CREDIT APPRAISAL FOR WORKING CAPITAL FINANCE TO SMEs Submitted By

Mr. SANKET C HURKAT

UNDER THE GUIDANCE OF

Prof. Ms. NEHAL JOSHIPURA & Mr. MANOJ DAGDIYA

PROJECT REPORT SUBMITTED IN PARTIAL COMPLETION OF MMS TO

Durgadevi Saraf Institute of Management Studies & The Washim Urban Co op Bank July, 2013
Durgadevi Saraf Institute of Management Studies Malad, Mumbai

STUDENTS DECLARATION
This is to declare that the study presented by me to Durgadevi Saraf Institute of Management Studies, in partial completion of the MMS under the title Credit Appraisal for working capital finance to SMEs had been done under the guidance of Prof. Nehal Joshipura & Mr. Manoj Dagdiya during May-June 2013.

Place : Mumbai Date :

SANKET HURKAT MMS - 20120079

CERTIFICATE FROM THE INDUSTRY MENTOR

This is to certify that Mr. SANKET HURKAT MMS Student of Durgadevi Saraf Institute of Management Studies has completed the Summer Internship Project on Credit Appraisal for working capital finance to SMEs during May-June 2013 under my guidance. The student has worked on the project assigned to him and the report contains findings and inferences which are original and not copied from available sources. References of work and related sources of information have been provided in the Report.

Mr. Manoj Dagdiya Branch Manager, The Washim urban co-operative bank, Ansing

CERTIFICATE FROM THE FACULTY GUIDE

This is to certify that Mr. SANKET HURKAT has completed the Summer Internship Project entitled Credit Appraisal for working capital finance to SMEs with The Washim urban co-op bank ltd. during May-June 2013 under my guidance. To the best of my knowledge the Report submitted by him is original; no part of the report has been submitted for award of any other degree fellowship or other similar titles or prizes.

Ms. Nehal Joshipura

ACKNOWLEDGEMENT
I wish to express my deep sense of gratitude to The Washim urban Co-operative Bank ltd. and in particular Mr. MANOJ GAGDIYA for the timely guidance, inspiration and encouragement in the conduct of my Summer Internship Project work. I take this opportunity to thank Prof. NEHAL JOSHIPURA for her able guidance and valuable suggestions, which helped me in completing the project work, in time. I take immense pleasure in thanking Dr. Rakesh Singh, Director, Durgadevi Saraf Institute of Management Studies, for having permitted me to carry out this project work.

SANKET HURKAT MMS

EXECUTIVE SUMMARY
This project focuses on Credit appraisal practices for working capital Financing by SMEs at The Washim urban co-op bank ltd. To understand about this topic, there is a brief introduction of credit appraisal, this includes the different types of credit sectors. Further, the concept of credit appraisal has been elaborated upon, which includes various factors for appraising credit for working capital Financing. Aim of this project - Credit appraisal for working capital financing to SMEs at The Washim urban co-op bank ltd. was to analyses existing practices of cooperative banks for credit appraisal for working capital financing. And then as per my understanding of the topic giving The Washim urban co-op bank ltd. appropriate recommendations in order to improve their system.

OBJECTIVE
1) To Study and understand the credit appraisal process followed in cooperative banks. 2) To Study and understand the credit appraisal for working capital financing for SMEs at The Washim urban co-op bank ltd. 3) To give necessary recommendations to The Washim urban co-op bank ltd. in order to improve their process of credit appraisal for working capital financing for SMEs.

NEED FOR THE STUDY

Lending continues to be a primary function in banking. In the liberalized Indian economy, clientele have a wide choice. External Commercial Borrowings and the domestic capital markets compete with banks. In another dimension, retail lending- both personal advances and SME advances- competes with corporate lending for funds and for human resources. But lending by nature cannot be an aggressive selling activity, disregarding the risks involved. Bank has to be competitive without compromising on the basic integrity of lending. The quality of the Banks credit portfolio has a direct and deep impact on the Banks profitability.