Abbreviation Full Form Meaning
ADR American Depository Receipts Negotiable Certificate issued by a U.S bank showing number of shares of foreign entity traded on U.S Exchange
CAGR Compound Annual Growth Rate Geometric Mean of growth rates for more than 1 year
EBITA Earnings Before Interest, Taxes, and Amortization Operating income of a business
EMI Equated Monthly Installments Fixed monthly payment made by a borrower
ECGC Export Credit Guarantee Corporation Government company providing export credit guarantee to Indian exporters
FOB Free on Board Assuming delivery without charge to ship (or rail wagon)
GAAP Generally Accepted Accounting Principles Commonly followed accounting rules & standards for financial reporting
GDR Global Depository Receipt Government company providing export credit guarantee to Indian exporters
LIBOR London Interbank Offered Rate Benchmark rate for world’s leading banks to charge each other for short term loans
LLC Limited Liability Company A corporate structure whereby members of a company cannot be personally liable for company’s debt and liabilities
GST Goods and Services Tax An indirect tax levied on most of goods and services sold for domestic consumption
NAV Net Asset Value Value of an entity’s assets less value of an entity’s liabilities
NPV Net Present Value Difference between present value of all cash inflows and present value of all cash outflows
IRR Internal Rate of Return A discount rate that makes net present value of all cash flows zero
POS Point of Sale A place where a retail transaction is carried out
ROA Return On Assets A percentage showing how profitable are company’s assets are, in generating revenue
ROI Return on Investment Percentage benefit to an investor resulting from an investment of some kind
USP Unique Selling Preposition A factor that differentiates a company from its competitors
LLC Limited Liability Company A firm’s total cost of capital
YTD Year Till Date A period extending to present from the start of the year
CPV Contact Point Verification Meeting loan borrower at residence, office, factory etc
TVR Televerification Phone call discussion with loan borrower
FOIR Fixed Obligation to Income Ratio A restriction that borrower’s fixed obligations including current EMI, to 50% of his/her monthly income
LTV Loan to Value A ratio showing how much mortgage you have in relation to how much your property is worth
TAT Turn Around Time Time taken to approve a loan or procedure to get completed
PD Personal Discussion A face to face discussion with the borrower
HRP High Risk Profile A profile showing high probability of risks like default, to which a lender is exposed to
NPA Non performing Assets A loan for which principal and/or interest payments have remained overdue for certain period
KYC Know Your Customer A period extending to present from the start of the year
SV Signature Verification A technique used to validate the identity of an individual
ECS Electronic Clearing System A mode by which amount in respect of any bill or installment to be paid, is automatically debited to your account
SI Standard Instructions Customer instructs his bank to debit his personal account by a specified amount on a specified day or date and credit any other account.
PDC Post Dated Cheques A cheque with a future date written on it by the user
PBT Profit Before Tax Profit that the company has before paying corporate taxes
DSA Direct Sales Agent An agent selling goods/services to consumers in person, without a retail or catalogue store
SME Small and Medium Sized enterprises Any enterprise that has an investment in plant and machinery ( for manufacturing or production) above 25 lakhs & upto 10 crores and investment in equipment (for services) above 2 crores but less than 5 crores
MSME Micro Small and Medium Enterprises Any enterprise that has an investment in plant and machinery ( for manufacturing or production) upto 25 lakhs and investment in equipment (for services) upto 10 lakhs is micro, any enterprise that has an investment in plant and machinery ( for manufacturing or production) above 25 lakhs & upto 5 crores and investment in equipment (for services) above 10 lakhs but less than 2 crores is small and any enterprise that has an investment in plant and machinery ( for manufacturing or production) above 5 crores & upto 10 crores and investment in equipment (for services) above 2 crores but less than 5 crore is medium enterprise.
MCLR Marginal Cost of Funds Based Lending Rate It is an internal benchmark rate for the bank to decide the minimum interest rate for the loans on the basis of the marginal cost or the additional cost of arranging an extra rupee