SUMMER TRAINING REPORT

ON
“A Project Report on analysis of Credit Appraisal at
Bandhan Bank”
In partial fulfillment of the requirements
for the award of the degree
of
Master Of Business Administration(MBA)
Submitted by
SUMIT KUMAR VERMA
AKTU Roll. No. MBA/08/203
Submitted to
Mr. Suraj Prakash Singh
Assistant Professor
School of Management Sciences, Varanasi
Affiliated to
(Dr. A.P.J. Abdul Kalam Technical University, Lucknow)

Session-2021-22

CERTIFICATE BY THE FACULTY GUIDE OF THE INSTITUTE

DECLARATION
I hereby declare that the information presented in this Project Report is correct to the best of

my knowledge and the analysis is as per the norms and guidelines provided for the report. I

have utilized the requisite concepts and applied the required methodologies to analyze the

data collected to reach the conclusion present in the report.

I claim the report to be my indigenous work and has not been published anywhere else.

SUMIT KUMAR VERMA

MBA (III Semester)

Roll No-MBA/08/203

ACKNOWLEDGEMENT
A large number of individuals have contributed directly and indirectly in this synopsis. I am
thankful to all of them for their help and encouragement.

My sincere gratitude to Mr. Suraj Prakash Singh (Assistant Professor) and all the MBA
faculties for their support and guidance in completion of this Project Report .

I express my sincere thanks to my parents & friends for the inconstant support and suggestions to
accomplish my goals.

Last but not the least I thank God for his love and grace that enabled me to complete this Project
report.

SUMIT KUMAR VERMA

MBA (III Semester)

Roll No-MBA/08/203
 TABLE OF CONTENT

Chapter Titles Page No.

No.

Executive Summary 1
1 Introduction 2
1.1 Introduction 3
1.2 Industry Profile and Company Profile 4-6
1.3 Vision, Mission and Quality Policy 7
1.4 Products and Services 8-11
1.5 Areas of Operation 11
1.6 Infrastructure Facility 12
1.7 Competitors Information 13
1.8 SWOT Analysis 13-14
1.9 Future growth prospects 15
1.10 Financial Information 16-20

2 Conceptual Background and Literature Review 21

2.1 Theoretical Background of the Study 22-29
2.2 Review of Literature 30-34

3 Research Design 35
3.1 Statement of the Problem 36
3.2 Need for the Study 36
3.3 Objectives 36
3.4 Scope of the Study 37
3.5 Research Methodology 37
3.5.1 Research Design 37
3.5.2 Data and Sources of Data 37-38
3.6 Limitations 38
4 Data Analysis and Interpretation 39
Analysis and Interpretation of Data 40-57

5 Findings, Conclusion and Suggestions 58

5.1 Summary of Findings 59
5.2 Suggestions 60
5.3 Conclusion 61
Bibliography
Annexure
 SECTION - A

Introduction

The Credit Appraisal is an objective of ensuring and keeping the idea of advancing and

managing the credit risk. The course of Credit Appraisal is multidimensional and wires the

Management Appraisal, Commercial Appraisal, Financial Appraisal, Economic Appraisal,

and Technical Appraisal.

The audit unveils assessment is done to ensure the recovery of recognize along for

extraordinary oversight, checking and relationship. Credit Appraisal is a cooperation where

the agent surveys the credit worth of the normal borrower. This all-around fuse assessing the

borrower's repayment history and developing the quality and viability of his compensation.

The financial backer fulfills himself of the remarkable intensions of the borrower even more

habitually through the gathering or individual discussions.

The study also speaks credit related guidelines that are supposed to be followed by all the

borrowers.

On the audit, data all through the past 5 years has been still up in the air to appraisal. The

concentrate quickly explains how the bank has been performing from 2013-14 to 2020-18

through suggesting bank's yearly reports and monetary outlines. It obviously explains the

meaning of credit assessing in any of the banks and money related establishments.

Industry Overview:

The Indian financial framework comprises of 12 public area banks, 22 private area banks, 46

unfamiliar banks, 56 local rustic banks, 1485 metropolitan agreeable banks and 96,000 country
helpful banks notwithstanding helpful acknowledge establishments As of November 2020, the

complete number of ATMs in India expanded to 209,282. Resource of public area banks

remained at Rs. 107.83 lakh crore (US$ 1.52 trillion) in FY20. During FY16-FY20, bank credit

developed at a CAGR of 3.57%. As of FY20, absolute credit stretched out flooded to US$

1,698.97 billion. During FY16-FY20, stores developed at a CAGR of 13.93% and arrived at US$

1.93 trillion by FY20. As per the RBI, bank credit remained at 108.79 trillion (US$ 1.46 trillion)

and bank stores remained at Rs. 155.14 trillion (US$ 2.08 trillion), as of July 16, 2021. Credit to

non-food enterprises remained at Rs. 107.93 trillion (US$ 1.45 trillion), as of July 16, 2021.

The Indian financial framework comprises of 12 public area banks, 22 private area banks, 44

unfamiliar banks, 43 provincial country banks, 1,484 metropolitan helpful banks and 96,000

rustic agreeable banks notwithstanding agreeable credit foundations. As of May 2021, the

absolute number of ATMs in India expanded to 214,654. As per the RBI, bank credit remained at

108.79 trillion (US$ 1.46 trillion) and bank stores remained at Rs. 155.14 trillion (US$ 2.08

trillion), as of July 16, 2021. Credit to non-food ventures remained at Rs. 107.93 trillion (US$

1.45 trillion), as of July 16, 2021. Resource of public area banks remained at Rs. 107.83 lakh

crore (US$ 1.52 trillion) in FY20. Complete resources across the financial area (counting public,

private area and unfamiliar banks) expanded to US$ 2.52 trillion in FY20. Indian banks are

progressively zeroing in on taking on coordinated way to deal with hazard the executives. The

NPAs (Non-Performing Assets) of business banks has recorded a recuperation of Rs. 400,000

crore (US$ 57.23 billion) in FY19, which is most noteworthy over the most recent four years.

RBI has chosen to set up Public Credit Registry (PCR), a broad data set of credit data, open to all

partners. The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 Bill has been

passed and is relied upon to fortify the financial area. Absolute value financing of microfinance

area developed 42% y-o-y to Rs. 14,206 crore (US$ 2.03 billion) in 2018-19. As of July 21, 2021,

the quantity of ledgers—opened under the public authority's lead monetary incorporation drive
'Pradhan Mantri Jan Dhan Yojana (PMJDY)'— arrived at 42.76 crore and stores in Jan Dhan

financial balances totalled >Rs. 1.43 lakh crore (US$ 19.31 billion). Rising pay is relied upon to

improve the requirement for banking administrations in country regions, and hence, drive the

development of the area. India is the world's biggest market for Android-based portable loaning

applications, representing ~82% of all internet based banks around the world. India presently has

887 dynamic loaning applications. The advanced installments insurgency will trigger gigantic

changes in the manner credit is dispensed in India. Check cards have profoundly supplanted

Mastercards as the favored installment mode in India after demonetisation. In July 2021, Unified

Payments Interface (UPI) recorded 3.25 billion exchanges worth Rs. 6.06 lakh crore (US$ 81.48

billion).

INDUSTRY GROWTH RATES AND PROJECTIONS VIS A VIS GDP

GROWTH NO

1. Economic and demographic drivers

 Favorable demographics and rising income levels.

 India ranks among the top 7 economies with a GDP of US $2,73

trillion in 2018.

 The sector will benefit from structural economic stability and continued credibility of

Monetary Policy.

2. Policy support

 The Government passed the Banking Regulation (Amendment) Bill 2017 to empower RBI

to deal with NPAs in the banking sector.

 The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 Bill was passed by

Rajya Sabha to strengthen the banking sector (as of Jan 2018).

3. Infrastructure financing

 India currently spends 6% of GDP on infrastructure; NITI Aayog expects this fraction to

grow going ahead.

 As per Union Budget 2019-20, investment-driven growth requires access to low-cost

capital, which requires an investment of Rs.20 lakh crores (US$300billion) every year.

4. Open banking eco- 4 system

The open banking eco-framework in India has now developed to incorporate Non-Banking

Financial Company (NBFC) and other fintech players that have made associations inside the

financial framework.

5. Cross-border payments

Visa Inc. brings looked for RBI's consent to the table for another cross-line installments

framework to handle exchange streams to and from India It will offer a conceivably less

expensive, faster and blockchain-put together arrangement now with respect to preliminary.

Strong economic growth to propel banking sector expansion:

Rising per capita pay will prompt expansion in the small amount of the Indian populace that

utilizations banking administrations.

Populace in 15-64 age bunch is relied upon to develop firmly going on, giving further push to the

quantity of clients in the financial area.

According to Economic Survey 2018-19, working age populace will develop by 9.7 million every

year in the middle of 2021 and 2031 and 4.2 million every year from 2031 to 2041.

The ascent of banking in India came in the eighteenth century with the presence of General

Bank of India. Then, the Bank of Hindustan was outlined, but these two banks are at present
old. Starting there, the Indian government set up three organization banks in India, they are

Bank of Bengal, Bank of Bombay, and Bank of Madras in the year 1809, 1840 and 1843

independently. Thusly, these three banks were combined and named as Imperial Bank of

India (IBI). As of now it is known as State Bank of India (SBI).

The essential totally guaranteed Indian bank was Allahabad Bank, it started its action in the

year 1865. The market reached out with the advancement of banks like Punjab National Bank

and Bank of India in the year 1906.

In India all Banking rules and rules are encased by RBI. It is assumed as Banker's Bank. In the

year 1935, the Reserve Bank of India (RBI) legitimately expected the responsibility of

coordinating the Indian Banking Sector. In 1947, the Reserve Bank was nationalized and given

the contrasted powers.

Hurried improvement of development has ensured to liberal lessening in return cost, it engaged

more conspicuous difference of the portfolio and upgrades in credit scattering of banks.

Notwithstanding incredible progression, troublesome issue have emerged reflecting reduction

in helpfulness, adequacy and disintegrating of the effectiveness of the monetary region. To

overcome this issue, the Government course of action Narasimham Committee under the

chairmanship of M Narasimham to investigate the issues and recommend deals with serious

consequences regarding help the strength of financial structure in India.

India’sworkingagepopulation(inmillion)andGDPpercapita
current(US$)

2,500

2,000

1,939.61

1,500 1,606.04
1,461.67

1,000
860.13 886.92
802.01

500
 0
2011 2015 2017
Population GDP-RHS

Rising rural income pushing up demand for banking

GDP of agriculture, forestry and fishing sector ,atcurrent

prices(US$billion)

500 CAGR9.94%

450

400

350

300

250

200

150

100

50 FY16FY17FY18**FY19***FY20*
0

Real disposable household income in rural India (US$)

3,500 CAGR3.6%

3,000 3,229

2,5002,667

2,0002,167
 1,500

1,000

500 0
201020152020
2025
Gross Value Added by agribusiness, ranger service and fishing is assessed at Rs. 32.54 trillion

(US$ 465.64 billion) in FY20*.

Rising earnings are relied upon to upgrade the requirement for banking administrations in

provincial regions, and hence, drive development of the area. Programs like MNREGA have

helped in expanding rustic pay, which was additionally supported by the new Jan Dhan Yojana.

