Project of Icici
-
Upload
ashwini-sawant -
Category
Documents
-
view
214 -
download
0
Transcript of Project of Icici
-
8/3/2019 Project of Icici
1/4
PROJECT
CREDIT RISK MANAGEMENT IN ICICI BANK
M.M.S ( FINANCE) DEGREE
BY
Miss ASHWINI SHRIRAM SAWANT
DIVISION (A) ROLL NO (50)
UNDER GUIDENCE OF
Prof. Mrinal Savyanavar
-
8/3/2019 Project of Icici
2/4
1. IntroductionAs a financial intermediary, ICICI Bank is exposed to risks that are particular to
its lending and trading businesses and the environment within which it operates.
ICICI Banks goal in risk management is to ensure that it understands, measures
and monitors the various risks that arise and that the organization adheres
strictly to the policies and procedures which are established to address these
risks.
ICICI lending operations are principally exposed to credit risk. In order to
assess the credit risk associated with any financing proposal, ICICI Bank
assesses a variety of risks relating to the borrower and the relevant industry.
ICICI Bank has a scale of 10 ratings ranging from AAA to B and an additional
default rating of D. Credit rating is a critical input for the credit approval
process.This project would help us to understands In the bank's portfolio, losses stem
from outside default due to inability or unwillingness of the customer.
2. Research MethodologySECTOR : These Sector is Bank and the player is ICICI under credit risk
management
DATA COLLECTION :
The data collection i.e. the raw material input for the project has
been collected keeping in mind the objectives of the project and
accordingly relevant information has been found. The methodology used
is a descriptive method of the Research. Following are the sources:
PRIMARY DATA
The data regarding CREDIT RISK MANAGEMENT was collectedthrough primary data:
Semi-structured interviews were conducted with MR. Vivek Pal,
Manager RAPG personal loans of ICICI bank, Mr. Bilal Anwar, Credit
Analyst of IDBI BANK LTD., and Mr. Shahji Jacob, Chief Manager of
The FEDERAL BANK Limited. This was done to understand the current
-
8/3/2019 Project of Icici
3/4
practices and the style of functioning of the credit risk management
departments of private banks.
SECONDARY DATA
The data had been collected by reading various books on CreditRisk Management, Bank Quest, Bank Weekly and relevant Websites
(refer Bibliography).
2:1 Objective & Hypothesis Statement
The objective would beto provethe followinghypothesistrue:Determination
of objectives is the first step in the risk management function. The objective
may be to protect profits, or to develop competitive advantage.
2.2 Importance of study
ICICI Bank has a strong framework for the appraisal and execution of project
finance transactions. ICICI Bank believes that this framework creates optimal
risk identification, allocation and mitigation, and helps minimize residual risk.
The project finance approval process begins with a detailed evaluation of
technical, commercial, financial, marketing and management factors and thesponsor's financial strength and experience.
2:3 Benefits of study
Rising global competition, increasing deregulation, introduction of innovative
products and delivery channels have pushed risk management to the forefront of
today's financial landscape. Ability to gauge the risks and take appropriate
position will be the key to success.
3. SAMPLING METHODThe Sampling Method was used to collect the data about
the current practices followed by the private banks in India as far as
credit risk management goes.
Only Private Banks have been taken because the purpose of
this project was to understand the in-depth knowledge on Private Banks
practicing Credit risk management.
-
8/3/2019 Project of Icici
4/4
4. LIMITATIONS: Visiting all private sector banks was not possible.
Banks have certain rules and regulations.