Credit Application

CREDIT APPLICATION
(cover page)

BORROWER Bajaj Electricals Ltd.
BRANCH
DATE OF C.A.
C.A. REFERENCE NO.
CUSTOMER ID
RELATIONSHIP MANAGER
APPROVING CREDIT COMMITTEE * IA / IB / II / III / IV / Board
DATE OF DISPOSAL BY C.C. *
NATURE OF DISPOSAL * Approved as recommended / Approved with modifications / Deferred / Declined
RESOLUTION REFERENCE NO. *
REPORTED TO NEXT LEVEL ON *


IDBI BANK LTD

RECOMMENDATION   *
REGIONAL HEAD / CORPORATE BANKING, CORPORATE OFFICE

RECOMMENDATION OF RH:

BAJAJ Electricals is a white goods company working under BAJAJ group. It has a good growth prospects with expected turnover of Rs. 2000 Crores by FY10. Turnover of the company is expected to grow at more than 25%. The company has a good credit history. It is planning some acquisitions and major expansions in future years and may need loans for the same. Liquidity conditions of the company are good. The White Goods Consumer Durables industry was one of the few industries which grew even in the period of recession and is also expected to have good growth in future years.

Considering the same, we propose giving loans to the company in terms of Project Finance to finance expansion of the acquired company, Letter of Credit to finance Fixed Assets purchase and Bank Guarantee to finance future projects

ADDITIONAL CONDITIONS PROPOSED BY RH:

As we are not in the consortium of the company’s banks, we will give a limited exposure to the company and give secured loans.

(REGIONAL HEAD)
RECOMMENDATION OF CB, CO:

ADDITIONAL CONDITIONS PROPOSED BY CB, CO:

(CORP BKG, CO)

OBSERVATIONS OF CORPORATE RISK *

INDUSTRY SPECIFIC:
The consumer durables industry is affected by the income levels and the affordability of the goods. The consumer durables has been growing with the economy given the rising income levels in the urban and semi-urban parts of the nation. The industry does not face any immediate danger because of steadily rising levels in the... [continues]

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