The bank collects latest audited financials, analyses them and financial risk is weighed based on various performance figures / financial ratios. Management Risk & Market Risk is marked depending on collected particulars. In case of existing customers, compliance to sanction terms & business consideration are judged and marked. Then all the marks are summed up to allot the rating numeric & assess the credit risk.
Minimum Credit Rating required for considering a new proposal is CR-5 and for take over proposal is CR-4 at present. The cutoff point is changed from time to time depending on bank's requirements by the management.