PRE PROMOTION BOOKLET

Transcription

1 PRE PROMOTION BOOKLET

2 INDEX S. NO SUBJECT Retail Schemes MSME Schemes Gist Of Loan Policy / Recovery Policy Forex / Balance Sheet Analysis Government Schemes Priority Sector General Banking /NI Act, BR Act, RBI Act. Basel-II,III Risk Management Service Charges / Bank Results General Awareness / Recalled Ques. With Answers / MCLR Important Deposit Products PAGE 1

3 RETAIL LENDING SCHEMES 1) CENT VIDYARTHI Indian National- Should Have Secured Admission In Recognised Universities In India Or Abroad Through Entrance Exam. Courses Approved By Recognised Universities Like UGC, AICTE, ICWAI, CA, Pilot, Shipping, Aeronautical, Nursing & Other Job Oriented Courses. Polytechnic Courses, Teacher Training Are Also Eligible Provided If They Are Offered By Recognised Institutions. Central Sector Interest Subsidy Scheme Is Eligible Only For Professional and Technical Courses After Completion Of 12 th Std. For Subsidy Entitlement Upper Parental Income Should Be 4.50 Lacs Per Annum.( Courses Offered Abroad /Diploma Courses Are Not Eligible) For Education Loan-Diploma / Certified Courses Offered Abroad (Excepting Aeronautical, Pilot Training, Shipping) Are Not Eligible Under The Scheme. Maximum Loan Rs Lacs (India) And Rs Lacs (Abroad), (Only Rs Lacs Will Come Under Priority Sector) Upto Rs 4.00 Lacs- No Security/No Margin Rs 4.00 Lacs To Rs 7.50 Lacs- Third Party Guarantee Or Collateral Above Rs 7.50 Lacs- Collateral To Be Insisted. Margin- Beyond Rs 4.00 Lacs-5% In India, 15% For Abroad Interest Rate- MCLR+2 For Male And MCLR+1.50 For Female/Sc/St Students. Repayment Period: 15 Years Repayment Will Start From One Year After Course Period Loan Is Student Specific Fees Reimbursement: 3 Months From The Date Of Payment 2

4 Caution Deposit- Upper Cap-10% Of Tuition Fees And Other Fees Apart From Exam, Library, Reasonable Hostel Fees, The Upper Cap Is 20% Of Tuition Fees. Insurance Covering Life Of The Student Is A Must Padho Pradesh- Int. Subsidy For Minority Students Pursuing Masters / PHD Abroad (Upper Parental Income Rs 6.00 Lacs) 2) CENT VIDYARTHI NCGTC (NATIONAL CREDIT GUARANTEE TRUSTEE COMPANY LTD.) GUARANTEED The Student Should Be An Indian National. Should Have Secured Admission To A Higher Education Course In Recognized Institutions In India Or Abroad Through Entrance Test/ Merit Based Selection Process After Completion Of HSC (10 Plus 2 Or Equivalent). Maximum Rs Lakh. Upto Rs Lakh - Nil ROI- MCLR+2 Annual Guarantee Fee Of 0.50% Of The Outstanding Loan Amount Payable To NCGTC Shall Be Borne By The Bank. Guarantee Cover- 75% Of The Amount In Default. Lock In Period- 12 Months From The End Of Moratorium Period Or Commencement Of Guarantee Cover Whichever Is Later. Guarantee Can Be Invoked Within 12 Months From The Date Of NPA If NPA Date Is After Lock In Period. If NPA Date Is Within Lock In Period, Within 12 Months From The Date Of Lock In Period. Maximum 15 Years After Moratorium Period Of Course Period + One Year No Collateral Security or Third Party Guarantee. 3) CENT SCHOOL TO HNI CUSTOMERS 3

5 Clean Demand Loan For School Education HNI With Monthly Income Above Rs. 2 Lacs/ NRI Jointly With Resident Relative 5th Std To 12th Std In Approved Schools Margin 10 % Minimum Rs 2 Lacs & Maximum Rs 10 Lacs Rate Of Interest MCLR + 1 % Repayable In 10 Months- PDC For Bullet Payment To Be Obtained Eligible Fees Fees Payable To School, Text Book, Uniform, Study Tour, Exam Fees, Sports Fees, Computer Fees & Hostel Fees Processing Charges Nil Sanctioning Powers Scale III Rs 2 Lacs Scale IV & Above Rs.10 Lacs 4) CENT SKILL ( VOCATIONAL EDUCATION AND TRAINING) Course Supported By Govt. of India, Or Company Supported By National Skill Development Corporation, State Skill Corporations. Minimum Rs 5000, Maximum Rs Margin-5% ROI-MCLR+0.50% No Collateral/Third party Guarantee. Repayment- Loan Upto Rs Upto 3 Years, Loan between Rs To Rs 1.00 Lac-Upto 5 Years. Loan Above Rs 1.00 Lac- Upto 7 Years. 5) EDUCATION LOAN TO STUDENTS OF IIMS AND 4 REPUTED INSTITUTIONS. 4

6 Revised Maximum Loan Limit- Rs Lacs. No Collateral/Third Party Guarantee. No Margin. Male With Joint Borrower, Female, SC/ST/Minority- MCLR Male Without Joint Borrower- MCLR+0.50%. Living Expenses Up To /- Considered. Repayment- Loan Up To Rs 7.50 Lacs- 10 Years And Above Rs 7.50 Lacs- 15 Years. 6) CENT HOME For Individuals, Self Employed, Professionals, Coop Societies. For Purchase Of Plot And Construction, Construction And Purchase Of Flat/Repairs And Renovations. For Salaried Class, Form 16/IT Returns To Be Obtained/Latest Salary Certificate. For Self Employed/Professional/Agri. Tahsildar Income Certificate Can Be Accepted If The Loan Amount Is Upto Rs Lacs. For Loan Above Rs Lacs- It Returns For The Preceding Two Years To Be Submitted. For Professionals And Self-Employed People, Provisional Income Can Also Be Accepted Provided If They Submit It Returns For The Last Three Years. The Estimated Income (Increase) Should Not Be More Than 20% Of Annual Income Of Preceding Financial Year. Plot On Standalone Basis Not To Be Financed. Value Of Plot Shall Be 75% Of Guideline Value Plot Value Should Not Be More Than 75% Of Housing Unit. For Purchase Of Plot And Construction-If The Construction Does Not Start Within 2 Years From The Date Of Loan, Then The Loan Will Be Recalled And Interest Rate At MCLR+8 Will Be Charged From The Date Of Loan Repairs Maximum Rs Lacs And Repayment Is 120 Months For Repairs And Extension Of House. 5

7 Repayment Maximum 30 Years Or Borrower Reaching 70 Years Whichever Is Less. Existing House- More Than 10 Years Old, Maximum Period Will Be 25 Years Or Borrower Reaching 70 Years. Note- Residual Life Of The Building Should Be Repayment Period+ 10 Years. Margin- For Loan Upto Rs Lacs- 10% From Rs To Rs Lacs- 20% Beyond Rs Lacs- 25% For Repairs /Purchase Of Plot Margin Will Be 25% Take Home Pay Gross Yearly Income Of Rs 5.00 Lacs-35% Of GMI GYI Of Above Rs 5.00 To Rs Lacs -30% Of GMI Gross Yearly Income Of Above Rs Lacs- 25% Of GMI Moratorium Period- 36 Months( 6 Months After Completion Whichever Is Earlier), For Repairs/Extension 3 Months No Guarantee For Salaried Class And Guarantee Is Waived For Others Who Seek Loan Upto Rs Lacs. No Loan For Third House. For Construction, Loan Upto Rs Lacs Can Be Disbursed Directly To The Credit Of Party s Account In Stages. For Repairs, Extension Loan Upto Rs 5.00 Lacs Can Be Disbursed To The Credit Of Borrowers Account In Stages. Processing Charges-0.50% Of Loan Or Rs (Waived Upto 31/03/2017) Interest Rate- MCLR Irrespective Of Loan Amount. Take Over Norms: No Need To Refer It To Higher Authority If The Amount Is Within The Delegated Powers Of The Sanctioning Authority Conditions For Take Over The Asset Should Not Be A Npa/Restructured Asset In The Books Of The Previous Banker. Total Repayment Period Including The Period Of Loan In The Books Of Previous Banker Should Not Exceed 30 Years. NPA Trigger Point For Housing Loan-3% 7) CENT HOME LOAN SCHEME FOR PURCHASING 3RD OR 4TH HOUSE/FLAT 6

