Documente Academic
Documente Profesional
Documente Cultură
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ON
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CO-OPERATIVE
BANK LTD.
A Project
Report
on
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CREDIT APPRAISAL
&
FARIDA AKTER
ROLL: CHAN
C BM NO-2013\5
RISK
ANALYSIS
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Submitted by Farida
OF
Akter
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BM No.
L
2013/5
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Reg
No.
550
of
2012-13
Chandannagar
Institute of
Management and
Technology
2015
UNIVERSITY of
BURDWAN
THE UNIVERSITY OF
BURDWAN.
RAJBATI,
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BARDHAMAN
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N E T A J I S U B H A S R O A D , P. O . C H I N S U R A H , D I S T : H O O G L Y P I N - 7 1 2 1 0 1
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Purnendu Tarafder
Lecturer
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Lecturer
Chandannagar
Institute
of
Management &
Technology
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PALLYSREE ' CHINSURAH STATION ROAD CHINSURAH HOOGHLY 712 102 Phone : (033) 2686
1139
E-mail : cimt2001@gmail.com Website : cimthooghly.in
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Q.
STUDENT DECLARATION
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Institute Of Management
& Technology,
UNIVERSITY OF
To Whom
It May Concern
BURDWAN, of 2012-2015 batch, hereby declare that this
Project credit appraisal and risk analysis has been carried out
Os
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N
BANK LTD.
Os
1
student
(H) 3rd
O
s
Registration
Os
Credit
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No.
BUSINESS ADMINSTRATION
550
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Lecturer
o
\
Lecturer
Chandannagar
Institute
of
Management &
Technology
Pallysree,
Chinsurah
----- PALLYSREE CHINSURAH STATION ROAD CHINSURAH HOOGHLY- 712 102 Phono : (033) 2686 1139
E-mail : cimt2001@gmail.com Website : cimthooghly.in
. . * * /
________________________________________________________________________________:______
ACKNOWLEDGEMENT
Table
of Contents
s~\
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Serial
No.
1
2
Introduction lli:
throughout
the project.
J
History
of Bank
Bank
Public
::
:4
-B
6
ggj;..:-
Place:
Private
C.I.M.T, Hooghly
6
9
11
12
12
....................... 2
Vission Mission
10
i1
12
13
117
18
19
16
1 11 ;
17
Credit Appraisal
14
15
_____
mmm
In Rural Area
In Urban Area
J6 ,
14
Economic parameters
Banking Parameters
Credit Appraisal Process
11
O1
mMB
L}J
22
......23!
Risk Analysis
Objective of Study
1111
Case Study
..............
HU
20
26
29
21
SO
Repayment Capacity
Cost of the Project
SO
SO
22
24
om
25
iifillll:
pig
32
Analysis of Data
41..
32
Financial Indicator
Statement of Classification of Asset
Position of Net NPA
Charts and graphs
Deposit of Hooghly District Central Cooperative
Bank
Loans and advances of HD
.-
Profit Loss Graph
S3
34
35
36
37
38
26
27
NPA of HD
Findings by SWOT analysis
Recommendation
28
JO
Learning
Conclusion
30
Bibliography
1
41
42
_
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Page 1
pANK
The word of bank is derived from the Italian banca, which is
derived from German and mean bench.
The term bankrupt and broke is similarly derived from banca
rotta.
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or table.
rs
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Page 2
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ss
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Page 3
/">
y Besides
Reserve Bank
the State
Bank
of India and
Societies
Act,1965.the
A Co-operative
BankofisIndia,
a financial
entity
which
belongstoits
members,
the same time
the all
owners
its associate
banks
and who
aboutare
20at
nationalized
banks,
comprises
and
the customers
of their bank.
of the
public
sector banks.
0m
y Many
of the regional rural banks that are funded by the
Registered under the Co-operative Societies Act
government banks can also be clubbed in this genre.
>/
They are governed by the Banking Regulations Act 1949
and Banking Laws (Co-operative
/'S
MAIN FEATURES
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Z'A
y A new wave in the banking industry came about with the private
sector banks in India.
As per B.R. Act 1949 co-operative bank cannot undertake
'y With policies on liberalization being generously taken up, these
trading activities.
private banks were established in the country that also contributed
heavily towards the growth of the economy and also offering
A co-operative bank is prohibited from holding any immovable
numerous
services to its customers.
property
y Some of the most popular banks in this genre are: Axis Bank, HDFC
>/
Except
for own
useKotak Mahindra Bank and SBI Commercial and
Bank,
ICICI
Bank,
International Bank.