MARKET SHARE OF MAJOR PLAYERS

Market Share of Major Banks

1,000,000.00

900,000.00

800,000.00

700,000.00

600,000.00

500,000.00

400,000.00

300,000.00

200,000.00

100,000.00

0.00
HDFC Bank ICICI Bank Kotak Axis Bank IndusInd Bank IDBI Bank Bandhan Bank
Mahindra
 Company Name Market Cap
HDFC Bank 8,62,643.63
ICICI Bank 5,36,622.47
Kotak Mahindra 4,15,492.76
Axis Bank 2,24,890.20
IndusInd Bank 80,582.45
IDBI Bank 56,933.97
Bandhan Bank 50,334.50

SWOT ANALYSIS OF THE INDUSTRY

STRENGTH:

Banking Industry is the Oldest Industry: Because of Technological headway Industries are

changing their design. Banking has likewise changed its design and framework. Banking Industry

has ended up being one of the wide spread and broadly recognized industry. It has additionally

upheld mankind. Banking has adjusted and refreshed itself to suit the new requirements. Banks

today assume a basic and essential part in the public eye, from instilling the propensity for

investment funds to assisting individuals with monetary instruments.

Monetary Stability of Nation: In guaranteeing a country's financial development and monetary

steadiness, the financial business assumes a crucial part. By encouraging thriving, banks add to

the economy. They help the majority to keep up with their assets and become significant

supporters of both the public and global economy.

Supplier of Financial Instruments: Banks have a wide scope of monetary instruments for their

clients. Fixed Deposits, Stocks, securities, protection and investment accounts are a portion of the

differed items sold by banks. Moreover, to give web based financial arrangements, banks have

additionally embraced and joined advanced advances.

Great Employment Source and Helps in GDP development: There is an inescapable

agreement that maybe the improvement of the monetary framework prompts financial

development. Monetary improvement builds up empowering conditions for development by

either supply-drove (monetary advancement animates development) or request driven

development. It is this industry that works continually to guarantee monetary strength, empower

unfamiliar exchange, advance positions and diminish destitution all throughout the planet.

Monetary Assistance: regardless of whether normal cataclysm or man-made catastrophe banks

mitigate the delayed consequences of calamity by offering monetary help to casualties to ascend

and have a quiet existence once more.

Expanded administrations: The financial area gives protection, advance and speculation

administrations from Current and Saving Accounts.

Associating People: With the coming of an advanced century, mechanical development Banks

have simplified life for an everyday person. Individuals can execute in many puts consistently.

Transforming from the situation of straightforward investment funds and credit facilitator: the

present top bank needs incorporate administrative authorization, further developing resource

quality, improving client center, focusing on advanced assembly, and tending to rivalry from non-

banks. Banks are currently putting resources into business and innovation to further develop their

plans of action.

Indian Bank Strengths

1. Provincial financial ability

2. Solid global organization of saves money with 240 abroad reporter banks in 70 nations

3. Very good quality financial innovation with center banking at every 1900+ branch.
4. It has 22,000 representatives
5. Broadened banking exercises under 3 auxiliaries for example Indbank Merchant Banking
Services Ltd, IndBank Housing Ltd, IndFund Management Ltd.
WEAKNESS:

Worldwide Economics Susceptibility: Due to Exchange Rate changes and changes in world

economy banking Industry is impacted. It is likewise seen that slight changes in the trade paces of

monetary standards or the spending and saving examples of the residents of one significant

country can straightforwardly affect the whole financial industry.

Non Performing Assets: The significant shortcoming of the financial area is NPAs (Non-

Performing Assets). Commonly, NPAs mean advances that are not recoverable. This prompts

monetary misfortunes for the bank, definitely. For the financial area and the economy overall,

NPAs can have a weakening effect. Agricultural nations like India face occasions of high NPAs

that have managed a critical hit to the country's financial industry.

Absence of inclusion in rustic regions: It has been seen that the financial business centers more

around metropolitan regions in many nations, while country locales are disregarded. In the

financial area, this is an impressive shortcoming. Towns are currently home to a larger part of the

total populace. In created nations, this is more. Banks are working in standard would rather not

focus on standards. Banks should attempt to catch Rural Markets.

Indian Bank Weaknesses

1. Less presence in India as it has contest in metropolitan regions just as rustic regions

2. Restricted promoting in examination with driving banks

3. Low number of ATM's and branches when contrasted with other large bank brands.
OPPORTUNITIES:

Headways in Technology: The financial business has consistently dependent on innovation. This

is clear that advanced administrations given by banks today are completely founded on

innovation. Nonetheless, banks should keep on embracing the most recent innovative advances.

To draw people in the future, they should zero in on putting out fresher labor and products.

Openings for provincial development: One of the financial business' flimsy parts is its

restricted presence in rustic regions. Yet, this weakness can really be transformed into a chance.

Banks will build their client base impressively by venturing into towns and offering their types of

assistance to the provincial populace.

Cultural Evolution: Both monetarily and socially, human culture is evolving. The necessities

and requests of clients with expanding pay levels will undoubtedly change in this intricate scene.

It is important for banks to adjust to this evolving society. The area will cement its situation in the

future by offering better administrations.

Ascending in the private financial area: the financial business all throughout the planet is

profoundly managed by Public area banks and their particular national banks. With the rise of

private area banks, this area is encountering underlying and utilitarian shifts, essentially because

of the variation of new innovation and escalated contest, consequently helping end-clients.

Indian Bank Opportunities:

1. Metropolitan market banking and retail banking

2. Positive Government rustic plans
3. More development in undiscovered country markets.
Threats:
Absence of Cyber Defense Proper: The current financial industry depends altogether on the

digital world. Regardless of whether it is information stockpiling, financial exchanges or

individual data, everything is put away carefully. This makes the financial area an essential

objective for programmers who are trying to benefit monetarily by utilizing imperfections in the

banks computerized foundation. Except if banks find powerful network safety ways to shield their

records, they will confront a huge the internet danger.

Rivalry Stiff: Worldwide, banks face firm contest. From different banks, yet additionally from

establishments like Non-Banking Financial Companies that sell a scope of monetary items that

are not accessible to all banks. This has added to a difference in the buyer base from banks to

NBFCs, which are more embraced by the new talented variety.

Worldwide Uncertainty in Economics: The world is going through troublesome financial

occasions as of now. The worldwide financial area has generally been impacted by profession

wars, protectionist strategies, and monetary slumps. Assuming the world's monetary conditions

don't change, banks will confront a somber future.

Downturn: This is perhaps the greatest test to the country's monetary framework. The

horrendous shock of monetary emergencies and the breakdown of various organizations will

affect the banks as well as the other way around.

Framework strength: the disappointment of specific helpless banks has additionally sabotaged
the steadiness of the framework.

Unofficial laws can straightforwardly impact the Banking Sector of a country.

Indian Bank Threats:

1. Financial emergency and fluctuating business sector situations

2. Profoundly serious climate

3. Severe Banking Norms by Govt's and RBI.

COMPANY OVERVIEW

In April 2014, the Reserve Bank of India (RBI) in truth restrictive freedom to the Bandhan Group

for the foundation of a widespread bank. The Bandhan Group was one of two candidates among

25 that incorporated a portion of India's biggest business combinations. In June 2015, the

financial controller gave its last endorsement.

The bank was opened on August 23, 2015 in Kolkata by Shri Arun Jaitley, Union Minister for

Finance, Corporate Affairs, and Information and Broadcasting, Government of India. It was the

main bank to be set up in the eastern locale of India since Independence. Controllers,

policymakers, and illuminators from the monetary business and corporate India went to the

extraordinary occasion.

Bandhan Bank is propelled by the plan to offer better assistance. On the very beginning, Bandhan

Bank had 501 branches, 50 ATMs, and 2,022 Door step Service Centers (DSCs). Bandhan Bank

at present has 3,308 touch focuses across India, including 725 bank offices, 2,316 DSCs, and 267

ATMs, serving over 9.5 million clients.

The bank has gotten stores of Rs. 19,000 crore and has a credit book of nearly Rs. 19,000 crore.

Bandhan Bank utilizes a gave labor force of around 22,000 individuals.

The bank, which has its base camp in Kolkata, is partitioned into two divisions: general banking

and miniature banking, and it gives a scope of retail monetary administrations, including various

investment funds and credit items. Investment funds financial balance loan costs are right now

6% for balances more prominent than Rs.1 lakh and 4.25 percent for balances under Rs.1 lakh.

The greatest loan fee on term stores is 8.25 percent for one to under two years, in addition to a 0.5

percent reward for senior people.

Bandhan Bank attempts to offer its top notch banking things and organizations to metropolitan,

semi-metropolitan and natural customers the equivalent. While it has a dish India presence, the

one of a kind spotlight stays on eastern and north-eastern piece of India. It is a bank for

everything with the exception of the middle leftover parts unaltered to meet the money related

necessities of people who are dismissed by the appropriate monetary system and improve

guidance, clinical benefits and autonomous work openings. In a condition of amicability with the

perspective of 'Aapka Bhala, Sabki Bhalai' and keeping financial thought at its center, Bandhan is

made plans to give a huge gathering of things and organizations, genuinely on a norm with India's

top private and state-guaranteed banks.

Bandhan Bank started in 2001 as a not-income driven endeavor giving microloans to the

mistreated fragments of society. It focused in on financial thought and women reinforcing

through sensible occupation creation. In 2006, Bandhan obtained a NBFC to expand its

microfinance works out. It changed into a NBFC-MFI to extra its middle objective of financial

thought. In 2010, Bandhan was seen as the greatest MFI in the country.

About Regional Rural Banks (RRB’s) :

The RRB's were formed under the plan of Regulation passed in September 1975 and the Regional

Rural Bank Act 1976. The essential maxim of setting up regional natural banks is to give

reasonable banking and credit office for agriculture and common people. Commonplace Rural

Bank was game

plan on the ideas of Narasimham Committee Working Group.

The RRB's are guaranteed by the mix of Central Government, State Government and the Sponsor

Bank for instance Territorial Rural Banks are upheld by any Commercial Bank. The critical

components of RRB's are according to the accompanying:

 Expanding banking offices to rustic and semi-metropolitan regions.

 Encouraging the habit of saving between rural and semi-urban populations.

 By charging a lower interest rate, the Regional Rural Banks reduce the cost of credit in the

rural areas.

 They grant loans and advances to small farmer as well as agricultural laborers so that they

can start their own agrobusiness activities, which includes acquisition of land-dwelling,

seeds and fertilizers etc.

Structure of Banking sector in India

 RBI

Scheduled Unscheduled
Banks Banks

Commercial Co-operative
Banks Banks

Public Sector Private Sctor Foreign Sector Regional

Banks Banks Banks Rural Banks

MISSION STATEMENT

To give our customers accessible, essential, pragmatic and creative financial plans in an

accommodating and careful manner. To make a motivation for all accomplices through a genuine

gathering, incredible procedures, and transcendent structures and advancement.

VALUES AND OBJECTIVES OF THE COMPANY:

Values:
Our qualities are moored around our business morals, buyer center, and corporate obligation

towards the general public overall.

Our characteristics are secured around our business ethics, client focus and corporate

commitment towards society over all.

C- Cost-effective & simple

R- Respect for all

E- Exemplary governance

A-Accountability professionalism & discipline

T- Transparency & integrity

E- Effective teamwork and commitment

Objective:

Bandhan Bank started in 2001 as a not-income driven endeavor giving microloans to the

persecuted portions of society. It focused in on financial thought and women reinforcing through

viable business creation. It changed into a NBFC-MFI to extra its middle objective of financial

thought.

