Icici Credit Rating

8/17/2019 Icici Credit Rating

1/83

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OFMASTER OF BUSINESS ADMINISTRATION

Submitted By: Under the Supervision of:

ROLL NO–

(Affiliated to Guru Goi!d Si!"# I!dra$ra%t#a U!i&er%it'

)**+,)*--


2/83

TABLE OF CONTENT

Acknowledgment

Executive Summary

Chapter ! "urpo#e $ O%&ective# o' the #tudy

Chapter ( ! Company "ro'ile

./-/ I!trodu0tio!

./)/ Mile%to!e i! t#e Su00e%% of I1I1I

././ Ba!2i!" Ser&i0e%

./3/ S#are#oldi!" $atter!

./4 I1I1I Grou$

Chapter ) ! Credit Analy#i# ! An *ntroduction

3/-/ W#at I% 1redit5

3/)/ W#at I% 1redit A!al'%i%5

3/./ 1redit A!al'%i% at Ba!2%

3/3/ 16% of 1redit

3/4/ Fu!0tio!al Area of 1redit A!al'%i%

Chapter + ! Credit Analy#i# o' S,E

4/-/ De$art7e!tal Hierar0#'

4/)/ 1redit Grou$% of I1I1I


3/83

4/./ 1redit Pro"ra7%

4/3/ 1la%%ifi0atio! of Wor2i!" 1a$ital

4/4/ Le!di!" Pro0e%%

4/8/ Fi!a!0ial State7e!t A!al'%i%

Chapter - . Conclu#ion#

Chapter / . Sugge#tion#

0e'erence#

Annexure


4/83

TABLE OF C1A0TS AN2 30A"1S

"A3E NO4

-/ Ba!2i!" Stru0ture i! I!dia/

)/ Ba!2i!" Ser&i0e% Offered ' I1I1I/

./ S#are#oldi!" Patter! of I1I1I/

3/ I1I1I Grou$/

4/ Fu!0tio!al Area of 1redit A!al'%i%/

8/ 1redit De$art7e!t Hierar0#'/

9/ Le!di!" Grou$% of I1I1I/

+/ Le!di!" Pro0e%% at I1I1I/

:/ Fi!a!0ial Perfor7a!0e Wor2%#eet/

-*/ Wei"#t a"e Of 1redit S0ore Deter7i!a!t%/


5/83

AC5NO6LE23E,ENT

Wit# a! o&er;#el7i!" %e!%e of $ride a!d oli"atio!< I e%to;"ratitude to 7' 0o7$a!' "uide< ,r4 2eepak 3upta (Re"io!al 1reditMa!a"er< I1I1I Ba!2 Ltd a!d 7' 0olle"e 7e!tor< for t#eir ale"uida!0e< 0o!%ta!t e!0oura"e7e!t< 0o!%tru0ti&e a!d 0riti0al a$$rai%al<"e!erou% #el$ a!d &ital %u""e%tio!%/

It ;a% a0u7e! of t#eir %u$er&i%io! t#at %a&ed 7e fro7 t#e ta%te of

%e&eral error% a!d $la0ed 7e i! ri"#t $la0e% at ri"#t ti7e%/

I e=te!d 7' $rofou!d %e!%e of "ratitude to ,r4 A#hi#h Agarwal7(>o!al 1redit Ma!a"er< I1I1I Ba!2 Ltd/ for #i% &aluale a!d ti7el'%u""e%tio!% duri!" t#e 0our%e of t#i% $ro?e0t/

2ate

89


6/83

E:EC;T*


7/83


8/83

44 ";0"OSE

Pu$o%e of t#e %tud' i% to a0uire t#orou"# 2!o;led"e of 0redit a!al'%i% do!e

' t#e Ba!2 of S7all a!d Mediu7 E!ter$ri%e%/

4(4 OB>ECT*


9/83


10/83


11/83

(4 *NT0O2;CT*ON

I1I1I Ba!2 (for7erl' I!du%trial 1redit a!d I!&e%t7e!t 1or$oratio! of

I!dia ;a% fou!ded i! -:44 (a% I!du%trial 1redit a!d I!&e%t7e!t

1or$oratio! of I!dia I1I1I Ba!2 Ltd/T#e #ead offi0e of t#e Ba!2 i%

%ituated at I1I1I Ba!2 To;er%< Ba!dra urla< Mu7ai< I!dia/

I1I1I Ba!2 i% I!dia% lar"e%t $ri&ate %e0tor a!2 i! 7ar2et 0a$italiatio!

a!d %e0o!d lar"e%t o&erall i! ter7% of a%%et% of R%/ .


12/83

Mu7ai/ T#i% i!0lude% ;#oll' o;!ed %u%idiarie% i! t#e U< 1a!ada a!d

Ru%%ia< off%#ore a!2i!" u!it% i! Si!"a$ore a!d Ba#rai!< a! ad&i%or'

ra!0# i! Duai< ra!0#e% i! Sri La!2a< Ho!" o!" a!d Bel"iu7< a!d

re$ offi0e% i! t#e US< 1#i!a< U!ited Ara E7irate%< Ba!"lade%#< Sout#

Afri0a< I!do!e%ia< T#aila!d a!d Mala'%ia/ I! $arti0ular< t#e a!2 i%

tar"eti!" t#e NRI (No! Re%ide!t I!dia! $o$ulatio!/

I1I1I Ba!2 re$orted 7ar2ed,to,7ar2et lo%% of )83 7illio! a% of a!uar'

.-< )**+ follo;i!" t#e USA %u$ri7e 7ort"a"e 0ri%i%/

I1I1I Ba!2 #a% for7ulated a 1ode of Bu%i!e%% 1o!du0t a!d Et#i0% for it% dire0tor%

a!d e7$lo'ee%/

(4(4 ,*LESTONES *N T1E S;CCESS OF *C*C*

?-- T#e World Ba!2 < t#e Go&er!7e!t of I!dia a!d re$re%e!tati&e% of I!dia!

i!du%tr' for7ed I1I1I Li7ited a% a de&elo$7e!t fi!a!0e i!%titutio! to $ro&ide7ediu7,ter7 a!d lo!",ter7 $ro?e0t fi!a!0i!" to I!dia! u%i!e%%e%/

I1I1I ;a% !ot a a!2 , it 0ould !ot ta2e retail de$o%it% , a!d !or ;a% it reuired

to 0o7$l' ;it# I!dia! a!2i!" reuire7e!t% for liuid re%er&e%/ I1I1I

orro;ed fu!d% fro7 7a!' 7ultilateral a"e!0ie% (%u0# a% t#e World Ba!2<

ofte! at 0o!0e%%io!al rate%/ It u%ed t#e%e to 7a2e lar"e 0or$orate loa!%/

??+ I1I1I e%tali%#ed Ba!2i!" 1or$oratio! a% a a!2i!" %u%idiar'/for7erl'

I!du%trial 1redit a!d I!&e%t7e!t 1or$oratio! of I!dia/ Later< I1I1I Ba!2i!"

1or$oratio! ;a% re!a7ed a% I1I1I Ba!2 Li7ited/ I1I1I fou!ded a %e$arate

le"al e!tit'< I1I1I Ba!2< to u!derta2e !or7al a!2i!" o$eratio!% , ta2i!"

http://en.wikipedia.org/wiki/Subprime_mortgage_crisishttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Subprime_mortgage_crisishttp://en.wikipedia.org/wiki/World_Bankhttp://en.wikipedia.org/wiki/Government_of_India


13/83

de$o%it%< 0redit 0ard%< 0ar loa!% et0

??? I1I1I e0a7e t#e fir%t I!dia! 0o7$a!' a!d t#e fir%t a!2 or fi!a!0ial

i!%titutio! fro7 !o!,a$a! A%ia to li%t o! t#e NSE

(@@ I1I1I a0uired Ba!2 of Madura (e%t/ -:3./ Ba!2 of Madura ;a% a 1#ettiar

a!2< a!d #ad a0uired 1#etti!ad Mer0a!tile Ba!2 (e%t/ -:.. a!d Illa!?i Ba!2

(e%tali%#ed -:*3 i! t#e -:8*%/

(@@( T#e Board% of Dire0tor% of I1I1I a!d I1I1I Ba!2 a$$ro&ed t#e re&er%e 7er"er

of I1I1I< I1I1I Per%o!al Fi!a!0ial Ser&i0e% Li7ited a!d I1I1I 1a$ital

Ser&i0e% Li7ited< i!to I1I1I Ba!2/ After re0ei&i!" all !e0e%%ar' re"ulator'

a$$ro&al%< I1I1I i!te"rated t#e "rou$% fi!a!0i!" a!d a!2i!" o$eratio!%< ot#

;#ole%ale a!d retail< i!to a %i!"le e!tit'/ Al%o i! )**)< I1I1I Ba!2 ou"#t t#e

S#i7la a!d Dar?eeli!" ra!0#e% t#at Sta!dard 1#artered Ba!2 #ad i!#erited

;#e! it a0uired Gri!dla'% Ba!2

I1I1I e%tali%#ed re$re%e!tati&e offi0e% i! Ne; or2 a!d Lo!do!