Co-operative bank cannot carry on business of banking in
india unless
y The Foreign
Banks in India like HSBC, Citibank, and Standard
/N
/'A
Page
Page54
/"A
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of the society are fixed. The loans are given to members for the purchase of
cattle, fodder, fertilizers, pesticides, etc.
co-operative banks and joint stocks. These banks provide finance to member
societies within the limits of the borrowing capacity of societies. They also
conduct all the business of a joint stock bank.
Page 6
Page 7
I' 'v
rs.
Page 8
Problems f Co-operative B
The Hate Working Group (1981) desired better utilization of banks
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surplus funds and that the percentage of the Cash Reserve Ratio (CRR) &
the Statutory Liquidity Ratio (SLR) of these banks should be brought at
par with
commercial
banks,
in a phased
manner. While of
the
Marathe
However,
concerns
regarding
the professionalism
urban
Committee (1992)
redefined
the
viability
norms
ushered
in the era of
cooperative
banks gave
rise to
the
view that
theyand
should
be better
liberalization,
theco-operative
Madhava Rao
Committee
(1999)share
focused
on and
regulated.
Large
banks
with paid-up
capital
consolidation,
of sickness,
professional
standards
in urban
reserves
ofRs.l control
lakh were
brought better
under the
purview of
the Banking
co-operativeAct
banks
sought
align
urban1966
banking
movement
with
Regulation
1949and
with
effectto
from
1stthe
March,
and within
the ambit
r\
commercial
banks.
of
the Reserve
Banks supervision. This marked the beginning of an era of
duality of control over these banks. Banking related functions (viz.
Tamil Nadu. While most banks are unit banks without any branch
network, some of the large banks have established their presence in many
states when at their behest multistate banking was allowed in 1985. Some
~\
of these
banks are
Authorized
in Foreign
Exchange.
Towards
the also
late 1960s
thereDealers
was debate
regarding
the
important players in this context. The working group on industrial
financing through Co-operative Banks, (1968 known as Damry
Group) attempted to broaden the scope of activities of urban cooperative banks by recommending these banks should finance the
small and cottage industries. This was reiterated by the Banking
Commission in 1969.
COMPANY PROFILE
/~\
TYPE: public
INDUSTRY: Financial Co-operative Bank
FOUNDED: 1966
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bank got the license from the RBI. Its area of operation is in the area of
Hooghly District. It has 19 branches through of the Hooghly district
covering all the blocks and municipali ties. It has 143 staff covering 19
branches and Head Office. The H.O of the bank situated at Netaji Subhash
P
\
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_________________________________________ Page
11
rs
Page
12
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s
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operative endeavor.
These banks are constituted of voluntary association, self- help
and mutual aid, one share Aiming one vote and
nondiscrimination and equality of members.
Page
13
V
w
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s
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MISSION OF THE
HOOGHLY DIST.
CENTRAL CO-
r\
/*-\
with micro credit and thereby to lift their families out poverty.
To become a sustainable financial institution for the common
masses including the valuable groups of district.
To deliver need based transparent financial services
constantly in a cost effective manner and at an affordable cost.
To play leading role in expanding and diversifying financial
/r~\
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____________ Page
14
CO-OPERATIVE BANK
Farming
s
rs
Cattle
Milk
/~\
Hatchery
Personal finance
Oi
o
/~s
Self-employment
Industries
/-a
h-
/~s
Page
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Page
16
/A
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Types
loan & advances
Given by
THEofHOOGHLY
DISTRICT
HOOGHLY DISTRICT
CENTRAL
COOPERATIVE
BANK
CENTRAL CO
LTD.
DONE....................
OPERATIVE
BANK
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r
A
A\
Page
17
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Bai Components
... i ers
Mechanism
FACTORS
OF
CREDIT of
Credit
APPRAISAL
Appraisal Process
We can tabulate all the conditions under TWO parameters.
Economic Parameters
/
~
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MPBF
Ratio
analysis
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Financial
statements
IRR
DSCR
Parameter
Norms
. ............#.......
| Checkpoints =
Bank Statements
Hi..
12 months bank
To check the
statements need to be
furnished
av erage amount
client is maintaining
in the account is
.. . :
'
Business
To enquire primary
continuity proof
made compulsory
source of income.
(redit interview
necessary.
