Credit analysis of personal loan Rahul Mishra


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Credit analysis of personal loan Rahul Mishra

  1. 1. S U B M I T T E D T O : - P R E S E N T E D B Y , P R F - A D I T I N A I D U R A H U L M I S H R A Credit Analysis of personal loan for Indian Bank
  2. 2. Industry Introduction  Deposits and lending are prime functions  Major step- Nationalization of bank  Structure  Impact of banking sector in Economy
  3. 3. Bifurcation of Banking Sector SBI 44% Bank of Baroda 8% PNB 8% Canara Bank 5% Bank of India 5% Union Bank 4% IDBI Bank 3% Syndicate Bank 2% Oriental Bank 2% Central Bank 2% Corporation Ban 2% UCO Bank 2% Indian Bank 2% Allahabad Bank 2% IOB 2% Andhra Bank 2% Bank of Mah 1% Dena Bank 1% State B Bikaner 1% State Bnk My 1% State Bnk Tr 1% 0% Market Capitalisation
  4. 4. Introduction to Indian Bank  Premier bank owned by government of India  International presence  Diversified Banking Activities  Specialized Banking  Rural Development  Latest Technology
  5. 5. Objective of the Project Internship Credit analysis Non- performing assets
  6. 6. Credit Analysis  The project involved an in-depth study of the various Personal loans provided by Indian bank to include: i. The loan and its features: ii. Type of loan, its features, iii. Tenure, iv. Interest rates, v. procedures for approval including eligibility criteria, security needed  The personal loans offered by Indian Bank were compared across a number of parameters with loans offered by competing banks
  7. 7. Personal loans offered by Indian Bank 1. Home Loan 2. Education Loan 3. Car Loan etc. Detailed descriptions of the above loans are in the Report
  8. 8. Comparison of Indian Bank interest rates with those of Competing banks(Personal Loan) 13.99% 14.25% 14.50% 15.00% 13.99% 16.00% 14.50% 12.50% 13.00% 13.50% 14.00% 14.50% 15.00% 15.50% 16.00% 16.50% HDFC Bank ICICI Bank ING Vysya Bank Bajaj Finserv Lending Kotak Bank Standard Chartered Bank Indian Bank Rate of Interest
  9. 9. Non performing Assets  Bank's nonperforming loans plus the real estate owned by the bank due to foreclosures.  Nonperforming assets are footnoted on the balance sheet.  Sub-standard assets  Doubtful Assets  Loss assets  A major cause for NPA is fixation of unrealistic repayment schedule  The implementation of Basel III norms are to commence in 2013 and recapitalization is mandatory for many banking institutions
  10. 10. Overall assessment of Credit Analysis & Learning  Economic slowdown likely to impact the credit  RBI policy, lowering policy rates  Asset quality need to be closely monitored  More impetus on fee based and non-interest income services  Financial inclusion to play a key role in the near future  Banks will expand in overseas market  Mobile banking, next major technological leap  Competition set to intensify
  11. 11. Overall assessment of NPAs  Gross non-performing assets are set to inch up to 4.4 per cent this fiscal year from the likely of 4.2 per cent in 2012-13  Reasons:-  Economic slowdown  High interest rates  New reporting system  Aviation sector  Detecting NPA:-  Scrutiny of accounts and ledger cards  Scrutiny of statements  External sources  Computerizations of loan monitoring
  12. 12. Findings and Recommendation  From this project it is found that INDIAN BANK advance credit product is slowly gaining its pace in the market at Noida,  All of INDIAN BANK customers are satisfied with the services provided by the bank.  Many of these customers satisfied with the low interest rate and longer repayment period of the advance credit products.  Approximately 43% of advance credit products users said that the service of INDIAN BANK in advance credit products is excellent.  Many customers have no time to call customer care so that they are not able to know about the service & features of INDIAN BANK advance credit products.
  13. 13. Conclusion  Customer awareness programme is required so that more people should attract towards advance credit products.  If there are any kind of hidden charges than that must disclose to customer before giving loan to them.  Indian Bank must take some steps so that customers can get their loan on time.  INDIAN BANK should be more concern about faster settlement of customer problem  Advance credit products selling agents must not give any type of wrong information regarding advance credit products.
  14. 14. THANK YOU