Final Project

A Study on Credit Appraisal Process in SME Sector with Respect to Axis Bank
CONTENTS
Page No.
1. 2. 3. 4. 5. 6. 7. 8. 9.
Introduction Objective of the study Scope of Study Hypothesis of the study Research Methodology Company Profile Theoretical Background Data Analysis and Interpretation Finding
2 5 7 9 11 13 15 29 35 37 39 41 43
10. Limitation 11. Suggestion 12. Conclusion 13. Bibliography
N.M.D. College, Gondia, 2013-14
A Study on Credit Appraisal Process in SME Sector of Axis Bank
INTRODUCTION
Credit appraisal means a investigation/assessment done by the bank prior before providing any loans and advances/project finance of the project proposed its funding pattern and collateral security cover available for recovery of such funds. The small and medium enterprise today constitute a very important segment of the India economy. These SME units are now being funded by many government and private banks. The SME sector is one of the greatest contributors of domestic production as well as the export earnings. Many major mergers have taken place recently. The development of this sector came about primarily due to the vision of our late prime minister Jawaharlal Nehru who sought to develop core industry and have a supporting sector in the form of smell scale
enterprises. SME sector has emerged as a dynamic and vibrant sector of the economic small and medium enterprises t' SME s) constitute 6% of GDP, 34% of national exports and account the employment of more than 30million people. Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process.
Currently, India has 96 scheduled commercial banks(SCBs) - 27 public sector banks (that is with the Government of India holding a stake), 31 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a combined network of over 53,000 branches and 49,000 ATMs. According to a report by ICRA (Investment Information and Credit Rating Agency of India Limited) a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.
The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below:
Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.
OBJECTIVES
To study the importance of credit appraisal. To determine the method of credit appraisal in SME sector. To study impact of credit appraisal done in SME sector. To provide guidelines to the branches to dispense credit to SME sector.
SCOPE OF STUDY
Broad guidelines on lending to SME sector. SME loan factory model. Training needs. Reporting and monitoring system
HYPOTHESIS
The credit appraisal done in SME sector in axis bank facilitates the management: of credit. The credit appraisal of SMEs leads to the smooth management financial resources.
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RESERCH METHODOLOGY
The main objective of research paper is to study the credit risk assessment model of SBI Bank and total the commercial, financial and technical viability of the project proposed its funding paten.
RESEARCH DESIGN: A research design is the arrangement of the condition for collection and analysis of data. Actually it is the blueprint of the research project.
Research design used will be exploratory type.
DATA COLLECTION Primary data: It will be collected through Informal interviews with Branch Manager and other staff members at Axis bank. Secondary data:
It will be collected from Business Newspapers, magazines, internal reports of Axis bank, books, Journal and websites.
Case Study: To understand how credit appraisal is done, I will be taking cases study of Dynamic Products. Ltd. which is in manufacturing of Food color product.
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COMPANY PROFILE
Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd.
The Bank's Registered Office is at Ahmadabad and its Central Office is located at Mumbai. The Bank has a very wide network of more than 1281 branches and Extension Counters (as on 31sty March 2011). The Bank has a network of over 7591 ATMs (as on 30th September 2011) providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country.
The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence.
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Theoretical background
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Theoretical background
Small and Medium Enterprises or SMEs are vital for the growth and well being of the country. This sector was recognized and given importance right from independence and is being encouraged ever since then.
Though, it commenced on a small scale, it gradually gained significance, because it employed a considerable number of people.
When it started gaining momentum, this sector was defined as an enterprise with investment in plant and machinery of up to Rs 1 laky and situated in towns and villages with strength of less than 50,000 people. The policy statement put in place special legislation to recognize and protect self employed people in cottage and home industries. District industries canters
INTRODUCTION TO SME In the Indian context, the small and medium enterprises (SME) sector is broadly a Term used for small scale industrial (SSI) units and medium-scale industrial units. Any industrial unit with a total investment in its fixed assets or leased assets or hire-purchase asset of upto Rs 10 million, can be considered as an SSI unit and any investment of upto Rs 100 million can be termed as a medium unit. An SSI unit should neither be a subsidiary of any other industrial unit nor be owned or controlled by any other industrial unit.
An SME is known by different ways across the world. In India, a standard definition surfaced only in October 2, 2006, when the Ministry of Micro, Small and Medium Enterprises, Government of India, imposed the Micro, Small and Medium enterprises Development (MSMED) Act,2006.
