This document is a dissertation report submitted to Savitribai Phule University of Pune in partial fulfillment of a Master of Business Administration degree. The report studies the credit appraisal process of Shri Bhausaheb Thorat Amrutvahini Sahakari Bank Ltd. and The Sangamner Merchant Co-operative Bank Ltd. in Sangamner, India. It analyzes the banks' deposits, loans, non-performing assets, and profits for the year 2014. The report finds that The Sangamner Merchant Co-operative Bank has higher deposits, loans, and profits compared to Amrutvahini Bank. It also has a lower non-performing asset rate, indicating more

1. A
DISSERTATION REPORT
On
“A STUDY OF CREDIT APPRAISAL PROCESS WITH REFRANCE TO ”
“CO-OPPRETIVE BANK ,SANGAMNER”
SUBMITTED TO
“SAVITRIBAI PHULE UNIVERSITY OF PUNE”
IN PARTIAL FULFILLMETNT OF
“MASTER OF BUSINESS ADMINISTRATION”
BY
MISS:DURGA KISAN KHAIRNAR
(M.B.A) FINANCE
UNDER THE GUIDANCE OF
PROF.L.D. SHAH
AMRUTVAHINI INSTITUTE OF MASTER OF BUSINESS ADMINISTRATION
(2014-15)

2. Introduction
I have great pleasure in presenting my project report. The subject of my project is is in “A STUDY OF
CREDIT APPRAISAL PROCESS WITH REFRANCE TO AMRUTVAHINI SAH. BANK LTD. GHULEWADI
SANGAMNER & MERCHANT CO-OPPBANK SANGAMNER. completion of this subject Today the base of the
country economic development and trade is depending upon banking and credit structure of economy.
The financial structure is the foundation of credit and capital market of the economy. Which solely depend
upon the banking business in the country. The basic foundation at any bank is its deposit patterns and
Advances come from the deposits which the public keeps in the bank always in a particular ratio and
proportion, no bank can grant loan more than its deposit structure. The some technique of loan and
Advances in applied all over the word.
• Cash Credit
• Over Draft
• Loan System
 Short Term Loan
 Medium Term Loan
 Long Term Loan
 Composite Loan
 Consumer Loan/ Consumption Loan
 Service Provided By Bank-
A. Loan Distribution
B. Deposit
C. Issue Demand Draft
D. Saving Account
E. Current Account

3. LETERETURE REVIWE
Credit analysis
Credit standard are the criteria which a firm follows in selecting
customer for the purpose of credit extension . Credit standards influence
the quality of the firms customers there are two aspects of the quality of
customers 1) the time taken by customer to repay credit obligation 2)
the default rate. The average collection period determine the speed of
payment by customer
Financial management
I.M Pandey
Credit scoring
One way in which both individual and firm are often evaluated as
a credit risk is the through the use of credit scoring. Credit scoring involved
numerical evaluation of each applicant and applicant receives a score
based on his or her answer to a simple set of questions
Financial management
Keown, martin,petty.scott, jr .

4. BANK PROFILE
Shri bhausaheb thorat amrutvahini sah. bank ltd.
NAME OF BANK:-shri bhausaheb thorat amrutvahini sah. bank ltd. ghulewadi,
sangamner.
RAGISTAR NO :- Anr/Smr/Bnk/1207-83
ESTABLISHMENT IN :- 28th July 1983.
ADDRESS:- A/P ghulewadi tal. sangamner , dist –a. Ahmednager.
MANAGER:- Laxman S. Wagh
NUMBER OF MEMBERS:-5659
MERCHANT BANK:-
NAME OF BANK:- The sangamner merchant Co-operative LTD.
ADDRESS:-Indira Gandhi marg p.b no.13, sangamner, dis- Ahmednager.
RAGISTAR NO:- 26/11/1965,ANR/BNK-107 Date & No of R.B.I. license :18/08/1986
U.B.D. MH 500P.
ESTABLISHMENT IN: - 26/11/1965.
MANAGER:-Ravindra joshi

5. RESEARCH METHODOLOGY
MEANING OF RESEARCH
Research as a process involves defining redefining problem hypothesis, formulation, and
organizing, and evaluating data, deriving, inference and conclusion after careful tested.
COLLECTION DATA
Data means facts. Data are those things from which conclusion may be drawn in the form of
figures or in words
Collection of data is essential part of research. The task of data collection start after the objective
of the study and research design had been decided in red to measure properties. I collected
secondary research data
A) PRIMARY DATA
1. Observation Method
2. Questionnaire & Interviews
3. Library Methods
B) SECONDARY DATA
In this project secondary data are use through
a) Books
b) Internet
c) Record available at bank.

