Credit evaluation is the process of ascertaining the risks associated with extending your line of credit. Financial institutions involved in providing financial financing to their customers carry this forward. Banks have credit policies that guide them in the credit granting process. These policies set out the rules about who should access credit, why and when credit should be obtained, including repayment methods and necessary collateral. The method of evaluation and risk assessment of each potential applicant are part of a credit control policy (Payle,1997). The study on “The Credit Appraisal Process Of SBI Bank” – This process is carried out to verify the commercial feasibility, technical feasibility and financial feasibility of the proposed project and its financing model. The basic types of credit provided by the bank are: 1) Service credit for monthly utility payments 2) Secured or unsecured loans 3) Installment credit for purchases such as cars, appliances, etc. 4) Interest-free loan, for example credit cards This study provides an overview of the credit evaluation process is carried out which starts from the receipt of the application and relevant documents from the applicant, cross-checking the database of the defaulting debtor with the history financial position of the applicant, the valuation of the property, the related documentation for the disbursement of the loan and finally the disbursement of the loan. It also emphasizes the external factors (business and industry environment) and internal factors (managerial ability and financial strength) that determine a company's risk exposure. In the field of credit risk assessment the Bank has played a proactive and pioneering role. The bank has its own Credit Rating (CRA) system, which was introduced in the bank in 1996 and the first CRA model was then launched on......half of paper......millions of loans )/( Term Loan Interest+ Term Loan Installments)• The risk classification framework in the bank analyzes each proposal on various parameters and the overall risk involved in a project is determined• Techniques like IRR and NPV are used for evaluation of the project Overall the credit assessment mechanism of Allahabad The bank appears meticulous. It involves the optimal application of analytical and computational skills. Further Canara bank analyzes the following ratios: • Liquidity Ratios – Quick Ratio and Current Ratio • Capital Structure Ratio – Ownership Ratio and Debt-Equity Ratio • Coverage Ratio – Interest Coverage Ratio • Profitability Ratios – Gross Profit, operating profit and net profit ratio, return on invested capital, return on assets • Asset turnover ratio: debtors velocity, creditors velocity, equity turnover ratio, fixed asset turnover ratio.