INTIAL INFORMATION REPORTON

“CREDIT
APPRAISAL IN
CONSUMER
LOANS SECTOR”
BY

SHASHI PRABHA (09BSHYD0770)

SUBMITTED TO:
FACULTY GUIDE: Mrs. SEDIDI VIJAYALAKSHMI
COMPANY GUIDE : Mr. K. V. V.
SATYANARAYANA
 Name : Shashi Prabha Enrollment No.
09BSHYD0770

Mobile No. : +91 9666157311 Email Id:

manishashi.singh@gmail.com

SUMMER INTERNSHIP PROGRAMME

INITIAL INFORMATION REPORT (IIR)

Submitted on 10th march, 2010

I. Project Details:
Title of the project : "Credit appraisal in Consumer Loans Sector”.

Area of the project
: Area of the project will be to include different services of retail
banking availed by consumers in such as home loans, auto loans,
educational loans and plastic money etc., Project appraisal &
lending methods and rates of interests, assessment of the
consumers, technical, and market, financial and economic
appraisal.

Objectives of the project:

1. To study contribution of retail banking to banking sector.

2. To study process of project appraisal of consumer loans.

3. Project appraisal in retail sectors.

4. To study the Credit Scoring model adopted by PNB.

5. To study securitization and mortgages and repayment and recovery of NPAs.

6. To study various retail banking strategies.

7. To thorough with Banking terms & detail study of Bank’s operations.

8. To do a survey on consumer loans advantage factor and growth prospects and analyze
through SPSS.
Description of the project in brief: The introduction history and role of Indian Banking.
Current Retail Banking Scenario with Public & private sector Banks. A snapshot of services and
retail products provided by Punjab National Bank. The project is covering overview of whole
retail sector of consumer loans. Detailed analysis of consumer products by evaluating consumer
loans, credit analysis. Credit scoring, risk management in retail banking. PNB’s norms &
guidelines, vested loaning powers and valuations to different scale managers and HUB. The
process of Credit scoring and valuation in PNB for credit proposals.

Organizational Details:
Name of the organization : Punjab National Bank

Address of the Organization : Punjab National bank, Circle Office, 6-1-73, 2nd floor,
Saeed Plaza, lakdi ka Pool, Hyderabad- 500004

Telephone Numbers : 040 23243083, 040 23236856, 040 23230911

Fax : 040 23233295

Email : pnbrohyd@hd2.dot.net.in

Main activity of the organization: Punjab National Bank offers financial solutions and services
in an array of sectors. All these services that are offered keep pace with the changing market
trends in order to fulfill the needs and preferences of the customers. Some of the well known
sectors on which the main functions of the bank are based are:

• Personal Banking

• Corporate Banking

• Agriculture finance services

• Industrial finance services

• Trade financial services

• International banking services

Name & designation of head of the organization: K. K. Arvindakshan (DGM)

Circle Head, Circle office

Work timings: 10:30a.m. To 5:30p.m.

Amount of stipend expected: Nil

Facilities available to the student:

 • A well-furnished seating arrangement in the Credit Department of the Office. The Credit
Department has four Managers; they have a number of Branches under them.

• The proposals forwarded from Branch office to the Circle office to be appraised and
proposals which are forwarded to the Head Office for Vetting are available for study &
analysis.

• Wi-Fi connection is available.

II. Company Guide:

Name : K V V Satyanarayana

Designation : Functional Manager

Telephone Numbers : + 91 9989431427

III. Project Implementation and Schedule:

Schedule: All reports and workings will be submitted as per the schedule given below.

Methodology: Study of types of consumer loans and types of retail products, study of credit
analysis procedure of consumer loans, Credit scoring (CS) model of PNB, reading PNB’s
manuals of vested loaning powers & exercised limits at different scale level officers, study of
Consumer credit regulations for different sectors.

Information Sources
Books, Newspapers, Trade Journals, and White papers, Industry portals, Government Agencies,
and Trade associations, monitoring of Industry News and developments, and Access to more
than 3000 paid databases.

Analysis Method
Ratio Analysis, Historical Trend Analysis, Linear Regression Analysis using software tools,
Judgmental Forecasting, and Cause and Effect Analysis. Reading & searching of research papers
related to retail banking , credit appraisal, risk rating models of different banks and project
management.
Any other details: Visit to Branch office & Retail HUB to see and observe
workings at operation level and see norms and procedures.

IV. I will submit the following reports as per the schedule given below:
Evaluation Component Date planned

Project Proposal 18th March, 2010

Interim Report 16th April, 2010

Final Report 14th May, 2010

Project Specific Report and Executive Summary 17th May, 2010

Faculty guide name: S. VIJAYALAKSHMI

(SHASHI PRABHA)

Date: 10th March, 2010 signature of the student