20968435 state bank of india project financing

8/11/2019 20968435 State Bank of India Project Financing

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STATE BANK O F INDIA

Project Financing .

+.?(.?+ '.?(

>.@>(.> > '.@(

. ((. >? '.?>

$otal #8+ (.

%ess- Initial outlay+ .

7et #resent 8alue --+.'?

A I ter a# rate $% retur M 0 :-0Q

A- B

>. (? Internal rate of return R +( Q 9+ -+(:

>. (?-+.'?

>. (? Internal rate of return R +(Q W X

. ?

Internal rate of return R +( Q .'(@

Internal rate of return R + .'+D

I ter)retati$ -

!ince the e;pected rate of return is +(D so the project is said to be accepted.

ea"ure" ta,e 5y SBI /+e t+e re)ayme t i" $t )$""i5#e

R A College Washim77
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Project Financing .

: )irstly they send a notice to the clients stating therein to pay their dues.

:


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Project Financing .

A a#y"i"=-

T+i" a a#y"i" )art i" re#ate! t$ t+e %i a cia# via5i#ity $% t+e )r$.ect S0 F#$/

C$ tr$#"=-

$hrough ratio analysis I analy2ed that the li"uidity position of the firm is

good and it is maintaining the standard ratio..

0ebt 5"uity ratio is in decreasing trend, it sho s that the firm is reducing its

liability portion by paying the loan year on year so the financial risk less.

#rofitability ratios related to sales and capital employed are in increasing

trend, it sho s that the sales are increasing and the firm using its resources

efficiently.

0ebt !ervice 3overage 6atio is also in increasing trend, it sho s that the

firms ability to make the loan repayments on time over the debt life of the

project.

$he payback period is ithin the debt life of the project.

$he net present value of the project is positive, $he positive net present

value ill result only if the project generates cash inflo s at a rate higher

than the opportunity cost of capital . !ince the 7et #resent 8alue of the

above project is positive, the proposal can be accepted.

$he internal rate of the return is higher than hat accepted so the project is

accepted.



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Project Financing .

Fi !i " =- T+e"e are re#ate! t$ 5a , i e era#

!tate bank of India is strictly follo ing the guidelines of 6BI on #roject

)inancing

!anctioning for the projects is approved by 6A!M533 96etailed Assets

!mall And Medium 5nterprises 3redit 3ell:.

$he bank finances the projects only through term loans.

Interest rates are fi;ed depending upon the projects hich is kno n as !tate

Bank advance rate.


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Project Financing .

Bank should be caution about the availability of security and ensure

honesty of both borro er and guarantor so as to avoid the account

becoming the loss assets.

0imitati$ $% t+e "tu!y=-

!ome of the information are confidential in nature that could not divulged for study.

C$ c#u"i$ =-

$he project undertaken has helped a lot in understanding the concept of project

financing in nationali2ed bank ith reference to state bank of India. $he project

financing is an important aspect hich helps in increasing the profit of the banks.

#roject financing is a vast subject and it is very difficult to apply all the aspect in all

type of project hen bank ant to finance, and it is very difficult to cover all aspect in

this project.

$o sum up it ould not be out of ay to mention here that the state bank of India has

given a special impetus on F#roject )inancing* .the concerted efforts of the

management and staff of state bank of India has helped the bank in achieving

remarkable progress in almost all important aspects.

)inally the success of project financing ould mostly depend on the proper analysis of

the projects before financing.



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Project Financing .

Bi5#i$ ra)+y

$he data is collected from the list of books and eb site given belo

.sbi.com.

. oogle.com3ompany manuals.

20968435 state bank of india project financing

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