RATIO ANALYSIS AND CREDIT APPRAISAL IN HOUSING FINANCE AT IDFC FIRST BANK

Abstract

This study examines the effectiveness of credit evaluation and ratio analysis in home financing, with a particular emphasis on IDFC First Bank. It examines the financial ratios that banks employ to assess the creditworthiness of a borrower and the financial health of the bank. The study underscores the importance of liquidity, profitability, and solvency in the decision-making process for loans. Furthermore, the process of credit appraisal is addressed, which involves the assessment of repayment capacity, risk, and income. By conducting an analysis of borrower attributes, the research identifies critical factors that influence loan approval and default risk. The potential of ratio analysis to enhance sustainable lending and decrease non-performing assets. It also demonstrates that a structured credit evaluation improves the efficiency of decision-making.