(@@) I1I1I o$e!ed %u%idiarie% i! 1a!ada a!d t#e U!ited i!"do7 (U< a!d i! t#e

U it e%tali%#ed allia!0e ;it# Llo'd% TSB/ It al%o o$e!ed a! Off%#ore

Ba!2i!" U!it (OBU i! Si!"a$ore a!d re$re%e!tati&e offi0e% i! Duai a!d

S#a!"#ai

(@@+ I1I1I o$e!% a re$ offi0e i! Ba!"lade%# to ta$ t#e e=te!%i&e trade et;ee! t#at

0ou!tr'< I!dia a!d Sout# Afri0a/

http://en.wikipedia.org/wiki/NYSEhttp://en.wikipedia.org/wiki/Bank_of_Madurahttp://en.wikipedia.org/wiki/1943http://en.wikipedia.org/wiki/Chettiarhttp://en.wikipedia.org/w/index.php?title=Chettinad_Mercantile_Bank&action=edit&redlink=1http://en.wikipedia.org/wiki/1933http://en.wikipedia.org/w/index.php?title=Illanji_Bank&action=edit&redlink=1http://en.wikipedia.org/wiki/1904http://en.wikipedia.org/wiki/1960shttp://en.wikipedia.org/w/index.php?title=ICICI_Personal_Financial_Services_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=ICICI_Capital_Services_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=ICICI_Capital_Services_Limited&action=edit&redlink=1http://en.wikipedia.org/wiki/Shimlahttp://en.wikipedia.org/wiki/Darjeelinghttp://en.wikipedia.org/wiki/Standard_Chartered_Bankhttp://en.wikipedia.org/wiki/Grindlays_Bankhttp://en.wikipedia.org/wiki/NYSEhttp://en.wikipedia.org/wiki/Bank_of_Madurahttp://en.wikipedia.org/wiki/1943http://en.wikipedia.org/wiki/Chettiarhttp://en.wikipedia.org/w/index.php?title=Chettinad_Mercantile_Bank&action=edit&redlink=1http://en.wikipedia.org/wiki/1933http://en.wikipedia.org/w/index.php?title=Illanji_Bank&action=edit&redlink=1http://en.wikipedia.org/wiki/1904http://en.wikipedia.org/wiki/1960shttp://en.wikipedia.org/w/index.php?title=ICICI_Personal_Financial_Services_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=ICICI_Capital_Services_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=ICICI_Capital_Services_Limited&action=edit&redlink=1http://en.wikipedia.org/wiki/Shimlahttp://en.wikipedia.org/wiki/Darjeelinghttp://en.wikipedia.org/wiki/Standard_Chartered_Bankhttp://en.wikipedia.org/wiki/Grindlays_Bank


14/83

(@@- I1I1I a0uired I!&e%tit%io!!o,redit!' Ba!2 (IB< a Ru%%ia a!2 ;it# aout

US37! i! a%%et%< #ead offi0e i! Balaa!o&o i! t#e alu"a re"io!< a!d ;it# a

ra!0# i! Mo%0o;/ I1I1I re!a7ed t#e a!2 I1I1I Ba!2 Eura%ia/ I1I1I Ba!2

offered a #i"#,i!tere%t (4/3C "ro%% i!ter!et %a&i!"% a00ou!t to U 0u%to7er%/

Al%o< I1I1I e%tali%#ed a ra!0# i! Duai I!ter!atio!al Fi!a!0ial 1e!tre a!d i!

Ho!" o!"/

I1I1I Ba!2 U lau!0#e% HiSa&e ra!d/ A! o!li!e de$o%it ta2i!" ra!d

$ri7aril' tar"eti!" U re%ide!t I!dia!% a!d %e0o!daril' t#e ;ider U $o$ulatio!/

(@@/ I1I1I Ba!2 U o$e!ed a ra!0# i! A!t;er$< i! Bel"iu7/ I1I1I o$e!ed

re$re%e!tati&e offi0e% i! Ba!"2o2 < a2arta< a!d uala Lu7$ur /

(@@ I1I1I a7al"a7ated Sa!"li Ba!2< ;#i0# ;a% #eaduartered i! Sa!"li< i!

Ma#ara%#tra State< a!d ;#i0# #ad -4+ ra!0#e% i! Ma#ara%#tra a!d a!ot#er .-

i! ar!ata2a State/ I1I1I al%o re0ei&ed $er7i%%io! fro7 t#e "o&er!7e!t of

Jatar to o$e! a ra!0# i! Do#a a!d fro7 t#e US Federal Re%er&e to o$e! a

ra!0# i! Ne; or2 / I1I1I Ba!2 Eura%ia o$e!ed a %e0o!d ra!0#< t#i% ti7e i!

St/ Peter%ur"/

(@@ I1I1I Ba!2 lau!0#ed iMoile< a 0o7$re#e!%i&e Moile a!2i!" %olutio!/

iMoile i% 0o!%idered to e a rea2t#rou"# i!!o&atio! i! I!dia! Ba!2i!"

;#i0# allo;% a 0u%to7er to do all $o%%ile tra!%a0tio!% t#rou"# a GPRS,

http://en.wikipedia.org/wiki/Antwerphttp://en.wikipedia.org/wiki/Belgiumhttp://en.wikipedia.org/wiki/Bangkokhttp://en.wikipedia.org/wiki/Jakartahttp://en.wikipedia.org/wiki/Kuala_Lumpurhttp://en.wikipedia.org/wiki/Sanglihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Qatarhttp://en.wikipedia.org/wiki/Dohahttp://en.wikipedia.org/wiki/US_Federal_Reservehttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/Antwerphttp://en.wikipedia.org/wiki/Belgiumhttp://en.wikipedia.org/wiki/Bangkokhttp://en.wikipedia.org/wiki/Jakartahttp://en.wikipedia.org/wiki/Kuala_Lumpurhttp://en.wikipedia.org/wiki/Sanglihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Qatarhttp://en.wikipedia.org/wiki/Dohahttp://en.wikipedia.org/wiki/US_Federal_Reservehttp://en.wikipedia.org/wiki/New_York


15/83

e!aled 7oile $#o!e

(4)4 BAN5*N3 SE0


16/83

I!%ura!0e Pro$ert' %olutio! FK O!li!e

Fore= Ser&i0e% I!%ura!0e SME Ser&i0e%

De7at Ser&i0e% Loa!% O!li!e Ta=e%

O!li!e Ser&i0e% 1u%todial Ser&i0e%

Wealt# Ma!a"e7e!t

)4+4 S1A0E1OL2*N3 "ATTE0N AS ON )ST ,A0C1

(@@

SHAREHOLDERS NO.OF

SHARES

% Of TOTAL

1. Government Financial

Institutions

1!"#1!"$$ 11.

. Nationali&e' (an)s

"$*!"$+, -.!

.

FIIs !!#",#"-$* !-.$

!.

FIIs DR $*,"--- -.-$$.

ADR 1#"*+"$$! ,.$,

+.

Nonresi'ents +"*,-"#$* -.+

#. "11-"#-- -.,


17/83

NRI Re/atriation

Directors

,.

NRI 0itout Re/atriation Directors -"*$ -

*.

2utual Fun's +"*#+",,! $.++

1-.

(o'ies 3or/orates +$"!*!"#!$ $.,,

11.

Govt. 3om/anies - -

1.

Oter (an)s ++"11 -.-1

1.

Resi'ent In'ians ,-"1*"+$ #.

TOTAL 1"11"+,#"!*$ 1--


18/83

SHARE HOLDING 4ATTERN OF I3I3I

AS ON %1st 2AR. --,

11%

0%

40%

0%

29%

1%

0%

0%

6%

6%

0%

0%

7% 1

2

3

4

5

6

7

8

9

1

1

1

1


19/83

(4-4 *C*C* 3roup


20/83


21/83

)44 6hat i# CreditCredit i# de'ined a# con'idence in a %orrowerD# a%ility and intention to

repay4 "eople u#e the credit they have with 'inancial in#titution#7

%u#ine##e#7 and individual# to o%tain loan#4 And they u#e the loan# to

%uy good# and #ervice#4

T#e 0redit a $er%o! #a% t'$i0all' deter7i!e% #o; 7u0# t#e' ;ill e $er7itted

to orro;< for ;#at $ur$o%e< for #o; lo!"< a!d at ;#at i!tere%t rate%/

T#e le&el of 0o!fide!0e le!der% #a&e i! $ote!tial orro;er% de$e!d% o! 7a!'

fa0tor%/ A! e!titie% i!0o7e i% a! i!di0ator of it% ailit' to re$a'< $arti0ularl'

;#e! 0o7$ared to t#e a7ou!t of det t#e' alread' #a&e/ T#e a7ou!t of

orro;i!" A! e!tit' #a% alread' do!e a!d #o; ;ell t#e' #a!dled re$a'7e!t i%

a! i!di0ator of t#eir i!te!tio! to re$a'/

)4(4 6hat i# credit analy#i#

1redit a!al'%i% i% 0arried out o! 0u%to7er% ' a!2%< ot#er 0o7$a!ie%< 0redit

rati!" a"e!0ie% a!d 0redit refere!0e a"e!0ie% or ureau/ T#e $ur$o%e of t#e

a!al'%i% i% t#e %a7e i! ea0# 0a%e to ?ud"e t#e liuidit' of ,

T#e 0o7$a!'<

It% Ma!a"e7e!t a!d


22/83

It% Fi!a!0ial %ituatio!

1redit a!al'%i% i% a %tru0tured $ro0e%% of i!&e%ti"atio! a!d a%%e%%7e!t /T#e role

of t#e 0redit a!al'%t i% to a%%e%% a!d e&aluate t#e $ote!tial 0redit ri%2 ;it# a!'

