Number crunchers can rise to top executive posts

Rahat Bano interviews Swati Agrawal, regional head, Credit Analysis and Research Ltd.

What do credit analysts do?

Credit analysis is one of the most enriching career options for a professional wanting to pursue a career in finance. The job requires sharp analytical skills and a keen interest to analyse financials and operational information pertaining to a company. It provides you an opportunity to take part in discussions with the top management of the client and conduct independent research to make an overall assessment of the credit profile of the client.

What are the growth prospects like in this profession?

If you have the right qualifications, the right attitude, ambition and proven capability, you can reach a top management position, like MD or CEO. As you go along, there are immense opportunities.

Credit analysts are widely sought after by banks, financial institutions, investment banks, private equity players, mutual fund houses, etc.

A typical credit analyst rises to the position of senior analyst wherein s/he spearheads the assignment. With more experience, the analyst moves up to the managerial level, handling teams of analysts and looking after certain industries/sectors. The right candidate can rise to top management level.

Can you pinpoint the right qualifications?

We look for MBAs in finance or CAs. Then, there are add-on qualifications, such as CFA (chartered financial analyst) and FRM (financial risk manager) that employees earn to get an edge in the job market.

What about plain graduates? There are job postings asking for graduates (BTech, BCom etc)...

Graduates, yes but we take them in the category of junior analysts or management trainees. They are required to assist the analysts.

Is it wise to opt for commerce with accounts at the plus two level and earn a BCom degree?

We can’t say BCom is better. You should have a natural inclination towards this kind of analysis. It’s a little specialised and requires dedication, hard work and a flair for analysis as well as the ability to understand businesses. Exposure to accountancy helps people perform but once students (with a non-commerce background) do their MBA, they catch up. Analysts with an engineering background also tend to perform well as they can appreciate the manufacturing process and have good quantitative and analytical skills.

Among rating agencies, banks and financial institutions, who pays the best?

Rating agencies may not be the best paymasters but they offer a superior job profile in terms of exposure to different industries, undertaking plant visits, holding management discussions and complete independence to write your analysis. We assign multiple industries to a credit analyst so that there’s no monotony. The analyst also gets an opportunity to acquire in-depth insight (read: specialisation) in a particular sector.
 
Author: HT Horizons

Date:18th Feb., 2010

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