. ..
attitude of customer
along with efforts
are put in to
understand their
needs better.
>>
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BBtS "
e;o
To safeguard bank
interest against any
future default.
pledge or collateral.
To be on the name or blood
relative of applicant.
CIBIL Report
To establish the
ownership claim of the
loan applicant.
applicant.
...
it Appraisal Process
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Disbursement of Loan
Post sanction activities such as receiving stock
statements, review of accounts, renew of accounts,
etc(On regular basis
Page
23
22
yv
investors are concerned about the actual outcome being less than
expected outcome.
The wider the range of possible outcome , the greater the risk.
r~\
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Page
24
OBJECTIVE OF STUDY
/~\
o,
mortgaged.
</
i\
Page
25
Case study
S.Account Details:
4. Details of Loans & Advances availed from other
bank/financial :institution/credit
societies:
Loan
Housing Loan
Type
: Mrs. Sulogna Ghosh
Applicant : Mr. Debasish Ghosh
Amt
Co- Applied : 40,00,000
Installment : 180
Applicant
Co-Applicant
Date of Birth
15/6/1976
03/05/1976
Membership No.
Applied
Applied
Pan No.
A0mpp6087B
Afzpp6527k
Residential status
Ownership
Ownership
1250
1250
Address
Mogra,station road
Mogra,station road
Navami Enterprise,
15000
: ..... .
Area sq.ft.
Mogra
collected.
380
Income tax paid
N ame of
Loanee
2,50,000
2,00,000 members
family
is
7,21,449
Amt Sanctioned
Bank
Date of
Sanction
Mr.Uday
Ghaisas
89,00,000
Syndicate Bank
03/05/14
Mr.Uday
Ghaisas
50,00,000
NKGSB
1/12/14
Particulars of property
Area (Sq.ft.)
Purchase on
6/10/2010
Agreement value
70,00,000
Present Value
/->
/''N
30.50lakh
Amt applied
40 lakh
Balance in Account
Deficit
: 10,000
:
Nil
7. Guarantee: 2 Sureties
8. Check list of Documents
9. Declaration cum Undertaking by Mortgagers.
10.
List of Documents:
Agreement for Sale
Stampduty paid receipt
/''N
Registration receipt
Valuation receipt
11.
/^\
1 ^.Undertaking:
I Mrs. Prachi Ghaisas the borrower will repay 180 EMIs of Rs.
44300/- @10.5%(floating) on daily reducing balance
Scrutiny by branch:
Full details of applicant,co-applicant,surety 1 & 2.
s~\
_______
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Page
27
28
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Calculation
of EMI factor:
Calculation
of Repayment
capacity:
r\
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./-N,
Repayment Capacity
= 293635-52650 *
rs
166902
(Net salary)
Cost
Project:
14.
of
........
wi
15000
As per
Government(Rs.)
ill
11 illiilli
Value/Cost
70,00,000
ililllll
iiiiii
i||
iiii|;;iii|||:ii!:ifi
i | m ; i n mi i.
Stamp Duty
33260
51,05,400
r\
Reg,charges
30380
. ............iliilli
..................I.
73,62,980
54,68,380
58,90,384
43,74,704
90/85/80%of C ost of
project
Page
29
Applied : 40.00lakh
%
15.
Visit report:
16.
Documents Checked:
/T
Pag
Page
e
30
31
Silare <|fpital
Society
Govt. 1?';?
Total
l||ejlsifA |
Borrowings
Loans&Advances
Investments
AVorMng fund
Net worth ^
Nefjpipfit
of Assets
1 I i iiii
1233.41
80.70
1314.11
58748.12
12885.13
29692.02
45712.62
82893.59
3551.76
190.34
"
so. Of
. .........
1427.12
80.70 Iff:
1507.80
675564.48
12475.49
35065.40
50359.75
92386:68
4376.55
335.53
Amount.
Outstanding
.
1.
Accounts
.........
Total loans and
lacte)
1734.13
80.70
1814.83
79316.07
13973.63
44365.34
53332.50
107834.53
4953.58
253.99 1
1 Oi B
,i
^gggrailllil ;
Pro\
11 13
Ad\
ances
1769.13
80.70
189.83
84345.95
.14833.99
42398.3 1
63579.74
114631.25
4988.58
1011
is
require
o/
o
1:
49420.53
advances
?d to iie
Vmounl
w:...........
