c

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HOOGLY DISTRICT CENTRAL CO-OPERATIVE BANK

A PROJECT REPORT ON

C'
R

CREDIT APPRAISAL & RISK ANALYSIS

ON

HOOGHLY DISTRICT CENTRAL

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CO-OPERATIVE
BANK LTD.
A Project
Report
on

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CREDIT APPRAISAL
&
FARIDA AKTER
ROLL: CHAN
C BM NO-2013\5
RISK
ANALYSIS

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REG NO:550 OF 2012\2013

Submitted by Farida
OF
Akter

CHAN D ANN AG AK INSTITUTE OP MANAGEMENT

ANI) TECHNOLOGY

T% <s J0r Jb Jr jf / . ' ik

UNIVERSITY OF BURDWAN

jrs. Roll: CHAN C

m
BM No.
L
2013/5
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k
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k

k
k
I

Reg

No.

550

of

2012-13

Chandannagar
Institute of
Management and
Technology

2015

UNIVERSITY of
BURDWAN
THE UNIVERSITY OF

BURDWAN.

RAJBATI,

JIBt * *

____

hsm * * '**^'*ml

,
BARDHAMAN

r.mini Mir *S./

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N E T A J I S U B H A S R O A D , P. O . C H I N S U R A H , D I S T : H O O G L Y P I N - 7 1 2 1 0 1

CHANDANNAGAR INSTITUTE OF MANAGEMENT

& TECHNOLOGY

/
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Formerly known as Chandannagar Compu-Tech Academy

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An Esteemed Professional Hons. Degree College

\.

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To Whom It May Concern

z-\
zS

This is to certify that Farida Akter D/o Md. Gulam Zilani, a

student of BBA (H) 3rd year, bearing examination Roll No. CHAN C BM

'A
v
z~
S

2013 / 05, Registration No. 550 of 2012 - 2013 has undergone

project, titled as "A Project Report on Credit Appraisal and Risk

Analysis. under my supervision.

ys
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Purnendu Tarafder
Lecturer

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Chandannagar Institute of Management & Technology

Lecturer
Chandannagar
Institute
of
Management &
Technology

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Z~N
PALLYSREE ' CHINSURAH STATION ROAD CHINSURAH HOOGHLY 712 102 Phone : (033) 2686
1139
E-mail : cimt2001@gmail.com Website : cimthooghly.in

C,-

CHANDANNA6AR INSTITUTE OF MANAGEMENT

& TECHNOLOGY

f'
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Q.

Formerly known as Chandannagar Compu-Tech Academy

Affiliated to the University of
Burdwan

STUDENT DECLARATION

/''v
rS

I, FARIDA AKTER, student of BBA of,Chandannagar

'O
'
A

Institute Of Management
& Technology,
UNIVERSITY OF
To Whom
It May Concern
BURDWAN, of 2012-2015 batch, hereby declare that this
Project credit appraisal and risk analysis has been carried out

Os

on HOOGHLY DISTRICT CENTRAL CO-OPERATIVE

/'"
N

BANK LTD.

This is to certify that Farida Akter D/o Md. Gulam Zilani, a

Os
1

of work of me under taken t of BBA

that, this project is a true
year, bearing
examination
Roll No.
CHAN C BM 2013 / 05,
requirement
for the award
of BACHELOR

student
(H) 3rd

O
s

Registration

Os

Credit

r\

No.
BUSINESS ADMINSTRATION

550

of 2012 - 2013 has undergone project, titled as A Project Report on

Appraisal and Risk Analysis. under my supervision.

'
r^

Signature of the student

Purnendu Tarafder

Lecturer

o
\

Chandannagar Institute of Management & Technology

Lecturer
Chandannagar
Institute
of
Management &
Technology
Pallysree,
Chinsurah

----- PALLYSREE CHINSURAH STATION ROAD CHINSURAH HOOGHLY- 712 102 Phono : (033) 2686 1139
E-mail : cimt2001@gmail.com Website : cimthooghly.in

. . * * /
________________________________________________________________________________:______

ACKNOWLEDGEMENT
Table
of Contents

s~\

I would like to convey my gratitude in this phase to those

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responsible persons who have render endless effort for the

completion of this project report, which is spontaneous overflow
powerful feeling. A lot of individuals have rendered their helping
hand to me in completing this study. I take this opportunity to thank
all of them.
I am grateful to Mr. Purnendu Tarafder, project guide as well
as our faculty member of department of Business Administration,
Chandannagar institute of Management and Technology, Chinsurah
because without his help, guidance and advice this project would not

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have been completed in the current format.

x i \^8
I am thankful Mr. NILANJGN SINHA (C E O) and Mr.
Subhranti Sen (Deputy Manager) of Hooghly District Central Cooperative Bank Ltd. for providing right the project and heart full

r\
Serial
No.