6. OBJECTIVE OF STUDY
1. To study Concept of Credit appraisal?
2. To know what are the documents required for different types of loans?
3. To know the process of credit appraisal.
4. To study the NPA of shri bhausheb thorat amrutvahini bank & The
sangamner merchant co-op Ltd, sangamner

7. THEOROTICAL BACKGROUND
CREDIT APPRAISAL
Credit appraisal means an investigation/assessment done by the bank prior before providing any loans &
advances/project finance & also checks the commercial, financial & technical viability of the project proposed.
Proper evaluation of the customer is preferred which measures the financial condition & ability to repay back
the loan in future
Credit appraisal is the process of appraising the credit worthiness of the loan applican
DOCUMENTATION DETAILS
1) PROOF OF INCOME
I. Salaried
II. Latest salary slips for the last 2 months.
III. Self-employed
2.) RESIDENCE PROOF
I. Telephone / Electricity bill.
II. Ration card
III. Driving License
IV. Passport
V. Rent agreement
3.) IDENTITY PROOF
I. Passport size photograph
II. Copy of Driving License / Company identity card/ PAN card clearly showing Photo of customer.
III. post dated cheques

8. CREDIT APPRAISAL PROCESS
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
|
Title clearance reports of the properties to be obtained from advocates
|
Valuation reports of the properties to be obtained from valuer/engineers
|
Preparation of financial data
|
Proposal preparation
|
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)

9. DATA ANALYSIS
PARTICULER
(YEAR 2014)
MERCHANT CO-OP
BANK ( Rs in lac)
AMRUTVAHINI CO-OP
BANK (Rs in lac)
DEPOSITS 22315.49 16991.887
LOAN 14396.49 9578.63
NPA 0.00% 4.64%
PROFIT 125.78 45.63

10. FINDING
1. Credit appraisal is the process of knowing credit worthiness of
customer
2. Merchant bank having maximum deposit & loan as compare to
amrutvahini bank its indicate merchant bank effectively used deposit
and give loan to Customer.
3. Deposit and loan of merchant bank increase year by year its reflect
that bank expand the business effectively. And people having good
trust and paid high interest to the depositor.
4. The NPA of bank is decrease year by year. Bank work on maintain low
NPA and its work on recover the outstanding
5. The NPA of amrutvahini bank is higher than merchant bank its shows
the credit appraisal of amrutvahini bank is not much better and they
cannot recover overdue
6. Because of high NPA amrutvahini bank doing more provision for NPA
and its reduce the profitability of bank

11. Conclusion
With a view to move towards international best practice and ensure
greater transparency, it has been decided to adopt the 90 days’ overdue’
norm for identification of NPAs, from the year ending March 31, 2004.
1.) Credit appraisal is the internal bank process which is necessary to
conduct for every bank for loan distribution.
2.) RBI has put the compulsion on every bank to do credit appraisal for avoid
NPA of a bank.
3.) Credit appraisal is the process of measure credit worthiness of borrower
and NPA is a scale to measure the durability and creditability as well as
goodwill of a bank.
4.) we can understand the banks position by looking at its graph such as
profit, advances, Recovery, Deposits.
5.) Its important to amrutvahini bank to understand various steps taken by
the merchant bank to manage the NPA level, knowledge about RBI norms
for NPA
.6.) if and accounts becomes NPA what are the various measures for recovery
taken by the merchant bank.

12. SUGGESTION
1) Positive attitude should be developed by the operation staff to attract
more customers.
2) Minimum documents to be asked for sanction. Amrutvahini bank can
follow the credit appraisal process of merchant bank
3) Frequent training to the staff should be imparted to update the
knowledge and get feedback from borrower
4) The amrutvahini Bank should try to maintain low NPA so its help for
generate more profits to satisfy the equity share holders
5) The bank should try to increase the market value of shares through
efficiency & effectiveness.
6) Keep maintain low NPA rate as per direction of reserve bank of India.
And follow all rules and guideline as per RBI

13. THANK YOU