A REPORT

ON
ANALYSIS OF CREDIT APPRAISAL FOR

MSME SECTOR

By
XYZ, Enrolment no.
IBS HYDERABAD
SYNOPSIS
INTRODUCTION
Write about the importance of banking sector in the economic development of the country
How banks help people by accepting deposits and providing credit and payment facilities to
all sections of the economy - individuals, micro, small & medium industries, agricultural sector
and corporate sector.
Finance students: Explain how Credit appraisal as one of the most important functions
carried out by the banks to determine the eligible credit requirements of an applicant and decide
whether to finance and how much to finance. The credit appraisal system verifies the applicants
ability and willingness to repay

Marketing Students : Write how banks channelize funds from people/companies having surplus
money by accepting deposits and providing loans to people/companies who are in need of
money.
Marketing of bank products and services............
ORGANIZATION DETAILS : Write briefly about bank of Baroda

PROJECT DETAILS:
TITLE OF THE PROJECT:
OBJECTIVES:
The main objective of the study is to understand the credit appraisal system in Bank of Bank.
1)
2)
3)
4)

To assess the credit appraisal for Retail sector

To assess the credit appraisal for Agricultural sector
To assess the credit appraisal for Micro, Small and Medium Enterprises(MSME)
To assess project finance of companies in thermal power sector.

(Marketing students should modify the objective )

METHODOLOGY:
Sources of data collection:

a) Primary data collection:

The primary data will be collected through personal observation in the banking system and
interviewing project guide, managers and under personnel guidance of employees working in the
organization.

b) Secondary data collection:

The Secondary data will be collected from balance sheet and income statement, Bank circulars,
bulletin of the Bank, Banks website and RBI site.
Data analysis and assessment of Credit Appraisal:
a) Working capital assessment methods
(i)
Nayak Committee recommendations for arriving at the working capital
(ii)

requirements of Micro and Small enterprises.

Tandon committee recommendations for assessment of working capital of

companies.
b) Term Loans :
(i)
Ratio analysis
(ii)
EMI (Equated Monthly instalment) calculation

DESCRIPTION OF THE PROJECT IN BRIEF

LITERATURE REVIEW:
(a) Bank of Baroda : Write the banks action plan
(b) RBI . : Write RBI role briefly
(c) Basel committee Write briefly on Capital Adequacy norms of Basel committee (Basel-I, II
& III)
LIMITATIONS OF THE STUDY

BIBLIOGRAPHY