1
2

cooperation for the project.

I They had specially contributed**'"*

their precious
time despite of
Particulars
Page
his busy schedule to guide in all respect of his time. I am also
No.
grateful
to
my
friends
who
providing
me
relevant
information

Introduction lli:
throughout
the project.
J
History
of Bank
Bank

Public

::
:4

-B

6
ggj;..:-

Place:
Private
C.I.M.T, Hooghly

The Co-operative Bank

Date: Features
Main

Types & Functions of Co-operative

Farida Akter
Bank
Problems of Co-operative Bank

6
9

Introduction of Hooghly District Central Cooperative

Bank
Company Profile
The Chief Functions of Hooghly District Central
Co-operative Bank
Basic Principle

11
12
12

....................... 2

Vission Mission

10
i1

Types of Loans and Advances given by Hooghfy District

Central Co-operative Bank

12
13

TactorsJ|f Credit Appraisal

Mechanism Components

117
18

19

16
1 11 ;

17

Credit Appraisal

14
15

_____

mmm

Mission of Hooghly District Central Co-operative Bank

Role of Hooghly District Central Co-operative Bank

In Rural Area
In Urban Area

J6 ,

14

Economic parameters
Banking Parameters
Credit Appraisal Process

11

O1
mMB
L}J
22

......23!

Risk Analysis
Objective of Study

1111

Case Study

..............

HU

20

Calculation of EMI Factors

26
29

21

Calculation of Repayment Factors

SO

Repayment Capacity
Cost of the Project

SO
SO

22

24
om

25
iifillll:
pig

32

Analysis of Data

41..

Outstanding position of the Bank

32

Financial Indicator
Statement of Classification of Asset
Position of Net NPA
Charts and graphs
Deposit of Hooghly District Central Cooperative
Bank
Loans and advances of HD
.-
Profit Loss Graph

S3
34

35
36
37
38

Credit deposit Ratio

26
27

NPA of HD
Findings by SWOT analysis
Recommendation

28
JO

Learning
Conclusion

30

Bibliography

1
41
42
_

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. , > ?%; f s ^ -v \

Banking in the modern sense of the word can be traced to

medieval and early Renaissance Italy, to the rich cities in the north
like Florence, Venice and Genoa.
The Bardi and Peruzzi families dominated banking in 14th
century Florence, establishing branches in many other parts of
Europe. Perhaps the most famous Italian bank was the Medici bank,
set up by Giovanni Medici in 1397.
The earliest known state deposit bank, Banco di San Giorgio
(Bank of St. George), was founded in 1407 at Genoa, Italy.

S''

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Page 1

pANK
The word of bank is derived from the Italian banca, which is
derived from German and mean bench.
The term bankrupt and broke is similarly derived from banca
rotta.
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Which refers to an out of business bank, having its bench

physically broken.
*1+ Money lenders in Northern Italy originally did business in open
areas or big open rooms with each lender working from his own bench

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or table.

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Page 2

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Page 3

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PUBLIC SECTOR BANKS

y All government owned banks fall in this variety.
v

y Besides
Reserve Bank
the State
Bank
of India and
Societies
Act,1965.the
A Co-operative
BankofisIndia,
a financial
entity
which
belongstoits
members,
the same time
the all
owners
its associate
banks
and who
aboutare
20at
nationalized
banks,
comprises
and
the customers
of their bank.
of the
public
sector banks.

0m

y Many
of the regional rural banks that are funded by the
Registered under the Co-operative Societies Act
government banks can also be clubbed in this genre.
>/
They are governed by the Banking Regulations Act 1949
and Banking Laws (Co-operative

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MAIN FEATURES

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y A new wave in the banking industry came about with the private
sector banks in India.
As per B.R. Act 1949 co-operative bank cannot undertake
'y With policies on liberalization being generously taken up, these
trading activities.
private banks were established in the country that also contributed
heavily towards the growth of the economy and also offering
A co-operative bank is prohibited from holding any immovable

numerous
services to its customers.
property

y Some of the most popular banks in this genre are: Axis Bank, HDFC
>/
Except
for own
useKotak Mahindra Bank and SBI Commercial and
Bank,
ICICI
Bank,
International Bank.
Co-operative bank cannot carry on business of banking in
india unless
y The Foreign
Banks in India like HSBC, Citibank, and Standard
/N
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Chartered bank etc can also be clubbed here.