8 Conditions Are Same Like Cent Home Scheme Except The Following Margin- 25% Purchase Of Existing House Not Older Than 40-Ratification Should Be Sought From RM Interest Rate: MCLR+1% Sanctioning Authority- Scale 3(Rs Lacs), Scale 4-Rs Lacs, Scale 5- Rs 150 Lacs, Scale 6 Rs Lacs And Scale 7- Rs Lacs. Loan Amount Upto Rs Lacs Can Be Credited To Borrowers Account In Stages. Classification: CRE-Risk Weight-125% 8) OD TOPUP FACILITY TO CENT HOME LOAN BENEFICIARIES For Existing HL Customers Including Staff Members. Personal Purpose Not For Speculative Quantum- 36 Times Of GMI/ 3times Of GYI (Other Than Salaried) With Minimum Of Rs 2.00 Lacs And Maximum Of Rs Lacs. Margin 50% On Residual Value Of The Property. Interest Rate- MCLR+1 Processing Charges- 0.50% Of Loan Amount With Maximum Of Rs 10000/( Renewal Charges- 0.10% With Maximum Of Rs 2000) Delegatees In The Rank Of Regional Manager /Senior Regional Manager Are Authorized To Give Concession Up To 25 Basis Points And Zonal Manager /Field General Manager Up To 50 Basis Points In Rate Of Intent. In Any Case, Maximum Concession Should Not Exceed 50 Basis Points. 9) CENT HOME DOUBLE PLUS OD Facility In Housing Loan. Purpose: Construction, Purchase Of Flat, House, Plot And Construction. 7

9 Repayment- Maximum Of 30 Years. Moratorium Period Of 36 Months. Additional Term Loan Apart From OD Is Also Given To The Extent Of 10% Of Housing Loan Subject To Maximum Of Rs Lacs. Repairs And Renovations-MCLR (10 Years),Min Rs 1.00 Lac And Max Rs Lacs Solar Energy Equipment MCLR ( 3 Years),Min Rs 10000/- And Max Rs Lacs-Margin-25% Children Marriage- MCLR+1.50.(Min Rs 10000/- And Max Rs 5.00 Lacs,3 Years-Margin-25%) Family Holiday, Travel- MCLR+2.00.(Min Rs 10000/- And Max Rs 5.00 Lacs, 2 Years Existing Term Loan Account Can Be Converted To OD Provided The Minimum Outstanding Amount Is Rs Lacs. One Time Charge Of 0.50% Of Loan With Maximum Of RS Will Be Levied For Such Conversion. 10) CENT TRADE Retailers, Distributors, Manufacturers, Service Providers, Commission Agents, Proprietorship, Partnership, Companies. Minimum Amount - Rs 2.00 Lacs Maximum Amount - Rs Lacs, 8

10 Assessment-20% On Projected Annual Turnover.( Vat Returns For 2 Years To Be Obtained) For Existing Traders Increase In Projection Should Not Be More Than 30% Of Last Year Turnover, For New Traders Projection Should Be Verified And Inspection Should Be Done By 2 Inspecting Officials. TL Facility Has Been Withdrawn Collateral Property Value Should Be 150% Of Loan Upto Rs Lacs (Distress Value 120%) 200% Of Loan Above Rs Lacs (Distress Value 150%) For NSC - Value Should Be 125% Of Loan Amount. (LTV Will Be 80%) FDR - Value Should Be 112% Of Loan Amount (LTV Will Be 90%) Other Govt. Securities Value Should Be 133% Of Loan Amount. (LTV - 75%) For Property Valued Above Rs Crores, Valuation To Be Obtained From 2 Independent Panel Valuers. Int. Rate Depends On Rating For Dealer Of Fertilizers, Pesticides, Seeds, Agri. Implements, Other Activities Related To Agri. Marks Int. Rate For Others 40 TO 50 MCLR+2.25 MCLR TO 44 MCLR+2.50 MCLR TO 39 MCLR+2.75 MCLR+1.75 LESS THAN 35 MCLR+3.00 MCLR+3.00 Deviation For Commission Agents And Arthias Under CENT TRADE. If Limit Is Up To Rs 5.00 Crores, Then The Interest Rate Will Be MCLR+1.00 Irrespective Of Loan Amount, Property Value Should Be 150% (Distress 125%) Of Loan Amount. Audited Financial Statements For Last Three Years In Case Of Limits Above Rs Lakh Should Be Obtained. For Limits Up To Rs

11 Lakh, If Audited Financial Statements Are Not Available, Self-Certified Financial Statements For Last Three Years Can Be Accepted Property Already Mortgaged To Some Other Facility Can Also Be Extended To Cent Trade Provided Adequate Residual Value Is There And Existing Account Is Regular For One Year.(Approval Of Higher Authority Is Required) NPA Trigger Point= 4% 11) CENT MORTGAGE Can Be Given To Individuals And Firms. Trusts, NBFC, Real Estate Companies, Firms Where HUF is A Partner Are Not Eligible. Loan Against Mortgage Of Immovable Property, Vacant Land Can Be Considered Only By CM And Above. Facility- TL/OD Minimum Annual Income Should Be Rs Minimum Age Is - 21 And Maximum - 60 Years For OD For TL Maximum 70 Years Of Age At End Of Tenure Of Loan. Quantum Of LoanIndividuals- 36 Times Of GMI Or 3 Times Of GYI Subject To Minimum Of Rs 1.00 Lac And Maximum Of Rs Lacs For Property Located In Rural/SEMI Urban Areas. SEMI Urban Branches Situated In District Headquarters Maximum Is Rs. 200 Lacs. Minimum Of Rs 5.00 Lacs And Maximum Of Rs Lacs For Property Located In Other Areas And Also SEMI Urban Branches In The State Of Goa. Other Than Individuals/Firms - 5 Times Of Average Annual Cash Accruals Of Last Three Years. THP Should Be 50% Of GMI And For OD Notional Interest Should Not Be More Than 30 % Of GMI. If GMI Of The Applicant Is More Than Rs In Rural Areas And Rs In Urban And Metro, Then THP Can Be 40% Of GMI And Notional Interest Should Not Be More Than 40% Of GMI. Loan To Value Of Property-50% Of Market Value Or 75% Of Distress Value Whichever Is Less. Int. Rate MCLR Property Should Be In The Name Of The Borrower/Borrowers 10

12 Repayment Period- Maximum 10 Years Or Borrower Reaching 70 Years Whichever Is Less And For OD Renewable On Annual Basis Up To 70 Years. CENT MORTGAGE TO EDUCATION INSTITUTES Scheme For Financing Private Educational Institutions Against Mortgage Of Property With Building Owned By Them. Loan Is Allowed Against Mortgage Of Immovable Property With Institute Building Located In Metro / Urban / SEMI-Urban Centres The Private Educational Institutions Incorporated As Society / Trust Should Be In Existence For Minimum 5 Years And At Least 2 Batches Of Students Should Have Passed Out From The Institutes Term Loan /Overdraft THP- 50% Of GMI/ For OD Notional Interest Should Not Be More Than 30% Of GMI Loan Amount- 5 Times Of Average Cash Accrual Of Last 3 Years. Minimum Rs 1.00 Lac And Maximum Rs Lacs Security: 200% Of The Loan Amount. 12) CENT SHOP Facility - Term Loan Only For Purchase/ Construction Of New/ Old Shops/ Offices Building And/ Or Repair/Modernisation/ Renovation/ Face Lifting Of Existing Shops/Office Building OR Expansion/ Addition/ Alteration In Shops/Office Buildings Shop For Dealers Showroom Etc., Shop For Training Centres, Service Centres Etc, Shop For Repair Centre/ Garage Etc.,Office Chamber For Consultant/ Chartered Accountants And Other Professionals/ Self Employed, 11

13 All Furniture/ Fixtures- Electrical Fittings And Other Accessories Required For The Showroom/ Office Shops, For Shops/ Offices/ Service Centres In Commercial Area Having Marketable Title. Professionals And Self-Employed Category May Include Doctors, Engineers, Surveyors, Cas, Css, Lawyers, Interior Decorators, Consultants, Garages, Workshops, Boutiques. Others Include Individuals Singly And/ Or Jointly With Spouse, Parents, Brothers And Major Sons. Proprietorship Firms Registered Partnership Firms Limited Liability Partnership Firms (LLP) Pvt. Ltd. & Public Ltd. Company, One Person Company Registered Trusts Viz Educational/ Medical/ Other Institution & Association Of Person (AOP) Etc. NRI Jointly With Relative/S As Defined In Clause Of Loan Policy. The Relative Should Be Resident Citizen Of India Restrictions For Trusts, NBFC, Real Estate Companies, Builders And Partnership Firms Including Llps Where HUF Is A Partner Are Not Eligible. Property To Be Purchased Should Be Located In Metro, Urban And SEMI Urban All Necessary Approval Should Have Been Obtained. Minimum Loan Amount For Purchase/Construction- Rs 5.00 Lacs Minimum Loan Amount For Repairs, Renovation, Facelift, Furniture- Rs 5.00 Lacs Maximum Loan Amount-Rs 2.00 Crores. Subject To 36 Times Of Gross Monthly Income For Individuals And 5 Times Of Average Of Last 3 Years Average Cash Accruals. Take Home Pay- 50% Of Net Monthly Income. Margin- 25% Repayment- 10 Years. Moratorium Period- 12 Months. 12

