Escolar Documentos
Profissional Documentos
Cultura Documentos
Y
tivity - of Borrower
Individual - Evaluating
Õ
Extent of funds available with bank
dvan e should be reasonably liquid
sset liability management, Quality of assets an
be easily onvertible to ash without loss of
value.
Collateral - absen e of risk of loss on sale of the
asset
Y
inan ial intermediaries operate for earning
profits.
Banks re eive interest on loans and advan es
and pay on deposits and differen e between
re eipts and payments shall be gross profits.
Banks in ur expenditure on establishment, rent,
salaries, in ur depre iation
Banks have to earn profits, they have to pay
dividends, even lending rates de ision taken into
a ount the likely operational expenditure.
ates depend on rates of ompeting banks,
regulatory dire tives, nature of se urity et .
In ertain servi es to a ustomer there may not
be desirable returns, however for the same
ustomer other servi es may generate more than
desirable returns.
herefore profitability may be assessed
ustomer wise. ( ustomer profitability
analysis)
Banks have to retain existing ustomers and
attra t new ones, there is a dire t relationship
between profits and pri ing of servi es offered.
a
enerally banks grant loans on the basis of
se urity provided by borrowers, in ase of
default se urity an be sold and loan adjusted.
Banks he k the nature of se urity and ensure
that it is free from en umbran es and harges.
Collateral se urity should be utilized under
extreme ir umstan es.
Ê
ever keep all eggs in same basket prin iple.
By lending to different se tors banks an save
themselves from slump in parti ular industry.
ë ÕÊÊëÊ
CHCE
ersonal hara teristi s whi h in lude honesty,
attitude, willingness and ommitments to repay
debt.
ersonal hara teristi s are very personal in nature
and it may not be possible to fudge at the time of
loaning.
Banker has to use diligen e and resour es to find out
the true hara ter of a person.
eputation need to be probed.
Y