Organization Profile of South Indian Bank
SECTION I
Profile Study of the Organization
1
CHAPTER 1
Industry Profile
2
Introduction
The South Indian Bank is one of the earliest banks in South India. It has become a major player in banking. It has its operations all over the country and promises to deliver the experience of next generation banking. The business of SIB is growing at higher rate both in respect of deposits and advances. SIB offers a variety of loans for different categories of people. It extends two types of credit facilities to their corporate customers. The first type known as Working capital finance is extended to meet the day to day short term operational requirements of the borrower. The second type of finance in the form of short term and medium term loans is provided to customers to meet the long term capital requirements for setting up the new project, expansion and diversification of the existing project and so on. It is the funds of depositor‟s i.e., the general public that are mobilized by means of advances. Thus it is extremely important for the bank to assess the risk associated with the credit. The process of credit rating begins when the customer approaches the bank and applies for credit. The SIB has a special department called the Integrated Risk Management Department (IRMD).The branch forwards the application to the Regional Office which initially conduct a rating and sent for evaluation to IRMD. Based on the parameters set by the Board of SIB, the IRMD analyses the details and rates the prospective customer. If the bank finds the customer eligible, the loan is sanctioned. The South Indian Bank has a comprehensive credit management policy which was tailored to fall in line with the banking guidelines issued by the Reserve Bank of India. The study is based on the credit rating process of loans in South Indian Bank. Finance today, holds the key to all human activity. It consists of raising, providing and managing of all money, capital or fund of any type to be
Profile Study of the Organization
1
CHAPTER 1
Industry Profile
2
Introduction
The South Indian Bank is one of the earliest banks in South India. It has become a major player in banking. It has its operations all over the country and promises to deliver the experience of next generation banking. The business of SIB is growing at higher rate both in respect of deposits and advances. SIB offers a variety of loans for different categories of people. It extends two types of credit facilities to their corporate customers. The first type known as Working capital finance is extended to meet the day to day short term operational requirements of the borrower. The second type of finance in the form of short term and medium term loans is provided to customers to meet the long term capital requirements for setting up the new project, expansion and diversification of the existing project and so on. It is the funds of depositor‟s i.e., the general public that are mobilized by means of advances. Thus it is extremely important for the bank to assess the risk associated with the credit. The process of credit rating begins when the customer approaches the bank and applies for credit. The SIB has a special department called the Integrated Risk Management Department (IRMD).The branch forwards the application to the Regional Office which initially conduct a rating and sent for evaluation to IRMD. Based on the parameters set by the Board of SIB, the IRMD analyses the details and rates the prospective customer. If the bank finds the customer eligible, the loan is sanctioned. The South Indian Bank has a comprehensive credit management policy which was tailored to fall in line with the banking guidelines issued by the Reserve Bank of India. The study is based on the credit rating process of loans in South Indian Bank. Finance today, holds the key to all human activity. It consists of raising, providing and managing of all money, capital or fund of any type to be