HISTORY OF THE COMPANY

Bandhan Bank is a business bank focused in on serving underbanked and underpenetrated

markets in India. Bandhan Bank is the principal event in Quite some time of a microfinance

substance changing into a comprehensive bank. The bank at this point offers a combination of

asset and commitment things and organizations expected for smaller than usual banking and

general banking. Its asset things involve retail progresses including a liberal game plan of smaller

than usual acknowledges similarly as scaled down nearly nothing and medium endeavor ('SME')

advances and little endeavor propels. Regardless the credit and store things the bank in like

manner offers other monetary things and organizations to make non-premium compensation and

cook towards the additional necessities of its customers. These things and organizations fuse
check cards Web banking adaptable banking EDC-POS terminals online bill portion

organizations and the spread of pariah general insurance things and normal resource things. The

bank's outright monetary outlets as on 31 Walk 2021 stayed at 5310. The association contains

1147 branches and 4163 monetary units and the full scale number of ATMs stayed at 487 the

country over. Bandhan Bank has basic presence in under-penetrated East and North East India.

Bandhan Konnagar was molded in 2001 as a non-managerial affiliation ('NGO') giving

microfinance organizations to socially and monetarily obstructed women in country West Bengal.

Bandhan Monetary Administrations (BFSL) started its microfinance business in 2006 and the

NGO moved its microfinance business to BFSL in 2009 and in this manner the entire

microfinance business was endeavored by BFSL. At the point when BFSL moved its

microfinance business to the bank it was India's greatest microfinance association by number of

customers and size of credit portfolio. Bandhan Bank Restricted was joined as on December 23

2014 at Kolkata West Bengal as a public confined association. A license endorsing the Bank to

keep banking business was given by the RBI to the extent Segment 22 of the Financial Guideline

Follow up on June 17 2015.The Bank began strategy on August 23 2015 when Bandhan

Monetary Administrations Restricted ('BFSL') its conclusive parent association moved its entire

small cash business to the bank and the bank meanwhile started general monetary activities. To

enhance the little development business since getting its monetary grant it has moreover based

particularly on making a strong general monetary business. To this end it dispatched the generally

speaking monetary business on August 23 2015 by opening a Greenfield association of 501 bank

workplaces and 50 modernized teller machines ('ATMs').In 2016 Bandhan Bank broadened its

branch and doorstep organization centers (DSC) association to 656 branches and 2022 DSCs. In

2017 the bank expanded its branch and DSC association to 840 branches and 2546

DSCs.Bandhan Bank dispatched a hidden public arrangement (Initial public contribution) during

the period from 15 Walk 2018 to 19 Walk 2018. The Initial public contribution was a blend of

new issue of 9.76 crore shares and a Proposal accessible to be bought of 2.16 crore shares from
selling financial backers. The Initial public contribution was assessed at Rs 375 for each deal. The

stock showed up at Rs 485 on BSE on 27 Walk 2018 a premium of 29.33% over the Initial public

contribution cost. On 28 September 2018 Bandhan Bank informed the stock exchanges that since

the bank couldn't chop down the shareholding of Non Employable Monetary Holding

Organization (NOFHC) to 40 percent on a case by case basis under the allowing condition

general agree to open new branches stands eliminated and the bank can open branches with prior

underwriting of RBI and the pay of the MD and President of the Bank stands frozen at the current

level till extra warning. Bandhan Bank said in a clarification that it is observing a way imperative

ways of following the approving condition to chop down the shareholding of NOFHC in the Bank

to 40 percent and will continue to attract with RBI in this behalf.On 12 October 2018 Bandhan

Bank informed the stock exchanges that the bank has gotten an exemption from the Protections

and Trade Leading assemblage of India in regards to (I) lock-in of one year on the worth offers

held by the promoter; and (ii) capability condition of one year from posting; depending on the

situation under rules 36(b) and 82(b) of the Protections and Trade Leading gathering of India

(Issue of Capital and Exposure Prerequisites) Guidelines 2009 independently to agree to the

necessities of RBI Authorizing Rules for Private Area Banks gave on February 22 2013.During

FY 2018-19 the Save Bank of India vide its letter dated September 19 2018 has constrained two

limits on the Bank one is withdrawal of general approval to open new branches by which the

Bank isn't permitted to open new branches without the previous support of the RBI and the other

is freezing of remuneration of the MD and Chief at the current level due to obstruction of one

allowing condition of debilitating of excess shareholding of Non-employable Monetary Holding

Organization ('NOFHC') in the Bank to 40% of the settled up capital of the Bank inside quite a

while from the commencement of the exercises of the Bank. The Bank has taken drives to adjust

to the last allowing condition and in such way mix of GRUH Money Restricted into and with the

Bank has been embraced by the Board by which the current shareholding of NOFHC in the Bank

will be brought down to 61% (approx.). The Bank close by NOFHC has moreover begun one or
two steps to concur with the last approving condition at the earliest. The Bank is persistently in

touch with the RBI on the matter.During FY 2017-18 the Bank forayed into the gold credit

business by beginning gold development exercises at 57 branches in eastern India. The amount of

these branches extended to 60 in the FY 2018-19. On Walk 31 2019 the Bank's remarkable gold

credit book stayed at Rs 128.28 crore from 22619 customers.During the year 2019 the Bank set

up 50 new branches and 21 new ATMs. As on 31 Walk 2019 the Bank has 986 Branches 3014

DSCs and 481 ATMs.During the FY2019 hard and fast stores created by 27.64% to Rs 43231.62

crore of which Rs 17617.73 crore (40.75%) was Current Record and Investment account

('CASA') stores. Bandhan Bank was broadcasted as the champ in the 'Critical Loan expert to the

MSE - Private Area Bank' class at the SIDBI ET MSE Grants 2018 held tight January 2019.

Bandhan Bank got the honor in 'Best Performing Bank' the extent that Aadhaar age and update

(using on the web client) at the Aadhaar Greatness Grants in October 2018. The bank moreover

won the 'Emerging Organization of the Year' at The Financial Occasions Grants 2019 for

Corporate Greatness. Moreover won 'Fastest creating Organization' and 'Significance in Business

Execution' at The Monetary Occasions Bengal Corporate Honors 2020.The Bank has set up 32

new branches 332 new Financial Units and 4 ATMs and hence the branch apportionment network

went up to 1018 branches and 485 ATMs in FY 2019-20.With the broadening association of

banking outlets and customers the total stores extended from Rs 43231.62 crore as on 31 Walk

2019 to Rs 57081.50 crore as on 31 Walk 2020 enlisting a development of 32.04%.The scene of

Coronavirus pandemic across the globe and in India has added to an enormous rot and

capriciousness in the worldwide and Indian money related business areas and stoppage in the

monetary activities. The RBI on Walk 27 2020 April 17 2020 and May 23 2020 revealed 'Covid

Administrative Bundle' on asset gathering and provisioning. To the extent these RBI manages the

crediting associations have been permitted to yield an effective boycott of a half year on portion,

taking everything into account/premium as relevant falling due between Walk 1 2020 and August

31 2020 ('boycott period'). As at 30 June 2020 indisputably the quantity of Branches Banking
Units and ATM network stayed at 1018 3541 and 485 independently. As at 30 September 2020

indisputably the quantity of Branches Banking Units and ATM network stayed at 1045 3656 and

487 independently. As at 31 Decemeber 2020 indisputably the quantity of Branches Banking

Units and ATM network stayed at 1107 4090 and 487 independently. Outright Financial outlets

as on 31 Walk 2021 stayed at 5310. The association contains 1147 branches 4163 monetary units

as against 1018 branches and 3541 monetary units as on 31 Walk 2020. The All-out number of

ATMs stayed at 487 as on 31 Walk 2021 against 485 as on 31 Walk 2020.During the FY2021the

Absolute Stores extended by 36.6% to Rs 77972.2 crore as on 31 Walk 2021 when appeared

differently in relation to Rs 57081.5 crore as on 31 Walk 2020.

TYPES OF PRODUCTS&SERVICES

BANDHAN BANK

SAVINGS ACCOUNT- Bandhan bank offers 6 kinds of investment account intended for various

necessities of people. The essential bank accounts offer every one of the offices including ATM

cum Debit card, shopping, and online asset move

HOME LOAN- Bandhan Bank offers different home advance plans for any individual who

wants to buy or develop a house with residency period up to 3 years

Bandhan Bank stretches out home advance to clients through GRUH Finance. GRUH turned into

a piece of Bandhan Bank on October 17, 2019, after it was gained from HDFC. Thinking about

the shifted necessities of clients and the furious market rivalry, Bandhan Bank through GRUH

Finance offers custom-made home credit arrangements.

LOAN AGAINST PROPERTY- With Bandhan bank, clients can benefit advance against

property to meet critical monetary requirements.

A development against property (LAP) is a gotten credit that is approved keeping an asset as

home advance with the bank. This asset can either be a had land, a house, or some other business

premises. The asset stays as security with the moneylender until the entire credit against property

total is repaid.
 MSME Loan- Bandhan bank offers 2 kinds of MSME Loans to assist business visionaries with

making pay producing resources and improve liquidity

MSME propels are shaky advances introduced by a couple of financial establishments to meet

distinctive business-related expenses on loan. MSME progresses are portrayed by the Indian

Government and RBI as credits for business tries for help similar to cash, establishment and

various districts.

Fixed Deposit- The few kinds of FDs accessible are FD Premium, Standard, Tax-Saver,

Advantage

& Dhana Sam Riddhi. The base store sum for FDs begins from Rs. 1,000.

REGULA
R
TENURE CITIZENS Senior Citizens

7 days to 14 days 3.00% 3.75%

15 days – 3 months 3.00% 3.75%
31 days – less than 2 months 3.50% 4.25%
2 months – less than 3 months 3.50% 4.25%
3 months – less than 6 months 3.50% 4.25%
2 months – less than 1 year 5.25% 6.00%
1 year – 18 months 5.75% 6.50%
Above 18 months – less than 2
years 5.75% 6.50%
2 years – less than 3 years 5.75% 6.50%
3 years – less than 5 years 5.50% 6.25%
5 years – up to 10 years 5.50% 6.25%
CREDIT CARD- Bank offers 3 sorts of Mastercards that are appropriate for a wide range of

monetary needs.One might utilize these Mastercards for every one of their necessities beginning

from shopping to occasions.

The greatest benefit of a Mastercard is its simple admittance to credit. Mastercards work on a

conceded installment premise, which implies you get to utilize your card now and pay for your

buys later. The cash utilized doesn't leave your record, hence not imprinting your bank balance

each time you swipe.

BALANCE ENQUIRY- Bandhan ledger holders can utilize net financial office, complementary
number, versatile banking, passbook, missed call administration, SMS banking, ATM to check
their record balance immediately.

Bandhan Bank has been giving its clients different monetary items and administrations. Account-
holders would now be able to get to their ledger with SMS, missed call, web and versatile
banking. They can likewise check their record balance, view the smaller than usual proclamation,
actually take a look at exchanges, and so forth utilizing these fast administrations

Net Banking- Clients are furnished with the Customer ID and Password to login into their net

financial record. Account holders can profit elements, for example, reserve move, smaller than

usual explanation, balance Check, advances and other banking related administrations

Bandhan Bank is a Kolkata-based financial help association that started banking exercises in

2014 ensuing to getting the on a fundamental level support from RBI. The bank has 840 branches

and 383 ATMs the country over. An individual can open a save assets or current record with the

bank and advantage the web banking office of the bank. Net financial licenses us to do banking

trades like moving money, covering a bill, really investigating harmony or setting up an ordinary

portion on bank or building society's safe site. It is amazingly straightforward that it will in

general be open through a PC/tablet or a wireless.

