delegated to Credit Manager up to INR 15 cr.1 on the book: Aurora | |||
| CCB-3 | Adequate safety | Standard | Regional committee for exposures above INR 10 cr.3 on the book: Sundaram, Kaveri, Deccan | |||
| CCB-4 | Watch | Standard | Regional committee mandatory; quarterly review; covenant monitoring.2 on the book: Northwind, Konkan | |||
| CCB-5 | Moderate risk | Watch | Regional committee mandatory; no enhancement without Chief Credit Officer concurrence.2 on the book: Vidarbha, Godavari | |||
| CCB-6 | High risk | Watch | Head office committee; exit or restructure plan required. | |||
| CCB-7 | Substantial risk | Sub-standard | Head office committee; account moved to the stressed-assets desk. | |||
| CCB-8 | Default or imminent default | Sub-standard | Recovery. No fresh exposure. |
Preview — Northwind Manufacturing Ltd
The seeded FY2025 spread run through the draft policy, so a change is felt before it is published.
4
Acceptable
3
Marginal
0
Adverse
- Acceptable
Current ratio
1.28x against min 1.20x
- Acceptable
TOL / TNW
2.34x against max 3.00x
- Marginal
DSCR
1.44x against min 1.50x
- Acceptable
Interest coverage
3.18x against min 2.50x
- Marginal
Buyer concentration
38.4% against max 35.0%
- Acceptable
Debt / equity
1.12x against max 2.00x
- Marginal
Working-capital cycle
82 days against max 75 days
Impact across the book
0 classification changes across 8 seeded borrowers
- No borrower on the seeded book changes classification under the draft. Move a threshold and this list fills as you type.
Ask the copilot
"Show me which current borrowers this threshold change would reclassify" — the copilot back-tests the draft against the book and names each borrower, its analyst and the band it moves to.
Published policy flows into every appraisal's spread and rating grid.