SHREE DEVI INSTITUTE OF TECHNOLOGY

SYNOPSIS ON THE TOPIC

A STUDY ON CREDIT RISK MANAGEMENT MANGALORE

BY PRASAD P K 4SH12MBA48 KARAMBAR HOUSE BAJPE POST, MANGALORE

574142 PH: Email id:

INTERNAL GUIDE : MR.SUBHASH NAIR PROFFESOR MBA DEPT. SDIT EXTERNAL GUIDE: MR.BABUILLAVA(BCOM,CAIIB) GM SCDCC BANK MANGALORE

Student Signature

Internal Guide

Domain expert

Head Of Department

INTRODUCTION:
Credit risk refers to the risk that a borrower will default on any type of debt by failing to make required payments. The risk is primarily that of the lender and includes lost principal and interest, disruption to cash flows, and increased collection costs. The loss may be complete or partial and can arise in a number of circumstances.

About SCDCC BANK:

The Bank was registered in 1913 and started formal functioning from 1914. Puttur was the first registered office of the bank subsequently it was shifted to Mangalore. The Bank is having 63 Branches including service Branch spreading over the undivided South Canara District at Mangalore. Passing of Indian Co-operative Societies Act 1912 is an important land mark in the Co-operative movement in the country. As a result of this, a number of Co-operative Societies had been organized in the district by the people and question of financing them had to be tackled. This task in the first instance was undertaken by the Puttur Rural Credit Coop. Society which was established in June 1912. But experience soon proved that its constitution and resources were inadequate for this task and the enthusiastic pioneers who were responsible for ushering it in to existence applied their minds to the formation of a District Bank with the avowed purpose of financing Primary Societies. Thus come into existence on 30th November 1913 the South Canara District Central Cooperative Bank which was formally started on its work on 24th January 1914 with head office at Puttur. Founded by Late Molahalli Shiva Rao, the Bank was started in 1914 as 7th Central Coop. Bank in the erstwhile Madras presidency at Puttur which was later shifted to Mangalore in 1927.Late Molahalli Shiva Rao, Father of the Coop. Movement of the District and his team of selfless workers were responsible for the establishment and development of the Bank and also several Coop. Institutions like Primary credit Co-operative, Consumers, Marketing , Industrial and other Societies. The dedicated, sincere, selfless work of the Veteran Co-operators helped the movement to spread far and wide and served the necessities of all the villages in the district resulting in a strong base for the Co-operative Institution and the Co-operative movement.

Started under his able and spirited guidance, the Bank had grown, developed and marched through progressive path and has reached a new height of achievement. The Silver Jubilee Celebration in 1939,Golden Jubilee in 1964, Diamond Jubilee in 1974, Platinum Jubilee Celebration in 1991 were the important land marks of the progress and milestone of the progress achieved by the Bank.

OBJECTIVES:
To study credit risk mgt at banking sector Study expected n unexpected loss of credit To study dif credit rating method n understanding credit rating procedure used in SCDCC Bank To gain insight into credit risk activities of SCDCC Bank.