Repeating Deposit-Customers can open a Recurring Deposit with least regularly scheduled

payments of Rs. 100 and for an adaptable residency going from a half year to 10 years.

A store with a bank is one of the definite shot ways of making a speculation while guarding one's

assets. By saving cash with a bank, you can try not to enjoy inefficient consumptions and bring in

returns on your cash. Fixed stores and repeating stores are the two most appealing kinds of stores

that one can make.

With Bandhan Bank, you can put aside a common installment and put away an amount of cash

for your fantasy vehicle or meeting the instructive costs of your kids or some other reason.

Putting resources into a store is a beneficial routine as it assists you with saving consistently.

Personal Loan- Gives Personal Loans up to Rs.5 lakh with appealing financing costs and

residency going from 12 to three years.

Bandhan Bank presents individual advances to Rs. 5 lakhs that candidates can use to meet

different individual monetary prerequisites including clinical, excursion, home redesign costs,

and so on Bandhan Bank individual credit loan fee begins at 15% p.a. The bank's very own

credits can be effortlessly profited on the web, include negligible documentation and reimbursed

over a residency reaching out as long as three years. Key angles related with Bandhan Bank

individual advances like key highlights, qualification measures, reports needed to benefit the

advance, expenses and different charges, and so forth.

PRODUCTS AND SERVICES

Following are the various loan products of Bandhan Bank:

 Kisan Credit Card

 This Scheme is to all Farmers including Tenant Farmers, Oral Lessees and General Power of

Attorney Holders, for Crop improvement with an office to communicate and draw many

occasions.

The farmers will moreover be expanded development under the Scheme of Advances

against Warehouse Receipts.

 Farm Mechanization

The bank gives advance to farmers to computerize their developing exercises by means of

purchase Tractor with trailer/Power turners.

 Loans to Allied Agricultural activities

Financial assistance to practices like Dairy Farming, Sheep Rearing Units, Poultry Farming,

Sericulture Rearing House, Sericulture Plantation, Commercial advancement of Medicinal

and Aromatic plants (MAPS) etc.

 Advance against Security of Gold Ornaments

The bank offers gold credits to horticulture for rural activities at ordinary Bank Rate of

Interest.

 All Purpose Mortgage Loans

It is an arrangement to customers to meet the general necessities without any constraints.

For instance, for holding stock, receivables, getting of land, working for developing

business, improvement, update and upgradation of working environments, obtaining of

equipment's, goods, vehicle, to meet working capital through selling the property

Consumer Durable Loans to Public

Credit given to public extraordinarily Professionals and independently used people for

acquiring of customer durables like TV sets, Music Systems, Refrigerators, Washing

 Machine, and so forth.

 Personal loan to Individuals

This office is accessible to salaried specialists, to general usage like associations, family

works, clinical costs, travel costs, instructive costs, and so on

 Small Business Finance

This plan is to manage the current business by buying extra stocks for developing business

and pay for Retail Traders, Business Enterprises, Professional and openly used people and

Transport administrators.

 Public Housing Loan

This plan is for working of private house, obtainment of house or estates and furthermore

for remodel, fixes, expansions, increments to existing house, and so forth.

Deposit Products of Bandhan Bank

Following are the various deposit products of the bank:

 Current Account

This record is opened by the monetary experts for doing their typical trades. They will be

given the uncommon right to pull out over the total in their record up quite far embraced

by the bank.
 Savings Bank Accounts
The different saving accounts are:
a) General Public Account
b) Minor Account
c) No-Frill Account
d) PMJDY
e) BSBDA
f) Student Account

 Term Deposit Accounts

The bank introduced plan of single sum adventure for stores between the period going from

15 days to 10 years or more.

 Cumulative Deposits

It is a customary fixed month to month stores for various periods going from a half year to

long haul.

SIZE OF THE COMPANY

March 21 March 20 March 19 March 18 March 17

Income:
Net Sales Turnover 12524.21 10885.49 6644.05 4802.3 3908.71

Other Income 2109.06 1549.2 1063.05 706.18 411.41

Total Income 14633.27 12434.69 7707.1 5508.48 4320.12

VISION, MISSION AND COREVALUES

VISION:
 "To be an inclined toward monetary association of people of our space, commitment to chip

away at the assumption for regular solaces of the mass to achieve far reaching improvement

with upheld common sense".

MISSION:

"Banding together in the improvement of the lifestyle of all of our customers and creating as a

prime and strong Rural Bank in the State and in the country is our Goal".

"Really responding to the longings and objectives of our customers and serving them merrily

past their supposition that is our Motto".

CORE VALUES:

• We approach every part of work with the best assumptions for dependability and

uprightness.

• We approach the work as a specialist bunch.

• We regard our customer.

• Steadfastness and through and through validity.

Profile Area of Operation

The bank has the total association of 502 Branches as on 31-03-2020 covering pretty much

10 Districts. During the year 2019-17, the bank has opened 16 new branches. The Bank

proposes to open 50 new branches during the current year to extend the business and besides

to meet the money related thought responsibilities.

The bank has the total association of 502 Branches as on 31-03-2020 covering pretty much

10 Districts. During the year 2019-17, the bank has opened 16 new branches. The Bank

proposes to open 50 new branches during the current year to extend the business and besides

to meet the money related thought responsibilities.

Table 1.5.1 Showing District wise and category wise number of Branches:

Districts Rural Semi- Urban Metro Total

Urban

Mysuru 75 9 25 0 109

Chamarajanagara 22 6 0 0 28

Hassan 49 7 5 0 61

Tumakuru 59 10 6 0 75

Ramanagara 11 4 0 0 15

Bangalore Rural 16 5 0 0 21

Bangalore Urban 18 4 0 30 52

Chikmagaluru 46 6 4 0 56

Kodagu 23 3 0 0 26

Mandya 48 9 2 0 59

TOTAL 367 63 42 30 502

 Infrastructure Facilities

 Fully Computerized

The Bandhan Bank is one of the new periods of Regional Rural Banks. The middle

monetary game plan is used in the bank. Mechanical advances, especially the improvement

of information development has facilitated the new acts of banking. The advancements will

reduce the bank's manual work and further foster usefulness. The intermixing of information

advancement to meet the middle prerequisites of banks is called as a middle monetary plan.

The improvement of program to complete the bank's middle proficient record trades,

passbook upkeep, credit and store income assessment, harmony of portion, customer

records, etc.

 Mobile Banking

Versatile Banking organization is given by the BANDHAN BANK which allows its

customers to use cells, for instance, cells or tablets to proceed with financial trades from a

good way. Convenient Banking is typically established on 24 hours.

 Internet Facility

Web Banking, virtual banking is a mechanized installment framework that permits clients

to direct a progression of bank exchanges with the assistance of bank's sites. The bank's

framework is typically associated with the center financial arrangement of the bank or part

of the way as a component of the financial business, instead of the conventional client's

admittance to the financial branch.

 Biometric Authentication

The bank presented the second level validation for signing on to CBS (Core Banking

Solution) notwithstanding the client id and secret word to forestall unapproved logging to

CBS

 Cheque Truncation System

The bank was carried out the CTS clearing framework in Bangalore and Mysore focuses

as sub individuals from State Bank of Mysore, the Sponsor Bank.

 All Branches are connected on a real time basis

 By the infrastructural offices accessible to workers, they keep up with the fast endorses

and customized administrations.

Competitors Information

 Vijaya Bank

 Canara Bank

 Corporation Bank

 Indian Bank

 SBI

 ICICI Bank

 Axis Bank

 HDFC Bank
 Syndicate Bank

SWOT Analysis

Strength Weakness

SWOT

Opportunities Threats
Strengths:

 Skilled and dedicated human resources.

 Strong internal co-ordination.
 Friendly environment in the bank.
 Low customer base ensures dedicated attention to each customer.
 First-class service management.
 Comparatively less risky.

Weaknesses:

 Small range of offerings.

 Very few ATM Booths.
 Not enough promotional activities.

Opportunities:

 The bank branches have good scope ex pension.

 Entering into other fields like insurance and mutual fund.
 The bank is located in a prime commercial area.

Threats:

 Huge Competition.
 BANDHAN BANK is mainly focusing on Rural Areas.
 Competitors have superior access to distribution channels

Future Growth and Prospects

The Bandhan Bank has covered practically 10 Districts with the outright association of 502

Branches. The bank has proposed to open 50 new Branches during the current year to extend

the business and moreover to meet the money related thought responsibilities. The bank has

started impelling advances to various activities both in rural and metropolitan locales. The

recovery of credits is great.

The bank has dispatched the Financial Inclusion (FI) plan and spread the splendid cards to their
 record holders. The fact of the matter is to take banking to doorsteps of uncovered towns in the

areas. The specialists concerned and the business columnists should work for the

accomplishment of the arrangement.

The bank has needed to achieve a 20 percent business advancement in the current financial year

and administer Rs.2,280 crore by means of yield credit with 7% speed of income.

The bank has needed to achieve a 20 percent business advancement in the current financial year
and administer Rs.2,280 crore by means of yield credit with 7% speed of income.

Financial Statement
Balance Sheet for the last 3 years
(Amount in thousands)

Particulars 31-03-2021 31-03-2020 31-03-2019

Liabilities:
Capital 539,726 539,726 539,726

Reserves and Surplus 5,008,981 4,687,999 3,874,206

Deposits 88,757,644 96,325,259 76,381,170

Borrowings 5,856,436 5,190,147 5,526,473

Other Liabilities and Provisions 1,613,925 1,447,557 1,664,656

Total 101,776,712 108,190,688 87,986,231

Assets:
Cash and Balance with RBI 4,252,499 4,281,626 3,549,577

Balance with Banks and Money at call and 3,221,555 9,142,828 1,273,644
short notice

Investments 32,645,779 38,636,678 28,281,467

Advances 59,193,988 53,746,453 53,307,088

Fixed Assets 218,358 218,187 216,083

Other Assets 2,224,533 2,164,916 1,358,372

Total 101,776,712 108,190,688 87,986,231

Contingent Liabilities 208,003 155,618 122,008

Bills for collection 172,845 135,754 178,285

Profit and Loss Account for last 3 Years

(Amount in thousands)

Particulars 31-03-2021 31-03-2020 31-03-2019

1.Income
Interest earned 9,093,500 8,485,896 7,751,202
Other Income 628,157 1,160,043 499,020
Total 9,721,657 9,645,939 8,250,222
2.Expenditure
Interest expended 5,997,294 6,035,265 5,346,539
Operating expenses 2,125,290 1,947,786 1,730,689
Provisions and contingencies 1,187,669 493,653 174,219
Total 9,310,253 8,476,704 7,251,447
3. Profit and Loss
Net Profit Before Tax 411,404 1,169,235 998,775
Less: Provision for deferred tax liability -348 36,942 44,131
provided
Total 411,752 1,132,942 954,644
Less: Provision for Income Tax for the year 89,101 279,944 266,525
Net Profit After Tax 322,651 852,349 688,525
4. Appropriation of Profit
Statutory Reserve 64,530 170,470 137,624
Capital Reserve 59,739 136,862 19,736
Investment Fluctuation Reserve 0 174,194 52,738
General Reserve 64,530 170,470 0
Special Reserve 40,000 100,000 100,000
Balance Profit 93,852 100,354 378,021
Total 322,651 852,349 688,119
 Ratio Analysis:

1. Current Ratio

Current Ratio is used to check the association's transitory dissolvability; it doles out the rupee

of current assets which are introduced for each rupee of current commitment. Plainly, more the

current extent, the more got are the contract banks just as the opposite way around. The

Standard current extent is customarily 2:1 (current assets twice of current danger).

