STATEMENT OF PROBLEM: To study the emergence and evolution of the corporate banking as an important division of the commercial banking and also to study the credit appraisal models supporting the increased activities of corporate lending by banks.
In today’s global Banking arena, Corporate Bankers are facing a string of unprecedented and sweeping challenges in the areas like Treasury Management, Trade Finance, Risk Management, Compliance Management, Electronic Trading and Derivatives Markets. Compounding this are the mounting complexities from ongoing regulatory changes, decreasing margins and fierce competition
NEED FOR STUDY:
Over the period of time, with the tremendous increase in the growth pattern of industrial development, the need for the corporate loans have increased more than ever. So, the increasing trend urges the banks and financial institutions to focus on corporate banking as a separate division. So, the researchers have preferred to study the concept of corporate banking and all the operational aspects attached to it in the entire process.
OBJECTIVE OF THE STUDY:
- To study the banking industry, as a whole with the help of various analysis including SWOT analysis, PEST analysis and Porter’s Five Force analysis.
- To acquire basic knowledge about the corporate lending in India and its relevance with respect to banks.
- To analyze the credit risk models of both public bank and private bank and bring out its comparative picture on the basis of various parameters.
- To study credit risk management strategies of bank.
A research design is the arrangement of the condition for collection and analysis of data. Actually it is the blueprint of the research project. The research type is descriptive research. The main objective of this design is search primary and secondary data.
The research primarily focuses on the secondary sources and first hand information through focus group interviews.
As the research type is descriptive, the method of data collection was informal.
The relevant information were collected from both primary and secondary sources like follow up with bank managers web search, newspaper articles
Focus group interviews with the managers of banks.
For the banks:
It will give them the in depth review of the various aspects involved in the corporate banking with emphasis on the credit risk management.
For the corporate:
The report shows the comparative study of the credit appraisal and sanctioning procedure involved in the credit lending by banks as well as financial institutions. Secondly, they will also get the relevance of the corporate lending by the banks and its various relevant aspects.
For the management students:
The report studies the entire banking industry from various aspects using different analytical tools. Secondly, it introduces into the world of credit lending and its trend in India. Moreover, it also shows the operational procedures involved in the corporate lending with emphasis on risk modeling and credit risk management.
LIMITATIONS OF THE STUDY:
The scope of the report is mainly depends on the information extracted from secondary sources and the information given by the managers of banks. So, lack of the availability of the first hand information may act as a limitation to the project report.