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8/9/2019 Joe Project Ppt

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CREDIT APPRAISAL FORCREDIT APPRAISAL FORWORKING CAPITAL FINANCEWORKING CAPITAL FINANCETO SMEs AT FEDERAL BANKTO SMEs AT FEDERAL BANK(CHENNAI)(CHENNAI)

JOE V JACOB


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BANKS PROFILEBANKS PROFILEHistory:

The history of Federal Bank datesback to the pre-independence era.Though initially it was known asthe Travancore Federal Bank, itgradually transformed into a full-fledged bank under the able

leadership of its Founder, Mr. K PHormis. The name Federal BankLimited was officially announced inthe year 1947 with itsheadquarters nestled on the bankson the river Periyar. Since thenthere has been no looking back andthe bank has become one of thestrongest and most stable banks inthe country


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Contd..Contd..Vision:

Develop into a strongerand more efficient andprofitable financialinstitution with a growing

share of the market,providing an expandingrange of products andservices to a growingclientele within andoutside the country,adopting best industry

practices and employingcontemporary technology,and be counted among thetop private banks in thecountry

M ission:D evote balancedattention to the interestsand expectations ofstakeholders, and in

particular:Shareholders: Achieve aconsistent annual post-tax return of at least20% on net worth.Employees: D evelop inevery employee a highdegree of pride andloyalty in serving theBank.


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ContdContd

Fu t ure:W e are the fourthlargest bank in India in

terms of capital base andcan easily boast of aCapital Adequacy Ratio of19.11%, one of the highestin the industry. This alongwith the existence in ahighly regulatedenvironment has helpedthe bank to tide over therecession with minimumimpact to its financial

stability.

In fact we have beenexpanding organically overthe past few months. W ebelieve in extending our

reach to our customersby making our servicesavailable to all, 24x7 .


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O BJ EC T I VES O BJ EC T I VES O F O F MY MY S TUD YS TUD Y

To understand the credit appraisal system for working

capital finance to SMEs

To assess the financial health of organizations that

approach Federal Bank for credit for import exportpurposes. This would entail undertaking of the following

procedures:

Analysis of past and present financial statements

Analysis of Balance Sheet

Analysis of Cash Flow Statements


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TheThe LLimitations I cameimitations I came

across>>across>>Coverage: The study aims at covering the corporatebanking of Union Bank of India only.

The study aims at gaining the practical knowledge by

taking help of bank personals. So there might have

been tendencies among the personals to amplify or

filter their responses due to time limitation.

Credit appraisal for working capital finance is study

that needed specialized knowledge of the area, so

there is chance for interpretational error on my par


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R A T I ON A LE F OR S TUD YR A T I ON A LE F OR S TUD Y

This study aims to analyze the credit health of

organizations that approach Federal Bank for

foreign exchange credit facilities. Afteranalyzing credit health, the credit rating is

determined. On the basis of credit rating, the

interest rate guidelines circular is consulted tofix a price for the credit facilities i.e.

determine the interest rate.


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SCOPE OF THE STUDYSCOPE OF THE STUDYSource of information collected is the

information provided by the bank as well as the

survey

and the observation made there on

I T S N EE D

y Lending continues to be a primary function inbanking. In the liberalized Indian economy,


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Contd..Contd..

Markets compete with banks. In another

dimension, retail lending- both personal advances

and SME advances- competes with corporatelending for funds and for human resources. But

lending by nature cannot be an aggressive selling

activity, disregarding the risks involved.


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R EV I EW O F LI T E R A TUR ER EV I EW O F LI T E R A TUR E

FICCIS ANNUAL SURVE Y ON BANKING

FE DE RATION OF IN D IAN CHAMBERS OF

COMME

RCE

AND

IND

USTRY

BANKING SECTOR FOR CONSOLIDATION

FICCI Survey 2010

SME SECTOR SHIN ES -Mr. K.G.Mallya

SMEs ABROAD VERSUS IN D IAN CONT EX T


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