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RESEARCH DESIGN

TITLE OF THE STUDY

CREDIT APPRAISAL PRACTISES AT CORPORATION BANK

Introduction

Credit appraisal is the conceptual structure within which the research is conducted.

It constitutes the blue print for the collection, measurement and analysis of data.

The design includes an outline of what the researcher will do from writing the

hypothesis and its operational implication to the final analysis of data. It constitutes

the steps taken beginning with the collection of data, classifying, analyzing and

interpretation, processing and finally putting in textual form. This is one important

chapter of project and can be considered as skeletal of project.

Statement of the Problem

The long term or short term loan provided to the company is known as Financing.

The banks should see the various risk related to the company before sanctioning

the loan for the project. The bank should see uncertainty involved in the project.

These risk and uncertainty may have an adverse impact on the Banks capital and

earnings. The credit appraisal is to identify measures, monitor and control various

risk arising for its lending.

When fierce competition is the rule, the banking sector is no exception. Bankscompete with each other to attract quality borrowers. In this scenario, a hasty or

adequate credit appraisal will result in growth of NPA. Therefore the banks should

have proper appraisal methods.

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Objective of the study

To understand the analytical framework of financing and to

analyze the existing credit appraisal mechanism at bank.

To study the credit appraisal methods of Corporation Bank

To familiarize with the interrelationship among various aspects of

credit .

To understand the importance of credit appraisal in sharpening the

ability of the bank to identify investment opportunities of the projectundertaken.

To study the assessment of the various aspects of investment

proposition to arrive at a financing decision.

Need for the study

To have practical knowledge and experience towards financing.

To sharpen the ability of identification of various attractive

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investment opportunities.

To familiarize with the inter relationship among the various aspects of

Credit appraisal.

To evaluate the project in order to give suggestions to the bank

Scope of the study

The scope of the study is limited to Corporation Bank Zonal office, Bangalore; It

will give an in depth theoretical and practical knowledge about the credit appraisal.

This study also covers ratio analysis, cash flow from proposed project, risk

involved in the project, analysis of the financial statement and the data found in the

appraisal statement.

Methodology of Data Collection

As regarded to methodology, normally both quantitative and qualitativeapproaches are adopted. In order to collect the data, this study brings a live

analysis based on the live data collected from secondary type of data.

The techniques of ratio analysis have been made use for the analysis of the

financial statement of the bank.