14 Processing Charges- 0.50% Of Loan Amount With Maximum Of Rs 1.00 Lacs. Waived Up To Lease Hold Property Can Be Financed. Period Of Lease Should Be 30 Years And Remaining Lease Period Should Be 10 Years. Takeover Of Loan- Prior Permission From SRM Is Required. Loan In Excess Of Rs Lacs For Construction And Rs 5.00 Lacs For Repairs Should Be Disbursed To Contractor Only After Inspection. 13) LOAN TO PENSIONERS Aged Up To 75 Years- 18 Months Pension Max Rs 5,00,000/Aged Above 75 Years- 12 Months Pension Max Rs 2,00,000/-. EMI Not To Exceed 50% Of Monthly Pension. OD Can Also Be Given On Diminishing Basis Loan To Family Pensioners Allowed. (0.50% Concession In Int. Rate) Int. Rate- MCLR Repayment Up To 65 Years 48 EMI 65 To 70 Years 36 EMI Above 70 Years - 24 EMI 14) LOAN AGAINST FUTURE FEE RECEIVABLES T/L OR OD ( Reducing DP) For Expansion Of Business, Establishment Of New Schools, Colleges, Day To Day Expenses, Payment Of Existing Loans. Target Customers- Schools, Colleges, Educational Institutes, Training Centres Approved By Govt./UCG/AICTE/MCI And Other Approved Regulatory Authorities The School/ College/Institutes Should Be Operational For More Than 3 Consecutive Academic Years. In Case Of Societies, Trust Etc Requisite Permission, If Necessary Should Be Obtained From Charity Commissioner And Registrar Of Societies. Minimum Loan Is Rs Lacs 13

15 Maximum Loan Is Rs Crores. Subject To Upto 2 Year Duration: 85% Of Net Present Value Of Future Fees Receivables For 2 To 5 Year Duration: 80% Of Net Present Value Of Future Fees Receivables For 5 To 10 Year Duration: 75% Of Net Present Value Of Future Fees Receivables Future Fees Receivables = Gross Fees Receivables Less (Advance Fees Received + Maintenance And Operational Expenses + Any Interest/ Installments + Other Statutory Dues Of The Lessor) The Maximum Permissible Loan Amount Will Be Computed On The Average Fees Collection Of Audited Figures Of Last 3 Financial Years Rate Of Interest- MCLR+2 If Repayment Is Upto 3 Years, MCLR+2.50 If Repayment Is Beyond 3 Years. Processing Charges- 0.50% Of Loan With Minimum Of Rs And Maximum Of Rs Lacs. Property Value Should Be 125% Of Loan Amount. TL Repayment Period- 10 Years. O Sanctioning AuthorityZLCC (DGM) - Rs Lacs ZLCC (GM) - Rs Lacs 15) CENT EARNEST MONEY FINANCE SCHEME Demand Loan. Financing Of Application Money/Registration Amount To Book Residential Plots/ Built-Up Houses/ Flats Being Launched By Various Government Housing Agencies, Semi Government Agencies. Period- Maximum 180 Days. The Scheme Will Be Applicable Wherever Our Bank Is Authorized As A Collecting/Financing Bank By The Concerned Organization. Maximum Loan Amount- Rs Lacs. Margin- Nil. 14

16 Rate Of Interest- MCLR (6m). Processing Charges-Rs 100 Per Application. Interest Will Be Recovered Upfront (Period Of Close Of Scheme To The Final Draw Or 180 Days Whichever Is Earlier Sanctioning Authority- All Branch Managers. 16) LOANS TO TEACHERS AND EMPLOYEES OF EDUCATION INSTITUTIONS 20 Times Of Gross Maximum Rs Lacs Int. - MCLR Repayment- Teachers And Employees Of Institutions- 48 Months (THP- 40% Of GMI). 17) CENT SWABHIMAN Individual Above 60 Years( Jointly With Spouse Also) Against Self Occupied Residential House. Should Have Pan. (Period Of Loan -Maximum 15 Years Or Borrower Attaining 80 Years Whichever Is Less) Purpose- Family Payments, Repairs, Hospitalisation Etc. Loan Amount-75% Of Realisable Value Of Security Subject To A Maximum Of Rs Lacs Maximum Monthly Payment Capped At Rs Lumpsum Should Not Exceed 50% Of Loan Amount Subject To A Maximum Of Rs Lacs Interest Rate- MCLR+2 15

17 Lump sum Should Be Approved By One Rank Higher Than The Sanctioning Authority. Loan Together With Interest Shall Become Due 6 Months After The Death Of Last Surviving Spouse Period Of Loan- Maximum 15 Years(Loan Computation) If Borrowers Age Is More Than 70- Repayment Period Will Be 10 Years. The Bank At Its Own Discretion May Extend The Tenor Of Loan Depending Upon The Realizable Value Of Security Etc By Another 5 Years I.E. The Maximum Loan Disbursement Tenure Should Not Exceed 20 Years. Bank Shall Have The Option To Revise The Lump sum Or Periodical Payments Once In 3 Years Based On The Valuation Of The Property. Property Should Be A Self Occupied Property. Upfront Fees-0.15% Of Loan, With Minimum Of Rs 500 And Maximum Of Rs Borrower Should Execute A Registered Will -Stating That He Has Availed Loan From Our Bank 18) CENT SWABHIMAN PLUS To Meet The Financial Requirements Of Senior Citizens Owning A Flat / House And Occupying It. Entry Age Of Senior Citizen Should Be 60 To 99 Years In Case Of Married Couple- Atleast One Should Be Above 60 And Other Person Should Be Not Below 55. Minimum Value Of Property Should Be More Than Rs Lacs. Ltv- Age Between 60 And 70-60% 70 And 80-70% 80 And Above- 75% Property Should Be Self Occupied And Residual Life Should Be Minimum Of 20 Years. Equity Of Borrower In The Property Should Exceed 10% 16

18 Reverse Mortgage Redemption Reserve- 10% Of Property Value. If Borrower Doesn t Opt For RMRR- Margin Will Be Increased By 10%. Annuity Payment- STAR UNION DAI-ICHI Life Insurance Company Ltd. SUD LIFE RMLEA With Return Of Purchase Price: Minimum Purchase Prices Of The Policy- Rs 5.00 Lacs And No Upper Limit. Surrender ValuePolicy 0-10 Years- 95% Of Surrender Value Will Be Paid 11 Years And Above- 100% Will Be Paid. For Critical Illness: - Surrender Value Will Be Paid As Under Policy 0-3 Years- 95% 4 To 10 Years - 98% 11 Years And Above- 100% 19) CENT RENTALS. Loan against Property Let out to Govt., Reputed Institutions, Banks In Metro, Urban, Semi urban. Maximum Rs Lacs. Subject To Eligible Amount75% Of Future Lease Rentals In Case Of Unexpired Lease Period Of 3 Year. 65% Of Future Lease Rentals In Case Of Unexpired Lease Period Is More Than 3 Years But Not Exceeding 6 Years 55% Of Future Lease Rentals In Case Of Unexpired Lease Period Is More Than 6 Years But Not Exceeding 8 Years. 50% Of Future Lease Rentals In Case Of Unexpired Lease Period Is More Than 8 Years But Not Exceeding 10 Years. Repayment-10 Years. Collateral 100% For Repayment Of 3 Years And For Others- 133% Of Loan Amount. 17

