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SUMMER INTERNSHIP PROJECT
Submitted By,Abhilash Gudipati15BSP0025
Guided By,Dr.Pritee Saxena
CREDIT RATING OF WORKING CAPITAL FINANCING
FOR
SME’s
1985-1991
1992-1996
2007-20112002-2006
1997-2001
2012-2015
1985:Commences bill discounting business.1990:Auto Finance.1991:Investment banking division.
1995:Investment banking; incorporation of Kotak Mahindra Capital Company (KMCC)1996:Auto finance business - Kotak Mahindra Primus Limited
1989:It launches India's first gilt fund through Kotak Mahindra Asset Management company (KMAMC).2001: Life insurance business.
2003:Kotak Mahindra Finance Ltd. (KMFL), the group's flagship company, receives banking license from the Reserve Bank of India (RBI). With this, KMFL becomes the first non-banking finance company in India to be converted into a commercial bank - Kotak Mahindra Bank Ltd.
2008:Kotak Mahindra Bank opens a representative office in Dubai
2015: Reserve Bank of India (RBI) approves merger of ING Vysya Bank with Kotak Mahindra Bank effective April 1, 2015
COMPANY OVERVIEW
STRENGTHS
Innovative financial
products of diverse
categories
Comprehensive Cash
Management System
Customer account base
of over 2.7 million`
SWOT WEAKNESSES
Weak performance of subsidiaries
Low publicity and marketing as compare to the other premium
bank in the urban areas
OPPORTUNITIES
Increase in Industry banking
Explore opportunities
abroad by International
banking
THREATS
Economic slowdown
Highly competitive environment
Stringent Banking Norms
CHALLENGES FACED BY SME’sLIMITED FINANCE NON AVALABILITY` OF SUTABLE
TECHNOLOGY
LOW PRODUCTION CAPACITY
NOT AVALABLE OF SKILLED LABOR AT LOWER COST
WORKING CAPITAL FINANCING
WORKING CAPITALWorking capital is a measure of both a company's efficiency and its short term financial health. Working capital is calculated as:
Working Capital = Current Assets - Current Liabilities
Fund Based Non Fund Based Cash Credit. Overdraft. Bill discounting. Working Capital Demand Loan.
Latter of Credit. Bank Guarantee.
Cold calling by sales /RM
RM Collects Doc. from Applicant ,Co-applicant & Guarantor With OSV
RM conduct FI
RM collects required documents from
customers
RM handover doc. to Credit for CAM
preparation & Credit report generation
Credit handover doc. to RCU for screening
/sampling
RCU stamp on doc. & verify by screening /
sampling
RCU forward doc. through mail & credit
along with physical doc. to credit for CAM
prepare
Credit prepare CAM & check the customer
profile through CIBIL,NCIF application
Credit sanction or rejection the proposal as per the credit policy
RM collects PDC's ,get loan agreement sign,
final EMI discuss ,generate party
ID & apac no.
Credit check & verify sets of doc. & finally
handover to operation for the disbursement
PROCESS
5C’s of CREDIT
CONCLUSION
The Requirement of Working Capital Finance is ever increasing. Bank’s main function is to lend funds/ provide finance but it appears that norms are taken as guidelines not as a decision making. credit and risk go hand in hand. Usually, it is seen that credit appraisal is basically done on the basis of fundamental soundness. But, after different types of case studies, our conclusion was such that credit appraisal system is not only looking for financial wealth. Other strong parameters also play an important role in analyzing credit worthiness of the firm/company. By providing various schemes of loans, a bank tries to cater to the financial requirements of almost all the types of units.
THANK YOU