Minimum paid up share capital and reserves is less than
rupees one lakh.

Page
Page54

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Types & Function of Co-operative Banks,

India
The co-operative banks are small-sized units which operate both in
urban and non-urban centers. They finance small borrowers in industrial
and trade sectors besides professional and salary classes. Regulated by the
Reserve Bank of India, they are governed by the Banking Regulations Act
1949 and banking laws (co-operative societies) act, 1965. The co-operative
banking structure in India is divided into following 5 categories:

Primary Co-operative Credit Society

The primary co-operative credit society is an association of borrowers
and non-borrowers residing in a particular locality. The funds of the society
are derived from the share capital and deposits of members and loans from
central co-operative banks. The borrowing powers of the members as well as
/~S

of the society are fixed. The loans are given to members for the purchase of
cattle, fodder, fertilizers, pesticides, etc.

Central Co-operative Banks

These are the federations of primary credit societies in a district and
are of two types-those having a membership of primary societies only and
those having a membership of societies as well as individuals. The funds of
the bank consist of share capital, deposits, loans and overdrafts from state
/~\

co-operative banks and joint stocks. These banks provide finance to member
societies within the limits of the borrowing capacity of societies. They also
conduct all the business of a joint stock bank.

Page 6

State Co-operative Banks

The state co-operative bank is a federation of central cooperative
bank and acts as a watchdog of the co-operative banking structure in the
state. Its funds are obtained from share capital, deposits, loans and
overdrafts from the Reserve Bank of India. The state co-operative banks
lend money to central co-operative banks and primary societies and not
directly to the farmers.

Land Development Banks

The Land development banks are organized in 3 tiers namely; state,
central, and primary level and they meet the long term credit
requirements of the farmers for developmental purposes. The state land
development banks oversee, the primary land development banks situated
in the districts and tehsil areas in the state. They are governed both by the
state government and Reserve Bank of India. Recently, the supervision of
land development banks has been assumed by National Bank for
Agriculture and Rural development (NABARD). The sources of funds for
these banks are the debentures subscribed by both central and state
government. These banks do not accept deposits from the general public.

Urban Co-operative Banks

The term Urban Co-operative Banks (UCBs), though not formally
defined, refers to primary co-operative banks located in urban and semiurban areas. These banks, till 1996, were allowed to lend money only for
non-agricultural purposes. This distinction does not hold today. These
banks were traditionally centered on communities, localities, work place
groups. They essentially lend to small borrowers and businesses. Today,
their scope of operations has widened considerably.

Page 7

I' 'v

The origins of the urban co-operative banking movement in India

can be traced to the close of nineteenth century. Inspired by the success of
the experiments related to the co-operative movement in Britain and the
co-operative credit movement in Germany, such societies were set up in
India. Co-operative societies are based on the principles of cooperation,
mutual help, democratic decision making, and open membership. Cooperatives represented a new and alternative approach to organization as
against proprietary firms, partnership firms, and joint stock companies
r%

which represent the dominant form of commercial organization. They

mainly rely upon deposits from members and non-members and in case of
need, they get finance from either the district central co-operative bank to
which they are affiliated or from the apex co-operative bank if they work in
big cities where the apex bank has its Head Office. They provide credit to
small scale industrialists, salaried employees, and other urban and semiurban residents.

rs.