19 Interest Rate- MCLR ( In Case Of Landlord It Is MCLR+2.00) 20) CENT PERSONAL LOAN Replaces Personal Loan To Corporate And Non Corporate Loans. Minimum 1 Year Confirmed Service For Employees Of Central, State Govt., Indian Railways, Municipal Bodies For Indian And Multinational Companies- It Is 3 Years Eligible Amount- 20 Times Of Gross Subject To Max. Of Rs Lacs. Interest Rate- MCLR+3. Repayment- 48 Months Or Left Over Service Whichever Is Less THP- 40% Of GMI Salary Should Be Routed Through Account Employer Undertaking Or In Lieu Of Employer Undertaking 2 Guarantors Having Networth Of Rs 5.00 Lacs Can Be Obtained. CIBIL Score Should Be Minimum 600. CENT RATNA (PERSONA LOAN TO NAVARAATNA COS) Revised Maximum Limit- 20 Times Of Gross Or Rs Lacs Whichever Is Less. 21) CENT VEHICLE Individuals, Companies, Staff Members, Farmers. For Purchase Of 2 Wheelers, 4 Wheelers (Old/New) For Personal Use. The Age Of Old Vehicles Should Not Be Older Than 5 Years And To Have A Residual Life Of Minimum 10 Years. For 2 Wheelers Minimum Monthly Income Rs And For Four Wheelers Minimum Monthly Income Rs Minimum Age Is 18 And Maximum Age Should Be 65 Co Borrowers Is A Must If The Borrower Is Aged Above 60. Eligible Loan Amount For Salaried 24 Times Of Gross Monthly Salary. For Others 2 Times Of Average Annual Income For Last 2 Years. For Companies 3 Times Of Avg. Annual Cash Accrual For Last 2 Years Maximum Rs Lacs For Indian Cars And Imported Cars, Rs Lacs For Old cars For 2 Wheelers- Maximum-Rs Lacs. Repayment Four Wheelers- 84 Months. Two Wheelers- 60 Months. 18

20 For Second Hand - 60 Months For Upto 3 Years Old Vehicle And 48 Months For More Than 3 Years Old Vehicle Or Borrower Reaching 70 Years Of Age Whichever Is Less No Guarantee Upto Rs 5.00 Lacs Margin-10% Upto Rs Lacs And 20% More Than Rs Lacs. For Second Hand Vehicle Margin Is 25%. Take Home Pay: 35% Of Gmi For Income Upto Rs 5.00 Lacs, 30% For Income Rs 5.00 To Lacs, 25% For Income Above Rs Lacs. Interest Rate: Two Wheelers And Four Wheelers- MCLR+0.40, Old Vehicles (Car)- MCLR Fixed Rate Option Is Extended For Loan Repayment Of Upto 36 Months (Applicable For 2 Wheelers (New) And 4 Wheelers Whether New Or Old. For Second Hand Vehicle Valuation To Be Obtained From Approved Valuer/IRDA Surveyors. Processing Charges For 2 Wheelers- 0.50% Of Loan Or Rs 500 Whichever is More For Staff And Retired Staff- Int. Will Be MCLR 22) CENT PERSONAL GOLD SCHEME Minimum Rs 10000, Maximum Rs Lacs Per Gram- Rs 2000, Our Gold Coin-Rs 2150,Margin -25% Weight Of Gold Coin Max 50 Gms Interest Rate=MCLR+2. 23) CENT HOME PLUS Existing HL Borrowers For 3 Years-Repayment To Be Regular. For Renovation, Refurbishment, Purchase Of Furniture. Margin-25% Of Present Value Of Property combined Limit Upto Rs Lacs And 35% For Combined Limit Above Rs Lacs Maximum Rs Lacs, Repayment-120 Months. 19

21 Int. Rate Same As HL For Renovation And 1% Above HBL For Others. 24) CENT SUVIDHA Overdraft To Salaried Employees Of Corporate Clients/ Schools / Colleges/ Universities/ Other Organizations Whose Salary Is Routed Through Savings Accounts Of Our Branches For At Least One Year. Loan Amount: One Month Net Salary Security-Undertaking From The Employer To Credit Monthly Salary. Int. Rate-MCLR+3% 25) CENT COMBO Combination Of HL And Car Loan. Minimum HL Should Be Rs Lacs. Average Annual Income For Last 2 Years Should Be Minimum Of Rs 4.00 Lacs. Margin 10% For Loans Up To Rs. 25 Lakh For Home Loans And Vehicle Loans Upto Rs.20 Lakh. (Combined Loan Amount Max Rs.45 Lakh) 20% For Home Loans Above Rs. 25 Lakh & Vehicle Loans Above Rs.20 Lakh. Int. Rate Minimum MCLR. THP- Income Upto Rs 5.00 Lacs- 30% Of GMI, Income Above Rs 5.00 Lacs To Rs Lacs- 25% Of GMI, Income More Than Rs Lacs- 20% Of GMI. 20

22 For Regular Repayment Of Loan- Interest Will Be Refunded At 1% Of Total Int. Charged During The Year Subject To Maximum Of Rs 2000 For Loan Upto Rs Lacs And Rs 4000 For Loan More Than Rs Lacs To 1 Crore. For More Than 1 Crore Interest Will Be Refunded To The Extent Of 1% Of Int. Charged Subject To Maximum Of Rs ) PRADHAN MANTRI AWAS YOJANA Covers Economically Weaker Sections In Urban Areas. The Beneficiary Family Should Not Own A Pucca House Either In His /Her Name Or In The Name Of Any Member Of His/Her Family In Any Part Of India EWS Income Criteria- Annual Income- Not More Than Rs 3.00 Lacs, Carpet Area- Upto 30 Sq Metres. LIG Income Criteria- Rs To Rs Carpet Area Upto 60 Sq Metres. Maximum Loan- Rs Lacs Margin Upto Rs Lacs- 10% And Above Rs Lacs To Rs Lacs- 20% Repayment Period, Moratorium In Tune With Cent Home Circular. 21

23 Turnaround Time Tracker For Retail Schemes. Sr. No. 1 Loan Product Housing Loan All Variants And Other Mortgage Backed Loans Such As Cent Mortgage, Cent Trade, Cent Rental Etc Turn Around Time Maximum 6 Working Days From The Date Of Receipt Of Complete Application Maximum 6 Working Days Education Loan Where Mortgage Of Property Is From The Date Of Receipt Of Involved. Complete Application. 2 Maximum 3 Working Days Education Loan Where Mortgage Of Property Is From The Date Of Receipt Of Not Involved. Complete Application Vehicle Loan And Loans Where Hypothecation, Maximum 2 Working Days Pledge, Lien Or Assignment Of Securities Is From The Date Of Receipt Of Involved Complete Application Maximum 24 Hours From The Unsecured Loans Such As Personal Loans Time Of Receipt Of Complete Application Maximum 24 Hours From The In Principle Sanction For Any Retail Loan Time Of Receipt Of Relevant Information Maximum 6 Working Days All Other Retail Loan Products From The Date Of Receipt Of Complete Application 22

24 Minimum Rating (Hurdle Rate) Required For A Retail Loan- 50 Marks. At Present Four Mortgaged Based Retail Lending Schemes Viz Cent Home Loan (Including Cent Home Double Plus), Cent Trade, Cent Mortgage And Cent Vidhyarthi Over Rs.7.50 Lacs Are Processed /Sanctioned Through CCPC. MSME SME DEFINITION Service Enterprises Micro-Investments In Equipments Upto Rs Lacs Small-Investments In Equipments Above Rs Lacs To Rs 2.00 Crores. Medium-Investments In Equipments Above Rs 2.00 Crores To Rs 5.00 Crores. Manufacturing Enterprises Micro-Investments In Plant And Machinery Upto Rs Lacs Small-Investments In Plant And Machinery Above Rs Lacs To Rs 5.00 Crores Medium-Investments In Plant And Machinery Above Rs 5.00 Crores To Rs Crores MSME SCHEMES CENT PROTSAHAN (MSE) To Meet Living Expenses, Transit Expenses, Exhibition Expenses For Proprietors,Partners,Directors Of The Firms Engaged In MSE Who Attend 23

25 Such Exhibitions For Promotion Of Their Product. Quantum Of Loan-For Domestic-Rs 4.00 Lacs, For Abroad-Rs Lacs Income Criteria For Loan-Minimum Rs 5.00 Lacs Per Annum. Age Criteria-Minimum 21, Maximum 55 Margin-25%. Security-Up To Rs 1.00 Lac-Personal Guarantee, Above Rs 1.00 Lac-100% Security Inform Of KVIP/NSC/FDR For Portion Above Rs 1.00 Lac. TL Repayment Of 36 Months Int Rate-MCLR+4. CENT PROSPERITY For Minority (Christians, Muslims, Sikhs, Zorastrians, Buddhists,Jains ) No Income Ceiling Facility-W/C, TL (Assessment 20% Of Projected Turnover) For TL-Margin-20% (Finance Up To 80% Of Project Cost)-Repayment Of 7 Years. Maximum Quantum Of Finance-Rs Lacs No Collateral. (CGTMSE Coverage) Rate Of Interest-MCLR+0.25(Tenor PrEMIum Of 0.25 For TL Repayment Of 1 To 3 Years And 0.50 For TL Repayment Of 3 To 7 Years) CENT LAGHU UDHYAMI CREDIT CARD (CLUCC) Individuals Engaged In Activities (Manufacturing And Services) Coming Under Definition Of MSMED Act 2006 Availing Working Capital Credit Limits For Past 3 Years With Satisfactory Dealings. CC/OD, Maximum Of Rs Lacs 24