The equation for figuring the current proportion as under:

Current Ratio = Current Asset/Current Liability

Table 1.10.1 Showing Current Ratio

(Amount in Thousands)

Year Current Assets Current Liabilities Current Ratio

2015-16 1,358,372 1,664,656 0.82:1

2019-17 2,164,916 1,447,557 1.50:1

2020-18 2,224,533 1,613,925 1.38:1

Data analysis and Interpretation:

In the year 2015-16 current degree is 0.82 which is in all probability not a healthy degree for

the firm as the liquidity position of the firm is low. In the year 2019-17 the current degree

contacted 1.50, where the liquidity position of the firm improved to a decent degree.
 Regardless, in the year 2020-18 the current degree is possibly decreased to 1.38 appeared

contrastingly comparing to the fundamental year.

2. Net Profit Ratio

Net Profit Ratio chooses the appropriateness of the association. This degree displays the

general piece of the affiliation's efficiency.

It is calculated by using following formula:

Net Profit Ratio= Net Profit After tax/ Net Sales*100

Table 1.10.2 Showing Net Profit Ratio

(Amount in thousands)

Year Net Profit Net Sales Net Profit Ratio (%)

2015-16 688,525 8,250,222 8.35

2019-17 852,349 9,645,939 8.84

2020-18 322,651 9,721,657 3.32

Data Analysis and Interpretation:

In the year 2015-16 the net advantage extent was 8.35%, where as the net advantage was

extended to 8.84% in the year 2019-17. However, in the year 2020-18 the net advantage

reduced to 3.32 which is the least advantage obtained appeared differently in relation to latest

two years.

3. Fixed Assets Turnover Ratio

The asset turnover extent evaluates how well an association is using its assets for yield pay.

This extent can process as follows: Fixed Asset Turnover Ratio= Net Sales/ Fixed Assets

Table 1.10.3 Showing Fixed Asset Turnover Ratio

(Amount in thousands)
Year Net Sales Fixed Assets Asset Turnover
Ratio

2015-16 8,250,222 216,083 38.18

2019-17 9,645,939 218,187 44.21
2020-18 9,721,657 218,358 44.52

Data Analysis and Interpretation:

In the year 2015-16 the asset turnover extent is 38.18 and it is keeps extending in the year

2019-17 and 2020-18 to 44.21 and 44.52 independently. In the year 2015-16 the use of asset

was less with the less asset turnover extent. After a short time, the assets turnover extent

proceeded to increase.
 4. Debt to Equity Ratio:

This extent is a monetary extent, which decides the general proportion of financial backer's

worth and the commitment used by the undertaking to back an association's assets. It is

computed by using the following formula:

Debt Equity Ratio (D/E) = Outsider’s Fund / Shareholders Fund

Table 1.10.4 Showing Debt Equity Ratio

(Amount in thousands)

Year Outsider’s Fund Shareholder’s Ratio

Fund

2015-16 5,526,473 4,413,932 1.25

2019-17 5,190,147 5,227,725 0.99

2020-18 5,856,436 5,548,707 1.06

Data Analysis and Interpretation:

From the above table we can find the commitment to esteem extent. In the year 2015-16 the

commitment esteem extent is 1.25:1 where the bank uses more commitment capital than the

worth capital. However, sooner rather than later the commitment esteem extent is diminished to

0.99:1. In the year 2020-18 the commitment esteem extent is 1.06.

 LITERATURE REVIEW

GEORGE, OSEI-NYAKO (2019)

The review analyzes the appropriateness of the assessment cycle of credit in GN Bank and

the subjugation between the credit officials and the borrower and the impact of advance

official borrower relationship on the assessment interaction of credit. He distinguishes the

strategies to propel the assessment cycle of credit in the bank. The learning discovers the

credits office offers astounding gathering to all clients regardless of the advance officials'

relationship with the borrower. Larger part of the borrowers who defaults the advance

reimbursement has no relationship with the advance official.

AMOAH, ANTHONY GYABENG (2019)

The review evaluated the loaning practices of Upper Amenfi Rural Bank Limited. It

recognized

thefollowingfactorsasthedeterminantsofcreditdefaultamongclientsofUpperAmenfiRural Bank

to extent client business disappointment, redirection of advances, advances for social reason,

deficient observing, lacking security, insufficient documentation, insufficient evaluation,

insufficient credit staff and staff disposition.

LAWRENCE E (2015)

He clarifies that the articles basically focus on the issues of the exchanges which gets handled

from advance initiation and finishes finishing loaning exercises however goes to the phase of

selling the security which will be the resource-based advance. Because of ongoing

diminishing in the development, the credit extension is debilitated. The banks get the right to

lien on these sorts of exchanges to amortize the credit. The outcomes distinguish least

demanding piece of the insurance bundle to gather the records receivable in the present
 circumstance.

MWAJUMA ZIMBA (2013)

The review accentuations on productivity of credit assessment technique additionally to

recognize the components of advances supports and repayment by the business depends upon

the social monetary situation of the general population in Tanzania. It checks out the effects

of bank advance on the abatement of joblessness status and to develop the association among

bank credits issuance and monetary situation of the borrowers. The discoveries showed that

there was an issue in procedure, rules and condition ahead of time course of action and the

credit official not consent to the norm, additionally sensible for customers.

NANCY ARORA, Dr. ARTI GAUR AND Ms. BABITA (2013)

They say that to alleviate the credit hazard, real appraisal of the customers is to be finished.

In this paper we think about the credit hazard assessment model of SBI bank and to actually

take a look at the common sense of the business, money related and specialized pieces of the

customers of the endeavor proposed and its financing design. Reduce the diverse danger

boundaries, thus perception of development of credit system is required.

SATYA VARATHAN (2012)

The creator clarifies about the significant exercises practiced by the credit agency of the bank

to choose if to recognize or excuse the application for advance. The article deals in banking,

like working capital and its organization, procedures for assessment, get-together of credit

reports. The procedures to be used by the banks to process beyond what many would consider

possible are Turnover methodology, MBPF system and cash spending outline work.
Dr. ROSY KALRA (2012)

She clarifies that money is needed at each phase of the business either for firing up the

organizations or to screen it in gathering the everyday costs of business. The essential

capacity of any monetary organization is to loan the advance for business reason. She

likewise clarifies that how the loan specialist should check the credit value of the client?

What are the models to be award the advance proposition? What are the apparatuses to be

utilized in the banks to relieve the credit hazard?

HRISHIKES BHATTACHARYA (2011)

The creator clarifies about the imperative construction which should incorporate around the

advantage objectives to foster the quality credit assets portfolios and to ensure adequate capital

development. The examination of advancing methods, credit assessment, hazard assessment and

crediting decisions inside the overall objections of advancing affiliations. The impact of capital

rules on the danger disposition and profit of the banks, strategies to shield banks from a liquidity

crisis, and the need of a portfolio approach in creating models for credit presentation and advance

organization inside a danger bring structure back.

MILCAH CHEPKORIR (2011)

The creator decides the credit assessment methods used by business banks in Kenya to survey

the monetary adequacy of SMEs and develop whether there exists association between the

material credit assessment techniques and the component of non-performing advances. He

moreover settled challenges confronting banks in using the significant credit assessment

method.
AW MUREITHI (2010)

The creator decides the credit assessment methods used by business banks in Kenya to survey

the monetary adequacy of SMEs and develop whether there exists association between the

material credit assessment techniques and the component of non-performing advances. He

moreover settled challenges confronting banks in using the significant credit assessment

method.

WALSH AND JOHN (2009)

He talks on the three significant characteristics to consider the advance application in the

market to endorse loaning methodology and they are pay, credit and security. Already, the

human evaluation and programming based computerized application model (AVM)were

considered for credit valuation. More financially savvy ways of valuing properties by the

moneylenders, then, at that point, the AVM came into picture. The factual methodology has

been acquainted with supplant the human evaluation. To show up at more sure value point for

the conflicting information, more definite examinations should be possible by human

assessment.

CHRISTIAN (2006)

The creator predominantly centered around the monetary suppression as a rule related with

that financing cost controls, legal pre-emption changes the power of three related approaches.

Furthermore, coordinated credit and these strategies have an impact.

HOCHGRAF AND LISA (2003)

The creator says that credit association's work can get a lift by electronic land loaning
instruments. It discusses contributing long periods of time to grill issues identifying with
loaning strategy in the things, for example, application information for a solitary advance,
computing obligation, gathering credit, valuation data, different proportions and printing of
significant records. By utilizing the Ellie Mae's advance start framework series to contract
 banking has finished things in negligible time for value advances just as the main home loans.

UWE (2002)

Here the creator investigated the further advancement on the foundations of current credit

hazard the executives, the instance of the meaning of default, default likelihood gauges,

openness, recuperation, subordinate ideas portfolios, cost.

BONIN AND HUANG (2001)

Affiliations credit arranging may be lenient or severe. By virtue of a liberal course of action,

the firm advances liberally even to those whose credit esteem is imperfect. This cutoff point

costs and mishaps from terrible commitments anyway may diminish pay securing from

credits, usefulness and pay.

MOLVIG AND DIANNE (1999)

Here the author clarifies that the test confronted is to realize the means in advancing more

than the credit associations which gives home value loaning items. Different procedures are

being embraced to build the benefit rate through showcasing by examining on the lookout.

Numerous monetary organizations in the different spots of Kansas City fuses expenses into

the rate design and market home credit items as no end cost item.

LENTZ, GEORGE H AND WANG K (1998)

The creators’ tats that this review has different qualities and shortcomings of the examination

strategies are surveyed, issues identifying with the utilization of neighborhood evaluation

procedures for loaning exercises are additionally referenced and the improvement of

evaluation systems are talked about. The review result shows the often experiencing the

convenience of information requirements ad libs the exactness of evaluation gauges.

SIMPSON, ROBERT, REBECCA AND WALZAK (1996)

Says that to ensure the honesty of information whereupon guaranteeing choices are made by

the home loan industry to lessen the home loan misrepresentation and to diminish its

misfortunes. The review results talk about three obstructions with the end goal of better

reception of forceful quality control conventions which are absence of responsibilities by the

administration, certain cheats to relances made by the legit experts on the lookout and

furthermore reluctance to keep up with as fitting analyst.

DENNIS R. GOLDENSON, JAMES D. HERBLEB (1995)

It infers the impact of the Capacity Maturity Modalism or CMM set up assessments regarding

resulting programming process improvement and hierarchical execution. The postulation

suggests that methodology advancement works on thing quality, ability to meet plan

liabilities, and various markers of authoritative execution.

REDDY (1985)

Their view named, "Overdues Appraisal and the executives in Banking" analyzed the

association among the advancing and recovery of a pinnacle bank. His decisions suggested

that the advancing and recovery of the pinnacle bank had not been adjusted, i.e., either the

zenith bank demonstrated unfit experience the entire credit prerequisites of the fundamental

bank sort he last demonstrate tough achieve the resources from the summit bank.

