The 4 numbers PSU credit committees actually look at

A PSU credit committee meets for 3-5 hours and clears 8-15 cases. That gives each case roughly 20 minutes of senior attention. Twenty minutes is not enough to read a 90-page DPR. So they don't. They look at four numbers, ask three questions, and decide.

If your DPR makes those four numbers easy to find, defendable, and consistent across the executive summary, the financial projections, and the proposal note — you're sanctioned. If any of the four wobbles, you're returned.

1. DSCR (Debt Service Coverage Ratio)

The lender wants to see ≥ 1.5 in Year 1, ≥ 1.75 average across the loan tenor. But the headline number isn't what they actually care about — it's how it behaves under stress. A 1.85 DSCR that drops to 1.10 at -15% revenue is a 1.10 DSCR. A 1.55 DSCR that holds at 1.40 under the same stress is far stronger. Always show three columns: base case, downside, severe downside.

2. Promoter contribution as % of project cost

For most term loans the floor is 25% promoter contribution; some PSU schemes accept 20% with collateral cover. Below that, the file doesn't move regardless of how good the project is. Above 35%, the credit committee starts asking "why does the promoter need a bank then?" — which is fine, you just need a clean answer. Common good answers: working capital cycle, leverage for tax efficiency, scheme structuring, parallel projects.

3. Collateral cover

Primary security (the project assets) is rarely enough. Most term loans need 1.25× to 1.5× collateral cover from secondary security — typically property, plant collateral from another asset, or personal guarantees with verifiable net-worth. The credit officer reads the security like a recovery officer would read it: what would it fetch in a distress sale at a 35% haircut? If that number doesn't cover the loan, the file is exposed.

4. Promoter's existing banking conduct

CIBIL is just the start. The credit officer pulls the existing accounts: are TODs (temporary overdrafts) frequent? Cheque returns? Late EMIs? GST filing punctuality? A clean 24-month banking history materially de-risks the file. A messy one — even with a great project — adds layers of conditions. Address conduct issues upfront in the proposal note rather than letting the credit officer discover them.

The three questions that follow

Once those four numbers check out, the committee asks three questions: What's the worst-case recovery scenario (collateral cover answers most of this). Has the promoter executed at this scale before (track record). Does this fit our portfolio appetite (sector concentration). Have the answers ready in the first three pages.