26 Margin-20% Card Validity-3 Years. ROI-MCLR+0.50 Primary Security: Hypothecation Of Stock, Receivables, Machinery Etc Collateral Security-Nil, Coverage Under CGTMSE. CENT KALYANI To Encourage Women To Start Their Own Manufacturing/Service Enterprises Loan Amount Up To Rs.100 Lac Processing Fee- NIL CGTMSE Fee Is To Be Borne By BANK For 1st Year Additional Interest Concession Of 0.25% If The Account Is Rated With External Agencies. Woman Entrepreneurs, Above 18 Years Of Age. Margin-20% Rating Up To CBI-7 Is Acceptable Working Capital-20% Of PAT, For TL 80% OF PROJECT COST DSCR-1.25:1 TL Repayment-7 Years. (Moratorium 6 Months To 1 Year) Powers As Per Loan Policy Rate Of Interest MCLR+0.25 For Loan Upto Rs Lacs And MCLR+0.50 For Loan Beyond Rs Lacs To Rs Lacs.(Tenor PrEMIum Of 0.20 For TL With Repayment Period Of 1 To 3 Years And 0.40 For Beyond 3 Years To 7 Years). CENT CONSTRUCTION EQUIPMENT SCHEME (SERVICE SECTOR) 25

27 For Purchase Of New Machinery, Equipment, Vehicles For Construction Activity For Companies Engaged In Construction Activity With A Minimum Rating Of CBI-5 And 6. Maximum Rs Lacs, Margin-25% TL-Repayment-60 Months For Loans Upto Rs Lacs-No Collateral (CGTMSE MANDATORY) For Loans Rs Lacs And Upto Rs Lacs, CGTSME Coverage Is Optional For Loan Without CGTMSE And Beyond Rs Lacs -Collateral Value Should Be Minimum Of 50% Of Loan Amount. Interest Rate Upto Rs Lacs-Base Rate +.50, Above 10 To Rs 100 Lacs MCLR+1 Interest Rate Above Rs Lacs Based On Rating Tenor PrEMIum-0.25% (3years) And 0.50% (Above 3 Years-5years) If Borrower Offers 100% Collateral Then Interest Rate Will Be MCLR+1.00 Irrespective Of Rating. CENT CONTRACTOR (SERVICE SECTOR) To Provide Support To Contractors Of Good Repute Engaged In Works On Behalf Of Central/State Govt Should Have 2 Years Experience, Should Have Completed 3 Projects Within The Stipulated Time In The Last 3 Years And The Present Project Should Be Completed Within 24 Months, Should Have 3 Contracts On Hand At A Time. Maximum Rs Lacs TL Repayment-5 Years 26

28 DSCR Should Be 1.25:1, Debt Equity Ratio Should Be 3:1. Facility-CC/OD/BID BOND,DPG, BG,TL MARGIN-TL/OD-25%, MARGIN FOR BILLS UPTO 90DAYS-20% (IF POA NOT REGISTERED IN FAVOUR OF THE BANK),FOR BILL UPTO 180 DAYS-10%(IF POA IS REGISTERED IN FAVOUR OF THE BANK) Interest Rate-MCLR+0.50 For Loan Upto Rs Lacs And MCLR+1 If Loan Is Beyond Rs Lacs And Upto Rs Lacs For Loan Beyond Rs Lacs Interest Rate Is Based On Rating. If Rating By External Agencies Concession In Interest And 0.50 Concession In Processing Charges. Collateral-Upto Rs Lacs-100% Of Loan Amount Or CGTMSE Coverage. Above Rs Lacs-150% Of Loan Value. Tenor PrEMIum-0.25%(3years) And 0.50% (Above 3 Years-5years) CENT FOOD PROCESSING PLUS SCHEME. (AGRICULTURE) DAL MILLS, FLOUR MILLS, SUJI MILLS, OIL MILLS, RICE MILLS AND OTHER FOOD AND AGRO PROCESSING UNIT. For New Accounts Rating Should Be CBI-6 W/C,PC,LC,TL No Maximum Limit. MARGIN-20% TL Repayment-7 Years. CURRENT RATIO-1.10,DSCR-1.25,ASSET COVERAGE RATIO

29 Asset Coverage Ratio 1.25 In Case Of CGTMSE Coverage. Loan Upto Rs Lacs-MCLR+0.50 Loan Above Rs Lacs, Interest Rate Will Be MCLR+0.50 If 100% Collateral Is Available. For Loan Beyond Rs Lacs With Collateral Below 100% Interest Rate Will Vary. Tenor PrEMIum-0.25%(3years) And 0.50% (Above 3 Years-5years) If Rating By External Agencies Concession In Interest And 0.50 Concession In Processing Charges. CENT SAHAYOG MSE For Unorganised Sectors Maximum Loan Rs Loans Under CGTMSE Mode Of Assessment-Upto Rs Lacs-4 Times Of Annual Income-Above Rs Lacs And For New Enterprises Upto Rs Lacs-20% Of PAT Margin 10% -Loan Upto Rs Lacs 15 %-Loan Rs To Rs Lacs 20 % For Above Lacs & Upto Lacs Int Rate-Upto Rs Lacs-MCLR+.50 Above Rs Lacs-MCLR+1.00 TL Repayment Period-84 Months. Collateral Security: CGTMSE Coverage. Primary Security: Hypothecation Of Stocks,Receivables,Charge On Fixed Assets. 28

30 CENT DOCTOR Minimum Rs 1.00 Lac And Maximum Rs Lacs Rural / SEMI-Urban Areas Rs 50 Lakh, Working Capital Limit Of Rs. 5 Lakhs Urban / Metro Areas Rs.500 Lakh, Working Capital Limit Of Rs. 10 Lakh Margin :- 25 % Against The Construction Of Nursing Home/Clinic, 15 % Against Equipments. Collateral - No Guarantee /Collateral For Loans Up To Rs Lakh, Which Are To Be Covered Under CGTMSE For Loans Above Rs.100 Lakhs, Collateral Up To At Least 50% Of The Loan Amount To Be Taken. Repayment Period For Purchase Of Equipments-84 Months With A Moratorium Period Of 6 Months, For Construction Repayment Period Will Be 10 Years With A Moratorium Period Of 12 Months. DSCR Should Be 1.5:1 MCLR % For Purchase Of Equipments Etc. MCLR % For Construction Loan Of Nursing Home / Clinic/ Clinic - CumResidence. CENT MATSYA KANYA CREDIT CARD. To Empower New As Well As Existing Fisher Women In Retail Trade Of Variety Of Fresh Fish Or Dry Fish In The Fish Market /Shop Or By Door To Door Selling. Fisher Women Who Are Members Of Either All India / State Level / Local Fishermen Associations / Local Fisher Women Associations /Mahilamandals, Members Of Recognized Shgs/Jlgs( Individual As Well As Group) Facility-Revolving CC Quantum Of Finance- Individual-Min Rs 10000,Max Rs O Group-Min Rs 29

31 50000,Maxrs Margin And Collateral Security-Nil Guarantee-Group Guarantee. Interest Rate-MCLR+0.25 Primary Security-Charge On Security And Receivables. Fixation Of Limit-The Stock Of Fish Is Perishable In Nature. The Need Based Credit Limit To Be Fixed Based On Assessment Of Working Capital Requirements For Two To Three Days Stock. CENT PROFESSIONAL SCHEME INTRODUCED ON 21/12/2013 (FOUNDER S DAY) Professionals -- Registered Medical Practitioners, Chartered Accountants, Company Secretaries, Consultant Engineers And Architects, Management Consultants, Tax Consultants, Lance Accredited Journalists/Cameraman, Caterers Who Are Holding Either A Degree Or Diploma From Established Institutions And Established In Their Profession. TARGETGROUP- INDIVIDUALS, PROPRIETORSHIP, PARTNERSHIP, COMPANIES. Experience In The Field- 3 Years. Age: 25-65(Relaxation Of 5 Years Permitted By RM) Purpose: Finance For Purchase Of Office Premises/ Furnitures And Fixtures For Office. Age Of The Building Should Not Be More Than 20 Years Old And Residual Life Should be Atleast 30 Years. Facility: Term Loan OD Is Also Permitted Against Receivables. 30