0u%to7er or orro;er a!d to ad&i%e o! de0i%io!% aout "ra!ti!" 0redit or

$ro&idi!" loa!% or orro;i!" fa0ilitie%

1redit 7a!a"e7e!t i! a!2% reuire%< a %'%te7 for de0idi!" #o; 7u0# 0redit

0a! e "i&e! i! total a!d ;#et#er 0redit %#ould e "i&e! (a!d #o; 7u0# toi!di&idual 0u%to7er% or "rou$% of 0u%to7er%< ta2i!" i!to 0o!%ideratio! t#e

0redit ri%2 (ad det%< lo%% of liuidit'/

He!0e t#e 7ai! ;or2 of 0redit a!al'%t i% to de0ide ,

W#et#er a!d

Ho; 7u0#

1redit %#ould e "i&e! to 0u%to7er after ta2i!" i!to 0o!%ideratio! &ariou%

fa0tor%/

For !o!,a!2 0o7$a!ie% "i&i!" a!d ta2i!" 0redit i% a !or7al feature of tradi!"

o$eratio!%/ 1redit 7u%t e "i&e! to 7a2e %ale% a!d ear! $rofit /For a!2%

"i&i!" 0redit (i/e/ le!di!" i% a $rofit 7a2i!" o$eratio! i! it%elf/ Gro%% $rofit i%

t#e i!tere%t ear!ed/


23/83

.. 3re'it Anal5sis in (an)s

1redit a!al'%i% $arti0ularl' i! Ba!2% #a% e&ol&ed a% a %tru0tured $ro0e%% toi7$ro&e 0redit de0i%io!%/ Not all de0i%io!% ;ill !e0e%%aril' e "ood o!e% ut a!

or"a!ied a!d %'%te7ati0 a$$roa0# 0a! #el$ to rai%e t#e ualit' of 0redit

a%%e%%7e!t/ Te0#!iue% %u0# a% 0redit %0ori!"< 0o7$uter %e!%iti&it' 7odel% a!d

0a%# flo;% 0a! e u%ed/

Ba!2er% ;it# re%$o!%iilit' of le!di!" de0i%io!% 7u%t #a&e %o7e e=$erti%e i!

a!al'%i% te0#!iue%

A $ri7ar' fo0u% of 0redit a!al'%i% %#ould e a! a%%e%%7e!t of t#e 0u%to7er6%

liuidit'/ A 0o7$a!' t#at #a% %uffi0ie!t 7o!e' i% li2el' to $a' ;#at it o;e%

;#e! t#e $a'7e!t fall% due/ Illiuid 0o7$a!ie%< i! liuid $rofitale 0o7$a!ie%

;it# i!adeuate 0a%# flo;% are a %eriou% 0redit ri%2 Mu0# 0redit a!al'%i%

i!&ol&e% a! i!&e%ti"atio! of fi!a!0ial %tate7e!t%

But 1redit a%%e%%7e!t i% !ot a! e=a0t %0ie!0e/ T#ere i% !o %i!"le ite7 of

i!for7atio!< %u0# a% a %i!"le fi!a!0ial ratio< ;#i0# %#o;% ;#et#er a 0o7$a!' i%

a "ood 0redit ri%2< or !ot/

T#e a!al'%t 7u%t a%%e7le a &ariet' of i!for7atio! ot# fi!a!0ial a!d !o!,

fi!a!0ial to 7a2e a ;ell,rea%o!ed a%%e%%7e!t of t#e ri%2 i!&ol&ed i! "i&i!"0redit to t#e 0u%to7er%/ I! 7a!' 0a%e% differe!t ite7% of i! for7atio! aout t#e

0o7$a!' 0ould %ee7 to 0o!fli0t a!d $oi!t to a differe!t 0o!0lu%io!%/


24/83

)4+4 C# O' Credit

Credit analy#i# i# a very in.depth proce##4

It% a $ro0e%% t#at e"i!% ;it# ;#at fi!a!0ial i!du%tr' 0all% t#e 1% of 1redit/

T#e 1% of 1redit are t#e %ta!dard "uideli!e%< a%2ed i! &ariou% for7% of ue%tio!

fro7 a le!der to a orro;er duri!" a 7eeti!" of loa! 0o!%ultatio!/ T#i% 7et#od

of e&aluati!" a orro;er i!0or$orate% ot# ualitati&e a!d ua!titati&e

7ea%ure%/ T#e%e are ,

1#ara0ter

1a$a0it'

1a%# flo;

1a$ital

1o!ditio!%

1ollateral

1o!trol


25/83

)4+4 89 C1A0ACTE0

A 1redit A!al'%t ;ill !eed to e%tali%# t#e 0#ara0ter of t#e orro;er/ Ho; tru%t

;ort#' are t#e'5 W#at are t#e' li2e a% a $er%o!5 Do t#e' %ee7 to #old i!te"rit'

aout t#e75 Would t#e' #old fa%t to t#eir re%$o!%iilit' to re$a' t#e loa!5 All

of t#e%e are ue%tio!% a%2ed re"ardi!" t#e 0#ara0ter of a orro;er/

)4+4 8(9 CA"AC*T=

Ne=t< t#e A!al'%t ;ill loo2 at t#e 0a$a0it' (;#o 0a! e #eld re%$o!%ile of t#e

orro;er/ I% t#i% $er%o! %ee2i!" a loa! e&e! eli"ile to reue%t o!e for t#eir

u%i!e%%5 1a! t#e' e #eld re%$o!%ile i! t#e e&e!t of default or do t#e' #a&e

a! eli"ile "uara!tor if t#e' are u!ale to 7eet t#eir oli"atio!%5

)4+4 8)9 CAS1 FLO6

1a%# flo;< o!e of t#e 7o%t i7$orta!t 1% of 1redit/ A!al'%t a%2 ue%tio!% aout

0a%# flo; to deter7i!e if t#e orro;er ;ill #a&e %uffi0ie!t 0a%# i! t#e future to

re$a' t#eir det/ All de%t i% $aid a02 i! 0a%#/ If a 0o7$a!' doe% !ot #a&e

%uffi0ie!t 0a%# flo; for ;#ate&er rea%o!< t#e' ;ill e u!ale to 7eet t#eir

oli"atio!% to t#e fi!a!0ial i!%titutio! fro7 ;#i0# t#e' orro;ed/ A%%e%%i!" t#e

0o7$a!' or i!di&idual% a%%et 0o!&er%io! 0'0le a!d ear!i!"% 0a! e a "ood

e%ti7ate to t#eir ailit' to "e!erate 0a%# flo;/

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)4+4 8+9 CA"*TAL

1a$ital i% al%o i7$orta!t/ A%2i!" ue%tio!% aout t#e a7ou!t of euit' a

0o7$a!' or i!di&idual #a% i! i7$orta!t to u!der%ta!di!" t#eir 0a$a0it' to ta2e a

#it i! ;#ate&er 7ar2et t#e' are i! ;#e! it u!der"oe% #ard ti7e%/ If a 0o7$a!'

#a% %uffi0ie!t ;or2i!" 0a$ital t#e' ;ill e ale to 0o!ti!ue to 7eet t#eir de%t

oli"atio!% e&e! duri!" a $eriod of $oor $erfor7a!0e/

)4+4 8-9 CON2*T*ON

T#e !e=t t#i!"< T#e A!al'%t e&aluate i% t#e 0o!ditio!% of 0lie!t/ 1o!ditio!%

refer% to #o; ;ell t#e i!du%tr' (of t#e u%i!e%% a% a ;#ole i% fari!"/ It al%o

loo2% at t#e e0o!o7' relati&e to t#e u%i!e%%< a!d i! u!der%ta!di!" t#e

relatio!%#i$ a A!al'%t 0a! %o7e;#at $redi0t ;#at dire0tio! t#e 0o7$a!' i%

#eaded to;ard/ W#e! e&aluati!" 0o!ditio!% t#ere i% al%o a! e7$#a%i% o! #o;

0o7$etiti&e t#e 7ar2et i%/ Will re&e!ue% fall e0au%e of a lot of 0o7$etitor%

e!teri!" t#e 7ar2et at lo;er $ri0e%5

)4+4 8/9 COLLATE0AL

1ollateral i% a!ot#er &er' i7$orta!t 1 of 1redit/ W#at doe% t#e orro;er #a&e

to %e0ure t#e loa!5 W#at a%%et% of i7$orta!t do t#e' #a&e t#at t#e' ;ill $led"e

i!0a%e of default5 I% t#i% 0ollateral liuid5 I% it 7ar2etale a!d 0o!&erted to

0a%#5 W#at $er0e!ta"e% of t#e $ri!0i$al ;ill t#e a&ailale 0ollateral 0o&er5

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T#e%e are all &er' i7$orta!t ue%tio!% to a%2 ;#e! 7a2i!" a loa!< e%$e0iall'

;it# lar"e o!e%< t#ere 7u%t e %o7e a7ou!t of 0ollateral $led"ed to %e0ure t#e

loa!/ A%2i!" t#e%e t'$e% of ue%tio!% 0a! etter u!der%ta!d ;#at 2i!d% of

%e0urit' a orro;er #a% a&ailale/

)4+4 89 CONT0OL

La%tl'< A!al'%t 0o!%ider% t#e 0o!trol a%$e0t/ T#i% i%!t reall' a ue%tio! 'ou a%2

a orro;er< ut 7ore of a ta%2 o!0e t#e loa! i% 7ade/ All "ood loan# 7u%t e

7a!a"ed $ro$erl' a!d #a&e t#eir $erfor7a!0e tra02ed< %o t#at a!' red fla"%%i"!ali!" a $role7 0a! e di%0o&ered earl' o! a!d #o$efull' re%ol&ed/

All of %e&e! of t#e%e 1% of 1redit are a%i0< %ta!dard $ro0edure% a!' 1redit

A!al'%t ;ill a%2 a orro;er ;#e! t#e' a$$l' for a loa!/ T#ere i% 7u0# 7ore

t#at "oe% i!to e&aluati!" t#e 0redit ;ort#i!e%% of a $er%o!< ut t#e 1% of

1redit are t#e a%i0% o! ;#i0# a orro;er i% e&aluated '/

)4-4 F;CT*ONAL A0EAS OF C0E2*T ANAL=S*S

A fu!0tio!al area of 0redit a!al'%i% "i&e% a ;ide &ie; of t#at area i! ;#i0# a

0redit a!al'%t #a% to loo2 i!to/ It $ro&ide% t#e %ta!dard $at# to deter7i!e 0redit

;ort#i!e%% of a 0u%to7er/ T#e a!al'%t al%o !eed% to 0o!%ider %o7e rele&a!t

fa0tor% i! $arti0ular 0a%e ;#i0# fall% a$art of t#e%e area% a% ;ell/

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Bu#ine##

Environment

Nature o' cu#tomer#

Bu#ine##

Ca#hFlow#

"ro'it#

A##et# andExi#ting

2e%t#

Bu#ine##

Strength

Liuidity and

Financial

Strength

Financia

Security

A6ilit5 toRe/a5


29/83


30/83

+44 2epartmental 1ierarchyNAT*ONAL C0E2*T ,ANA3E0

G0C,8North9 G0C,8South9 G0C,8Ea#t9 G0C,86e#t9

H S0C, S0C, S0C, S0C,

0C, 0C, 0C, 0C,

CA CA CA CA

GC,I . GONAL C0E2*T ,ANA3E0


31/83

S0C,I . SEN*O0 0E3ONAL C0E2*T ,ANA3E0

0C,I . 0E3ONAL C0E2*T ,ANA3E0

CAI . C0E2*T ANAL=ST O0 E:EC;T*


32/83

SLG ETG S(L

SEG7 S2ALL ENTER4RISE GRO84

• BB3 , BUSINESS BANING GROUP SL3I . SEC;0E2 LEN2*N3 30O;"