Page 8

Problems f Co-operative B
The Hate Working Group (1981) desired better utilization of banks
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surplus funds and that the percentage of the Cash Reserve Ratio (CRR) &
the Statutory Liquidity Ratio (SLR) of these banks should be brought at
par with
commercial
banks,
in a phased
manner. While of
the
Marathe
However,
concerns
regarding
the professionalism
urban

Committee (1992)
redefined
the
viability
norms
ushered
in the era of
cooperative
banks gave
rise to
the
view that
theyand
should
be better
liberalization,
theco-operative
Madhava Rao
Committee
(1999)share
focused
on and
regulated.
Large
banks
with paid-up
capital

consolidation,
of sickness,
professional
standards
in urban
reserves
ofRs.l control
lakh were
brought better
under the
purview of
the Banking
co-operativeAct
banks
sought
align
urban1966
banking
movement
with
Regulation
1949and
with
effectto
from
1stthe
March,
and within
the ambit
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commercial
banks.
of
the Reserve
Banks supervision. This marked the beginning of an era of
duality of control over these banks. Banking related functions (viz.

licensing, area of operations, interest rates etc.) were to be governed by RBI

A feature ofmanagement,
the urban banking
movement
has been
its
and registration,
audit and
liquidation,
etc. governed
by
heterogeneous
character
uneven geographical
withIn
most
State
Governments
as perand
theits
provisions
of respective spread
State Acts.
1968,
banks concentrated
thebenefits
states ofofGujarat,
Karnataka, Maharashtra, and
UCBs
were extendedinthe
deposit insurance.
/-V

Tamil Nadu. While most banks are unit banks without any branch

network, some of the large banks have established their presence in many

states when at their behest multistate banking was allowed in 1985. Some

promotion of the small scale industries. UCBs came to be seen as

~\

of these
banks are
Authorized
in Foreign
Exchange.
Towards
the also
late 1960s
thereDealers
was debate
regarding
the
important players in this context. The working group on industrial
financing through Co-operative Banks, (1968 known as Damry
Group) attempted to broaden the scope of activities of urban cooperative banks by recommending these banks should finance the
small and cottage industries. This was reiterated by the Banking
Commission in 1969.

The Madhavdas Committee (1979) evaluated the role played by

urban co-operative banks in greater details and drew a roadmap for their
future role recommending support from RBI and Government in the
establishment of such banks in backward areas and prescribing viability
standards.

------------------------------------------------------------- Page 9 ------------------------------------------------------------------

COMPANY PROFILE

/~\

TYPE: public
INDUSTRY: Financial Co-operative Bank
FOUNDED: 1966

/v
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Hooghly District Central Co-operative Bank Ltd. Was registered on

29/04/1966 with registration no. 32 (HG) under the W.B Co-operative
society act and W.B Co-operative society rules. Latter on 28/08/1966 the

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>

bank got the license from the RBI. Its area of operation is in the area of
Hooghly District. It has 19 branches through of the Hooghly district
covering all the blocks and municipali ties. It has 143 staff covering 19
branches and Head Office. The H.O of the bank situated at Netaji Subhash

P
\

Road, Chinsurah Hooghly. The bank is run by an elected board directors.

In the board of directors of the bank they are representation of government
of W.B.

Y~\

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_________________________________________ Page
11

rs

2 THE CHIEF FUNCTIONS OF

HOOGHLY DISTRICT
CENTRAL CO-OPERATIVE
BANKS ARE:
To attract deposit from non-agriculturist,

> To use excess funds of some societies temporarily to make up for

shortage in another.
To supervise and guide affiliated societies.

THE BASIC PRINCIPLES ON WHICH A COOPERATIVE BANK WORKS ARE

v A co-operative character of activities and trait of mutual aid ^
Catering for collective organizations and their members. . ^
Restriction on the number of individual votes.

Page
12

/"
s

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^
N

As a result, during 2007-08, the Primary Cooperative

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Agriculture and Rural Development Banks have again

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started lending for the Non-Farm Sector including Jewel

Loans.
* At high rates on deposits and low rates on lending.
^ Limitation of dividends out of profits and bonus to
depositors and borrowers or grants to cultural or co-

operative endeavor.
These banks are constituted of voluntary association, self- help
and mutual aid, one share Aiming one vote and
nondiscrimination and equality of members.

The co-operative banks are the

organizations of and for the people.

Page
13

V
w
s~\
r\

s
/\

MISSION OF THE
HOOGHLY DIST.
CENTRAL CO-

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> To retain our banks position as the premier agriculture

financial services in Hooghly District.