32 Eligible Amount For Term Loan Individuals: 3 Times Of Last Three Years Average Grossyearly Income With Minimum Of Rs 1.00 Lac And Maximum Of Rs 100 Lacs. Companies: 5 Times Of Last Three Years Average Cash Accruals With Minimum Of Rs 1.00 Lac And Maximum Rs500 Lacs. Quantum Of Loan Should Be Fixed On The Basis Of Location Of Property. Individuals: Rs 100 Lacs At Metro, Rs Lacs In Urban,RS Lacs In SEMIurban, And Rs 5 Lacs In Rural Areas. Corporates: Rs 500 Lacs At Metro And Urban Centres. OVERDRAFT: Against Receivables. Book Debts Should Not Be More Than 90 Days. Quantum Of OD: 10% Of Annual Income With An Upper Cap Of Rs Lacs. Take Home Pay For TL: 50% Of GMI. Margin: TL- Office PrEMIses(As Per Sale Agreement)- 35% TL- Furniture And Fixtures- 40%,OD- 50% (Book Debts) TL Repayment- 120 Months(Moratorium 3 Months) Interest Rate: Upto Rs Lacs-MCLR+0.50 Above Rs Lacs-Rs Lacs-MCLR+1 Interest Above Rs Lacs Is Based On Rating. SRTO (Small Road Transport Operators) Finance For Human Driven Vehicles(Hand Rickshaws/Taxies/Buses/Tempos/Lorries Etc Cart,Cycle/Auto Term Loan Maximum Of Rs Lacs Or Maximum 5 Vehicles Per Borrower( 31

33 Including Existing Loan Oustanding) Whichever Is Less. Margin-25% Primary Security: Hypothecation Of Vehicle Collateral Security: CGTMSE Interest Rate- Loan Upto Rs 2.00 Lacs- MCLR MCLR+2.50 Repayment-60 Months Beyond Rs 2.00 Lacs- CENT BUSINESS GOLD (MSE) For Individuals, Proprietors, Partnership Etc For Business Needs. Against Pledge Of Gold Coins(Sold By Banks),Gold Ornaments(Hall Marked,22 And 24 Karat Purity) Minimum Rs 10000/- And Maximum Rs /Facility- OD/DL Loan Per Gram Rs 1750-In Case Of Our Gold Coin-Rs 1850 Margin- 20% Interest Rate- Rs To Rs MCLR+0.50 Above Rs MCLR OD Renewable On Annual Basis TL Repayment Can Be For 12 To 36 Months. CENT WEAVER CREDIT CARD Maximum Loan That Can Be Given Under Cent Weaver Credit Card -Rs 2.00 Lacs Credit Card Validity- 3 Years. Repayment Period- 3 Years 32

34 Margin- Upto Rs No Margin Above Rs % CENT WEAVER MUDRA Timely Assistance To Weaver(Micro Enterprises) TL And WC Not Applicable For Cooperative Societies And Shgs Minimum Loan Rs 50000(Cotton) And Rs (Silk) Maximum Loan- Rs Lacs ROI- MCLR For Loan Upto Rs And MCLR +0.50% Above Rs (Tenor PrEMIum To Be Added For TL) Margin-25%(Margin Subsidy Maximum Rs Provided By Govt) Repayment-84 Months. CENT STAND UP INDIA Launched By PM On 05/04/2016 For Extending One Loan To SC/ST, Women Entrepreneurs.(Above 18 Yrs) For Setting Up Of Greenfield Enterprises. In Case Of Non Individual, Controlling Stake In Business Should Be More Than 51% By SC/ST Or Woman Entrepreneurs. Facility: TL Cum CC(Composite Loan) Quantum: Minimum Rs Lacs,Maximum Rs Lacs. Margin- 25%( Including Subsidy),Minimum 10% Contribution From Borrower Assessment: 20% Of Projected Annual Turnover, For TL, DSCR Should Be 1.25:1. If Loan Is Backed By 100% Collateral Security: Interest Rate Is MCLR. If Loan Is Backed By CGSSI(Credit Guarantee Scheme For Standup India Loans): Interest Rate Is MCLR+0.50% Guarantee Fee: 0.85% On Loan. Repayment: 7 Years( Moratorium Period- 18 Months) 33

35 Powers: As Per Loan Policy. NRLM Aajeevika - National Rural Livelihoods Mission (NRLM). Replaces SGSY. Affinity Based SHG Are Eligible. Revolving Fund Of Rs To Rs Maximum Of RS Lacs Will Be Given In 4 Doses. Promotes SHG, No Capital Subsidy. No Margin, Security Upto Rs Lacs NULM SJSRY(Swarna Jayanti Shahari Rozgar Yojana) Has Been Restructured As National Urban Livelihood Mission. Project Cost From Individual Enterprises Under Self Employment Program Of NULM Is Rs 2.00 Lacs And For Group Enterprises It Is Rs Lacs. Interest Subsidy Loans Are Provided(7%). SRMS Self-Employment Scheme For Rehabilitation Of Manual Scavengers (SRMS). Maximum Loan- Rs Lacs. Credit Linked Capital Subsidy. For Project Cost Of Upto Rs % For Project Cost Of Above Rs To Rs Rs 1 Lakh+33.3% Of Project Cost Between 2-5 Lakhs, For Rs To Rs Rs 2 Lakhs+25% Of Project Cost Between Rs 5-10 Lakhs,For Rs To Rs Rs 3.25 Lakhs. PMEGP (PRIME MINISTER EMPLOYMENT GENERATION PROGRAM) Implemented By Khadi And Village Industries Commission (KVIC) Subsidy 15% In Urban And 25% In Rural, For SC/ST 25% In Urban And 35% In Rural( % On Project Cost) Project Cost(Manufacturing Sector)-Rs Lacs And Service SectorRs Lacs Loan n Quantum-90% Including Subsidy (95% For SC/ST, Women, OBC, PH, Ex-servicemen, Minority, North Eastern Regions, Hill And Border Areas) Target For Women-40%,SC/ST-50% 34

36 8th Pass For Manufacturing Unit Above Rs.10 Lakhs Project Cost And Under Service Sector Above Rs.5 Lakhs MUDRA LOAN ( Micro Units Development And Refinance Agency) What Is Mudra Bank? Mudra Bank Is For Funding The Unfunded. This Will Provide Credit Of Up To Rs 10 Lakh To Small Entrepreneurs And Act As A Regulator For MicroFinance Institutions (MFIs). MUDRA Bank Will Also Refinance Micro-Finance Institutions Through Pradhan Mantri Mudra Yojana. The Main Objectives Of Mudra Bank Are, To Encourage Entrepreneurs And Small Business Units To Expand Their Capabilities And Operations, To Reduce Over Indebtedness And To Provide Formal System Of Credit (Finance). Agriculture & Self-Employment Will Be The Focus Areas Of Mudra Bank. Responsibilities Of Mudra Bank Laying Down Policy Guidelines For Micro/Small Enterprise Financing Business. Registration And Regulation Of MFI (Micro-Finance Institutions) Entities. Accreditation/Rating Of MFI Entities. To Assist The Lower Income Groups To Develop And Grow Their Small Businesses. To Help In Increasing The Access Of Finance To The Un-Banked And To Also Bring Down The Cost Of Finance. To Provide Access To Institutional Finance For Small Business Units. Laying Down Responsible Financing Practices To Prevent Over Indebtedness, Ensuring Client Protection Principles And Methods Of Recovery. Development Of Standardized Covenants Governing Last Mile Lending To Micro/Small Enterprises. Formulating And Running A Credit Guarantee Scheme For Providing Guarantees To The Loans Which Are Being Extended To MicroEnterprises. MUDRA Bank Will Also Be Responsible For Regulating And Refinancing All Micro-Finance Institutions (Mfis) Which Are In The Business Of 35