This definition, however was changed according to the changing economic scenario and thus has separate definitions to it. For instance, an SME definition for manufacturing enterprises is different from what an SME definition for service enterprises has to say.
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DEFINATION OF SME SMEs are the engine of growth of any country s economy . They are an essential source of a country s jobs, create entrepreneurial spirit and jobs in a country and are crucial for fostering competitiveness and employment . According to the Micro, small and Medium Enterprises Development (MSME) are classified as: 1 . Manufacturing Enterprises: The enterprises engaged in the manufacturing or
production of goods pertaining to any industry
specified in the first schedule to the
industry ( Development and regulation Act ,1951) The Manufacturing Enterprises are defind in terms of investment in piant and machinarey
2.
Service Enterprises : The enterprises engaged in providing or rendering of service
and are defind in terms of investment in equipment .
Manufacturing Sector Enterprises Micro Small Medium Investment in plant and machinery Less than Rs. 25 lakhs Over Rs. 25 lakhs but not exceeding Rs. 5 crores Over Rs. 5 crores but less then Rs. 10 crores
Service Sector Enterprises Micro Small Medium Investment in equipment less than Rs 10 lakhs over Rs 10 lakh but not exceeding Rs 2 crores over Rs 2 crore but not exceeding Rs 2 crores
DESCRIPTION OF SME IN THE MANUFACTURING SECTOR The Term enterprise in the manufacturing context stands for an industrial undertaking or a business concern involved in the production, processing or preservation of goods for the list of eligible industries in the First Schedule to the Industries (Development and Regulation Act), 1951. For the Manufacturing Sector, the MSMED Act 2006 defines micro, small and medium enterprises (MSMEs) as mentioned below:
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A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs 25 lakh.
The investment in plant and machinery in a small enterprise is more than Rs 25 lakh, but does not exceed Rs 5 crore.
A medium enterprise is one where the investment in plant and machinery is more than Rs 5 crore, but does not exceed Rs 10 crore.
In all these, the cost excludes that of land, building and the items specified by the Ministry of Small Scale Industries with its notification No SO 1722 (E) dated October 5, 2006.
OVERVIEW OF CREDIT APPRAISAL Credit appraisal means an investigation/assessment done by the banks before providing any Loans & advances/project finance & also checks the commercial, financial & technical viability of the project proposed, its funding pattern & further checks the primary & collateral security cover available for recovery of such funds.
BRIEF OVERVIEW OF CREDIT Credit Appraisal is a process to ascertain the risks associated with the extension of the credit facility. It is generally carried by the financial institutions, which are involved in providing financial funding to its customers. Credit risk is a risk related to non-repayment of the credit obtained by the customer of a bank. Thus it is necessary to appraise the credibility of the customer in order to mitigate the credit risk. Proper evaluation of the customer is performed this measures the financial condition and the ability of the customer to repay back the Loan in future. Generally the credits facilities are extended against the security know as collateral. But even though the Loans are backed by the collateral, banks are normally interested in the actual Loan amount to be repaid along with the interest. Thus, the customer's cash flows are ascertained to ensure the timely payment of principal and the interest.
It is the process of appraising the credit worthiness of a Loan applicant. Factors like age, income, number of dependents, nature of employment, continuity of employment, repayment capacity, previous Loans, credit cards, etc. are taken into account while appraising the credit
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worthiness of a person. Every bank or lending institution has its own panel of officials for this purpose. However the 3 C of credit are crucial & relevant to all borrowers/ lending, which must be kept in mind, at all times.
Character Capacity Collateral
If any one of these are missing in the equation then the lending officer must question the viability of credit. There is no guarantee to ensure a Loan does not run into problems; however if proper credit evaluation techniques and monitoring are implemented then naturally the Loan loss probability / problems will be minimized, which should be the objective of every lending Officer. Credit is the provision of resources (such as granting a Loan) by one party to another party where that second party does not reimburse the first party immediately, thereby generating a debt, and instead arranges either to repay or return those resources (or material(s) of equal value) at a later date. The first party is called a creditor, also known as a lender, while the second party is called a debtor, also known as a borrower. Credit allows you to buy goods or commodities now, and pay for them later. We use credit to buy things with an agreement to repay the Loans over a period of time. The most common way to avail credit is by the use of credit cards. Other credit plans include personal Loans, home Loans, vehicle Loans, student Loans, small business Loans, trade. A credit is a legal contract where one party receives resource or wealth from another party and promises to repay him on a future date along with interest. In simple Terms, a credit is an agreement of postponed payments of goods bought or Loan. With the issuance of a credit, a debt is formed.
BRIEF OVERVIEW OF LOANS Loans can be of two types fund base & non-fund base: A. Fund Base includes: Working Capital Term Loan
B. Non-fund Base includes: Letter of Credit

