Property valuation for a bank loan: process, documents and what affects the value
How a loan-security valuation of land and buildings is carried out, which documents the valuer needs, why the bank’s value differs from the…
Services · Operations
IBBI-registered, IVS-compliant valuation of land, buildings, plant and machinery, brands, enterprises and financial securities.
Overview
Government Approved and IBBI-registered valuation across all three asset categories — Land and Building; Plant and Machinery; Securities and Financial Assets. Reports are IVS-compliant and built to the standard required for RBI-compliant credit appraisal, financial reporting under Ind AS, mergers and acquisitions and NCLT proceedings.
We value land, buildings, plant and machinery, vessels, aircraft, brands and other intangibles, enterprises and financial securities — ₹10 lakh crore of assets assessed to date.

Deliverables
Approach
Purpose, basis of value and reporting standard agreed with the lender.
Physical inspection by our own registered valuers and engineers.
Cost, market and income approaches applied and reconciled.
IVS-compliant report, signed by an IBBI Registered Valuer.
Typical triggers
Sanction, renewal and periodic revaluation of mortgaged land, buildings and plant, in the bank-prescribed format.
Fair value, purchase-price allocation and impairment testing under Ind AS, including for listed groups.
Sale, merger, one-time settlement, ARC transfer and IBC proceedings, where the value must withstand challenge.
Track record
Renewable Energy
Techno-Economic Viability study across two locations covering 152 MW wind, 500 MW solar and 600 MW of battery energy storage.
TEV StudyInfrastructure
Project Monitoring Agency across ten concurrent national mandates including the Nagpur–Mumbai Expressway, Delhi–Meerut RRTS, the Rohtang Pass tunnel and the Mumbai–Pune Missing Link.
Project MonitoringConstruction
Project Monitoring Agency across ten construction projects including CIDCO Navi Mumbai, MHADA and the Karwar Naval Base.
Project MonitoringInsights
How a loan-security valuation of land and buildings is carried out, which documents the valuer needs, why the bank’s value differs from the…
Cost, market and income approaches explained with examples — replacement cost new, depreciation for age and obsolescence, and why a…
Relief-from-royalty and excess-earnings methods for brands, DCF and market multiples for enterprise value, and where Ind AS, the Companies…
Questions
All three IBBI asset classes: Land and Building; Plant and Machinery; and Securities and Financial Assets. The firm has also been a Government Approved Valuer since 1988.
Reports comply with the International Valuation Standards and the IBBI valuation framework, and follow the format prescribed by the appointing bank or institution.
Always. Every valuation is based on a physical inspection by our own engineers, architects or valuers. Site visits are never sub-contracted.
Most lenders treat a report as current for twelve months, or less where the market or the asset has changed. We state the valuation date and the basis in every report.
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