37 Lending To Micro Or Small Business Entities Engaged In Manufacturing, Trading And Services Activities. To Give Priority To SC/ST Enterprises In Lending. Funding Based On Stages Of Growth Of A Micro Unit It Has Been Proposed To Fund The Units Based On The Stage Of Growth And Funding Needs Of An Entrepreneur Or A Micro Unit. Under Shishu Scheme, Loans Up To Rs 50,000 Will Be Sanctioned. This Is The First Stage When The Business Is Just Starting Up.(No Margin, Repayment-36 Months,) Under Kishor Scheme, Loans Above Rs 50,000 And Up To Rs 5 Lakh Will Be Provided.(25% Margin,Repayment- 36 To 60 Months,) Under Tarun Category, Loan Of Above Rs 5 Lakh And Up To Rs 10 Lakh Will Be Sanctioned. (25% Margin,Repayment- 36 To 60 Months) Deviation In Margin Stipulation Under Cent MUDRA Scheme Loans Extended To Borrowers Of Minority Communities As Well As For Women Borrowers Of All Communities Vide Agenda No.BM/649/ /06/2.13 Dated As Per CENT Particulars MUDRA SCHEME (Existing) Margin Shishu(Loan Limit Up To Rs /-) NIL Kishor (Loan Limit Above Rs To Rs. 5 Lac) 25% Tarun ( Loan Limit Above Rs. 5 Lac To Rs. 10 Lac) 25% Women Borrowers Of All Communities (Loan Limit 25% From Rs To Rs. 10 Lac REVISED Margin NIL 10% 10% 10% Guarantee Cover For MUDRA- Portfolio Basis. ( Tie Up With NCGTCNational Credit Guarantee Trustee Company) CGTMSE - CREDIT GUARANTEE FUND MICRO AND SMALL ENTERPRISES TRUST FOR WOMEN AND NORTH EASTERN STATES UPTO RS 5.00 LACS 80% RS 5.00 TO RS LACS-80%-RS MICRO ENTERPRISES OTHERS UPTO RS 5.00 LACS 85% RS 5.00 TO RS LACS-75%-RS UPTO RS 5.00 LACS 75% RS 5.00 TO RS LACS-75%-RS LACS RS LACS RS LACS RS TO RS TO RS TO RS 36

38 LACS50% Of Rs Amount In Default Plus Rs Lacs (Maximum Lacs) MAXIMUM COVER-RS LACS LACS50% Of Rs Amount In Default Plus Rs Lacs (Maximum Lacs) MAXIMUM COVER-RS LACS % Of Amount In Default Plus Rs Lacs (Maximum Lacs) MAXIMUM LACS Rs LACS12.50 COVER-RS ANNUAL GUARANTE FEE FOR CGTMSE Women, Microenterprises, North Eastern Regions-Upto Rs 5.00 Lacs-0.75% Rs 5.00 To Rs Lacs-0.85% Others Irrespective Of Loan Amount-1% Lock In Period -18 Months, Claim Can Be Made 2 Years From The Date Of NPA If NPA Is After The Lock In Period. If NPA Is Within The Lock In Period, Then 2 Years From The Date Of Lock In Period. Ratios For MSME Current Ratio- 1.10:1 Debt Equity Ratio - 3:1 DSCR- 1.25:1 Interest Coverage Ratio- 1.50:1 Asset Coverage Ratio- 1.33:1. Hurdle Rate For Rating Of MSME- 51 RATING AGENCIES FOR MSME 1. CARE 2. CRISIL 3. FITCH 4. ICRA 5. SMERA 37

39 6. ONICRA 7. BRICKWORK GIST OF LOAN POLICY New Accounts Rating Should Be CBI-6 For Take Over It Should Be CBI-5. Margin On Various Loans Third Party Fixed Deposits Margin-DL-25% And For OD It Is 10% NSC-20%, Book Debts-Up To 90 Days-25%, 90 To 180 Days-35%. Margin Against Shares-50% (Loan Amount Maximum Rs Lacs) Fixed Deposits-10% LIC- 10% New Machinery- 25% 38

40 Old Machinery- 40% Stock Of Sugar- 25% Sanction Of Working Capital And Term Loan Facilities Is Valid For A Period Of 6 Months From The Date Of Sanction Or 3 Months From The Date Of Documentation Whichever Is Earlier And If Party Desires It Can Be Revalidated Within 12 Months From The Date Of Sanction. For Loan To Trusts- Trust Deed Must Be Registered With Charity Commissioner And Trust Deed Has To Be Vetted By Panel Lawyer/Law Officer. Exposure Of Banks To Capital Markets Should Not Exceed 40% Of Its NetWorth. Group Concept: Promoters, Directors, Partners Who Are Liable For The Limit Of Other Firms, Different Limits For Different Firms Against Same Property, Common Guarantors In Two Or More Accounts. In Short, It Means Commonality Of Management And Effective Control. For Loans Above Rs 5.00 Crores, TEV (Techno Economic Viability Report) By An Outside Agency Should Be Insisted Upon Loan Syndication: An Arrangement Between 2 Or More Lending Institutions To Provide Credit Facility.(More Than Rs 5.00 Crores) Mulitiple Banking Working Capital Loan Provided By 2 Or More Institutions Without A Consortium Arrangement. (More Than 25 Crores). Vetting Of Documents For Loans Above Rs 1.00 Crore To 5 Crores Shall Be Done By Panel Lawyer. Loan Above Rs 5.00 Crores Should Be Done By Our Law Officer. Borrowers Enjoying Limit Of Rs 5.00 Crores And Above Should Submit QIS Statement. Bank Should Obtain At Least Collateral Of 60% Of Loan Wherever There Is No Primary Security And 50% Of Loan If Primary Security Is Of Perishable Nature. Credit Limit Of Rs Lacs And Above And With Rating Of CBI 8,Periodicity Of Review/Renewal Will Be 6 Months. Lending Powers. 39

41 Scale 1- Rs Lacs Scale2 Rs Lacs Scale3- Rs Lacs Scale 4-Rs Lacs (Group Rs Lacs) Others-Rs Lacs. RLCC (AGM)-Rs Lacs RLCC/ZLCC(DGM)-Rs Lacs ZLCC (GM)-Rs Lacs (Group Rs Lacs) Quasi Capital: Unsecured Loans Received From Friends And Relatives Which Has No Interest Bearing In Case Of Guarantee Backed By 100% Margin -Powers Of Officers Upto Scale4 To Issue Such Guarantee Is Rs 5.00 Crores. Bank Guarantee Maximum Period 15 Years. Product Equipment Credit Scheme: To Provide Finance For Non - Project Capital Expenditure (Equipment s)of The Borrower Company. Term Loan Can Be Given In Indian/Foreign Currency. Margin Is 10%. Channel Financing: Channel Financing Is The Mechanism Through Which A Bank / Financial Institution Meets The Various Funds Related Requirements Along The Supply Chain At The Suppliers End. This Thereby Helps The Supplier In Sustaining A Seamless Business Flow And Avoiding Working Capital Related Difficulties.(Margin 10%) For New Proposals. Current Ratio Should Be 1.33:1(Trading 1.20:1,Seasonal Industry 1:1) DE Ratio-3:1 DSCR-1.50:1 TOL/TNW- 5:1(TOL/ATNW-4:1) Int Coverage Ratio-2:1 Asset Coverage Ratio-1.5:1. Fixed Asset Coverage Ratio- 1.5:1 ( For Trading- Current Ratio Can Be 1.20:1 And TOL/TNW 6:1) 40

42 WATCH LIST AREAS. a) b) c) d) e) NBFCs/MFI Commercial Real Estate. Gems/Jewellery/Diamond. Capital Market. Iron And Steel Industry( Manufacturing) The Bank Shall Not Hold Shares In Any Company Whether As A Pledgee / Mortgagee Or Absolute Owner, Of An Amount Exceeding 30% Of The Paid Up Share Capital Of The Company Or 30% Banks Paid-Up Share Capital And Reserves Whichever Is Less. EXPOSURE NORMS( % To Bank Capital Funds) Category Other Than Infrastructure Infrastructure Single Party 15% 20% Group 40% 50% Exposure Limit Per Borrower For Issue Of Guarantee Favouring Other Banks/Fis/Other Lending Agencies Shall Be 10% Of Tier I Capital Of The Bank. The Aggregate Exposure For Such Guarantees Shall Not Exceed 50% Of Tier I Capital Of The Bank The Exposure Ceiling On Commercial Real Estate Sector For The Bank As A Whole Shall Not Exceed 10% Of The Bank s Gross Credit As At The End Of Previous Quarter Banks Exposure To Capital Markets Should Not Exceed 40% Of Its Networth Of Previous Year BORROWER WISE EXPOSURE( IN CRORES) Borrower Category Exposure At Entry Level (New A/Cs) Existing Accounts 41