SURYAWANSI (1978)

In his paper "Credit Requirements Availability and its Holes" recognized that gigantic ranchers
gotabiggerportionofcreditfinancedbyvariousfinancialorganisationsandtheportionofco-specialists

was the best. It was in like manner watched that remote money advance experts were, all the

while accepting a basic part in giving country credit and the degree of acquiring from this

premise was troublesome if there should rise an event of little agriculturist

THEORETICAL BACKGROUND OF THE STUDY

Credit Appraisal

Credit Appraisal is the most well-known method of assessing the credit worth of a borrower.

The legitimacy of a person as age, remuneration, nature of work, reimbursement of credit,

past advances, Mastercard’s, and relative parts are assessed while evaluating the credit worth

of an individual. Each bank and money related associations has its own leading group of

specialists hence.

Credit assessment helps in distinctive the perils inferred by the expansion of the credit office.

This is regularly wrapped up by the money related foundations and banks which are busy

with giving financial financing to their clients. Credit risk is a peril identified with non-

reimbursement of the advances got by the bank customers. Suitably assess the steadfastness

of the client to coordinate the peril related in advancing. Appropriate assessment of the client

is acted to evaluate the monetary condition and the restriction of the client to reimburse the

credit total later on. Generally, a huge piece of the credit accommodations is expanded rather

than the consideration known as protection.

Also, the 3 Cs of credit are critical and imperative to all borrowers that are basic to be saved as

a rule need dependably. They are:

 Character
  Collateral
 Capacity
There will be no confirmation to guarantee the development doesn't keep on running into issues,

however expecting appropriate credit evaluation procedure and examination are used, routinely

the development mishap will be restricted, that will be the critical maxim of each crediting

specialists.

Credit engages you to purchase the items or item now, and pay for them later on. It is a real show

where one party pledges to one more to repay the development on a future date nearby interest,

with the issuance of credit a responsibility is laid out between the social occasions.

The credit can be requested into different sorts. These are altogether requested into four

fundamental kinds of credit which are benefited in the banks. Service Credit

They are the regular payments for utilities like electricity, gas, water, phone, etc.

 Loans

Credits may be unobtrusive amount or enormous aggregate which shifts from very few days

to specific years. It might be a gotten or unsound advances. Money can be repaid on a

standard part or one lumpsum portion can be made.

 Instalment Credit

Segment is a show to make a hidden portion and agrees to reimburse the harmony in an

unequivocal number of practically identical portions called segments. The assist accuses of

willing be locked in with the portion.

 Credit Cards

Charge cards are given to individuals by banks, associations or retail stores. It is used as

similarity an interest free development.

 Elaborative Information on Topic
Assessment or Appraisal of Term Loan:

For evaluation reason the plan upheld are Debt esteem Ratio, Average Debt Service Coverage

Ratio (Average DSCR), Break Even Point (BEP), Pay Back Period (PPB, and so on are taken

into assessment. The subsequent least financial related limits are basic to be fulfilled for a

term credit proposal to legitimize:

Debt Equity Ratio(D/E) Not more than 2.33:1

Average DSCR Not less than 1.5 to 2

Following Ratio’s are considered in appraising the Term Loan

 Debt Equity Ratio(D/E)= Long term debt / EquityCapital

 Average DSCR= Profit after tax + Depreciation + Interest on Term Loan / Term Loan

instalment + Interest on termloan

 BEP= Fixed Cost / Contribution per unit

Credit Appraisal techniques:

Credit Appraisal method go about as a gadget for credit assortment overseers to take the right

choices. It is the underlying and principal limit performed by the credit evaluation cell prior

to giving any sort of advances and advances. The appraisal procedures for every sort of

credits and advances are unmistakable from each other. Every sort of advances and advances

whether got or unstable should be examined in a changed manner. The assorted arrangement

of credit assessment or acknowledge assessment are analyzed as follows:

Debt Equity Ratio:

The extent of an association's financial influence is figured by partitioning its total liabilities

by investor's capital. It shows the degree of value and commitment the association is using in

financing its resources.

The high Debt Equity(D/E) Ratio to a great extent suggests that an association has been

convincing in financing its advancement with commitment. This can bring about unsound

wages considering the additional interest cost.

Debt Service Coverage Ratio (DSCR):

The conclusive justification for undertaking project/adventure appraisal is to discover the ability

of a task/adventure which has a quick bearing on the repayment of the of the parts in the projected

term advance portion guarantee. Albeit the repayment data set will depend on the benefit of a

task, the quantum of yearly parcels should be related to the proportion of the yearly type of

revenue.

The DSCR is the principal appraisal proportion in project/adventure financing. The DSCR

proportion shows the degree of plausibility of the undertaking/adventure which impacts in settling

the repayment time period.

The DSCR shows the limit of the organization to create cash assortments for repayment of extent

and the premium sum

The proportion between 1.5 to 2 is considered to be reasonable. Extent lesser than this should be

furthermore researched. An outstandingly high proportion might show the prerequisite for lesser

period or repayment of advance quicker than expected. This proportion gives the extent of the

limit of an undertaking to help its commitments.

Break Even Point or Break-Even Analysis:

The make back the initial investment point is a point which assists us with recovering the

creation cost. This expense of creation can be settled and variable expense. Every so often

division of cost may be problematic. A particular proportion of settled expense should be

brought about by unit these mi settled expense may not change substantially with the degree

of yield. This settled and semi settled expense fuse pay rates and wages, fixes and upkeep,

legitimate expense settled piece of offering costs, settled power and skill portions, energy

using a loan, decay on straight line method.

Variable expense contrasts with the degrees of age. This joins rough materials, outside

purchases, control, fuel, energy on working capital and other variable expenses.

Make back the initial investment point = fixed expense/commitment

Make back the initial investment point can be called as bread acquiring point as a unit ear

benefits from bargains over the earn back the original investment point. While evaluating an

endeavor, the equal the initial investment point should be imparted similar to pace of

acquainted capacity with know the edge of prosperity in the cutoff.

Feasibility Study for financing term loan:

1. Technical Feasibility:

Specialized Feasibility assessment is valuable for one to conclude how well the specialized

necessities of the endeavor can be experienced. The organizations of the particular

officials are utilized with the ultimate objective of examination in required cases. In regard

of the complicated undertakings, bank associate the external expert where capacity isn't

available inside the bank.

2. Economic Feasibility:

Under financial practicality, the borrower's expectation of total assets are surveyed keeping the

point of view of following parts:

 Forecast of interest and supply position of the item or administration and its substitutes

(both close by items and imported).

 Proposed moving worth like expenses of fighting items or administrations.

 Nature of the thing in inconsistency of the battling items or administrations.

3. Financial Feasibility:

The Monetary Feasibility assessment attempts to choose

 Regardless of whether cost of task/adventure and techniques for reserve as envisioned

in the endeavor projects are sensible (realistic)

 Regardless of whether the undertaking/adventure is prepared for beneficial and useful

assignments.
  Regardless of whether the evaluation of costs of age totally covers everything of

utilization

4. Managerial Competencies:

In an amazing space, the constraint of a relationship to push in front of its adversaries

depends for the most part, on the general idea of its association. Thusly, an assessment of the

board is the benchmark of term credit examination.

If there is a change of the association and the leader's course of action, the accomplishment

of the endeavor might be put to test.

Working Capital Financing:

Working Capital is portrayed as the total fundamental for conveying the day by day tasks of

the firm. Working Capital further named Gross Working Capital (GWC) and Net Working

Capital (NWC).
Assessment or Appraisal of Working Capital Finance:

 Simplified Turnover Method (Nayak Committee Recommendations)

This strategy for assessing working capital need of a firm is given by "Nayak Committee".

The Board of panel headed by P.R. Nayak dissected the adequacy of institutional credit to

SSI and gave its recommendations which are as under:

i. In this framework, bank credit for working capital reason for the borrowers lacking

asset-based limits up to Rs.5 Crore for SSI borrowers and Rs.2 Crore for different

borrowers.

ii. The expected turnover or yield regard may be perceived as expected gross

arrangements which will join extract trouble too.

 Maximum Permissible Bank Finance ( Tandon Committee)

RBI set up a functioning gathering under the chairmanship of P L Tandon to comprehend

the suitable loaning of bank credit for working capital financing in July 1974. The board

presented a definitive report on December 1975.

The board proposed the accompanying strategies for loaning working capital money:

a. I Method=75%of working capital gap (Total Current Assets-Other Current Liabilities).

b. II Method= 75% of Total Current Assets - Other Current Liabilities.

c. III Method= 75% of (Total Current Assets - Core Current Assets) - Other Current

Liabilities
 Chore Committee

The functioning gathering led by K.B Chore was shaped in April 1979 by RBI to analyze

the money acknowledge framework for extraordinary reference to the hole between as far as

possible and cutoff the level of utilization.

The commission suggested that the assessment of working capital prerequisite appraisal

should be assessed dependent on the II Method of loaning proposed by Tandon Committee.

Credit Appraisal Process of Retail Loan segment

1. Personal Loan

Eligibility The individual one who is applying for advance ought to be State or
Central Government Employee, Employee of Public Sector
Undertakings, Mnc's, with the base 2 years of administration.

Purpose of Loan The design is to cover consumption on instruction, marriage, travel, etc.,

Repayment 12 to 60 months depending up on the income of the applicant or

borrower.

Security  Primary: NIL

 Collateral:
Third party guarantee of equal means of an employee acceptable
to the bank or
Assignment of LIC or Pledge of NSC’s for the full value of the
limit.
 Documents to be  Application.
produced by the  Sanction cum terms and conditions letter.
applicant  DPN and DP Note and Delivery letter.
 Personal loan agreement.
 Guarantee agreement.
 Letter of Undertaking from the applicant.

Credit Assessment Process followed in issuance of Personal Loan:

 The person should have the SB Account in the Bank since 6months.
 Salary should be credited to this SB Account or Salary Slip Statement of the last 2 years
should be produced by the Borrower.
 They should produce the IT Returns for 3 years period, which in 010 dictates the Net
Annual
2. Vehicle Loan:

Eligibility The person eligible for vehicle loan must be a employee or Professional
and self-employed as Doctors or Chartered Accountants or Advocates
and so on.,

Purpose The purpose is to allow customers to buy a two-wheeler or car for private
use.
Repayment 3 to 5 years in Equated Monthly Instalments.

Margin and Limit Rs. Margin Security

Security
Up to Rs.50000 10% Primary: Hypothecation over car to
be bought.
Collateral: Third party assurance.
Over 25% Primary: Hypothecation over car to
Rs.50,000 upto be bought.
Rs.5 Lakhs Collateral: Third party assurance.
Above Rs.5 25% Primary: Hypothecation over car to
Lakhs be purchased.
Collateral: Mortgage of immovable
properties like land or building.

Documents to be  Application Cum appraisal and sanction or recommendation to

Obtained the higher authority.
 Sanction communication and Terms and Conditions letter.
 Supplementary letter of Hypothecation.
 Guarantee Agreement.
 Deed of Hypothecation.
 RTO Form No. 29 and 30 (in duplicate) undated.
 3. RESEARCH DESIGN

Statement of Problem

Banks and other monetary foundations are looking with various dangers. The most generally

perceived and veritable among them is credit hazard, which is only the probability that the

borrowers will default the repayment of advance they get from a bank or some other monetary

foundations. Proper examination of the borrower surveys the monetary conditions and ability

of the borrower to repay the credit inside the predefined timeframe.