• CB3 , 1LUSTER BANING GROUP ET3 , ENTERPRISE TRADING

• EC3 , EMERGING 1LUSTER GROUP SBL , SMART BUSINESS LOAN

+4(4 89 S,ALL ENTE0"0*SE 30O;" 8SE39

I! t#e SEG %e"7e!t I1I1I a!2 a%i0all' tar"et% t#e SME (S7all a!d 7ediu7E!ter$ri%e% 0lie!t%/

T#e %7all e!ter$ri%e %e"7e!t #a% ee! ide!tified a% #a&i!" a #i"# $ote!tial for

"ro;t# a!d a% %our0e of i!0rea%ed $rofitailit' for a!2/ T#e %e"7e!t #a%

%#o;! %i"!ifi0a!t "ro;t# tre!d% %ur$a%%i!" ot# t#e i!du%tr' %e0tor a!d o&erall

rate of "ro;t# of t#e e0o!o7' o&er t#e la%t 0ou$le of 'ear%

S7all a!d 7ediu7 e!ter$ri%e #a% t#e follo;i!" e#a&ioral feature%

T#e' u%uall' #a&e lo!"er a!d %tale a!2i!" relatio!%#i$% a% 0o7$ared to

lar"e 0or$orate 0u%to7er%/

T#e' $ro&ide #i"# o$$ortu!it' fore trade fi!a!0e a!d 0ro%% %elli!" of

retail a!2i!" $rodu0t%/

T#e' e=#iit relati&el' lo; $ri0e %e!%iti&it'< a% t#e' "e!erall' $refer

0lo%e ;or2i!" relatio!%#i$% ;it# t#eir a!2er% to $ri0i!"% i%%ue%/

T#ere are a%i0all' t#ree i7$orta!t li7iti!" fa0tor% to t#e "ro;t# of t#e %7all

i!du%trie%


33/83

T#reat fro7 do7e%ti0 a!d i!ter!atio!al 0o7$etitio!<

Ge!eral e0o!o7i0 %lo; do;! a!d

La02 of adeuate ;or2i!" 0a$ital fi!a!0e

T#e t;o 7ai! 0#alle!"e% for t#e I1I1I a!2 i! t#e SEG %e"7e!t are

To uild #i"# &olu7e% ' &irtue of %7all ti02et %ie a!d

Mi!i7ie 0redit ri%2 i!&ol&ed i! a tra!%a0tio!

+4(4 8(9 S,ALL ENTE0"0*SE 30O;" BB3 , BUSINESS BANING GR

CB3 , 1LUSTER BANING GR

EC3,EMERGING 1LUSTER GROUP

I! order to ta$ fu!di!" o$$ortu!itie% i! t#i% %e"7e!t< I1I1I Ba!2 #a% di&ided

t#i% SEG i!to &ariou% Su "rou$% ;#i0# are,

• BB3 , BUSINESS BANING GROUP/

• CB3 , 1LUSTER BANING GROUP/

• EC3 , EMERGING 1LUSTER GROUP/

I! t#e Bu%i!e%% Ba!2i!" Grou$ ;e are a%i0all' 0o!0er!ed ;it# t#e

0u%to7er%< ;#i0# #a&e a Net Wort# u$to R% 4* 1rore/

I! t#e 1lu%ter Ba!2i!" Grou$ ;e "rou$ our 0lie!t% o! t#e a%i% of u%i!e%%

i! ;#i0# t#e' are3 i!&ol&ed for e=a7$le ;e 7a2e% &ariou% 0lu%ter% %u0# a%

Auto< Te=tile< 1#e7i0al< Ge7% e;eller' et0/E7er"i!" 1lu%ter "rou$ #a% %o7e 0o77o! feature% of 1lu%ter Ba!2i!"

Grou$ a!d a% t#e !a7e %u""e%t% it i% 0o!0er!ed ;it# e7er"i!" u%i!e%%

0lu%ter "rou$%/


34/83

+4(4 8)9 BUSINESS BANING GROUP SL3I . SE1URED LENDING GROUP

ET3 , ENTERPRISE TRADING

SBL , SMART BUSINESS LOANS

Ea0# of ao&e di%0u%%ed Grou$% furt#er #a% &ariou% "rou$% u!der ;#i0#

fu!di!" are $ro&ided to t#e 0u%to7er%/

We are 7ai!l' 0o!0er!ed ;it# t#e Bu#ine## Banking 3roup ;#i0# #a%,

• SL3I . SEC;0E2 LEN2*N3 30O;"

• ET3 , ENTERPRISE TRADING

• SBL , SMART BUSINESS LOANS

I! t#e BBG t#e ea0# "rou$ ;#et#er SLG< ETG or SBL e&er' o!e #a% differe!t

Pro"ra7% u!der ;#i0# differe!t ;or2i!" 0a$ital !eed% of 0u%to7er are fulfilled/

For t#e $ur$o%e of $ro?e0t ;e ;ill e di%0u%%i!" aout,

• Se0ured Le!di!" Grou$ (SLG

• It% differe!t $ro"ra7%

• A!d &ariou% ;or2i!" 0a$ital $rodu0t u!der t#e%e $ro"ra7%/

+4)4 Credit "rogram#

SEC;0E2 LEN2*N3 30O;"


35/83

ENTE0"0*SE C0E2*T 8EC9 FLE:* C0E2*T 8FC9 LAC0

SE1URED LENDING GROUP (SLG i% o!e of t#e 7o%t fa7ou% "rou$% of

BBG a% 7e!tio!ed earlier it ;ill ta2e 0are of 0u%to7er% ;#o%e Net Wort# doe%

!ot e=0eed% R% 4* 1rore/

SLG #a% differe!t 0redit $ro"ra7% u!der it% u7rella a!d t#e 7o%t fa7ou%

$ro"ra7% of t#i% %e"7e!t are E!ter$ri%e 0redit (E1< Fle=i 1redit (F1<

Le!di!" a"ai!%t 1redit Ratio!i!" (LA1R/

I1I1I $ro&ide% ;or2i!" 0a$ital a%%i%ta!0e to 0lie!t% i! differe!t for7% u!der

t#e%e $ro"ra7%/

+4)4 89 ENTE0"0*SE C0E2*T 8EC9

4 A $rodu0t %uitale for 0u%to7er% ;it# de0e!t fi!a!0ial ut !ot i! a

$o%itio! to offer #i"#er 0ollateral/

(4 Suitale for 0u%to7er% ;it# ot# ter7 loa! a!d ;or2i!" 0a$ital

reuire7e!t/

Ba#ic Feature#I

• Eli"iilit' Pro$rietor%#i$< Part!er%#i$< 1o7$a!'

• Suitale for 0lie!t% i! Retail< W#ole%ale< Tra&el Touri%7< Ser&i0e<

Ma!ufa0turi!" 0ate"or'

• Fu!di!" Mi!i7u7 of R%/ )/*7! to Ma=i7u7 of R%/ )*/*7!/

• Bu%i!e%% @i!ta"e . 'ear% (0a%e% ;it# - full 'ear audited fi!a!0ial% 0a!

al%o e fu!ded u!der t#i% $ro"ra7


36/83

• Tur!o&er Mi!i7u7 R%/ -*/*7!/ (Audited

• PAT Po%iti&e (&e la%t ) 'ear%/

• A%%e%%7e!t )*C of $ro?e0ted tur!o&er ($ro?e0tio!% !ot to e=0eed )4C

of audited tur!o&er

• Se0urit' !or7% Mi!i7u7 8*C reuired i! for7 of

1o77er0ialQRe%ide!tialQLI1 $oli0ie%QFD6%QRBI relief o!d%Qi%a! @i2a%

PatraQNS1QDet 7utual fu!d/ I!du%trial $ro$ertie% are a00e$tale

#o;e&er< 7i!i7u7 -**C 0ollateral 0o&er i% reuired/

• No &a0a!t or A"ri/Qfar7 la!dQre!tedQ&a0a!t to e ta2e! a% 0ollateral/

• I!tere%t rate ra!"eQ0o77i%%io! -./4*C , -3/4*C (OD -/4C , )/*C

(BG

• Pro0e%%i!" fee -/*C of %a!0tio!ed a7ou!t/

• 1a%# Mar"i! -4C at t#e ti7e of o$e!i!" of L1Qi%%ue of BG/

• Ot#er 0#ar"e% li2e &aluatio!Qtitle %ear0#Q%ta7$ $a$er%Qi!%ura!0e to e

or!e ' 0lie!t/

+4)4 8(9 FLE:* C0E2*T 8FC9

(I! 0a%e of 0u%to7er #a&e %uffi0ie!t 0ollateral%

-/ A $rodu0t %uitale for 0u%to7er% i! !eed of ;or2i!" 0a$ital reuire7e!t

ut fi!a!0ial refle0t o!l' a&era"e %tre!"t#/

)/ 1u%to7er% ru!!i!" u%i!e%% ;it# de0e!t fi!a!0ial% ;illi!" to "i&e

#i"#er 0ollateral ut !ot i!tere%ted i! %u7i%%io! of %to02 %tate7e!t e&er'

7o!t# or %to02 audit 0a! ta2e ODQL1QBG u!der t#i% $ro"ra7/

Ba#ic Feature#I


37/83

• Eli"iilit' Pro$rietor%#i$< Part!er%#i$< 1o7$a!'

• Suitale for 0lie!t% i! Retail< W#ole%ale< Tra&el Touri%7< Ser&i0e<

Ma!ufa0turi!" 0ate"or'

• Fu!di!" Mi!i7u7 of R%/ -/*7! to Ma=i7u7 of R%/ 4*/*7!

