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      Question

      A borrower has good past track record, moderate

      leverage, but current industry is in cyclical downturn and cash flows are under stress for next 12 months. What is the best credit strategy?
      A Stop all disbursements Correct Answer Incorrect Answer
      B Recall the limits Correct Answer Incorrect Answer
      C Enhance limits aggressively Correct Answer Incorrect Answer
      D Continue support with close monitoring Correct Answer Incorrect Answer
      E Classify as NPA Correct Answer Incorrect Answer

      Solution

      Temporary cyclical stress + good history β†’ support with tight monitoring

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