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Bank Guarantee Bill Discounting
Fund Base: Working capital

The objective of running any industry is earning profits. An industry will require funds to acquire fixed assets like land, building, plant, machinery, equipments, vehicles, tools etc., & also to run the business i.e. its day-to-day operations. Funds required for day to-day working will be to finance production & sales. For production, funds are needed for purchase of raw materials/ stores/ fuel, for employment of labor, for power charges etc. financing the sales by way of sundry debtors/ receivables. Capital or funds required for an industry can therefore be bifurcated as fixed capital & working capital. Working capital in this context is the excess of current assets over current liabilities. The excess of current assets over current liabilities is treated as net, for storing finishing goods till they are sold out & for working capital or liquid surplus & represents that portion of the working capital, which has been provided from the long-Term source.
Term Loan
A Term Loan is granted for a fixed Term of not less than 3 years intended normally for financing fixed assets acquired with a repayment schedule. A Term Loan is a Loan granted for the purpose of capital assets, such as purchase of land, construction of, buildings, purchase of machinery, modernization, renovation or rationalization of plant, & repayable from out of the future earning of the enterprise, in installments, as per a prearranged schedule. From the above definition, the following differences between a Term Loan & the working capital credit afforded by the Bank are apparent: o The purpose of the Term Loan is for acquisition of capital assets. o The Term Loan is an advance not repayable on demand but only in installments ranging over a period of years. o The repayment of Term Loan is not out of sale proceeds of the goods & commodities per se, whether given as security or not. The repayment should come out of the future cash accruals from the activity of the unit.
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o The security is not the readily saleable goods & commodities but the fixed assets of the units.
It may thus be observed that the scope & operation of the Term Loans are entirely different from those of the conventional working capital advances. The Banks commitment is for a long period & the risk involved is greater. An element of risk is inherent in any type of Loan because of the uncertainty of the repayment. Longer the duration of the credit, greater is the attendant uncertainty of repayment & consequently the risk involved also becomes greater.
However, it may be observed that Term Loans are not so lacking in liquidity as they appear to be. These Loans are subject to a definite repayment programme unlike short Term Loans for working capital (especially the cash credits) which are being renewed year after year. Term Loans would be repaid in a regular way from the anticipated income of the industry/ trade.
These distinctive characteristics of Term Loans distinguish them from the short Term credit granted by the banks & it becomes necessary therefore, to adopt a different approach in examining the applications of borrowers for such credit & for appraising such proposals.
The repayment of a Term Loan depends on the future income of the borrowing unit. Hence, the primary task of the bank before granting Term Loans is to assure itself that the anticipated income from the unit would provide the necessary amount for the repayment of the Loan.
This will involve a detailed scrutiny of the scheme, its capital assets. Financial aspects, economic aspects, technical aspects, a projection of future trends of outputs & sales & estimates of cost, returns, flow of funds & profits.
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Non-fund Base: Letter of credit

