VALUATION PRACTICE

UNDERSTANDING THE BANKING VALUATIONS

FOR FRESHERS

COMPLETE BOOK

VALUATION FOR BANKING PURPOSES

Banking activity means Lending, which by its nature is attached with diverse risks which can be broadly categorized as

• financial risk,
• industrial risk and management risk.

The lending branches have, apart from assessing the credit requirements of the borrower, the economic and technical viability of the activity, has to exercise a high degree of caution in examining, verifying and investigating the title of the mortgagor. This critical activities have to be entrusted to professionals outside the domain of Banks albeit to the panel Advocate and panel Valuer.

In this age of liberation, the concept of security has been relegated to the second line of defence with focus shifting to the viability of the project to be financed and the integration of the Indian Economy with the global market has ushered in newer credit risks which overnight affect the status of a loan account and so the health of the credit portfolio in these stringent times depends on the quality of the reports submitted by Advocates and the Valuers.

I would like to throw some light on what is VALUE, so that you all can have brief background as to which method of valuation to choose before doing the valuation assignment……. READ MORE