Evaluating the credit value of borrower by a bank earlier allowing the advance is named as

credit examination. Along these lines, the venture is about investigation of such credit

evaluation frameworks. Thus, the venture is named as “A STUDY ON CREDIT

APPRAISAL PROCESS AND ANALYSIS AT BANDHAN BANK”

Need for the Study

At the point when an individual or an association uses a credit that infers, they are acquiring

cash from bank or some other monetary organizations by assurance to repay inside a pre

picked period. In order to assess repay i.e., surveying their credit esteem, the banks use

various frameworks which appear differently in relation to the assorted kind of credit office

given by the bank. In the current circumstance where it is seen that tremendous associations

and monetary foundations have been demolished because of the credit defaulting. Along these

lines, Credit Appraisal has transformed into a fundamental point of view in that banking and is

extending the superb importance.

 Objectives of the Study

 To learn about the credit examination strategies and methodology of Bandhan Bank.

 To get business, specialized and monetary practicality of the proposition proposed and

it's tracking down design.

 To plan arrangements on how Credit Appraisal and repayment of advances in Bandhan

Bank can be upgraded

Scope of the Study

The extent of concentrating on the Credit Appraisal covers the framework and tasks at

Bandhan Bank. The review intends to cover the range of how the tasks are assessed by

Bandhan Bank for new undertaking just as existing little endeavors and the manner in which

they assess the suitability of the endeavor by concentrating on the venture.

 Distinctive advance plans of Bandhan Bank.

 Project qualified for help from Bandhan Bank.

 Procedures followed to sanction loan.

 Bandhan Bank administrations towards their clients.

Research Methodology

The review is profoundly reliant up on giving different advances and credit offices.
Philosophy is a portrayal of the cycle, rules, techniques utilized in a review. Research in like
manner expressing states to a quest for information. It can likewise depict research as a
logical and methodical quest for applicable data on a clear subject. Truth be told, the
exploration is a craft of orderly assessment.
 Research Design

The examination configuration followed for the review is illustrative and logical in nature, as

the review names the current realities and measurements. The review depends on optional

information like credits and advances for the time of most recent five years.

Source of Data

Data principally accumulated from both fundamental and assistant sources.

Primary Data:

Essential Data is gathered by communication with the Branch Manager and Departmental head.

Secondary Data:

Optional Data incorporates data created from bank's past records, yearly reports of the bank,

manual given by the bank, books and articles, magazines, papers, and so on.

Tools and Techniques:

 The gathered information has been arranged, broke down and displayed in the method of

charts, outlines and understanding.

 The casual conversation was conveyed with the authorities of Bandhan Bank.

Limitation of theStudy

• The time limit for the review was simply 6weeks.

• The assortment of information for investigation is limited to just Bandhan Bank.

• Only the yearly reports are considered for the review.

Limitation of theStudy

• The time limit for the review was simply 6weeks.

• The assortment of information for investigation is limited to just Bandhan Bank.

• Only the yearly reports are considered for the review.

4. DATA ANALYSIS ANDINTERPRETATION

1. Credit to Deposit Ratio(CDR)

This proportion shows how the advances loaned by the bank are finished by stores. It is the

level of advance resources framed by banks from the stores showed up. The higher the

proportion, the higher the advance resources framed from stores as well as the other way

around.

Credit to Deposit Ratio= Total Loans/ Total Deposits

Table 4.1 Showing the Credit to Deposit Ratio

(Amount in Thousands)

Years Loans Deposits CDR

2013-14 36,806,427 46,666,485 0.7887

2014-15 45,929,500 59,048,777 0.7778

2015-16 53,307,088 76,381,170 0.6979

2019-17 53,746,453 96,325,259 0.5580

2020-18 59,193,988 88,757,644 0.6670

Analysis:

From the above table we can comprehend the total advances to total stores. It tends to be seen

that 0.7887 in the year 2013-14, and it has marginally diminished to 0.7778 in the year 2014-
15and it continues to diminish before long of 2015-16 and 2019-17 to 0.6979 and 0.5580

separately. Thus, it can say that there are less instabilities in the total advances to the total

stores step by step. Yet, it has expanded to 0.6670 in the year2020-18.

Chart 4.1.1 Showing Credit to Deposit Ratio

Credit to Deposit Ratio

0.9

0.8 0.7887 0.7778

0.6979
0.7 0.667

0.6 0.558

0.5

0.4

0.3

0.2

0.1

2013-14 2014-15 2015-16 2016-17 2017-18

Year

Interpretation:

It is deciphered that there is an abatement in the Credit Deposit Ratio a seemingly endless

amount of a large number of years contrasted with base year 2013-14. Every year it is

descending yet there is an expansion in the 2020-18.

Along these lines, its how's that on a normal 65%of the all out stored reserves are used for

loaning reason.
2. Total Deposits of BANDHAN BANK

Table 4.2 Showing Total Deposits of BANDHAN BANK

(Amount in Thousands)

Year Total Deposits Total Percentage (%) Percentage of

Change (%)

2013-14 38,449,125 100 -

2014-15 46,666,485 121.37 21.37

2015-16 76,381,170 198.66 98.66

2019-17 96,325,259 250.53 150.53

2020-18 88,757,644 230.84 130.84

Analysis:

Above table shows the absolute stores of Bandhan Bank throughout the previous a long time

from 2013-14 to 2020-18. In this table 2013-14 has been taken as base year and it has been

looked at. In the event that we require 100% stores in the year 2013-14, it keeps an expanding

each after year. In any case, in the year 2020-18 the all out store rate has been decreased to

230.84 rate to that of the earlier year 250.53 rate.

Chart 4.2.1 Showing Total Deposits in Percentage

Total Deposits (%)

100

230.84
2013-14
121.37
2014-15

2015-16

2016-17

198.66 2017-18
250.53

Interpretation:

From the above chart it is reasonable that the rate change in absolute stores of the

BANDHAN BANK is continuously expanding each year with the exception of 2020-18

where it has diminished somewhat. It gives the positive effect that store rate has expanded

from 100% in the year 2013-14 to 121.37, 198.66, 250.53, 230.84 in the year 2014-15, 2015-

16, 2019-17,2020-18 separately.

It is observed that all out store is expanded in most recent 2 years when contrasted with 2013-

14 and because of this their assets are likewise expanded.

3. Total Borrowing of BANDHAN BANK

Table 4.3 Showing Total Borrowings of BANDHAN BANK

(Amount in Thousands)

Year Borrowings Total Percentage Percentage of Change

(%) (%)

2013-14 6,480,939 100 -

2014-15 7,543,670 116.40 16.4

2015-16 5,526,473 85.27 -14.73

2019-17 5,190,147 80.08 -19.92

2020-18 5,856,436 90.36 -9.64

Analysis:

The above table shows the absolute borrowings of BANDHAN BANK for the year 2013-14

to 2020-18. For estimation reason the year 2013-14 is considered as a base year. In the year

2013-14 the complete borrowings were 100% and in the year 2014-15 it has been expanded

to 116.40 percent. Be that as it may, in the year 215-16 it has decreased to 85.27 percent, and

further it lessens to 80.08 percent in the year 2019-17. The getting rate in the year 2020-18

was 90.36percent.
Chart 4.3.1 Showing Total Borrowings in Percentage

Total Borrowings (%)

90.36 2013-14
100
2014-15

2015-16

80.08 2016-17

116.40
2017-18

85.27

Interpretation:

From the above chart, it is justifiable that the absolute borrowings of BANDHAN BANK

have steadily diminished in the new years. In the year 2014-15 it has 116.40 percent and there

after it has diminished to 85.27,80.08, 90.36 in the year 2015-16, 2019-17, 2020-18

separately. It is a decent sign for the Bank that the all out borrowings have been lessening

quite a long time after year. So the bank can keep up with low loan fee and can draw in more

clients.
4. Sector wise Loan Disbursement of BANDHAN BANK

Table 4.4 Showing Sector wise Loan Disbursement

(Amount in Thousands)

Particulars 2013-14 2014-15 2015-16 2019-17 2020-18

Primary 14,726,581 16,274,932 18,671,102 18,988,032 19,079,156

Sector

Secondary 9,025,712 11,072,712 12,961,244 10,785,303 11,158,031

Sector

Tertiary 5,176,542 6,220,263 6,603,106 5,553,615 5,978,214

Sector

Total 28,928,835 33,567,907 38,235,452 35,326,950 36,215,401

Analysis:

Above table incorporates a wide range of credits which are accessible in the Bandhan Bank.

Essential area advances are the Crop credits and it incorporates all kind of Agricultural

advances. Auxiliary area advances incorporate Small and Medium Enterprise credits, though

tertiary area advance incorporates Personal and other retail advances of most recent five

years.
 Chart 4.4.1 Showing the Sector-wise Loan Disbursement

Sector-wise Loan Disbursement

25000000

20000000

15000000

10000000

5000000

0
Primary Sector Secondary Sector Tertiary Sector

2013-14 2014-15 2015-16 2016-17 2017-18

Interpretation:

From the above outline it is apparent that Primary area advances are expanded step by

step. In the year 2013-14 complete advance dispensing added up to Rs.28,928,835

thousands which incorporates Agricultural credit of Rs.14,726,581 thousands which had a

significant piece of all out advance sum roughly 51%, Secondary and tertiary advance

payment to add up to advance added up to 31% and 18% individually. We can see that

consistently the advance payment sum is expanding yet in the year 2019-17 it has

marginally diminished and again in the year 2020-18 the advance payment is expanding .
5. Sub-Standard assets

Table 4.5 showing Sub-standard Assets of BANDHAN BANK

(Amount in Thousands)

Year Sub-standard Asset Total NPA % of Sub-Standard

Assets

2013-14 504,876 1,210,627 41.70%

2014-15 562,685 1,367,005 41.16%

2015-16 1,109,583 2,104,216 52.73%

2019-17 1,597,135 3,208,725 49.77%

2020-18 1,997,692 4,976,400 40.14%

Analysis:

The above table shows the Percentage of Sub-standard Asset to total NPA. In the year 2013-

14 the bank had Rs.504,876 thousand sub-standard asset out of Rs.1,210,627 thousand NPA,

it aggregates 41.70%. In the year2015-16 it has been risen to 52.73% to total NPA, in the year

2019-17 it aggregates 49.77% of total Non-Performing Assets but in the year 2020-18 the %

of Sub-standard assets came down to 40.14%.

Chart 4.5.1 Showing % of Sub-standard Assets to Total NPA

% of Sub-standard Assets

40.14% 41.70%

2013-14

2014-15

2015-16
41.16%
49.77%

2016-17

2017-18

52.73%

Interpretation:

From the above diagram, we can comprehend that the % of Sub-standard Asset to Total NPA is

differs from one year to another. Unacceptable resources are those resources which are

remained NPA for the period short of what one year. From 52.73% in the 2015-16 to 40.14% in

the year 2020-18, which demonstrates that the bank is performing great in recuperating the

Sub-standard Asset by noticing positive change where there is a continuous reduction quite a

long time after .

 Doubtful Assets

Table 4.6 showing Doubtful Assets of BANDHAN BANK

(Amount in Thousands)

Year Doubtful Assets Total NPA % of doubtful

assets

2013-14 614,876 1,210,627 50.79%

2014-15 704,391 1,367,005 51.53%

2015-16 901,828 2,104,216 42.86%

2019-17 1,527,470 3,208,725 47.60%

2020-18 1,896,458 4,976,400 38.11%

Analysis:

The above table addresses the % of Doubtful Assets to Total NPA of BANDHAN BANK. The

resources are delegated Doubtful on the grounds that it has been proceeded in Sub-standard

gathering for a time span of more than I year. In the year 2013-14,50.79%of all out NPA is

distinguished as Doubtful Assets and 51.53,42.86,47.60, and 38.11%in the year 2014-15,2015-

16,2019-17 and 2020-18 separately.