To commit responsive service to the small and managerial

farmers in our role as a development banking.
To help poor SI-lG & JLG members in rural and urban areas

/*-\

with micro credit and thereby to lift their families out poverty.
To become a sustainable financial institution for the common
masses including the valuable groups of district.
To deliver need based transparent financial services
constantly in a cost effective manner and at an affordable cost.
To play leading role in expanding and diversifying financial

/r~\

services with responsive services to all types of people in district

on development banking covering priority and non priority
sector.
To act as catalyst for change in attitude an orientation of

"N

banking staff with core insti tutional values.

r\

____________ Page

14

Co-operative banks in rural areas mainly

finance agricultural based activities like

CO-OPERATIVE BANK

Co-operative Banks are much more important in India than

anywhere else in the world. The distinctive character of this bank is
service at a lower cost and service without exploitation. It has gained its
importance by the role assigned to them, the expectations they are
supposed to fulfill, their number, and the number of offices they operate.
Co-operative banks role in rural financing continues to be
important day by day, and their business in the urban areas also has
increased phenomenally in recent years mainly due to the sharp
increase in the number of primary co-operative banks. In rural areas, as
far as the agricultural and related activities are concerned, the supply
of credit was inadequate, and money lenders would exploit the poor
people in rural areas providing them loans at higher rates.

Farming
s

rs

Cattle

Milk

/~\

Hatchery
Personal finance

The Co-operative banks in urban areas

finance in activities likei

Oi
o

/~s

Self-employment
Industries

/-a
h-

/~s

Small scale units

Home finance
Consumer finance

Page

/-N

Page
16

/A

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Types
loan & advances
Given by
THEofHOOGHLY
DISTRICT
HOOGHLY DISTRICT
CENTRAL
COOPERATIVE
BANK
CENTRAL CO
LTD.
DONE....................
OPERATIVE
BANK

To play as an important Co-operative Financial Institution for all

P
Personal Loan P Gold Loan
round development of Hooghly District with National perspectiv by
exacting
standards
of efficiency
co-operative
core values, creating
P Rent
Securitization
Loanand
P Mortgage
Loan
a challenging knowledge and information sharing environment
P Hosing Loan P Educatin Loan P Vehicle
through financial products and transparent need based financial
services
cost effecting
poor SHG &JLC members in rural
LoaninPa Group
Loan Pincluding
Project Loan
and urban areas and common masses of District with broader
P Loan Against NSC/RBI Bonds/LIC/KVP)

Process of lending in Co-op

Banks Begins
with Membership:

Co-operation for Mankind and our Bank for Cooperation

r\
/

In co-op banks the borrowers must be the members

(shareholders) of the bank
There are 2 types of members

~\
A

r
A
A\

Page
17

r\

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Bai Components
... i ers
Mechanism
FACTORS
OF
CREDIT of
Credit
APPRAISAL
Appraisal Process
We can tabulate all the conditions under TWO parameters.

Economic Parameters

What is credit appraisal?

Credit Appraisal is the process by which a lender appraises the
technical feasibility, economic viability and bankability including
creditworthiness of the prospective borrower.
/'
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MPBF

Maximum Permissible bank finance calculation is done on the

basis of loan amount.

Ratio
analysis

r-\

Financial
statements
IRR

DSCR

To check the financial position and repayment capacity of the

borrower.
To find out the current and projected value of borrower income.
Page
20
19

Internal Rate of Return is calculated of the borrower.

To check the ability of the project to generate sufficient cash flows

to repay the debt taken to finance the project.

Parameter

Norms

. ............#.......
| Checkpoints =

Bank Statements

Hi..

12 months bank

To check the

statements need to be
furnished

av erage amount
client is maintaining
in the account is

.. . :

sufficient to pay the

install men t amount
or not.

'
Business

Two year IT returns

To enquire primary

continuity proof

made compulsory

source of income.

(redit interview

For the big loan amount

credit interview is

To check the general

necessary.

. ..

attitude of customer
along with efforts

are put in to
understand their
needs better.

>>
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BBtS "
e;o

Asset of value equal to or

more than loan amount

To safeguard bank
interest against any

taken has to be put as

future default.

pledge or collateral.
To be on the name or blood
relative of applicant.

CIBIL Report

To establish the
ownership claim of the
loan applicant.

