1. DEFINITION:
The process of evaluating an applicant's loan request or a corporation's debt issue in order to
determine the likelihood that the borrower will live up to his/her obligations.
OBJECTIVES:
 To assess the financial health of organizations that approach Union Bank of
India for c r e d i t f o r i m p o r t e x p o r t p u r p o s e s . T h i s w o u l d e n t a i l
u n d e r t a k i n g o f t h e f o l l o w i n g procedures:
 Analysis of past and present financial statements
 Analysis of Balance Sheet
 Analysis of Cash Flow Statements
 Examination of Profitability statements
 Examination of projected financial statements
 Examination of CMA data
 To assess the suitability of the company for disbursement of credit. This would involve
the following actions:
 Use of credit rating charts
 Evaluation of management risk
 Evaluation of financial risk
 Evaluation of market-industry risk
 Evaluation of the facility
 Evaluation of compliance of sanction terms
 Calculation of credit rating
SCOPE OF THE STUDY
 Source of information collected is the information provided by the bank as well as the
survey and the observation made there on.

2. LIMITATION:
 a. The study restricted to only one branch.
 b. The time constraint was a limiting factor, as more time required carrying out study on
other aspects of the topic.
 c. Due to secrecy it is difficult obtain actual facts and figures of advances of branches.
 d. Study limited to Home loans.
 e. It’s hard to get permission from the bank to get all data.