The expectation of the seller of any goods or services is that he should get the payment immediately on delivery of the same. This may not materialize if the seller & the buyer are at different places (either within the same country or in different countries). The seller desires to have an assurance for payment by the purchaser. At the same time the purchaser desires that the amount should be paid only when the goods are actually received. Here arises the need of Letter of Credit (LCs). The objective of LC is to provide a means of payment to the seller & the delivery of goods & services to the buyer at the same time
Definition
A Letter of Credit (LC) is an arrangement whereby a bank (the issuing bank) acting at the request & on the instructions of the customer (the applicant) or on its own behalf, o Is to make a payment to or to the order of a third party (the beneficiary), or is to accept & pay bills of exchange (drafts drawn by the beneficiary); or o Authorizes another bank to effect such payment, or to accept & pay such bills of exchanges (drafts); or o Authorizes another bank to negotiate the Terms & conditions of the credit are complied with. against stipulated document(s), provided that
Bank Guarantees:
A contract of guarantee is defined as a contract to perform the promise or discharge the liability of the third person in case of the default. The parties to the contract of guarantees are: a) Applicant: The principal debtor person at whose request the guarantee is executed b) Beneficiary: Person to whom the guarantee is given & who can enforce it in case of default. c) Guarantee: The person who undertakes to discharge the obligations of the applicant in case of his default. Thus, guarantee is a collateral contract, consequential to a main co applicant & the beneficiary.
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Purpose of Bank Guarantees Bank Guarantees are used to for both both preventive & remedial purposes. The guarantees executed by banks comprise both performance guarantees & financial guarantees. The guarantees are structured according to the Terms of agreement, viz., security, maturity & purpose.
Branches may issue guarantees generally for the following purposes: a) In lieu of security deposit/earnest money deposit for participating in tenders; b) Mobilization advance or advance money before commencement of the project by the contractor & for money to be received in various stages like plant layout, design/drawings in project finance; c) In respect of raw materials supplies or for advances by the buyers; d) In respect of due performance of specific contracts by the borrowers & for obtaining full payment of the bills; e) Performance guarantee for warranty period on completion of contract which would enable the suppliers to period to be over; realize the proceeds without waiting for warranty) To allow units to draw funds from time to time from the concerned indenters against part execution of contracts, etc. f) Bid bonds on behalf of exporters
g) Export performance guarantees on behalf of exporters favoring the Customs Department under EPCG scheme.
Bill discounting: Definition

As per Negotiable Instrument Act, The bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of that instrument.
Discounting of bill of exchange:

A seller (Drawer) if need cash, may handover the B/E to the Bank, NBFC, a company or a high Net worth Individual and obtain ready cash this is known as discounting of bill. the
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practice in India is that, the financing organization holds the original B/E till the drawee pays on maturity. For discounting the bill, financiers charge an interest on the bill amount for the duration of the bill which is called discount charges.normal maturity periods are 30, 60, 90, 120 days.
Types of Bills
1. Demand Bill 2. Usance Bill 3. Documentary Bills a. Documents against acceptance (D/A) bills b. Documents against payment (D/P) bills 4. Clean Bills
Advantages
o To Investors 1. Short Term source of finance 2. Outside the purview of Section 370 of Indian Companies Act 1956 3. No tax deducted at source 4. Flexibility o To Banks 1. Safety of funds 2. Certainty of payment 3. Profitability
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Credit Appraisal Process
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Classification of Banks: The Indian banking industry, which is governed by the Banking Regulation Act of India 1949 can be broadly classified into two major categories, non-scheduled banks and scheduled banks. Scheduled banks comprise commercial banks and the co-operative
banks. In Terms of ownership, commercial banks can be further grouped into nationalized banks, the State Bank of India and its group banks, regional rural banks and private sector banks (the old / new domestic and foreign). The Indian banking industry is a mix of the public sector, private sector and foreign banks. The private sector banks are again spilt into old banks and new banks.
Nationalized /Public sector banks Dominate the banking system in India. Nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi. Private Banks
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Made banking more efficient and customer friendly. Jolted public sector banks out of complacency and forced them to become more competitive. Foreign banks Have brought latest technology and latest banking practices in India. Have helped made Indian banking system more competitive and efficient.
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MAJOR BANKS IN INDIA
Axis Bank
Indian Overseas Bank
ABN-AMRO Bank
IndusInd Bank
Abu Dhabi Commercial Bank
ING Vysya Bank
American Express Bank
Jammu & Kashmir Bank
Andhra Bank
JPMorgan Chase Bank
Allahabad Bank
Karnataka Bank
Bank of Baroda
Karur Vysya Bank
Bank of India
Laxmi Vilas Bank
Bank of Maharastra
Oriental Bank of Commerce
Bank of Punjab
Punjab National Bank
Bank of Rajasthan
Punjab & Sind Bank
Bank of Ceylon
Scotia Bank
BNP Paribas Bank
South Indian Bank
Canara Bank
Standard Chartered Bank
Catholic Syrian Bank
State Bank of India (SBI)
Central Bank of India
State Bank of Bikaner & Jaipur

