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image MSME CREDIT RATING PROCEDURE

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.

In the existing pattern the rating numeric attached to various risks are as under:

Credit Quality

Rating Numeric

Lowest Risk

CR-1

Minimal Risk

CR-2

Moderate Risk

CR-3

Satisfactory Risk

CR-4

Acceptable Risk

CR-5

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.


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