(ODQL1QBGQTL et0/

• Bu%i!e%% @i!ta"e . 'ear% (0a%e% ;it# - full 'ear audited fi!a!0ial%

0a! al%o e fu!ded u!der t#i% $ro"ra7

• PAT Po%iti&e (&e la%t 'ear Audited

• A%%e%%7e!t Ma=i7u7 )4C of audited tur!o&er

• Se0urit' !or7% 1o77er0ial ()**C to )4*C< Re%ide!tial $ro$ert'

(-89C to )**C

• No &a0a!t or A"ri/QFar7 la!dQ re!tedQ&a0a!tQi!du%trial $ro$ertie% to e

ta2e! a% 0ollateral/ O!l' %elf o00u$ied (' $ro7oter%Qrelati&e%

re%ide!tialQ0o77er0ial $ro$ertie% are a00e$tale/

• I!;ard 0#eue retur! - (La%t 8 7o!t#% 1AQ11QOD aQ0 to e

&erified

• Out;ard 0#eue retur! -) (La%t 8 7o!t#% 1AQ11QOD aQ0 to e

&erified

• I!tere%t rate ra!"eQ1o77i%%io! -./4*C , -3/4*C(OD -/4C , )/*C

(BG

• Pro0e%%i!" fee -/*C of %a!0tio!ed a7ou!t

• 1a%# Mar"i! -*C at t#e ti7e of o$e!i!" of L1Qi%%ue of BG

• Ot#er 0#ar"e% li2e &aluatio!Qtitle %ear0#Q%ta7$ $a$er%Q i!%ura!0e to e

o!e ' 0lie!t


38/83

+4)4 8)9 LEN2*N3 A3A*NST C0E2*T 0AT*ON*N3 8LAC0JCCS9

(A $rodu0t %uitale for 0u%to7er% ;#o are #a&i!" 1ard S;i$i!" 7a0#i!e/

Ba#ic Feature#I

• Mi!i7u7 Fu!di!" R%/ -/*7!/ Ma=i7u7 Fu!di!" R%/ -**/*7!/

• Bu%i!e%% @i!ta"e . 'ear% at t#e %a7e $la0e/

• T'$e of $rodu0t% (OD, O&erdraftQDLOD, Dro$ li!e o&erdraftQDL,

De7a!d loa!,4);ee2% re$a'7e!tQTer7 Loa!,3 'ear% re$a'7e!t

• A%%e%%7e!t !or7% a% a 7ulti$le of 0ard %ale% (o!l' @ISAQMa%ter 1ard

%;i$i!" are 0o!%idered – Ma=i7u7 i% 8ti7e% of la%t -) 7o!t#%

a&era"e 0redit 0ard %ale% (T#e%e are 7a=i7u7 $er7i%%ile li7it%

u!der t#i% $ro"ra7< #o;e&er a0tual fu!di!" ;ould de$e!d u$o!

fi!a!0ial% a!d ot#er fa0tor%/

• E=0lu%i&it' arra!"e7e!t for 0ard %;i$e% – !ot 7a!dator'/

• NO1 fro7 e=i%ti!" ;or2i!" 0a$ital a!2er for 0#ar"e o! 0redit 0ard

re0ei&ale%/

• Pro0e%%i!" fee -/*C of %a!0tio!ed a7ou!t/

+4+4 CLASS*F*CAT*ON OF 6O05*N3 CA"*TAL

T#e ;or2i!" 0a$ital a%%i%ta!0e $ro&ided ' a!2% 0a! roadl' e

0la%%ified i! t;o 0ate"orie%

o Fund %a#ed a##i#tance

o Non.'und %a#ed a##i#tance


39/83

T#e differe!0e et;ee! fu!d a!d !o!,fu!d a%%i%ta!0e lie% 7ai!l' i! t#e

0a%# outflo;/ Fu!d a%ed a%%i%ta!0e i!&ol&e% a! i77ediate 0a%# outflo;

;#ile !o!,fu!d a%ed a%%i%ta!0e 7a' or 7a' !ot i!&ol&e 0a%# outflo;

fro7 t#e a!2/ Gra!ti!" a fu!d,a%ed 0redit fa0ilit' to a orro;er ;ould

re%ult i! de$letio! of a0tual liuidit' of t#e a!2< ;#ere a% "ra!ti!" a

!o!,fu!d a%ed fa0ilit' 7a' or 7a' !ot affe0t t#e a!2% liuidit'/

+4+4 89 Cla##i'ication o' 6C ! Fund Ba#ed

Fu!d a%ed a%%i%ta!0e 7a'e 0ate"ori%ed i!to ad&a!0e% to;ard% 7eeti!"

do7e%ti0 (i!la!d ;or2i!" 0a$ital reuire7e!t% of a orro;er a!d

fu!di!" ;or2i!" 0a$ital reuired for e=$ort%/ T#e A%%e%%ed Ba!2 Fi!a!0e

i% 7ade a&ailale to orro;er% t#rou"# a!' o!e of t#e follo;i!"

fa0ilitie%

o 1a%# 1redit

o

Wor2i!" 1a$ital De7a!d Loa! (W1DLo O&erdraft

o Bill%

o 1o77er0ial $a$er

o Ter7 Loa!

+4+4 8(9 Cla##i'ication o' 6C ! Non.Fund Ba#ed

No!,fu!d a%ed a%%i%ta!0e i% u%uall' e=te!ded i! t#e for7 of a Letter of

1redit or a Ba!2 Guara!tee/ No!,fu!d a%ed a%%i%ta!0e 7a' !ot i!&ol&e

0a%# outflo; fro7 t#e a!2 #o;e&er it 0reate% a 0o!ti!"e!t liailit'


40/83

de$e!di!" u$o! t#e %ati%fa0tio! of 0o!ta0t ' t#e 0lie!t/ T#u% it 7a' or

7a' !ot affe0t t#e a!2% liuidit'/

o Letter of 1redit

o Ba!2 Guara!tee

+4+4 894 * Ca#h credit

1a%# 0redit i% t#e li7it re%tri0ted to t#e dra;i!" $o;er< a"ai!%t t#e

%e0urit' of 0o77oditie% a!d det/ It ru!% li2e a 0urre!t a00ou!t e=0e$t

t#at t#e 7o!e' t#at 0a! e ;it#dra;! fro7 t#i% a00ou!t i% !ot re%tri0ted to

t#e a7ou!t de$o%ited i! t#e a00ou!t/ I!%tead< t#e a00ou!t #older i%

$er7itted to ;it#dra; a 0ertai! %u7 0alled li7it or 0redit fa0ilit' i!

e=0e%% of t#e a7ou!t de$o%ited i! t#e a00ou!t/

1a%# 1redit% are< i! t#eor'< $a'ale o! de7a!d/ T#e%e are< t#erefore<

0ou!ter $art of de7a!d de$o%it% of t#e Ba!2/

+4+4 894 ii Overdra't

T#e ;ord o&erdraft 7ea!% t#e a0t of o&erdra;i!" fro7 a Ba!2 a00ou!t or

$o;er to ;it#dra;/ I! ot#er ;ord%< t#e a00ou!t #older ;it#dra;% 7ore

7o!e' fro7 a Ba!2 A00ou!t t#a! #a% ee! de$o%ited i! it/

+4+4 894 iii Term Loan


41/83

Ter7 Loa!% are t#e 0ou!ter $art% of Fi=ed De$o%it% i! t#e Ba!2/ Ba!2%

le!d 7o!e' i! t#i% 7ode ;#e! t#e re$a'7e!t i% %ou"#t to e 7ade i!

fi=ed< $re,deter7i!ed i!%tall7e!t%/ T#i% t'$e of loa! i% !or7all' "i&e! to

t#e orro;er% for a0uiri!" lo!",ter7 a%%et% i/e/ a%%et%< ;#i0# ;ill e!efit

t#e orro;er o&er a lo!" $eriod (e=0eedi!" at lea%t o!e 'ear/ Pur0#a%e%

of $la!t a!d 7a0#i!er'< 0o!%tru0ti!" uildi!" for fa0tor'< %etti!" u$ !e;

$ro?e0t% fall i! t#i% 0ate"or'/ Fi!a!0i!" for $ur0#a%e of auto7oile%<

0o!%u7er durale%< real e%tate a!d 0reatio! of i!fra%tru0ture al%o fall% i!

t#i% 0ate"or'/ I! ter7 loa! retur! o! i!&e%t7e!t i% le%%er t#a! o&erdraft

li7it/

+4+4 894iv 2emand loan

I! de7a!d loa! i!tere%t ;ill e 0#ar"ed o! ;it#dra;al ut a7ou!t ;ill e

tra!%fer o! 0u%to7er6% reuire7e!t/ W#erea% i! ter7 loa! $eriod i% fi=ed/

+4+4 8(94i Letter o' credit

It i% a! u!derta2i!" "i&e! ' t#e a!2 at t#e reue%t of t#e 0lie!t to effe0t

$a'7e!t a"ai!%t $re%e!tatio! of 0redit 0o7$l'i!" do0u7e!t%/ T#e fa0ilit' 7a'

e a&ailed for i!la!d tra!%a0tio! a% ;ell a% for i7$ort%/ Nor7all' t#e li7it% are

t#e $art of t#e ;or2i!" 0a$ital fa0ilit'/ Ho;e&er< a o!e,ti7e fa0ilit' 0a! e

a&ailed for i7$ort of 0a$ital "ood%/

+4+4 8(94ii Bank 3uarantee

Guara!tee i% a fa0ilit' ;#ere I1I1I Ba!2 %ta!d% a% a "uara!tor for t#e fi!a!0ial

a% ;ell a% $erfor7a!0e oli"atio!% of t#e 0lie!t for t#e fee/


42/83

It i% all ti7e 7a!dator' for t#e 0o7$a!ie% iddi!" for te!der% It i% at ti7e%

7a!dator' for 0o7$a!ie% iddi!" for te!der% to $ro&ide %u0# "uara!tee% to

o&iate i7$le7e!tatio! ri%2%/ Go&er!7e!t aut#oritie% 7a' al%o reuire it for

$a'7e!t% of e=0i%eQ %ale% ta= et0/ a!2 al%o $ro&ide "uara!tee% for e=$ort u!der

EP1G %0#e7e/

+4-4 Lending "roce## o' the Bank

1. Sales team .4reliminar5 3ase

Documents 3lose'

