Project finance

1. LOGO AREA
+55 32 3836 55 55
+55 32 9685 55 55
Default address Avenue, 4214,
Postal code 80.250-210 / Curitiba PR BR
www.default.com
___________________________________________
__________
Default address Avenue, 4214,
Postal code 80.250-210 / Curitiba PR BR
+55 32 3836 55 55
+55 32 9685 55 55| | www.default.com
PROJECT FINANCING & CREDIT RISK
MANAGEMENT
Parvez Alam
LOGO AREA

2. LOGO AREA
+55 32 3836 55 55
+55 32 9685 55 55
Default address Avenue, 4214,
Postal code 80.250-210 / Curitiba PR BR
www.default.com
___________________________________________
__________
I am deeply indebted to Prof: Dr. S.
K. Matta (faculty of finance) for my
successful completion of the project.
ACKNOWLEDGEMENT

3. LOGO AREA
+55 32 3836 55 55
+55 32 9685 55 55
Default address Avenue, 4214,
Postal code 80.250-210 / Curitiba PR BR
www.default.com
___________________________________________
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S.No Slide Name Slide No.
1. INTRODUCTION 1
2.
KEY FINANCIAL INDICATORS
2
3.
IBUSINESS PERFORMANCE
3
4.
PROJECT FINANCING
4
5.
CREDIT RISK MANAGEMENT
5
6. CONCLUSION 6
Table of Contents

4. LOGO AREA
+55 32 3836 55 55
+55 32 9685 55 55
Default address Avenue, 4214,
Postal code 80.250-210 / Curitiba PR BR
www.default.com
___________________________________________
__________
Introduction
Bank of Baroda
Type Public company
Traded as BSE: 532134
Industry Banking, Financial services
Founded 20 July 1908
Founder(s) Maharaja Sayajirao Gaekwad
Headquarters Vadodara (Baroda), India
Area served Worldwide
Key people S S Mundra (Chairman & MD)
Products Credit cards, consumer banking, corporate
banking, finance and insurance, investment
banking, mortgage loans, private banking,
private equity, wealth management
Revenue ₹346 billion (US$5.8 billion) (2012)
Net income ₹52.48 billion (US$880 million) (2012)
Total assets ₹4.574 trillion (US$76 billion) (2012)
Website www.bankofbaroda.com

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+55 32 3836 55 55
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Default address Avenue, 4214,
Postal code 80.250-210 / Curitiba PR BR
www.default.com
___________________________________________
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Key Financial Indicators
Sr.
No.
Particulars 31.03.20
09
31.03.2010 31.03.2011 31.03.2012 31.03.2013
1 Interest Income / Average Working
Funds (AWF)
6.85% 6.59% 7.22% 7.63% 7.78%
5 Non-Interest Income / AWF 1.40% 1.12% 1.11% 1.32% 1.42%
6 Operating expenses / AWF 2.11% 2.25% 2.04% 1.96% 1.84%
7 Cost Income Ratio 46.24% 55.43% 51.30% 50.89% 45.38%
8 Gross (Operating) profit / AWF 2.45% 1.81% 1.94% 1.89% 2.22%
9 Net profit / AWF 0.72% 0.78% 0.82% 0.93% 1.15%
12 Return on Average Assets 0.75% 0.79% 0.80% 0.89% 1.09%
15 Dividend payout Ratio (including
Corporate Dividend Tax)
24.67% 25.11% 24.59% 23.75% 17.22%
16 Credit -- Deposit Ratio 55.82% 67.15% 74.35% 77.32% 82.36%

6. LOGO AREA
+55 32 3836 55 55
+55 32 9685 55 55
Default address Avenue, 4214,
Postal code 80.250-210 / Curitiba PR BR
www.default.com
___________________________________________
__________
BUSINESS PERFORMANCE
Particulars End-March 2013(Rs crore) End-March 2012(Rs
crore)
Growth %
Deposits 1,52,034.12 1,24,915.98 21.71
- Domestic 1,22,479.35 99,725.62 22.82
- Overseas 29,554.77 25,190.36 17.33
Borrowings 3,927.05 1,142.56 243.71
Global Advances:
Particulars End-March 2008(Rs crore) End-March 2007(Rs
crore)
Growth
(%)
Advances 1,06,701.33 83,620.87 27.60
- Domestic 84,503.31 67,262.69 25.63
- Overseas 22,198.02 16,358.18 35.70

