Credit Appraising the Indian Retail Industry Research Paper

Looks at the credit appraisal system of the Indian bank HDFC and at the Indian retail industry as would be required for a credit appraisal.
# 145702 | 17,700 words | 5 sources | MLA | 2007 | IN

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This paper first explains that a credit appraisal necessitates an in depth analysis of a company, which evaluates its operating efficiency, financial strength and the security of the lent money, in order to decide to issue credit to the company. Next, the author presents an extensive analysis of the prospects of the Indian retail industry and various retail chains, which would be part of a credit appraisal. The paper cautions that a credit appraisal, which is a projection into the future, is based on both qualitative and quantitative information that is subjected to error.
The paper includes several tables.

Table of Contents:
Table of Contents
Executive Summary
Objectives of the Study
Wholesale Banking Services
Retail Banking Services
Emerging Corporates Group
Credit Appraisal: An Introduction
Credit Decision
Credit Appraisal Memo (CAM)
Information to be Analyzed in a Credit Appraisal Memo
Information on the Management and the Key Personnel of the Company
Information on the History and Background of the Company
Total Facilities Availed with other Banks/ Institutions
Information about the Group Companies
Information on the Products of the Company
Information on the Raw Materials Used by the Company
Information on the Production and Capacity of the Company
Information on the Marketing Network of the Company
Industry Analysis
In Depth Analysis of the Company Financials
Information on the Expansion Plans of the Company
Assessment of Maximum Permissible Banking Finance (MPBF) for the Current Year
Terms of the Facilities
Types of Credit Facilities
Fund Based Facilities
Cash Credit and Overdraft
Term loans
Bill Finance
Non-Fund Based Facilities
Letter of Credit Facility
Working Capital Finance
Appraisal of Bank Finance
Various Methods of Lending
Bank Guarantee
Types of Guarantees
Appraisal/ Sanction of DPG facility
Letter of Credit
Parties to a Letter of Credit
Assessment of Letter of Credit Limits
Assessment of DP-LC Limit
Assessment of DA-LC limits
Summary of General Credit Principles for Making Credit Decisions
How do we Make Credit Decisions?
Retail- An Introduction
Retail Defined
Value Proposition
Organized Retail Defined
Advantages of Organized Retailing - Efficiencies
Levels in Retail
Retail Evolution
Traditional vs. Organized Retail
SWOT Analysis of Traditional
Advantages of Traditional and Organized Stores
Verticals in Retails
Food and Grocery Retail
Clothing and Textile
Electronics and Consumer Durables
Jewelry, Fashion Accessories and Beauty Products
Home Decor and Furnishing
Modern Store Formats
Value Retailing
Lifestyle Retailing
Departmental Stores
Apparel stores
Specialty Stores
Discount Stores
Shopping Malls
Emerging Trends in the Indian Retail Industry
Increasing Share of Organized Retail
Domestic Retailers in a Rush to Capture Large Market Share
New Domestic Entrants to Further Spur Growth
Global players: Planning Establishments
Movement towards Smaller Cities
Large Store Sizes
Formats Customized to Local Requirements
ITC Chaupal Sagar: A Case in Point
Specialty Retailing
Shrinking Catchments
Corner Stores at Petrol Pumps, Multiplexes, Etc in Neighborhood Areas
Strengthening the Back-End
Proliferation of Malls
Increasing Lease Rentals: Hurdle to Fast Growth
Growth of Organized Retail
Retail Industry to Witness Multiple Stages of Growth
Key Cities in India
Delhi: Most attractive destination
National Capital Region (Delhi)
Bangalore, Hyderabad and Chennai
Ahmedabad and Pune
Retailing: Growth Drivers
Higher Disposable Income and Economic Perspective
Demographic Changes
Change in Consumer Outlook towards Branded Products
Growth in Retail Malls
Increased Usage of Credit Cards and Availability of Cheap Finance
Key Success Factors for Organized Retailers
Consistency in Positioning
Scale of Operations
Supply Chain Management
Challenges for Organized Retail
Unavailability of Suitable and Low-Cost Real Estate
Multiple Legislative Laws Lengthen Procedures
Multiple Taxation Complicates Uniform Pricing
Supply Chain Bottlenecks
APMC Curtails Direct Sourcing from Farm Level
Unavailability and High Cost of Trained Manpower
Foreign Direct Investment in the Indian Retail Industry
Entry of International Players
Cash and Carry Wholesale Trading
Joint Venture
Foreign Direct Investment (FDI) in Indian Retail
Impact of Recent Guidelines on FDI in Retail
Entry of New Players Restricted to Premium Luxury Retail
Retail Chains Tapped
Cantabil International Private Limited
W Women's Wear
Limitations of Credit Appraisal

From the Paper:

"An efficient supply chain management is the backbone of an organized retail chain. The reach and depth of the chain is the key to winning the competition. In a market, where players cannot survive by increasing end prices (particularly in the value segment), the player who is able to integrate backwards and squeeze higher margins by saving supply chain costs will see higher profitability. It also allows the player to procure the best quality goods from the source of production/manufacture, and thus, to provide variety at a greater value for money."

Sample of Sources Used:


Cite this Research Paper:

APA Format

Credit Appraising the Indian Retail Industry (2010, November 24) Retrieved August 14, 2020, from

MLA Format

"Credit Appraising the Indian Retail Industry" 24 November 2010. Web. 14 August. 2020. <>