Chart 4.6.1 showing the % of Doubtful Assets of BANDHAN BANK

% of Doubtful Assets

38.11%
50.79%

2013-14

2014-15

47.60% 2015-16

2016-17
51.53%
2017-18

42.86%

Interpretation:

From the above chart it is evidential the % of dubious resource search calculating each year to

that of the all-out NPA. We can see that in the year 2014-15 the bank has most elevated part of

far-fetched resources which covers practically 52% of the absolute NPA. Be that as it may, in

the year 2020-18, it boils down to 38.11%, which implies the % of far-fetched resources are

diminished and it is a decent sign for the bank as it can limit its hold for suspicious resources.
6. Loss Assets

Table 4.7 Showing Loss Assets of BANDHAN BANK

(Amount in Thousands)

Year Loss Assets Total NPA % of Loss Assets

2013-14 90,875 1,210,627 7.51%

2014-15 99,929 1,367,005 7.31%

2015-16 92,805 2,104,216 4.41%

2019-17 84,120 3,208,725 2.62%

2020-18 1,082,250 4,976,400 21.75%

Analysis:

The above table addresses the % of misfortune resources for that of the absolute Non-

performing Assets. The resources are named misfortune resources when the NPA time frame is

more than 3years.In the year2013-14 the bank had arranged 7.51% of misfortune resources and

the % of misfortune resources continues to decrease and it boils down to 2.62% in the year

2019-17, however in the year 2020-18 it expanded to 21.75%, which is definitely not a decent

sign for the bank as it straightforwardly impact on the benefit of the bank.
Chart 4.7.1 showing the % of Loss Assets of BANDHAN BANK

% of Loss Assets

7.51%

2013-14

2014-15

21.75%
7.31%
2015-16

2016-17

4.41%
2017-18
2.62%

Interpretation:

The above graph addresses the % of misfortune resources for complete NPA throughout the

previous 5 years. We can see that in the 2019-17 the bank has the least % of misfortune

resources, yet in the 2020-18 it expanded to practically 22%. Along these lines, the bank needs

to concentrate more upon the credit hazard the board and utilize a greater amount of the

recuperation methods to diminish the misfortune resources before long. Any other way, the

bank might confront liquidity issues.

7. Non-Performing Assets

Table 4.8 Showing Total

NPA

(Amount in Thousands)

Particulars 2013-14 2014-15 2015-16 2019-17 2020-18

Sub-standard 504,876 562,685 1,109,583 1,597,135 1,997,692

Assets

Doubtful Assets 614,876 704,391 901,828 1,527,470 1,896,458

Loss Assets 90,875 99,929 92,805 84,120 1,082,250

Total NPA 1,210,627 1,367,005 2,104,216 3,208,725 4,976,400

Analysis:

The above table shows the complete Non-Performing Assets (NPA) of BANDHAN BANK.

Complete NPA is isolated into Sub-standard Assets, Doubtful Assets and Loss Assets. In the

year 2013-14 the complete NPA is the most reduced with Rs.1,210,627 thousands. Here we can

see Total NPA is expanding quite a long time after year from Rs.1,210,627 thousands in the

year 2013-14 to Rs.4,976,400 thousands in the year 2020-18.

Chart 4.8.1 Showing Total Non-Performing Assets of BANDHAN BANK

NPA

6000000

5000000

4000000

3000000

2000000

1000000

2013-14 2014-15 2015-16 2016-172017-18

Sub-Standard assets LossAssetsTotal NPA
Doubtful Assets

Interpretation:

From the above diagram we can comprehend the progressions altogether Non-Performing

Assets of BANDHAN BANK. It is an adverse consequence on the Bank that the measure of

Total NPA is step by step expanding every year from 2014-15 to 2020-18. The Bank need to

take on different strategies to decrease the NPA just as to recuperate the past NPA by utilizing

present day and genuinely demonstrated credit examination process.

8. Percentage of Non-performing Assets to Total Advances

Table 4.9 Showing % of Non-performing Assets to Total Advances

(Amount in Thousands)

Year Total NPA Total Advances % Of NPA to

Advances

2013-14 1,210,627 36,806,427 3.29%

2014-15 1,367,005 45,929,500 2.98%

2015-16 2,104,216 53,307,088 3.95%

2019-17 3,208,725 53,746,453 5.97%

2020-18 4,976,400 59,193,988 8.41%

Analysis:

From the above table we can discover the variances in the % of Non-performing Assets to that

of the Total Advances. In the year 2013-14 the NPA % is 3.29 and it comes to 2.98% in the

year 2014-15which is the least % of NPA to Advances. From the year 2015-16 it keeps so n

expanding, in the year 2019-17 the proportion is 5.97% however in the year 2020-18 it

increases by to 8.41%, it is the most elevated part of NPA contrast with every one of the years.

Along these lines, it straightforwardly impacts on the presentation of the bank.

Chart 4.9.1 Showing the % of Non-performing Assets to Total Advances.

% of NPA to Total Advances

9.00% 8.41%

8.00%
7.00%
6.00% 5.97%
5.00%
4.00%
3.95%
3.00% 3.29%
2.98%
2.00%
1.00%
0.00%

2013-142014-15 2015-16 2016-17 2017-18

year

Interpretation:

From the above diagram it is reasonable that % of absolute NPA to Total Advances is

continues to build quite a long time after year. In the year 2014-15 the bank keeps up with less

% of NPA. Along these lines, the bank should go to appropriate preparatory lengths to diminish

the degree of NPA. They ought to take on the satisfactory credit examination procedures prior

to loaning the advances and advances. Thusly the degree of non-performing resources can be

limited.
 5. SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION

Findings:

The findings of the report are as under:

 In the year 2019-17 the bank acknowledged additional stores from the public however the

loaning's during the period was less, which lead to the less CDR, approximately55%.

 Over the most recent five years the stores of BANDHAN BANK have been expanding

persistently from 2013-14 to 2020-18 from 100% to 230.84%. It shows that the exhibition

of the bank is improving at a decent speed.

 The BANDHAN BANK is focusing more on the Priority area by loaning credits and

advances of over half of complete advances in most recent five years.

 From the review it is found that, the inadequate resources of the bank in the year 2015-16

was 52.73% and it boils down to 40.14% in the year2020-18.

 The resources which are named suspicious are diminished from 50.79% to 38.11% in the

year 2020-18.

 The misfortune resources of the bank in the year 2019-17 was 2.62% yet it leaped to

21.75% in the year 2020-18, which prompts liquidity issue in the bank.

 The Non-performing Assets in the year 2013-14 was Rs.1,367,005 thousands and it was

expanded to Rs.4,976,400 thousands in the year 2020-18.

 From the review it is found that, out of all out progresses the bank makes 2.98% of NPA

in the year 2014-15 and in the year 2020-18 it expanded to 8.41%.

 The credit evaluation is finished by the bank earlier loaning any kind of advances and

advances, in like manner recognizes the business, monetary and specialized plausibility of

the undertaking.
 Suggestions:

 The Credit Deposit proportion is less thus bank can go for additional loaning cycle to build

the pay age.

 Assessment for the new credit arrangements should be possible by the bank by dissecting

reserves stream in mix with the income rather than just based on reserves stream.

 Bank may appropriately assess all credit applications to examine project practicality, for

that bank could prepare their staff appropriately in such manner.

 A legitimate danger evaluation would prompt lesser possibilities of default.

 The bank should attempt to decrease the misfortune resources, so that benefit can be

expanded.

 The bank needs to execute legitimate recuperation method, to decrease the degree of Non-

performing Assets.

 The bank might execute E-business administration with the goal that more clients might

draw in towards the bank.

 Conclusion:

The review was embraced for an example time of a long time from 2013-14 to 2020-18, to

track down the prerequisites to play out the Credit Appraisal Process. From the review it was

tracked down that the bank's standards and measures' assistance to check the credit value of

the borrower, reimbursement limit and great history of the borrowers.

Prior to loaning, the bank in corporate extensive standards and methodology to really look at

the suitability of the task/adventure. Right off the bat, the individual evaluation of the

borrower is conveyed by the bank to protect that the borrower is equipped for maintaining the

business or conveying the venture proficiently. Furthermore, the itemized learn about the

monetary capacity of the task/adventure is done, for example, investigation of income

articulation and figuring a portion of the significant proportions which are fundamental for

term advance appraisal. It incorporates assessment like DSCR, DER and BEP. The monetary

evaluation is done to guarantee that the task/adventure will be equipped for acquiring

adequate excess to repay the credit alongside interest.

Hazard investigation is likewise completed by the bank to conclude the danger implied with

the task/adventure. This is conveyed with the assistance of affectability examination and

credit scoring or FICO assessment. Credit scoring is finished by Bandhan Bank on different

boundaries like individual, business and insurance, in that way the credit value of the

borrower not really set in stone. Along these lines, this is the reason Credit Appraisal has

acquired importance in the present business world.

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TEXT BOOKS

 Strategic Credit Management in Banks, G.S Popli, S.K Puri, PHI Learning,2013.
 Credit Appraisal & Lending Aspects in Banking, Dr. Archana Alok Avasthi,2021.

WEBSITES

 https://www.kaverigrameenabank.com
ANNEXURE:

Balance Sheet for the period of 5 Years.

(Amount in thousands)

Particulars 31-03-2021 31-03-2020 31-03-2019 31-03-2015 31-03-2014

Liabilities
Capital 539,726 539,726 539,726 539,726 539,726
Reserves and 5,008,981 4,687,999 3,874,206 3,205,031 2,555,990
Surplus
Deposits 88,757,644 96,325,259 76,381,170 59,048,777 46,666,485
Borrowings 5,856,436 5,190,147 5,526,473 7,543,669 6,480,939
Other Liabilities 1,613,925 1,447,557 1,664,656 1,624,960 1,143,086
and Provisions
Total 101,776,712 108,190,688 87,986,231 71,962,163 57,387,226
Assets
Cash and 4,252,499 4,281,626 3,549,577 2,815,045 2,337,105
Balance
with
RBI
Balance with 3,221,555 9,142,828 1,273,644 7,003,775 3,742,337
Banks and
Money at call
and shortnotice
Investments 32,645,779 38,636,678 28,281,467 14,950,761 13,551,513
Advances 59,193,988 53,746,453 53,307,088 45,929,500 36,806,427
Fixed Assets 218,358 218,187 216,083 166,774 121,406
Other Assets 2,224,533 2,164,916 1,358,372 1,096,308 828,438
Total 101,776,712 108,190,688 87,986,231 71,962,163 57,387,226
Contingent 208,003 155,618 122,008 132,769 105,598
Liabilities
Bills for 172,845 135,754 178,285 196,807 96,969
collection
 OPERATIONS AT A GLANCE

Particulars 2020-18 2019-17 2015-16 2014-15 2013-14

Interest earned 9,093,500 8,485,896 7,751,202 6,087,027 4,794,700
Other Income 628,157 1,160,043 499,020 801,878 582,404
Interest expended 5,997,294 6,035,265 5,346,539 4,211,894 3,274,756
Operating expenses 2,125,290 1,947,786 1,730,689 1,687,572 1,496,703
Net Profit Before 411,404 1,169,235 998,775 989,439 605,645
Tax
Net Profit After Tax 322,651 852,349 688,525 694,388 447,541
NPA 4,976,400 3,208,725 2,104,216 1,367,005 1,210,627