Chapter

Project Appraisal and Lending Decisions

Hrishikes Bhattacharya

in Banking Strategy, Credit Appraisal, and Lending Decisions

Second edition

Published in print October 2011 | ISBN: 9780198074106
Published online September 2012 | e-ISBN: 9780199080861 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780198074106.003.0018
Project Appraisal and Lending Decisions

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This chapter applies some of the techniques presented in earlier chapters in order to make a comprehensive analysis of a project, from the perspective of a bank when it is expected to finance both its term loan and working capital loan requirements. Using the case of a project proposal, received by the manager of a branch of a nationalised bank located in a jute growing area, this chapter illustrates the methods of project appraisal.

Keywords: project proposal; financial analysis; cost structure; salvage value; projective revenue; cash flows; working capital; term loan; break-even point; profitability index; internal rate of return; repayment capacity

Chapter.  9221 words. 

Subjects: Financial Markets

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