Credit Is Inevitable In Banking: A Case Study Of Premier Bank On Credit Appraisal & Assessment

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Yadav, Dr. Ram Jass (2013)
  • Publisher: Journal Of Business Management & Social Sciences Research
  • Journal: Journal Of Business Management & Social Sciences Research (issn: 2319-5614)
  • Subject: Business Management; Financial Management | Credit Assessmant, Bank Of Baroda India

Credit risk simply means the risk of default being made by a customer owing to non repayment of the credit obtained by him from a bank. Proper evaluation of the customer measures the financial condition and the ability of the customer to repay loan in future. Credit appraisal is a process of collecting related information of customers and projects to undertake risk assessment exercise by the bank prior providing any loans & also checks the technical, economical & financial viability of the project proposed. It also includes verification of primary & collateral security available for recovery of such funds being lent to the customer. Credit Appraisal thus ascertains the risks associated with lending functions in banks. It is generally carried out by the banks which are engaged in providing finance to its customers. In the present case, process used in Credit risk assessment and appraisal has been studied taking SME credit account in sample to observe various parameters and stages in risk assessment and appraisal process exist in one of the largest public sector banks in India. The bank has been named Premier Bank (PB) in the study to keep original identity of the bank undisclosed.
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