No

. Eli9i6ilit5

3ec)

+. 3re'it

a//roval memo

!. :isit toclient

$. 3ollection of 'etails

*'


43/83

Step 3eneration o' the Ca#e

Sale# team of t#e I1I1I a!2 ;or2% u!der t#e %ale% Ma!a"er of t#e a!2/ It

"e!erate% t#e 0a%e% or ri!"% t#e reue%t of 0lie!t% for &ariou% fu!di!"

reuire7e!t% at t#e fir%t %ta"e of ;or2 t#ou"# it i% !ot dire0tl' related to 0redit

de$art7e!t of t#e a!2 ut it for7% t#e a%e of all ;or2% i! t#i% de$art7e!t or

;e 0a! %a' t#at it ?u%tifie% t#e e=i%te!0e of 0redit de$art7e!t/

Step ( LO3 *N O' the Ca#e

"reliminary 2ocument# or LO3 *N i% i! real %e!%e t#e fir%t %te$ i! 0redit

de$art7e!t% ;or2i!"/

LO3 in i% all aout 0#e02i!" t#at ;#et#er t#e reuired do0u7e!t% are $re%e!t

or !ot a!d if t#e all !e0e%%ar' do0u7e!t% are a&ailale t#e! 7a2i!" t#e e!tr' of

t#e 0a%e/ Here t#e ,*S 'unction i% al%o !eed to e $erfor7ed t#at i% !ot#i!" ut

7ai!tai!i!" all rele&a!t detail% for 0a%e %o 0a! e 7ade a&ailale a% a!d ;#e!

!e0e%%ar'/

If

Re;ect

,. SanctionDis6ursal

3ase 3lose'

#. Discussion


44/83

2OC;,ENTSI

o Audited Fi!a!0ial State7e!t% (alo!" ;it# for7 .1AQ1B a!d for7

.1D all %0#edule% a!d a!!e=ure for la%t t#ree 'ear%/

o Late%t o!e 'ear Ba!2 State7e!t for all ru!!i!" 0urre!t a00ou!t%

11 a00ou!t%/

o @i!ta"e Proof

o 1o!%titutio! Do0u7e!t%

o Pro&i%io!al Fi!a!0ial for F*+

o 1A 0ertified 11S %ale% for la%t -) 7o!t#%/

o 1A 1ertified Per%o!al Net ;ort# %tate7e!t $ro7oter(%

1ollateral O;!er/

o I!0o7e Ta= Retur!% (La%t . 'ear% of t#e E!tit' Pro7oter%/

o Re$a'7e!t S0#edule% of all loa!% out%ta!di!" a% o! .-/*./*9

o 1OP of late%t %a!0tio! letter

o SM %ite &i%it Re$ort

o Ba!2 %tate7e!t

Step ) Eligi%ility Checking

Eligi%ility check i!&ol&e% ide!tif'i!" i! ;#i0# of t#e $ro"ra7% (i/e/ E1< F1<

LA1R t#e $re%e!t rou"#t 0a%e fall%< o! t#e a%e% of &ariou% 0riteria of ea0# of

t#e $ro"ra7% t#at #a% ee! di%0u%%ed earlier/

A!d $re$ari!" t#e fi!a!0ial ;or2%#eet% of t#e 0o!0er!ed e!tit' 0a%e/ T#ere are

differe!t ;or2%#eet e=i%t% for ea0# of t#e $ro"ra7%/

O! t#e a%e% of $re$ared ;or2%#eet% of t#e 0a%e t#e 1REDIT Ma!a"er de0ide

;#et#er to furt#er $ro0e%% t#e 0a%e or !ot/ Duri!" it t#e 0redit 7a!a"er


45/83

0o!%ider% &ariou% ratio%< $rofitailit' tre!d< %ale% tre!d a!' ;or2i!" 0a$ital

fa0ilit' a&ailed ' t#e 0lie!t et0/

If t#e 0redit 7a!a"er i% !ot %ati%fied ' t#e 0a%e or it i% !ot $o%%ile to 0o!%ider

t#e 0a%e i! a!' $ro"ra7 t#e 0a%e i% re?e0ted/

Step + ,aking


46/83

I!fra%tru0ture detail% (Re"i%tered Offi0e< Godo;!< Retail% Outlet a!d

ot#er%

P#o!e Nu7er

We%ite

e' Per%o!

1#a!"e i! 0o!%titutio!< if a!'

Li!e of u%i!e%%

Nu7er of e7$lo'ee%

Pro$ert' Detail%

o T'$e of Pro$ert'

o Addre%%

o Area i! S Mtr/

o O;!er(%

o O00u$a!t(%

o Total &alue (R%/ I! la2#%

E=i%ti!" Ba!2 Li7it

o Na7e of t#e Ba!2

o Nature of fa0ilit'

o Rate of I!tere%t

o Total Li7it Sa!0tio!ed

o Addre%% &alue of $ro$ert' offered

o Ot#er Se0uritie% offered

Future e=$a!%io! $la!%

Brief o! u%i!e%% $ro0e%% Ma!ufa0turi!" Pro0e%%

Pro7oter6% Profile


47/83

o Na7e of all dire0tor%Q $art!er% Q $ro7oter% Q $ro$rietor% of t#e

fir7

o A"e

o De%i"!atio!

o Detail% of Wor2 E=$erie!0e

o Edu0atio!al Ba02"rou!d

o Re%ide!tial Addre%%

o Na7e of o;!er of Re%ide!0e

Si%ter Q Affiliate 0o!0er! or fa7il' u%i!e%%e%< if a!'

o Na7e

o Bu%i!e%% A0ti&it'

o Pro7oter%Q Part!er%Q Dire0tor%

o Tur!o&er a% o!

o PAT a% o! la%t fi!a!0ial 'ear

o TNW a% o! la%t fi!a!0ial 'ear

Detail% of To$ 4 1u%to7er

o Na7e of t#e E!tit'

o 1o!ta0t Per%o!

o 1o!ta0t No/

o Produ0t Sale

o C i! total Sale

Detail% of To$ 4 Su$$lier

o Na7e of t#e E!tit'

o 1o!ta0t Per%o!


48/83

o 1o!ta0t No/

o Produ0t Pur0#a%e

o C I! total Pur0#a%e

Re7ar2% if a!'

Step 2i#cu##ion# with the 0i#k Team $ Sanction Authority

O!0e t#e 1AM i% $re$ared t#e !e=t %te$ i% t#e di%0u%%io! of t#e 0redit 7a!a"er

;it# t#e Ri%2 Tea7 a!d %a!0tio! aut#orit' ;#ere t#e' di%0u%% t#e &ariou% a%$e0t

of t#e 0a%e a!d de0ide% ;#et#er to offer t#e fu!di!" to t#e 0lie!t or !ot/

Step CAL "reparation

T#e fi!al %te$ of ;or2i!" i! t#e 0redit de$art7e!t i% t#e 7a2i!" of t#e 1AL

(i/e/ 1redit Arra!"e7e!t Letter/

1AL 0o!tai!% all t#e ter7% a!d 0o!ditio!% o! ;#i0# t#e fu!di!" ;ill e offered

to t#e 0lie!t/

Step ? O''ering to the Client

No; i! t#e 0a%e 0lie!t% doe% !ot a"ree to %o7e 0o!ditio!% of t#e Ba!2 $re%e!t

i! t#e 1AL t#e! t#ere i% re7a2i!" of 1AL o! 7utuall' a"reed ter7% a!d

0o!ditio!% a% far a% $o%%ile

Fi!all' if t#e 0lie!t a"ree% to t#e 1AL t#e! t#e $ro0e%% of %a!0tio!i!" a!d

di%ur%al of t#e fu!di!" to t#e 0lie!t ta2e% $la0e a00ordi!" to t#e 7utuall'

a"reed ter7% a!d 0o!ditio!%/


49/83

If irre%$e0ti&e of all t#e effort% 0lie!t doe% !ot a"ree i! t#i% %ituatio! t#e 0a%e i%

re?e0ted a!d 0lo%ed/

Step @ Sanction

SANCT*ON "0OCESS

Fo0u% o! 0ore 0o7$ete!0ie%

Solutio! Ma!a"er to e&aluate t#e orro;er6% $rofile a!d otai! t#ereuired i!for7atio! a% $er t#e $ro$o%al !ote for7at/

Fi!alie t#e i!tere%t rate a!d !ature of $ro$ert' offered a% 0ollateral ;it#

t#e 0u%to7er/

SM %u7it do0% to 1redit Ma!a"er

1redit Ma!a"er to lo" i! t#e detail% i! LMS

SM 0a! &ie; t#e %tatu% of t#e $ro$o%al i! LMS

1redit Ma!a"er 7a' a%2 SM to #el$ i! 0olle0ti!" %o7e do0% fro7 t#e

0u%to7er

1redit Ma!a"er to otai! a$$ro&al fro7 SEG Foru7 after 0leara!0e fro7

RPDG ri%2

Step @ 2*SB;0SAL


50/83

2*SB;0SAL "0OCESS

1redit Ma!a"er to "et t#e a$$ro&al for 1AL a!d t#e SM ;ill ta2e t#e

a00e$ta!0e

After a00e$ta!0e< 0redit 7a!a"er to liai%o! ;it# ARG for di%ur%e7e!t

1redit OPS to e=e0ute do0u7e!t% a!d 0lear title deed% a% $er %a!0tio!ed

ter7% a!d otai! a$$ro&al fro7 MOG for %etti!" u$ li7it%

1redit OPS to %et li7it% i! t#e %'%te7

1redit OPS to 7o!itor a00ou!t% i! 0o!%ultatio! ;it# t#e Solutio!

