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EXECUTIVE SUMMARY: It gives me immense pleasure to present this project on the topic CREDIT APPRAISAL MECHANISM at UNITED BANK

OF INDIA, CREDIT DEPARTMENT, H.O, KOLKATA. The project was carried out from 12.03.2013 to 01.06.2013. The main objective of the project is to study the various modes of finances provided by U.B.I to the Steel Industries and knowing the detailed procedure of assessment of finances done by U.B.I. BACKGROUND: Organizations needs funds to meet their long term, medium term and short term requirement. Cash Credit and Working Capital are short term requirements, and this fund is kept to carry day to day operations. It also covers the important aspect relating to assessment and follow up of various modes of financing. METHODOLOGY: We have to collect the material from RBI Defaulters list, Credit Appraisal Mechanism Books of U.B.I and from the Credit Proposal of XYZ Ispat Limited. FINDINGS AND CONCLUSION: The company under study has poor TOL/TNW, which shows that it was unable to meet liability and obligation using Net worth is low. The ROACE was also poor which shows ability to reward investor is Low. The Interest Service Coverage ratio is not good, which shows firms ability to meet interest obligation is Low. Apart from that we also found out bank is inclined to give loans to big industries due to high NPA rate. In the last part of my project I also found out that the car loan segment is not flourishing due to higher interest rate, less tie up with the showrooms of various companies, Corporate tie up is almost nil and no proper marketing of the car loan segment which can be done by putting hoarding in good places RECOMMENDATION: Here I recommend to reduce the limit of XYZ Limited from 47.00 crore to 38.00 Crore, low down the existing cash credit limit from 32 crore to 22 Crores and the Term Limit to 10 Crores. I also recommend to increase the collateral deposit by giving 10% margin in form of term deposit.