A

PROJECT REPORT

ON

A STUDY OF CREDIT APPRAISAL SYSTEM FOR WORKING CAPITAL

FINANCING TO COMMERCIAL & AGRICULTURE SECTOR

with special reference to

Regional Business Office of SBI, Nasik.

SUBMITTED TO

UNIVERSITY OF PUNE

SUBMITTED BY

MISS. DEEPALI K. CHINCHORE

Master in Business Administration (Finance)

GUIDED BY

PROF. D. D. WALKE

Nasik District Maratha Vidya Prasarak Samaj’s

INSTITUTE OF MANAGEMENT RESEARCH & TECHNOLOGY

Nasik.

YEAR

2008 – 09

DECLARATION

I, Miss. Deepali K. Chinchore, MBA – II (2008 – 09) at the IMRT, Nasik

hereby solemnly declare that the project on “A Study of Credit Appraisal System for

Working Capital financing to Commercial & Agriculture Sector” was completed at

State Bank of India, Nasik, as a result of my research work.

The project was undertaken as a part of academic curriculum, according to the

university rules & with no commercial interest & motives. It is my original work and

not submitted elsewhere for any other purpose earlier.

The project report does not contain any fake information and the data collected

is included in the project with the prior permission of Manager at SBI.

Place : Nasik. Date : / / 2008

(Deepali K. Chinchore)

ACKNOWLEDGEMENT

“A study of Credit Appraisal System” has been a successful project because of

the efforts of some very special people.

First of all, I express my sincere & profound sense of gratitude to

Mr.D.D.Walke, the Director of IMRT, for providing me the opportunity to do a Project

Work. I thank him as well as the professors of IMRT for their encouragement &

endless support in project work.

I am deeply grateful to all the people working at Regional Business Office of

SBI, Nasik, for their efforts in keeping this project on schedule.

I am thankful to Mr.B.A.Karpate, the Chief Manager (C.S.C.) at Regional

Business Office of SBI, for allowing me to carry out the project work in his

organisation.

I deeply value the guidance given by Mr. Abhay Chhajed, the Dy. Manager

(C.S.C.) & Mr. Manohar Pagare, the Dy. Manager (C.P.C.) at Regional Business Office

of SBI. I express my special thanks to them for solving my queries time to time &

making valuable suggestions.

I am also indebted to my family & colleagues who have directly & indirectly

contributed their time & talent in accomplishing this task.

Date : / / 2008 (Deepali K. Chinchore)

INDEX

SR. NO. CONTENTS PAGE NO.

Chapter 1 INTRODUCTION1.1 Object of the Project 11.2 Selection of the Topic 21.3 Objectives of the Study 31.4 Methodology of the Study 41.5 Scope of the Study 51.6 Limitations of the Study 6

Chapter 2 PROFILE OF THE ORGANISATION2.1 History & Development of SBI 72.2 Outstanding Achievements, Vision & Logo of SBI 92.3 The Organisation Chart 102.4 Product & Services of SBI 11

Chapter 3 DATA COLLECTION 3.1 Meaning & importance of Credit Appraisal System 153.2 Loan Policy & Credit Appraisal Standards of SBI 203.3 Procedure of loan sanctioning & authorities involved 233.4 Documentation for loan sanctioning 25

Chapter 4 DATA ANALYSIS & INTERPRETATION4.1 SBI’s Working Capital financing to Commercial Sector 284.2 SBI’s Working Capital financing to Agriculture Sector 404.3 Case – studies 464.4 Efficiency of Credit Appraisal System of SBI 56

Chapter 5 CONCLUSION OF THE STUDY 59

Chapter 6 SUGGESTIONS & RECOMMENDATIONS 60

ANNEXURE I. Structured Interview 61

II. Abbreviations 62III. Bibliography 63

IV. Various forms pertaining to Credit Appraisal 64