Synopsis.docx

SUMMER INTERSHIP PROJECT SYNOPSIS ON “CREDIT APPRAISAL” UNDERTAKEN AT:

SUBMITTED TO: DR. VRANDA JAIN JAIPURIA INSTITUTE OF MANAGEMENT A-32, SECTOR 62, INDUSTRIAL AREA, NOIDA-201309 (U.P) SUBMITTED BY: CHETAN NAGAR JN180044

About the Company Kotak Mahindra Bank is an Indian Private Sector Bank with its headquarters’ in Mumbai, Maharashtra India. Kotak Mahindra Finance Ltd was issued the license to carry out banking business by the Reserve Bank of India in February 2003. As of 31 March 2017, the bank is present across 689 locations with 1,369 branches and 2,163 ATM’s. The bank became the second largest private sector bank by market_capitalization_after_HDFC Bank in 2018.

Job Description 

To assess credit risk of prospective clients.

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To ensure systematic verification process and coordinate with verification agencies.

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To monitor deficiency of client regularly.

Theoretical Framework 

In order to do the job of a credit analyst, knowledge of various ratios is necessary for doing the analysis. This knowledge later helps in making the final decision of providing the loan to the client or not. Some of the ratios that helps in checking the creditability of a client are-

1. Gross Margin Ratio 2. Net Profit Margin 3. Debt to Asset Ratio 4. Interest Coverage Ratio

 Before granting a loan to a customer or client the 5 C’s of credit is also necessary to be understood.

Job Analysis 1. Setting up meetings with applicants for evaluating financial status, references and their ability to pay. 2. For making effective and profitable decisions gather, research and analyze data. 3. Asking other institutions for details on client’s creditworthiness. 4. Maintaining and keeping proper records of client’s information and credit files.

Learning Outcome 1. Verification regarding loan applicant. 2. Better analysis of ratios and financial statements. 3. How credit rating is given/determined.

References https://en.wikipedia.org/wiki/Kotak_Mahindra_Bank