Ice Cream Questionner
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EXECUTIVE SUMMARY
Banking has defined by banking regulation Act of 1948 as “It is accepting for the purpose of lending or investment of deposits from the public, repayable on demand on otherwise and with drawables by cheque, draft orders or otherwise”.
In this “On demand era”, banking industry has also become extremely competitive. Over a period of time, good management of industries turns in bad ones and cause the failure of units .This necessitates the continuous vigilance and review of management by leading bankers. It is therefore necessary to study the process of appraising the projects by leading banker in sanctioning the loans. Therefore granting of loans involves intensive security of the clients credibility and past performance.
With the increase in the number of proposals, the banks have to maintain an effective “Project Appraisal System” in order to appraise the creditworthiness of the customer. An effective project appraisal system reduces the change of bad loans.
This project titled “Project Appraisal” carried out at Vijay Bank is a study conducted on various method of appraising a project of business groups who approach vijaya bank for its project financing requirements.
PROFILE OF BANKING INDUSTRY IN INDIA
PROFILE OF BANKING SECTOR IN INDIA
Banking Regulation Act of India, 1949 defines Banking as “Accepting, for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdrawal by cheques, draft, order or otherwise.”
Most of the activities of bank performs are derived from the above definition. In addition, banks are allowed to perform certain activities, which are ancillary to this business of accepting deposits and lending. Another activity that is assuming increasing importance is transfer of money- both domestic and foreign- from one place to another. This activity is generally known as “remittance business” in banking parlance. A banks relationship with the public, therefore, revolves around accepting deposits and lending money.
The English word bank has been derived from Italian word “Banco”, the Latin word bancus that means, “Bench”. It is believed that Medieval European bankers transacted their banking activities through Money Changing and money lending by coins of different countries in big heap on the Benches.
G. CROTHER defines a banker as “a dealer in debt, his own and other people”. According to this definition the essential function of a bank is dealing in debt or money i.e., accepting deposits of money from the public and lending of funds to the needy.
The history of Indian banking industry begins from the performances of money lending business by a small number of big commercial banks with huge financial resources and diversify banking activities spread over all parts of the country.
There is no doubt that today banking services have become a part of our everyday life. Banks are institutions dealing with money and credit and are responsible for the movement of money across the economy.
In simple words BANKING is an activity that involves the primary function of mobilizing profits through money dealings. Since profit making and maximizing becomes the fundamental objective, the banking can be renamed as COMMERCIAL BANKING.
Commercial banks have a very important role to play in a developing economy like ours. Some important features of role played by banks are enumerated as follows;
Capital formation
Monetization of economy
Influencing economic activity
Regional development
Development of agriculture and other neglected sectors.
Implementation of monitory policy
Entrepreneurial promotion
Improving standard of living
VIJAYA Bank is one such commercial bank, whose popularity and customer base is growing day by day and from year to year.
CHANGING ROLE AND RECENT DEVELOPMENTS OF COMMERCIAL BANKING IN INDIA
The assumptions of social responsibility by commercial banks in the recent years are mainly responsible for the changing role of India Commercial banks. The Indian banking System had gone through a series of crises and bank failures and consequently its growth was quite slow during the first half of this century. But after Independence, the Indian banking System recorded rapid progress. This was due to:
The planned economic growth
Increase in money supply
Growth in banking habits
Control and guidance by the RBI etc
But particularly after the Nationalization of the 14 leading Commercial banks in July 1969, both Public Sector and Private Sector banks have taken banking to the masses and served the different sectors of the society through varied and innovative banking activities or services.
Late Prime Minister Smt. INDIRA GANDHI strived and took a bold step of Nationalization 14 major commercial banks in 1969, July 19th and 6 more in 1980.
The 14 Nationalized banks are:
Allahabad bank
Bank of India
Bank of Baroda
Bank of Maharashtra
Canara Bank
Central Bank
Dena Bank
Indian Bank
Indian Overseas Bank
Syndicate Bank
Union Bank of India