1

“Risk Management in Punjab National Bank

for Working Capital and Term Loan”

Presented By: Arshdeep Kaur

 Introduction to the Company

PUNJAB NATIONAL BANK

Introduction:
Punjab National Bank (PNB) was established in 1894 and is the second largest government owned and over all fourth
largest bank in India. It has about 6994 branches across 764 cities and serves over 110 million customers. It has presence
throughout the country and offers a wide variety of banking services that include corporate and personal banking, industrial
finance, agricultural finance, financing of trade and international banking. Among the clients of the bank are multinational
companies, Indian conglomerates, medium and small industrial units, exporters and non-resident Indians. The strength of
the bank lies in its corporate belief of growth and stability.

Vision

• “To be a Leading Global Bank with Pan India footprints and become a household brand in the Indo-Gangetic
Plains providing entire range of financial products and services under one roof"

Mission

• Banking for the unbanked.

 Objectives of the study

Understanding the different types of credit facilities and credit delivery

Objective I mechanisms provided to industrial customers viz. Overdraft, Cash Credit,
Drawing Rights, Fund Based Credit, Non Fund Based Credit etc.

Understanding the different methods available for risk vetting of lending

Objective II proposals, different risk assessment models and the different credit rating
procedures used in Punjab National Bank.

Understanding the appraisal process of Term Loan and working Capital

financing and sanctioning of working capital, issuing term loan, to
Objective III
corporate, through different case studies, on the job training.
 ANALYSIS

The credit risk rating model has been developed with a view to provide a standard system for
assigning a credit risk rating to the borrowers of the bank according to their risk profile. This model is
applicable to all large corporate borrowal accounts availing total limits (fund based and non-fund
based) of more than Rs. 15 crore or having total sales of more than Rs. 100 crore.
 CREDIT RISK MODEL

CREDIT RISK RATING IN PNB

PNB RETAIL SCORE PNB SME SCORE PNB TRAC SCORE

RETAIL LOAN Business Loan Corporate

Loan
(Any amount) (Up to 50lakh) (above 50lakh)

 Car Large(above15cr.)
 Education Mid (up to 15cr.)
 Personal small (up to 5cr.)
 House
 Process

“Process Of Spreading”

1 2 3 4 5

Receiving the Verification and Adjustments and

Request updating of all the Notes
information •Updating on Tracker
•Updating on tracker •With TASC •Updating on MRA
•Saving the Financials •With Financials

Creating record Spreading of Generating

on MRA Financials Reports
•New Customers •Balance Sheet •Saving the Report
•Existing Customers •Income Statement •Quality Check
 Recommendations and Conclusion

Recommendations Conclusion

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