To check the credit

Bank tool to check

history of the applicant.

any default incidence

in loaning history of

applicant.
...

it Appraisal Process
r\

Receipt of application from applicant

Receipt of documents (Balance sheet, KYC papers,

Different govt, registration no., MOA. AOA, and
properties documents
Pre-sanction visit by bank officers
Check for RBI defaulters list, willful defaulters list, CIBIL
data, ECGC, Caution list
Title clearance reports of the properties to be obtained
from IB empanelled Advocates

/A

Valuation reports of the properties to be obtained from

empanelled valuer/engineers
Preparation of financial data Sc Scrutiny note by branch

Proposal preparation St Assessment of proposal

Sanction/approval of proposal by appropriate sanctioning authority

Documentations, agreements, mortgages

Disbursement of Loan
Post sanction activities such as receiving stock
statements, review of accounts, renew of accounts,
etc(On regular basis

Page
23
22

Risk refers to the possibility that the actual outcome of

investment will differ from its expected outcome. More specifically

yv

investors are concerned about the actual outcome being less than
expected outcome.
The wider the range of possible outcome , the greater the risk.

r~\

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Page
24

OBJECTIVE OF STUDY

/~\

To understand the Indian Co-operative banking industry.

To understand the concept & Mechanism of credit appraisal &
various services rendered by HOOGHLY DISTRICT
CENTRAL CO OPERATIVE BANK LTD.

The project emphasis on understanding the procedure and

process used by Hooghly District Central Co-operative

Bank Ltd. to assess the credit worthiness of the

borrower.

The study in the form of cases deal with calculations of MPBF

(Maximum Permissible Bank Finance), along with going
through the borrowers information, general information of
the proposal, past record of borrower and details of security

o,

mortgaged.

</

To suggest the steps to be taken to increase the efficiency of

HOOGHLY DISTRICT CENTRAL CO-OPERATIVE BANK
LTD. regarding Credit Appraisal.

i\

Page
25

Case study

S.Account Details:
4. Details of Loans & Advances availed from other

bank/financial :institution/credit
societies:
Loan
Housing Loan
Type
: Mrs. Sulogna Ghosh
Applicant : Mr. Debasish Ghosh
Amt
Co- Applied : 40,00,000
Installment : 180

1. Details of Applicant & Co-Applicant is collected:

Applicant

Co-Applicant

Date of Birth

15/6/1976

03/05/1976

Membership No.

Applied

Applied

Pan No.

A0mpp6087B

Afzpp6527k

Residential status

Ownership

Ownership

1250

1250

Address

Mogra,station road

Mogra,station road

Name & Address of

Business

Navami Enterprise,

Sahara One , Sahara

point, mogra

Gross Salary P.M.

15000

: ..... .

Area sq.ft.

Mogra

Net Salary P.M.

2. Details14800
of Applicants

collected.
380
Income tax paid
N ame of
Loanee

2,50,000
2,00,000 members
family

is

7,21,449
Amt Sanctioned

Bank

Date of

Sanction

Mr.Uday
Ghaisas

89,00,000

Syndicate Bank

03/05/14

Mr.Uday
Ghaisas

50,00,000

NKGSB

1/12/14

Particulars of property

A-1823, Garden Estate, Goregaon (w)

Mumbai 400 062

Area (Sq.ft.)

(955)- 653 Sf carpet

Purchase on

6/10/2010

Agreement value

70,00,000

Builder / Vender Name

M/s. Vicky Joshi & Co.

Present Value

Market Value: 1,10,79,000 lakh

Distress Value: 88,64,000 lakh

/->

5. Securities: A. Prime (Purchase of flat/house)

mortgage of immovable property:

/''N

6. Details of projected cost/Budget:

: 70 lakh

Purchase of Flat(Total amt)

Advance paid

30.50lakh

Amt applied

40 lakh

Balance in Account
Deficit

: 10,000
:

Nil

7. Guarantee: 2 Sureties
8. Check list of Documents
9. Declaration cum Undertaking by Mortgagers.
10.

List of Documents:
Agreement for Sale
Stampduty paid receipt

/''N

Registration receipt
Valuation receipt

11.

/^\

Housing Loan Agreement

1 ^.Undertaking:
I Mrs. Prachi Ghaisas the borrower will repay 180 EMIs of Rs.
44300/- @10.5%(floating) on daily reducing balance

Purpose : Purchase of Flat

13.
s~\

Scrutiny by branch:
Full details of applicant,co-applicant,surety 1 & 2.

s~\

_______

Page
Page
27
28

/""V

r\

Calculation
of EMI factor:
Calculation
of Repayment
capacity:

r\
/"T
r\
/'T
r\

./-N,

Installment Asked: 180 months Max Permissible: 180 months

Rate of Interest: 10.5% (ROI)
EMI factor 100000 on basis of installment period Rs.l 105/-

Repayment Capacity
= 293635-52650 *
rs

166902

(other loan) (Take home salary)

(Net salary)

Cost
Project:

14.

of

........

wi

15000

As per
Government(Rs.)

