Credit Rating Procedure

The bank collects latest audited financials, analyses them and financial risk is weighed based on various
performance figures / financial ratios.
Management Risk & Market Risk is marked depending on collected particulars.
In case of existing customers, compliance to sanction terms & business consideration are judged and
marked.
Then all the marks are summed up to allot the rating numeric & assess the credit risk.
In the existing pattern the rating numeric attached to various risks are as under:
Credit Quality Rating Numeric
Lowest Risk CR-1
Minimal Risk CR-2
Moderate Risk CR-3
Satisfactory Risk CR-4
Acceptable Risk CR-5
Minimum Credit Rating required for considering a new proposal is CR-5 and for take over proposal is
CR-4 at present. The cutoff point is changed from time to time depending on bank's requirements by the
management.


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