CREDIT APPRAISAL PROCESS OF SBI: A CASE STUDY OF BRANCH OF SBI IN HISAR

Credit risk is a risk related to non repayment of the credit obtained by the customer of a bank. Thus it is necessary to appraise the credibility of the customer in order to mitigate the credit risk. Proper evaluation of the customer is performed this measures the financial condition and the ability of the customer to repay back the loan in future. Credit Appraisal is a process to ascertain the risks associated with the extension of the credit facility. It is generally carried by the financial institutions which are involved in providing financial funding to its customers. In this paper, we study the Credit Risk Assessment Model of SBI Bank and to check the commercial, financial & technical viability of the project proposed & its funding pattern. Also to observe the movements to reduce various risk parameters which are broadly categorized into financial risk, business risk, industrial risk and management risk. The scope of the paper is restricted to branch of SBI in Hisar.