As per Agreement (RS.)

ill
11 illiilli
Value/Cost
70,00,000
ililllll
iiiiii
i||
iiii|;;iii|||:ii!:ifi
i | m ; i n mi i.
Stamp Duty
33260

51,05,400

r\
Reg,charges

30380

. ............iliilli
..................I.

73,62,980

54,68,380

58,90,384

43,74,704

90/85/80%of C ost of
project

Page
29

Applied : 40.00lakh
%

: 90lakh (as per value construction)

Eligible as per repayment capacity : 59083/1105*100000 = 53.47 lakh

Loan Amount Eligibility (Lower of A/B/C of above) = Rs. 40.00 lakh

15.

Visit report:

16.

Documents Checked:

r Rent income deposit letter

> No share certificate issued by society
> No maintainance received by Society P
CIBIL report explanation letter

P Salary confirmation letter P

Rent agreement P Employer
Bond

/T

Pag
Page
e
30
31

Analysis of the data

Statement of Classification of .Assets and

Provision required to be made against MonPerforming Assets as on. %ist March? 2015
1
111
Outstanding position
of the hast:
(tig. in

Silare <|fpital
Society
Govt. 1?';?
Total
l||ejlsifA |
Borrowings
Loans&Advances
Investments
AVorMng fund
Net worth ^
Nefjpipfit
of Assets

1 I i iiii

1233.41
80.70
1314.11
58748.12
12885.13
29692.02
45712.62
82893.59
3551.76
190.34
"
so. Of
. .........

1427.12
80.70 Iff:
1507.80
675564.48
12475.49
35065.40
50359.75
92386:68
4376.55
335.53
Amount.
Outstanding
.

1.

Accounts

l: :St In ' '

.........
Total loans and

lacte)
1734.13
80.70
1814.83
79316.07
13973.63
44365.34
53332.50
107834.53
4953.58
253.99 1
1 Oi B
,i
^gggrailllil ;
Pro\
11 13
Ad\

ances

1769.13
80.70
189.83
84345.95
.14833.99
42398.3 1
63579.74
114631.25
4988.58
1011

is

require
o/
o

1:

49420.53

advances

?d to iie

Vmounl
w:...........
*

Financial Indicator

of which
A. Standard
Assets

KCC & JLG

28072.71

56.80

0.25

70.18

OTHERS

18856.96

38.16

0.40

75.43

E. Non
Performing
Assets

2 (>5

1. Substandard Assets

101.08

2. Doubtful

i. 3 to 4 Y ears

ii. 4 to 6 Years

91.92

0.19

20.00

18.38

280.38

iii. Above 6 Y ears

Total Doubtful
Assets

250.76

0.51

1277.28

2.58

202.75

0.41

100.00

250.76

(i+ii+iii)

3. Unsecured

YYji

100.00 202.75

& Loss Assets

SI. Particulars
No.

Current
Year

Previous Y ear

l.

GROSS ADVANCES

49420.53

44365.34

2.

GROSS NPA

2490.86

2696.91

GROSS NPA as Percentage to Gross Advances 5.04

6.08

Position of Net NPAfnot performing asset)

s
p
8
8

Net NPA as a percentage of Net Advances 0.32

Page

33

1.18

/~\

a- on 31.03,201
(Rs. In Lacks)
Page
34

LOANS AND AVA

MCES GRAPHS
OFHOOGHL1
CHARTS
AND

DISTRICT CENTRAL COOPERATTV E BANK;

DEPOSIT OF HOOGHLY DISTRICT
CENTRAL CO OPERATIVE BANK:

TABLE :2
TABLE: 1

IflFfWFBM
^. ' ., - >. * \v

Si Ct * .