*
Financial Indicator
of which
A. Standard
Assets
28072.71
56.80
0.25
70.18
OTHERS
18856.96
38.16
0.40
75.43
E. Non
Performing
Assets
2 (>5
1. Substandard Assets
101.08
2. Doubtful
i. 3 to 4 Y ears
ii. 4 to 6 Years
91.92
0.19
20.00
18.38
280.38
Total Doubtful
Assets
250.76
0.51
1277.28
2.58
202.75
0.41
100.00
250.76
(i+ii+iii)
3. Unsecured
YYji
100.00 202.75
SI. Particulars
No.
Current
Year
Previous Y ear
l.
GROSS ADVANCES
49420.53
44365.34
2.
GROSS NPA
2490.86
2696.91
6.08
s
p
8
8
Page
33
1.18
/~\
a- on 31.03,201
(Rs. In Lacks)
Page
34
TABLE :2
TABLE: 1
IflFfWFBM
^. ' ., - >. * \v
Si Ct * .
2009-2010
498.68
P
9010-201 1
587.48
2 0 11 - 2 0 1 2
675.64
2012-2013
793.16
2013-2014
f i l v. 7 4
YEAR
LOAND &ADVANCES
2 009-2010
261.29;
010-201 1
2 g|| g f 11| | 11 ||g|
|||| || g lllllii
01 1-2012
DEPOSITS
350.65
443.65
aHRHp:
494:2 1
1000
800
200910
? 600
*20 lO-
11
c 40
2011-
12
201
2- 1 3
O. 200
0
2009-10
2010-11 2011-12
Seriesl
2012-13
YEAR
Page
35
2013-14
500
400
300
20
0
100
0
2
0
9
1
2009-10
2010-11 2011-12
YEAR
Page
36
Seriesl
2012-13
2013-14
NPA
OF
HOOGHLY
DISTRICT
CENTRAL
CREDIT
RATIO
PROFIT
LOSSDEPOSIT
GRAPH
OF HOQGHLY
COOPERATIVE
BANK
DISTRICT
CENTRAL CO OPERATIVE
BANK:
TABLE; 5
TABLE:4
TABLE:3
52.40
2010-2011
2011-2012
51.54
4.00
3.50
2012-2013
3.00
55.93
'A: :
2013-2014
:
:
? 2.50
i . S': ' , . ! . ' 111
V.
55.67
2.00
1.00
19
01
0.00
2010-11
2010-11
2011-12
2012-13
2011-12
2012-13
2009-10
2009-10
YEAR
\-'2 0 \ 2
LLLLLLLL!
1 1 ||
I|!I;!!LLLLL|LI|;LL|:...
LLLLILLLLIIIIPL
LLLL
ILLLL|::I|!F
02
90
SFL
1.50
0.50
MM
CO
U!2 -2 0 ) 3
11
2013-14
2013-14
YEAR
MHIGHI
2 0 J3 -2 0 J4
.|
Page
Page
38
3V
02011
-12
@2012-13
02013-14
Page
39
FINDINGS
RECOMMENDATION
SWOT ANALYSIS OF
^
Hooghly DISTRICT
CENTRAL
COOPERATIVE
^
Bank Credit
SYSTEM UPGRADATION
:;T
r\
1st
ilili
LEARNING
t* Credit appraisal is done to check the commercial, financial &
THREATS
technical
viability of the project proposed
its funding pattern.
RTUNITIES
< A bankers task is to identify/assess
the risk factors/parameters
I Inflation
Introducing New Types of
NPA
Customized loan
Customer service.
One thing I got is Though all banks are different entities, they
all are under one roof that is RBI.
Page
Pag
40
e
41
CONCLUSION
I have gained an enormous insight while doing the project. The
organization for which I get the assignment in one of the leading bank of
our country. So I feel extremely privileged to get myself associated with a
company like this
Finance is not a theoretical affair. The essence of finance could be
realized only when one can get the opportunity to deal with the core
segment.
I am very satisfied for doing my project from HOOGHLY DISTRICT
CENTRAL CO-OPERATIVE BANK LTD.XREDIT APPRAISAL AND RISK
ANALYSIS as subject.
It is my first project work I have ever done in my life. So naturally
some excitement and expectation increase my sincerity and seriousness.
Page
42
BIBLIOGRAPHY
To complete this project various books and other source of
information have been used which are as follows:
WEBSITES:
l. WWW.GOOGLE.CO.IN
BOOKS:
Page
43
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/~\