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Centurion Bank
State Bank of Hyderabad
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DATA ANALYSIS
A) CREDIT RISK ASSESSMENT & APPRAISAL PROCESS OF AXIS BANK
CREDIT RISK ASSESSMENT
RISK: Risk is inability or unwillingness of borrower-customer or counter-party to meet their repayment obligations/ honor their commitments, as per the stipulated terms. LENDER TASK
Identify the risk factors, and Mitigate the risk
RISK ARISES IN CREDIT: In the business world, Risk arises out of Deficiencies / lapses on the part of the management (Internal factor) Uncertainties in the business environment (External factor) Uncertainties in the industrial environment (External factor) Weakness in the financial position (Internal factor)
TO PUT IN ANOTHER WAY, SUCCESS FACTORS BEHIND A BUSINESS ARE Managerial ability Favorable industrial environment Adequate financial strength
CREDIT & RISK Go hand in hand. They are like twin brothers. They can be compared to two sides of the same coin. All credit proposals have some inherent risks, excepting the almost negligible volume of lending against liquid collaterals with adequate margin.
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LENDING DESPITE RISKS So, risk should not deter a Banker from lending. A bankers task is to identify/ assess the risk factors/ parameters & manage / mitigate them on a continuous basis. But its always prudent to have some idea about the degree of risk associated with any credit proposal. The banker has to take a calculated risk, based on risk-absorption/ risk-hedging capacity & risk-mitigation techniques of the Bank.
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Technology has moved from being just a business enabler to being a business driver. Be it customer service, reducing operational costs, achieving profitability, developing risk management systems, we turn to technology for providing necessary solution. Technological up gradation was clearly identified as one of the most successful strategy in Customer Acquisition and Retention followed by Expansion of ATM Network, Advertisements and additional sales force. Customer Retention and Customer Satisfaction are inexorably interred - linked. While consumers may be happy to make payments and interact with their bank through convenient and cheaper banking channels, they still expect high standards of service. A consistent service reflects the banks brand and image across all channels. 93.75 per cent of respondent banks informed that superior service pre and post banking has been one of the essential factors rated high by their customers. 75 per cent of respondent banks felt that Personal touch in the dealings has helped them in winning customers.
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Challenges facing by Banking industry in India
The banking industry in India is undergoing a major transformation due to changes in economic conditions and continuous deregulation. These multiple changes happening one after other has a ripple effect on a bank Refer fig. trying to graduate from completely regulated sellers market to completed deregulated customers market.
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Banking Activities
Over the last three decades, there has been a remarkable increase in the size, spread and scope of activities of banks in India. The business profile of banks has transformed dramatically to include non-traditional activities like merchant banking, mutual funds, new financial services and products and the human resource development.
Now days, the bankers have to deal with a large number of matters. They serve as custodian of stocks and shares and other valuables, imports into and exports out of the country are financed by banks, and document relating to the goods so imported and exported, at one time or another, pass through the hand of bankers. Thus, they have not to deal with bills of exchange, but also with bills of lading, railway receipts, warehouse warratts and receipts, marine insurance policies and various other documents. As bankers they advance money on securities and issue letter of credit, travellers cheque, credit cards and circular notes to customers wishing to travel abroad as also to effect purchase and shipment of goods. They assists industrial undertaking by underwriting their debentures and shares, providing them with working capital finance and to a certain extent, with finance for fixed capital requirements also. In India, the banking industry is entering several new activities in the areas of merchant banking, leasing housing finance, venture capital and financial services in general. The range of services provided by our banks stretches from rural finance at one end to international banking at the other.
According to survey done by FCCI, Following shows most profitable noninterest income of bank.
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FINDINGS
Credit appraisal is done to check the commercial, financial & technical viability of the project proposed its funding pattern & further checks the primary or collateral security cover available for the recovery of such funds Credit is the core activity of the banks & important source of their earnings which go to pay interest to depositors, salaries to employees & dividend to shareholders Credit & risk go hand in hand In the business world risk arises out of:
Deficiencies / lapses on the part of the management
Uncertainties in the business environment
Uncertainties in the industrial environment
Weakness in the financial position
Banks main function is to lend funds/ provide finance but it appears that norms are taken as guidelines not as a decision making A bankers
task
is
to
indentify/assess
the
risk
factors/parameters
&
manage/mitigate them on continuous basis The Credit Appraisal process adopted by the bank take into account all possible factors which go into appraising the risk associated with a loan
These have been categorized broadly into financial, business, industrial, management risks & are rated separately
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LIMITATIONS OF STUDY
As the credit rating is one of the crucial areas for any bank, some of the technicalities may not reveal which might cause destruction to the information and exploration of the problem. As some of the information is not revealed, whatever suggestions generated, will be based on certain assumptions. Finding of the study will be based on the assumptions that respondents have given correct information. Information provided by respondents may be biased. The study is academic in nature.
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SUGGESTION
Timely finance should make available to the small units keeping in view their needs. The borrowings should be made cheaper by lowering the rate of interest on landings of commercial banks. Banks should also provide consultancy services and professional guidance at the time of setting up for considering the long-term and short-term financial requirements of a small unit for lending purposes. The Entrepreneurs are of the opinion that they are not getting proper assistance from the Government employees in documentation to obtain the loan from the funding institutions.
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CONCLUSION
Finance management is the backbone of any organizations and hence yields a number of job options ranging from strategic financial planning to sales. From the study of Credit appraisal of SME, it can be concluded that credit appraisal should therefore be based on the following factors, the same are applied at Axis Bank: Financial performance
Business performance
Industry outlook
Quality of management
Conduct of account
Axis Bank loan policy contains various norms for sanction of different types of These all norms do not apply to each & every case. Axis Bank norms for providing loans are flexible & it may differ from case to case. Usually, it is seen that credit appraisal is basically done on the basis of fundamental soundness. But, after different types of case studies, our conclusion was such that credit appraisal system is not only looking for financial wealth. Other strong parameters also play an important role in analyzing credit worthiness of the firm/company.
In all, the viability of the project from every aspect is analyzed, as well as type of business, industry, promoters, past records, experience, projected data and estimates, goals, long term plans also plays crucial role in increasing chances of getting project approved for loan.
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BIBLIOGRAPHY
Web Sites www.rbi.org.in www.Axis Bank.com www.indianbankassociation.com www.bankersindia.com www.wikipedia.com
Books Credit and banking By: K. C. Nanda
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A Study on Credit Appraisal Process in SME Sector with Respect to Axis Bank

