Punjab National Bank Sensitivity Analysis

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About Punjab National Bank 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 5100 branches across 764 cities and serves over 63 million customers. It has presence throughout the length and breadth of 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 large presence and vast resource base have helped the bank to build strong links with trade and industry.…show more content…
The viability of a project is dependent on various factors which include selling price, cost of raw materials, cost of finance, availability of critical inputs and dependence on market like buyer/seller market, other key technical parameters etc. In the absence of any defined factors and its values for carrying out the sensitivity analysis, it has been decided that a common 5% sensitivity factor on sale price/cost price of major raw materials should be applied in appraisals of all the projects irrespective of the industry. However, 10% sensitivity factor may be applied in highly volatile industries by assessing the expected volatility in sale price/ cost price of major raw materials in future on case to case basis. Techno-Economic Viability…show more content…
The system is applicable to all borrowal accounts having sanctioned limits (FB plus NFB) above Rs. 1 crore. The model for PMS has also been placed in central server environment. This system is a dynamic system for tracking the health and conduct of borrowal accounts to capture the signals of early warning. Timely decision should be taken on the future course of action in the borrowal accounts depending upon PMS rank. Stock Audit Bank has a policy to conduct annual stock audit (including book debts) for all accounts with fund based working capital limits of Rs.5 crore and above whether standard or NPAs. Annual Stock Audit is compulsorily conducted in all accounts with risk rating ‘B’ & below and having fund based working capital limits of Rs. 1 crore and above. Monitoring of Weak and Irregular Accounts The bank has established systems for Inspection and control of its lending activity to ensure that loan accounts are conducted in terms of sanction so as to have a sound credit portfolio. Credit Division, HO monitors all weak and irregular loan accounts below standard category having outstanding of above Rs.10 lac on monthly
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