Ma!a"er a!d 11M tea7/

+4/4 F*NANC*AL STATE,ENT ANAL=S*S

(6orking *n EC7 FC $ LAC0 "rogram9

Fi!a!0ial %tate7e!t% of a! or"a!iatio! are true refle0tor of it% $o%itio! t#e%e

are t#e 7a?or tool% i! t#e #a!d of 0redit 7a!a"er to ?ud"e %ou!d!e%% of t#e

0lie!t a!d #e!0e #el$ i! redu0i!" t#e default ri%2/

+4/4 89 CO,"ONENTS OF F*NANC*AL STATE,ENTS


51/83

Bala!0e %#eet

I!0o7e %tate7e!t

1a%# flo; %tate7e!t

+4/4 8(9 BAS*C C1EC5S 2ES*0E2. F*NANC*AL

T#e Sale% tre!d

Profitailit' tre!d

1olle0tio! $eriod

I!&e!tor' #oldi!" $eriod

T#e 1urre!t Ratio

N1A

Le&era"e

+4/4 8)9 2i''erent type# o' ratio# u#ed 'or credit analy#i#4

(- Total O$erati!" I!0o7e Sale% Ot#er O$erati!" I!0o7e%

() EBIDTA !et $rofit efore Ta=e% I!tere%t de$re0iatio! –!o! o$erati!"

i!0o7e $reli7i!ar' e=$e!%e% ;ritte! off lo%% o! %ale of a%%et%

(. O$erati!" Profit EBIDTA , I!tere%t – De$re0iatio!

(3 Profit after Ta=Profit efore Ta= (O$erati!" Profit No! o$erati!"

i!0o7e , Ta=e%

(4 Net 1a%# A00rual (N1A PAT De$re0iatio! , Di&ide!d


52/83

(8 Ta!"ile Net;ort# (TNW %#are 0a$ital re%er&e% %ur$lu% u!%e0ured

loa! – 7i%0ella!eou% e=$e!diture

(9 Ad?u%ted TNW (ATNW Ta!"ile Net;ort# (TNW , E=$o%ure i!

%u%idiarie% QGrou$ 1o%/

(+ Total det lo!" ter7 det %#ort ter7 det ;or2i!" 0a$ital a!2 fi!a!0e

(: Total out%ta!di!" liailit' lo!" ter7 det total 0urre!t liailitie%

Deferred ta= liailit'

(-* 1urre!t a%%et% total 1urre!t a%%et% – detor% 7ore t#a! %i= 7o!t#% –

%e0urit' for tele$#o!e/

(-- 1urre!t liailitie% liailitie% $ro&i%io! %#ort ter7 det ;or2i!"

0a$ital a!2 fi!a!0e

(-) Net ;or2i!" 0a$ital Total 1urre!t a%%et% – 0urre!t Liailitie% , ;or2i!"

1a$ital Ba!2 Fi!a!0e – %#ort ter7 det

(-. 1urre!t ratio 0urre!t a%%et% 0urre!t liailitie%

(-3 Retur! o! 0a$ital e7$lo'ed O$erati!" Profit TNW

(-4 I!tere%t 1o&era"e ratio PATDe$re0iatio! I!tere%tQi!tere%t

(-8 Det %er&i0e 0o&era"e ratio N1A I!tere%t QS#ort ter7 det i!tere%t


53/83

(-9 Detor tur!o&er Da'% (Detor%QTOI.84

(-+ I!&e!tor' tur!o&er Da'% (I!&e!tor'QTOI.84

(-: 1reditor% Tur!o&er (da'% (0reditor% QTOI.84

Sale% Tre!d (TOI 1urre!t ear – TOI La%t earQTOI La%t ear-**

EBIDTA Tre!d (EBIDTA 1urre!t ear – EBIDTA La%t earQ EBIDTALa%t ear-**

TNW Tre!d (TNW 1urre!t ear – TNW La%t earQ TNW La%t

ear-**

+4/4 8+9 To $re%e!t t#e e!tire ;or2i!" of t#e fi!a!0ial %tate7e!t a 0a%e of

;#ole%ale deali!" 0o7$a!' i% ta2e! i!to 0o!%ideratio!/

PROFIT LOSS A11OUNT AS ON .-ST

"A0T*C;LA0S SC1E2;LE C;00ENT "0E


54/83

=EA0 8(@@9 =EA0 8(@@/9

*NCO,E

SALES -8


55/83

BALAN1E SHEET

ADDITIONAL DEMAND OF

SALES TAK -)


56/83

C;00ENT ASSETS7

LOANS $ A2


57/83

+4/4 8-9 SC1E2;LES

"A0T*C;LA0S

SC1E2;LE A

1URRENT

EAR

PRE@IOU

EAR

AUTHORISED 1APITAL4**** EJUIT SHARES OF R% -*Q, EA1H 4**


58/83

S1E2;LE 2

UNSE1URED LOANA FROM DIRE1TORS :49


59/83

, AD@AN1E FROM 1USTOMERS 4+


60/83

,1LOSING BALAN1E -


61/83

PAT */* */- */)PATQTOI (C */8C */3C */:C

Net 1a%# A00rual% (N1A */- */- */) Net fi=ed a%%et% */9 */3 */+

Ta!"ile Net ;ort# (TNW -/: )/) )/+E=$o%ure i! %u%idiarie% QGrou$ 1o%/ I!&e%t7e!t% , , , Loa!% a!d ad&a!0e% , , ,Ad?u%ted TNW (ATNW -/: )/) )/+Lo!" ter7 det (LTD */- , */)

S#ort ter7 det (STD */8 , */-

Wor2i!" 1a$ital Ba!2 Fi!a!0e , , ,Total Det */9 , */.Total Det QTNW */. , */-

LTDQ TNW */* , */-TOLQTNW -/) */9 -/*TOLQ ATNW -/) */9 -/*Total 1urre!t A%%et% ./. ./- 3/:

Total 1urre!t Liailitie% )/- -/3 )/9 Net ;or2i!" 0a$ital -/) -/9 )/)1urre!t ratio -/4 )/. -/+RO1E (C -*/:C -3/8C -8/3CI!tere%t 0o&er )/* -/8 )/)

Total detQ N1A 3/9 , -/-

*nput# over $ a%ove )( parameter#

Ta= $ro&i%io! */* */* */-Di&ide!d */* */* */*Detor% -/. -/+ )/+I!&e!tor' -/8 -/- -/8Detor% tur!o&er ratio (da'% 8. 4) 8-I!&e!tor' tur!o&er ratio (da'% 93 .. .4Detor% a!d i!&e!tor' tur!o&er ratio(da'% -.+ +4 :8Tur!o&er to 0urre!t a%%et% ratio(ti7e% )/. :/) ./3

1reditor% -/- )/)

Pur0#a%e% -*/) -3/3


62/83

Da'%(Pur0#a%e% 3*/* 44/+

Da'%(Sale% .)/* 3+/-

Ga$ Da'% 33/+4 .:/+*

+4/4 89 6orking in the 'inancial work#heet

Total operating income

1URRENT EAR ()**9

TOI -8


63/83

EB*2TA Profit efore ta= $reli7i!ar' e=$e!%e% ;ritte! off lo%% o!

%ale of a%%et% i!tere%t de$re0iatio! – !o!,o$erati!" i!0o7e/

1URRENT EAR ()**9

EBIDTA -+:+:8/-+ 9-94 -:4.:. +4).*/9*– *

-*.43 )949:

3998:3

PRE@IOUS EAR ()**8

EBITDA +.3*/-. -3.4 -93.93 899:

8-*989:9-4,--84*

.)**8:

Operating pro'it EBITDA – i!tere%t –de$re0iatio!

1URRENT EAR ()**9

O$erati!" $rofit 3998:3 ,-:4:./*) – -*.43 , +4).*

-+89-9

PRE@IOUS EAR ()**8

O$erati!" $rofit .))*8: ,-93.93/-9 – 899: – 8-*98/.4

9:+3*

Non operating income $rofit o! 0#it%


64/83

1URRENT EAR ()**9

NOI *

PRE@IOUS EAR ()**8

NOI --84*

"ro'it %e'ore tax o$erati!" $rofit !o! o$erati!" i!0o7e

1URRENT EAR ()**9

PBT -+89-9 *

-+89-9

PRE@IOUS EAR ()**8

PBT 9:+3* --84*

:-3:*

"ro'it a'ter tax PBT – Ta= $ro&i%io!

1URRENT EAR ()**9 -+89-9– 83*.9

-))8+*

PRE@IOUS EAR ()**8 :-3:*– .4)+)

48)*+


65/83

Net ca#h accrual# PAT de$re0iatio! – di&ide!d

1URRENT EAR ()**9

N1A -))8+* +4).* – O/OO

)*9:-*

PRE@IOUS EAR ()**8

N1A 48)*+ 8-*89

--9)94

Total net worth %#are 0a$ital re%er&e% %ur$lu% u!%e0ured loa! –

7i%0ella!eou% e=$e!diture

1URRENT EAR ()**9

TNW )8*.**/** 3:*333/)4 )-*-88./** – 493*/**

)+38889/)4

PRE@IOUS EAR ()**8

TNW .88..8/*9 )8*.** -448+38 ,9-94/**

)-98.*9

Ad&u#ted total net worth TNW – I!&e%t7e!t – loa! ad&a!0e%

1URRENT EAR ()**9

ATNW )+38889/)4 – */**


66/83

)+38889/)4

PRE@IOUS EAR ()**8

ATNW )-98.*9 – */**

)-98.*9

Total de%t lo!" ter7 det %#ort ter7 det ;or2i!" 0a$ital a!2

fi!a!0e

1URRENT EAR ()**9

Lo!" ter7 det )4.4.3)Q. -8:*))/88

S#ort ter7 det )4.4.3Q.

+34--/..

