OBJECT OF THE PROJECT
Pune University has introduced ‘Summer Project’ as a compulsory activity for students of MBA. ‘Practical Knowledge’ is an important milestone in developing the skills of management. Thus, at the end of first year, the students are required to undergo a summer project for a span of 60 days.
The purposes behind the project work can be summarised as follows:- 1) It gives the students their first exposure to an organisational set up. 2) It provides an opportunity of observing a business activity. 3) It enables the students to use the theoretical concepts in the actual business environment. 4) It is the best opportunity to communicate with the people working at different levels in the organisation & to get acquainted with their authorities & responsibilities. 5) It creates awareness in students about the real organisational problems & challenges faced by business. 6) It gives an idea about carrier opportunities available in future for students. 7) It gives the chance for students to apply logic in practically solving the recurring problems in business unit. 8) A project work always has a social relevance.
SELECTION OF THE TOPIC
Over the last two decades, banks in India have expanded & diversified their lending activities with a view to provide services to the society. Banks are making every effort to provide financial & other types of support to the weaker section of the community. They are thus coming nearer to the common man & their involvement in the community development has further increased. Thus, the services provided by bank in this regard have been rightly designated as “Community Banking”.
The major portion of bank’s income is earned from interest charged on loans & advances. But the business of lending is not without certain inherent risks. Thus, a banker follows a very cautious policy & conducts his business on the basis of the well known principles of sound lending in order to minimise the risks. So it is essential to know the bank’s criteria for lending & its procedural aspects, which is termed as “Credit Appraisal System”.
Working capital is required to the industries for their day to day operations & thus financing Working Capital is the viable commercial activity for a bank. Hence, the following topic is selected for a Project:-
“A Study of Credit Appraisal System for Working Capital
Financing to Commercial & Agriculture Sector
With special reference to
State Bank of India, Nasik.”
OBJECTIVES OF THE PROJECT
❖ To understand the meaning & importance of Credit Appraisal System.
❖ To study the eligibility criteria for sanctioning working capital loans to Commercial & Agriculture Sector.
❖ To analyse the procedure followed by the bank for sanctioning loans.
❖ To study the documentation required for credit appraisal.
❖ To know the authorities & committees involved in Credit Appraisal System.
❖ To determine the efficiency of Credit Appraisal System of SBI.
❖ To identify & suggest the scope for improvement in Credit Appraisal System of the bank.
METHODOLOGY OF THE STUDY
‘Project Methodology’ is the procedure followed by the students for collecting the required data for project. The necessary information is collected by following two types of sources:-
Primary Sources of Data Collection:-
Primary Data is the first hand data collected by following ways:- 1. Personal Interview: - By interviewing the Deputy Manager of the bank, essentials for loan sanctioning were understood. 2. Observation: - By observing the working of manager as well as employees in a bank, the actual procedure of loan sanctioning was understood.
Secondary Sources of Data Collection:-
Secondary Data is the readymade or readily available data obtained from following...