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A STUDY ON CREDIT APPRAISAL PROCESS IN MID CORPORATE SEGMENT AT AXIS BANK, CHENNAI

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's Registered Office is at Ahmadabad and its Central Office is located at Mumbai. . The Bank today is capitalized to the extent of Rs. 413.20 crores. As on March 2012, the bank has about 1600 branches and 100000 ATMs in India. Mrs. Shikha Sharma is the MD and CEO.

CREDIT APPRAISAL MEANING


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.

CREDIT APPRAISAL PROCESS


Receipt of application from applicant Receipt of documents Pre sanction visit by bank officers Check for RBI defaulters list Title clearance reports of the properties to be obtained from empanelled Advocates Valuation reports of the properties to be obtained from empanelled valuer/engineers Preparation of financial data

CONTD
Proposal preparation Assessment of Proposal Sanction/approval by appropriate person Documents, agreements, mortgages Disbursement of loans Post-sanction activities

OBJECTIVE OF THE STUDY


Primary objective: To study the Credit Appraisal system in Mid Corporate segment at AXIS bank, Chennai. Secondary objectives To study the credit appraisal methods. To understand the commercial, financial and technical feasibility of the proposal.

NEED FOR THE STUDY


To know how the sanction is being made to the companies by bank. To know how the bank evaluate the credit risk of the companies by verifying the accounts and other details of the company.

SCOPE OF THE STUDY

The scope of the study is to know the credit appraisal process in mid corporate segment in Axis Bank, Chennai. The study is done on Case study basis, which is based on few companies which are given by bank for ascertaining the risk. It also helps to improve knowledge regarding the credit appraisal system and also to have a practical exposure regarding the same.

FINDINGS

Operational and financial analysis of the company XY Forgings Ltd for the period five years from March 2006- 2010. Operational and financial analysis of the company ABC Ltd for the period five years from march 2007- 2011.

Operational and financial analysis of the company XYZ Sugars & Allied products Ltd for the period five years from Sept 2009- 2013.

PROBLEMS IDENTIFIED

Problems in computing future forecast. Increased nonpayment of loans Delay in processing time.

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 in Mid corporate segment, it can be concluded that credit appraisal should therefore be based on the following factors: 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 loans. 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.

THANKS AND REGARDS, AISHWARYA.K 3511140174

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