2009-2010

498.68
P

9010-201 1

587.48

2 0 11 - 2 0 1 2

675.64

2012-2013

793.16

2013-2014

f i l v. 7 4

YEAR

LOAND &ADVANCES

2 009-2010

261.29;

010-201 1
2 g|| g f 11| | 11 ||g|
|||| || g lllllii
01 1-2012

DEPOSITS

350.65

443.65

aHRHp:

494:2 1

1000
800

200910

? 600

*20 lO-

11

c 40

2011-

12

201
2- 1 3

O. 200

0
2009-10

2010-11 2011-12

Seriesl
2012-13

YEAR

Page

35

2013-14

LOANS & ADVANCES

500
400

300

20
0

100
0

2
0
9
1

2009-10

2010-11 2011-12

YEAR

Page

36

Seriesl
2012-13

2013-14

NPA
OF
HOOGHLY
DISTRICT
CENTRAL
CREDIT
RATIO
PROFIT
LOSSDEPOSIT
GRAPH
OF HOQGHLY
COOPERATIVE
BANK
DISTRICT
CENTRAL CO OPERATIVE
BANK:

TABLE; 5

TABLE:4

TABLE:3

credit deposit ra tio

2009-2010

52.40

2010-2011

PROFIT / (-) LOSS50.54

CREDIT DEPOSIT RATIO

2011-2012

51.54

4.00

3.50
2012-2013
3.00

... ' ''O:.-:.; ' > 5:'

55.93

'A: :

2013-2014
:
:
? 2.50
i . S': ' , . ! . ' 111
V.

55.67

2.00

1.00

19
01

0.00

2010-11
2010-11
2011-12
2012-13
2011-12
2012-13

2009-10
2009-10

YEAR

\-'2 0 \ 2

LLLLLLLL!

1 1 ||

I|!I;!!LLLLL|LI|;LL|:...
LLLLILLLLIIIIPL
LLLL
ILLLL|::I|!F

02
90

SFL

1.50

0.50

MM

CO

U!2 -2 0 ) 3

11
2013-14

2013-14

YEAR

MHIGHI

iiMMMMmm II:ISSL? : :S?:3 SSS;S?S;S I mmmmmmm:m&

:

IIIII EIIIIIIIII IIIIIIIIIIII

-I <I-M?0 . 5 3
1 * !LLLLLLLILLI||L| ?! IIIII | FILL|| LLLILIL: LLLLLLLLILLLLLLPILL!|ILLLL.............. .
I

2 0 J3 -2 0 J4

.|

Page
Page

38
3V

NON PERFORMING ASSET

02011
-12
@2012-13
02013-14

Page
39

FINDINGS
RECOMMENDATION
SWOT ANALYSIS OF
^
Hooghly DISTRICT
CENTRAL
COOPERATIVE
^
Bank Credit

IN EVERY BRANCH ONE STAFF ALLOWTMENT FOR DOING

CALLING WORK

SYSTEM UPGRADATION

^ BOOKLET OF AGREEMENT/SECURITY DOCUMENTS

sGTHS

:;T

r\

1st

ilili

LEARNING
t* Credit appraisal is done to check the commercial, financial &
THREATS
technical
viability of the project proposed
its funding pattern.
RTUNITIES
< A bankers task is to identify/assess
the risk factors/parameters
I Inflation
Introducing New Types of

& man age/mitigate them on continuous basis.

NPA

I worked in loan Department & understood the meaning of

Customized loan
Customer service.

One thing I got is Though all banks are different entities, they
all are under one roof that is RBI.

Page
Pag
40
e
41

CONCLUSION
I have gained an enormous insight while doing the project. The
organization for which I get the assignment in one of the leading bank of
our country. So I feel extremely privileged to get myself associated with a
company like this
Finance is not a theoretical affair. The essence of finance could be
realized only when one can get the opportunity to deal with the core
segment.
I am very satisfied for doing my project from HOOGHLY DISTRICT
CENTRAL CO-OPERATIVE BANK LTD.XREDIT APPRAISAL AND RISK
ANALYSIS as subject.
It is my first project work I have ever done in my life. So naturally
some excitement and expectation increase my sincerity and seriousness.

Page

42

BIBLIOGRAPHY
To complete this project various books and other source of
information have been used which are as follows:

WEBSITES:
l. WWW.GOOGLE.CO.IN

BOOKS:

1. Financial management system-M.Y. Khan and P.K. Jain

2. Financial management-I M Pandey

3 , Management Accounting- Shaski. K. Gupta and R.K.Sharma.

4 , Modern Accounting Theory-Debasish

Banerjee.

4. Data collected from Hooghly District Central Co-operative

Bank.

Page
43

/S

/"N

/~\