1URRENT EAR ()**9

Total det -8:*))/88 +34--

)4.4.3

PRE@IOUS EAR ()**8

Total det */**

Total out#tanding lia%ility lo!" ter7 det total 0urre!t liailitie%

Deferred ta= liailit'


67/83

1URRENT EAR ()**9

TOL -8:*))/88 )+..:)3 :4484

.*:+4--/88

PRE@IOUS EAR ()**8

TOL */** -.994-. +8+*+

-383.)-

Current a##et# total 1urre!t a%%et% – detor% 7ore t#a! %i= 7o!t#% –

%e0urit' for tele$#o!e/

1URRENT EAR ()**9

1A 3:3:+.9/8* – 4-.)4 – 84**

3+:)*-)

PRE@IOUS EAR ()**8

1A .)..8../.9 – --3+9) – .***

.--498-

Current lia%ilitie# liailitie% $ro&i%io! %#ort ter7 det ;or2i!"

0a$ital a!2 fi!a!0e

1URRENT EAR ()**9

1L ))8:+:- .--)*) -8:*)) +34--


68/83

)+..:)3

PRE@IOUS EAR ()**8

1L --38::+ ).*4-4

-.994-.

Curent ratio 0urre!t a%%et% 0urre!t liailitie%

1URRENT EAR ()**9

1R -/+ ti7e%

PRE@IOUS EAR ()**8

1R )/. ti7e%

0eturn on capital employed EBIDTA (TNW Total det

1URRENT EAR ()**9

RO1E 3998:3 ()+38889 )4.4.3

-8/3 C

PRE@IOUS EAR ()**8

RO1E .)**8: ()-98.*9 */**

-3/8C

*ntere#t coverage (PAT De$re0iatio! i!tere%tQI!tere%t


69/83

1URRENT EAR ()**9

I!tere%t 0o&era"e (-))8+* +4).* )*4939 Q)*4939

)/)

PRE@IOUS EAR ()**8

I!tere%t 0o&era"e (48)*+ 8-*98 -+--4. Q -+--4.

-/8

2e%tor# turnover ratio detor% Q (TOI Q .84

1URRENT EAR ()**9

DTR )9948.)Q (-88+:98:Q .84

8- da'%

PRE@IOUS EAR ()**8

DTR -+)*.8*Q (-)9.:93.Q .84

4) da'%

2ay# purcha#e 0reditor% Q $ur0#a%e .84

1URRENT EAR ()**9

))**)8+ Q -33*.-+8 .84

44/+ da'%


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PRE@IOUS EAR ()**8

---9-39 Q -*)*44) *.84

3* da'%

2ay# #ale# 0reditor% Q TOI .84

1URRENT EAR ()**9

))**)8+ Q -8


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+4/4 89 CO,,ENTS ON F*NANC*ALS

T;0NO


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"0OF*TAB*L*T=

Gro;t# i! a%olute a7ou!t of EBIDTA i% fro7 */. 7! i! 'ear )**8 to

*/4 7! i! t#e 'ear )**9/ Fro7 t#i% o$erati!" $rofit i% al%o i!0rea%ed

fro7 */-7! to */) 7!/ PAT i% i!0rea%ed fro7 */- 7! i! )**8 to */)

7! i! 'ear )**9 t#i% i% e0au%e of 7ar"i!al redu0tio! i! 0o%t of

"ood% $ur0#a%e -,) C a!d i!dire0t e=$e!%e% (a% C of %ale%/

0

0.2

0.4

0.6

E(IDTA >in

mn.?

1 2

@ear

4rofita6ilit5

BI"!#

LE


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0

1

2

3

TN0 >in mn.?

1 2

@ear

Levera9e

L*;*2*T=

1urre!t ratio of t#e 0o7$a!' al%o 0#a!"e%< a% it i% de0rea%ed fro7 )/.

ti7e% to -/+ ti7e%/ T#i% i% a% re%ult of i!0rea%e i! 0urre!t a%%et%< a!d

%to02 utiliatio! $eriod #a% al%o i7$ro&ed/

+44 C0E2*T SCO0*N3

@ariou% 0redit %0ori!" 7odel #a% ee! de&elo$ed to e&aluate t#e e=te!t of 0redit

ri%2 i!&ol&ed i! e=te!di!" 0redit fa0ilitie% to $ro$o%ed orro;er t#e %0ori!" i%

a%ed o! t#e ua!tifi0atio! of &ariou% $ara7eter%< ;#i0# i!flue!0e or 0o!triute

to t#e 0redit ;ort#i!e%% of t#e orro;er/ Four primary level %road

parameter#7 viM4 promoter#J management7 %u#ine## and market po#ition7

'inancial per'ormance and tran#action hi#tory have %een identi'ied/ T#e%e

are t#e! %udi&ided i!to t#eir %u 0o7$o!e!t% fa0tor% u$o! ;#i0# t#e' are

de$e!de!t/ All t#e $ara7eter% are a%%i"!ed ;ei"#t%< ;#i0# refle0t t#e de"ree to

;#i0# t#e $ara7eter i!flue!0e% t#e 0redit %0ore/ T#e%e $ara7eter alo!" ;it#


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t#eir de"ree of i!flue!0e% t#e 0redit e#a&ior of a orro;er< #a&e ee! u%ed to

0o!%tru0t a 0redit %0ori!" 7odel/

T#e %0ori!" 7odel a%%i"!% a %0ore o! a %0ale *,-** to e&er' $ro$o%al

0o!%idered u!der t#e $ro"ra7/ T#e %0ore otai!ed fro7 t#e %0ori!" 7odel i%

$ro$o%ed to e u%ed to deter7i!e t#e eli"iilit' of t#e $ro$o%al u!der t#e

$ro"ra7 (o&er a!d ao&e eli"iilit' 0riteria a!d e=$o%ure li7it%/ A!' 0#a!"e%

reuired i! t#e %0ori!" 7odel< a%ed o! t#e e=$erie!0e< %#all e do!e after

a$$ro&al fro7 RMG (ri%2 7a!a"e7e!t "rou$/

Ado$tio! of 0redit %0ori!"< a% a ri%2 a!al'%i% e!ale to

• E!%ure 0o!%i%te!0' a!d o?e0ti&it' i! a%%e%%7e!t of %7all e!ter$ri%e%/

• Ha!dle lar"e &olu7e lo; &alue tra!%a0tio!% 7ore effi0ie!tl'

-44 89 ,ain parameter# con#idered under credit #coring

4 F*NANC*AL 0*S5

I!tere%t 0o&era"e ratio

Total det to !et 0a%# a00rual

Detor% I!&e!tor' tur!o&er $eriod

TOLQTNW

1urre!t ratio

Sale% Tre!d (I!0rea%e i! %ale% Q"ro%% re0ei$t% o&er la%t t;o

a&ailale audited 'ear%


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EBIDTA Tre!d (I!0rea%e i! EBIDTA o&er la%t t;o a&ailale

audited 'ear%

TNW Tre!d (I!0rea%e i! TNW o&er la%t t;o a&ailale audited

'ear%

(4 ,ANA3E,ENT 0*S5

Bu%i!e%% &i!ta"e ('ear%

Per%o!al !et;ort# of $ro7oter% $ro&idi!" PG (R%/ i! 7!

1o!%titutio! of t#e e!tit'

Bu%i!e%% 1o77it7e!t Fu!d Di&er%io! Ri%2

Su00e%%io! Ri%2

)4 T0ANSACT*ON 1*STO0=

I!;ard 1#eue Retur!%

A&era"e Bala!0e i! 8 7o!t# $eriod

1redit %u77atio! i! 8 7o!t# $eriod a% a $er0e!ta"e of late%t

audited tur!o&er%/

No/ of 1redit% i! 8 7o!t# $eriod

+4 B;S*NESS 0*S5

Produ0t Ri%2

Produ0t De7a!d

Su$$lier 1o!0e!tratio!

1u%to7er 1o!0e!tratio!


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6eight age

,ain parametric determinant# o'

credit #core#

6eight a##igned

Fi!a!0ial $erfor7a!0e 3* C

Ma!a"e7e!t Ri%2 )4 C

Tra!%a0tio! #i%tor' )* C

Bu%i!e%% Ri%2 -4 C

Total @@4@@

+44 8(9 Cut o'' #core

T#e %0ori!" 7odel a%%i"!% a %0ore o! a %0ale of * ,-** to ea0# $ro$o%al

0o!%idered u!der t#e $ro"ra7/ Mi!i7u7 0ut off %0ore at 44 out f -** %#all e

a0#ie&ed to e eli"ile u!der t#e $ro"ra7/

T#e $ro$o%al% ;it# t#e %0ore le% t#a! afore%aid %#all !ot e 0o!%idered u!der

t#e $ro"ra7/ T#e eli"iilit' 0riteria a!d 0utoff %0ore ;ould e!%ure a 7i!i7u7

ualit' of $ortfolio< ;#i0# ;ould e 0reated u!der t#e $ro"ra7/

T#ou"# i! our $re%e!t 0a%e it %ati%fie% t#e $re%0ried 0riteria/


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Conclu#ion

I1I1I Ba!2 for7ulate% 0o7$re#e!%i&e a!d lieral $oli0ie% i! re%$e0t of loa!% to

SME %e0tor/


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S;33EST*ONS

• Ba!2 7a' fi= %elf,tar"et for fi!a!0i!" to SME %e0tor %o a% to refle0t #i"#

di%ur%e7e!t% o&er t#e i77ediatel' $re0edi!" 'ear/

• Pro0e%% 0o%t or!e ' 0lie!t li2e i!%ura!0e of %to02< &aluatio! of $ro$ert'

et0/ %#ould !ot e t#ere for t#e li7it u$ to 4* la0%/

• Ba!2 %#ould tr' to redu0e TAT of lo"i! till di%ur%al/

• More fle=ile $ro"ra7 %#ould e i!trodu0ed ;#ere e7$#a%i% i% o!

$ara7eter% li2e ualifi0atio! of $ro7oter%Qdire0tor%< fi!a!0ial %tre!"t# of

t#e or"a!iatio!% et0 rat#er t#a! o! 0ollateral/

• I!ter!al 0o%ti!" %#ould e 7i!i7ied %o t#at 0o%t of le!di!" t#ere'

i!tere%t rate% 0a! e 7at0#ed ;it# 0o7$etitor%/


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