CREDIT APPRAISAL PROCESS IN BANK OF MAHARASHTRA
A Summer Internship Project Report
Submitted in partial fulfillment of the requirements of the PGDM
(Post Graduate Diploma in Management) ITM BUSINESS SCHOOL,KHARGHAR
SUBMITTED BY:
RACHANA SINGH CHANDEL
(KHR2011PGDM21F216)
UNDER THE GUIDANCE OF:
Mr. Suhas V. Vaishampayam Mr. Narendra Jain
Faculty Guide, Company Guide,
ITM Business School. Chief Manager,
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Special thanks to for his continuous encouragement and invaluable supervision of Ms. Laxmi Lakhwani, Credit Manager, Regional Office, Raipur and for correcting me whenever I made mistakes. This project would not have been possible without her. I am grateful to Mr. D V Sonuley, Regional Manager, Bank of Maharashtra for extending all possible help whenever I needed it.
I have to thank Mr. Mehra, Mr. Aseem Baani and Avani Rathod for all the help and to have made my tenure in Bank of Maharashtra a pleasurable experience. Lastly I would like to express my sincere gratitude to all those persons who have directly and indirectly contributed in completion of this project.
Rachna Singh Chandel
EXECUTIVE SUMMARY
It gives me great pleasure to present this project report on “Credit Appraisal Process” at bank of Maharashtra. The project was carried out from 10th May to 10th July 2012.The main objective of the project was to study the process by which banks appraise loans/advances. To know details of the procedure by which banks take the decision of providing a firm with the funded or non funded finance asked by them.
Firms need assistance from the bank in form of funded or non funded facilities to meet their long term medium term or short term requirements.
Business cannot survive without money and availability of money being limited and wants
Fair and correct application of appraisal rules 2. Consistency between appraised and market values. In the new QC model all submitted appraisals were reviewed to detect errors or inconsistencies that identify riskier appraisals. When anomalies were detected, appraisals were sent to the next control stage for a more thorough and sophisticated analysis. At the end of each stage, appraisals were scored based on the number and severity of the anomalies detected. The overall score allowed the lender to develop an appraiser-specific risk profile that was then aso leveraged to make grounded decisions about future appraisals submitted by the same appraiser. The system introduced relied on an enterprise document management solution (EDM) to further improve the efficiency of the QC process. By leveraging the EDM’s queue management functionalities the lender implemented a system that allowed QC managers to coordinate the workload balancing activities among multiple locations. Furthermore, providing QC analysts from different offices with the ability to access appraisal files helped the client improve the quality of the analysis by taking advantage of reviewers’ experience and/or specific geographical market knowledge. Key features of the new operating model: • Improving level of integration between QC and production activities. Screening activities were mostly automated by leveraging the existing loan origination system (LOS). The first level of
Check your annual credit report and receive a free instant credit report when you use the Annual Credit Report website. This reputable website has the recommendation from the government as the only place to get your information free and quickly. The online credit report allows you view online or print out the records. This helps when comparing all three credit-reporting agencies and the information they have about your credit history.
Consultant). In addition, funding will be necessary to cover a portion of the costs for
Finance function does not stop with the decision to undertake outside financing; if extends towards carrying on negotiations from the outside financing agencies to arrange for it. Finances are needed by an establishment to meet its short-term and long-term requirements. The financial manger must assess short and long term financial requirements of the organization a start negotiations for raising these funds. It requires considerable planning because the sources are to be tackled in advance keeping in view the alternative sources and sounded in a manner that in case one fails, the other should be available. He must keep open the credit lines.
Thinking about the most stressful thing that occurred this year was challenging. I found t primary appraisal to be the most difficult because at the time, I could not identify the exact stressor. Thinking back to this stressful time I realized that without any knowledge of Lazarus model I was able to move through each step of the appraisals. Secondary appraisal, during this difficult time I did not understand how much control I had over the situation. Since I have been through therapy for many years, I thought that I was coping with my stressors in a healthy way, but I was wrong. I did everything to avoid my stressors and did not use my resources. My behavior of avoiding my problem at hand stop by a resource reaching out to me. I was able
The National Association of Credit Management (NACM) is an organization that provides business Credit services. “As the advocate for business credit and financial management professionals NACM and its network of Partners take great pride in being the primary learning, knowledge, networking and information resource for commercial creditors nationwide” (NACM, 2015). The parts of The National Association of Credit Management that we will explore include the goals of the organization, its history, the four departments of member benefits, and signs of Fraud. As a non-profit organization the NACM has placed a level of quality for the credit professionals in credit and finance branches of business
them government grants or loans for SMEs or bank loans. Tayra’s financial needs will be
When you deal with any lender, it is of great advantage to have a good or very good credit rating. Suppose you know that your mortgage will have to be renewed in two years. You may need to either repair your credit and/or improve your credit scores.
I take this opportunity to express my sincere thanks and deep gratitude to all those people who extended their whole hearted co-operation and have helped me in completing this project successfully.
This paper will describe the different types of funding available to begin a business. These include borrowing money, selling stock, and technology licensing. This paper will discuss the meaning, function and importance of the stock market, investment banking, financial management, and risk financing. This paper continues with a scenario with a future business owner and the decision making of how to fund his business. This paper concludes with a decision on what type of funding he should chose for his business and the advantages and disadvantages behind that decision.
It is very essential for banks to take a step of credit gauging of customer which will help them in knowing everything in detail which will give them a good outcome and it will also increase the profit of the banks. The ratings given to the customer for his credit are the
Banks issue credits to organizations seeking funds for there ventures. The bank usually “prefers a self-liquidating loan in which the use of funds will ensure a built-in or automatic repayment scheme” (Block & Hirt, 2005, Chapter 8, p.
Apart from quantitative expansion of bank credit, there has been a significant qualitative change in the lending policies of the commercial banks, particularly after world financial crisis (i.e. 2008). Thus after reform a substantial part of the bank credit was given to cluster of the society. In banking industry there is also become modernization, innovation, adoption of new technology with increase their selling and make their profit. My objective is review the performance of implementation of lending Scheme and Credit Plans
I wish to place on record my profound feelings of gratitude to Mr G. Anand, GM-HRD, Mathrubhumi Printing and Publishing Co Ltd for allowing me to do this project in this esteemed organization.
I would not forget to remember Prof. Suresh Pattanayak, Prof. Rupesh Kr. Tiwari and all faculty members for their unlisted encouragement and more over for their timely support and guidance till the completion of our project work. I heartily thank our internal project guide, Dr.R.S.Mohan, Dean , Department of Management, for his guidance and suggestions during this project work. I am extremely thankful to all those persons who have positively helped me and customers who respond my questionnaire, around whom the whole project cycle revolves.