10. Limitation 11. Suggestion 12. Conclusion 13. Bibliography

N.M.D. College, Gondia, 2013-14

A Study on Credit Appraisal Process in SME Sector of Axis Bank

N.M.D. College, Gondia, 2013-14

N.M.D. College, Gondia, 2013-14

N.M.D. College, Gondia, 2013-14

N.M.D. College, Gondia, 2013-14

N.M.D. College, Gondia, 2013-14

N.M.D. College, Gondia, 2013-14

N.M.D. College, Gondia, 2013-14

N.M.D. College, Gondia, 2013-14

N.M.D. College, Gondia, 2013-14

N.M.D. College, Gondia, 2013-14

Research design used will be exploratory type.

N.M.D. College, Gondia, 2013-14

N.M.D. College, Gondia, 2013-14

N.M.D. College, Gondia, 2013-14

N.M.D. College, Gondia, 2013-14

N.M.D. College, Gondia, 2013-14

production of goods pertaining to any industry

specified in the first schedule to the

Service Enterprises : The enterprises engaged in providing or rendering of service

and are defind in terms of investment in equipment .

N.M.D. College, Gondia, 2013-14

N.M.D. College, Gondia, 2013-14

Character Capacity Collateral

B. Non-fund Base includes: Letter of Credit

N.M.D. College, Gondia, 2013-14

Bank Guarantee Bill Discounting

Fund Base: Working capital

N.M.D. College, Gondia, 2013-14

N.M.D. College, Gondia, 2013-14

Non-fund Base: Letter of credit

N.M.D. College, Gondia, 2013-14

Bill discounting: Definition

Discounting of bill of exchange:

N.M.D. College, Gondia, 2013-14

N.M.D. College, Gondia, 2013-14

Credit Appraisal Process

N.M.D. College, Gondia, 2013-14

N.M.D. College, Gondia, 2013-14

N.M.D. College, Gondia, 2013-14

MAJOR BANKS IN INDIA

Indian Overseas Bank

Abu Dhabi Commercial Bank

ING Vysya Bank

American Express Bank

Jammu & Kashmir Bank

JPMorgan Chase Bank

Karur Vysya Bank

Laxmi Vilas Bank

Oriental Bank of Commerce

Punjab National Bank

Punjab & Sind Bank

BNP Paribas Bank

South Indian Bank

Standard Chartered Bank

Catholic Syrian Bank

State Bank of India (SBI)

Central Bank of India

State Bank of Bikaner & Jaipur

N.M.D. College, Gondia, 2013-14

State Bank of Hyderabad