7. LOGO AREA
+55 32 3836 55 55
+55 32 9685 55 55
Default address Avenue, 4214,
Postal code 80.250-210 / Curitiba PR BR
www.default.com
___________________________________________
__________
Project financing
Credit processing / appraisal
Credit approval / sanction
Credit Documentation
Credit Administration
Disbursement
Monitoring and control of Individual Credits
Managing problem Credits / Recovery
Monitoring the overall credit portfolio (Stress testing)

8. LOGO AREA
+55 32 3836 55 55
+55 32 9685 55 55
Default address Avenue, 4214,
Postal code 80.250-210 / Curitiba PR BR
www.default.com
___________________________________________
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SOURCES OF CREDIT INFORMATION
SSOOUURRCCEESS OOFF CCRREEDDIITT IINNFFOORRMMAATTIIOONN
INTERNAL EXTERNAL
Credit
Rating
Agency
Published
Information
Track
Record
Financial
Statement
Analysis
Trade References Bank’s References

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+55 32 3836 55 55
+55 32 9685 55 55
Default address Avenue, 4214,
Postal code 80.250-210 / Curitiba PR BR
www.default.com
___________________________________________
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CREDIT RISK MANAGEMENT
Prudential
Exposure
Setting borrower and group limits.
Setting industry and sector-wise limits.
Setting maturity / tenor limits.
Risk Rating Evaluating industry, business, financial and management risk.
Identifying standards and critical parameters.
Defining rating thresholds for credit decision
Risk Pricing Mapping expected probability of defaults.
Estimating expected loss, based on risk rating and recovery rates.
Using RAROC framework to price the credit risk
Portfolio
Management
Setting rating-wise limits on exposure.
Evaluating industry exposures and assessing concentration of risk
Proactive provisioning based on expected loss.
Portfolio wise test to assess sensitivity to various credit risk factors
Loan Review
Mechanism
Identifying credit weakness to initiate corrective action.
Evaluating portfolio quality to isolate problem area.
Assessing adequacy of the loan loss provision.
Monitoring compliance with internal policies.
Generating top management reporting.

10. LOGO AREA
+55 32 3836 55 55
+55 32 9685 55 55
Default address Avenue, 4214,
Postal code 80.250-210 / Curitiba PR BR
www.default.com
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CREDIT RATING MODEL OF BANK OF BARODA
Modules No Compulsory
Parameters
Relevant
Parameters
Total No Of
Parameters
Max Marks
1.Economy & Industry
(comprising of 2 sections)
11 3 (out of 10) 14 56
2.Borrowr’s position in the
industry
6 4 (out of 8) 10 40
3.Borrower’s financials All Nil 100
4.Management quality 9 3 9out of 5) 12 48

11. LOGO AREA
+55 32 3836 55 55
+55 32 9685 55 55
Default address Avenue, 4214,
Postal code 80.250-210 / Curitiba PR BR
www.default.com
___________________________________________
__________
S. No. Scale of Score Grade Definition of Scale
1 85 – 100 AAA Highest Safety
2 75 – 84 AA High Safety
3 70 – 74 A Adequate Safety
4 65 – 69 BBB Moderate Safety
5 60 – 64 BB Low Safety
6 50 – 59 B High Probability of Default or Substandard
7 35 – 49 C Very high probability of Default or Doubtful
8 0 – 340 D Highest Probability of Default or loss Asset

12. LOGO AREA
+55 32 3836 55 55
+55 32 9685 55 55
Default address Avenue, 4214,
Postal code 80.250-210 / Curitiba PR BR
www.default.com
___________________________________________
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CONCLUSION
• Bank of Baroda appraises fresh proposals and re-new old proposals very
efficiently and within very limited amount of time
• The bank is very prompt in attending to the needs of the customers
• Living up to the ideals of the visionaries of the bank, is the strong workforce,
which includes dedicated professionals, who have considerable amount of
expertise and experience in the banking industry
• Armed with only theoretical knowledge in-hand before, the project has been
an immense realistic learning experience.

13. LOGO AREA
+55 32 3836 55 55
+55 32 9685 55 55
Default address Avenue, 4214,
Postal code 80.250-210 / Curitiba PR BR
www.default.com
___________________________________________
__________
+55 32 3836 55 55
+55 32 9685 55 55
Default address Avenue, 4214,
Postal code 80.250-210 / Curitiba PR BR
www.default.com
___________________________________________
__________
Thank You