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SUMMER INTERNSHIP PROJECT Submitted By, Abhilash Gudipati 15BSP0025 Guided By, Dr.Pritee Saxena CREDIT RATING OF WORKING CAPITAL FINANCING FOR SME’s

Working Capital Financing for SME's

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Page 1: Working Capital Financing for SME's

SUMMER INTERNSHIP PROJECT

Submitted By,Abhilash Gudipati15BSP0025

Guided By,Dr.Pritee Saxena

CREDIT RATING OF WORKING CAPITAL FINANCING

FOR

SME’s

Page 2: 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

Page 3: Working Capital Financing for SME's

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

Page 4: Working Capital Financing for SME's

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

abhilash gudipati
if the sector gets the requried amount of funds theb the sector can contribute hidher % of gdp
Page 5: Working Capital Financing for SME's

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.

Page 6: Working Capital Financing for SME's

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

Page 7: Working Capital Financing for SME's

5C’s of CREDIT

Page 8: Working Capital Financing for SME's

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.

Page 9: Working Capital Financing for SME's

THANK YOU