43 TRUSTS Rs 100 RS 50 PROPRIETORSHIP CONCERNS RS 30 RS 50 PARTNERSHIP RS 50 RS 100 PRIVATE LTD DELETED DELETED Processing Charges On Agricultural Advances Up To Rs.25,000/- Abolished Stock Audit- Applicable To Rs 5.00 Crores And Above Advance.(Can Be Waived If The Rating Is CBI-1 By RM/ZM) Additional Risk Weight For Restructured Housing Loans- 25%. CREDIT AUDIT- Applicable For Loans Above Rs 1.00 Crores. Pre Audit Release- Above Rs 5.00 Crores. Post Audit Release- Rs 1 Cr To Rs 5 Cr. Periodicity For Post Audit - Within 1 Month From The Date Of Disbursement/Enhancement. Exercise To Be Concluded Within 2 Days By Officers Not Below The Rank Of Scale 3. Legal Audit: Credit Exposures Of Rs 5.00 Crore And Above. -Carried Out Once In 3 Years Or Immediately After Enhancement/Additional Facility Or In Case Of Change Of Securities. In Terms Of Mitra Committee Recommendations, Bank Is Required To Create A Data Base Of Its Management And Staff Exercising Discretionary Powers At Different Levels. 42

44 MSOD Statements- Rs 1.00 Crore And Above. LRM- Loan Review Mechanism- Applicable For Above Rs 5.00 Crores. INPUTS ON RECOVERY POLICY The Recoveries In NPA Accounts Should Be Appropriated (With Effect From ) As Under: 1. Firstly Towards Principal Over Dues/Irregularities. 2. Secondly Towards URI Reversed. 3. Thirdly Towards PWO 4. Lastly Towards Uncharged Interest. (Board Agenda No BM/621/ /03/2.03 Dated ) AUTHORITIES TO FINALISE THE DRAFT PLAINT OUTSTANDING UPTO A. Rs. 150 Lacs B. Above Rs. 150 Lacs Up To Rs.150 Lacs C. Above Rs 150 Lacs Up To Rs 300 Lacs D. All Other A/Cs COMPETANT AUTHORITY REGIONAL MANAGER SRM/BM-DGM FGM Legal Department At Central Office. AUTHORITY TO WITHDRAW SUIT. POWERS OF ZONAL MANAGER- RS 5.00 LACS RECOVERY IN DECREED ACCOUNTS / ASSIGNMENT OR SALE OF DECREES AGE MAXIMUM DISCOUNT DECREE ABOVE 1 YEAR UPTO 2 YEARS 5% ABOVE 2 YEARS UPTO 3 YEARS 10% ABOVE 3 YEARS UPTO 6 YEARS 20% ABOVE 6 YEARS UPTO 10 YEARS 40% ABOVE 10 YEARS 50% Appointment Of Detective Agencies- Rs 1.00 Crore And Above OF 43

45 Opportunity Cost: 11% For A Period Of 5 Years In Case Of Suit Filed Accounts And 7 Years In Case Of Non Suit Filed Accounts. Valuation Of Property Under Compromise Settlements Should Not Be More Than 12 Months Old. AUTHORITY TO APPROVE VARIATION IN VALUATION REPORTS: A) The Regional Manager Is Authorized To Accept Valuation Reports Of The Approved Valuers For Properties Valued Up To Rs.100 Lacs. B) The Zonal Manager Is Authorized To Accept Valuation Reports From Approved Valuer Of The Properties Valued Over Rs.100 Lacs In Case Of Properties Of Rs. 10 Crore And Above Valuation Must Be Got Done By Two Approved Valuers And Two Separate Reports Obtained. TIME LINE FOR CONSIDERING OTS PROPOSALS Maximum 15 Days From Date Of Receipt Of The Proposal At R.O. Maximum 21 Days From Date Of Receipt Of The Proposal At Z.O. Maximum 30 Days From Date Of Receipt Of The Proposal At C.O. MODULE METHODOLOGY. Points Scored 17 & Above 12 To 16 8 To 11 4 To 7 0 To 3 Methodology For Calculation Of Settlement Amount Outstanding In Running Ledger + 10% (Simple) + Legal Expenses Outstanding In Running Ledger + 8% (Simple) + Legal Expenses Outstanding In Running Ledger + Legal Expenses 50% To 75% Of Outstanding In Running Ledger + Legal Expenses As Much As Possible 44

46 Notional Due- RLB +10% Interest Simple From The Date Of NPA To The Following Month Of Submission Of Proposal To The Sanctioning Authority. SACRIFICE= NOTIONAL DUE- OFFER. Sacrifice Includes Write Off Of Ledger Balance, Waiver Of Uncharged Interest, Legal Expenses And Other Charges. Contractual Dues Is Calculated At 14% Interest Or Contract Rate Whichever Is Less. Net Present Value Is Calculated At 11% Discounted Rate On Compromise Amount As Well As Security Value, If Payable In Instalments. Minimum Sanctioning Authority For Sacrifice Under Module Due Will Be CM Committee. For OTS Due Paid In Instalments ( Maximum 12 Months) Under Module Due- Interest Will Be Charged At 10% Simple. Any Delay In Payment Of Instalments Will Attract 12% Simple Interest. Condonation Of Delay Can Be Accorded By The Same Sanctioning Authority. Where OTS Due Is Paid In Instalments Under Module Due, 25% Down Payment Should Be Insisted. Counter Offer Can Be Given Only In Respect Of RLB Exceeding 1.00 Crore And Above. Where Value Of Security Is More Than RLB, Then The OTS Will Be Calculated At RLB(Reduced By URI)+8% Simple Interest. Where Value Of Security Is Between 50% And 100%, Then The OTS Will Be RLB. Where Value Of Security Is Less Than 50% Of RLB, Then Minimum OTS Should Be Realisable Value Of Security. 45

47 As Regards Remittance Of Settled Amount In Instalments (Lok Adalat), Down Payment Of 10% To 25% Of The Settled Amount Should Be Insisted Upon. Legal Expenses Should Be Recovered Atleast To The Extent Of 50%(Lok Adalat) If OTS Amount Is Paid Under LOK ADALAT In Installments, Then 10% Simple Interest Will Be Charged If Repayment Is Upto 12 Months And 12% Simple Interest For Beyond 12 Months. OTS For Loan Backed By Existing Staff Guarantee Will Be Considered By Central Office Only. Powers To Purchase Of Property In Settlement Of Dues Of The Bank Are As UnderDELEGATEE VALUE OF PROPERTY (PER BORROWER) MANAGEMENT COMMITTEE NO CEILING CHAIRMAN & MANAGING DIRECTOR 75 Lacs EXECUTIVE DIRECTOR 50 LACS Under Sarfaesi, It Is Proposed That Before Initiating The Sale Through Private Treaty, Number Of Attempts To Be Made For Sale Through Public Auctions Are Prescribed As Under: Once If The Assessed Value/Reserve Price Of The Secured Asset Is Less Than Rs 25 Lacs. Twice If The Assessed Value/Reserve Price Of The Secured Asset Is Rs 25 Lacs And Above Up To Rs 1 Crore. Thrice If The Assessed Value/Reserve Price Of The Secured Asset Is More Than Rs 1 Crore. 46

48 For Publishing Photographs Of Defaulters Upto Rs Crores- FGM Will Be The Sanctioning Authority And Beyond Rs Crores ED Will Be The Sanctioning Authority.Prior To Publishing 30 Days Warning Notice To Be Given. In Cases Of PWO Accounts Where Balance Is Rs 100/- Only And Proper Record Of PWO Amount Is Not Available With The Branches Due To Various Reasons, In Such Circumstances RLB Will Be Reckoned For Settlement Under Compromise As Under: RLB- Present Ledger Balance I.E. Rs 100/- + Limit Sanctioned. OTS SCHEME UPTO RS LACS SALIENT FEATURES OF THE SCHEME ARE AS UNDER : (A) WITHOUT SECURITY The NPA Accounts Satisfying Following Conditions Would Be Eligible Under Cent OTS Scheme Where RLB Is Upto Rs 20 Lakhs And Security Is NOT AVAILABLE. A.1.ELIGIBILITY: (A) All Doubtful And Loss Asset Accounts Including PWO Accounts. (B) Sub-Standard Accounts Provided They Remained In PA Category At Least For 18 Months. (C) Scheme Will Not Cover Cases Of Fraud And Malfeasance, Gold Loan. Such OTS Cases Should Be Referred To Recovery Department, Central Office. (D) Loan A/Cs Covered Under CGTMSE Scheme, Where The Claim Is Rejected By The Corporation Due To Any Reason, The Same Are Eligible Under This Scheme. A.2. SANCTIONING AUTHORITY: The Delegated Powers For Approving The Compromise Proposals Are As Under:S. No. SANCTIONING AUTHORITY POWER OF DELEGATES FOR WRITE OFF OF RLB SSA % *DA% Loss Assets% 1 BM Up To Scale III Nil CM Committee At Branch Nil AGM At Branch/ AGM Committee At RO DGM Committee At ZO/RO FGM Committee At ZO HLCC II (ED Committee)

49 (Above Write Off Of RLB Is Over And Above The Waiver Of Uncharged Interest) Note: - Overall Write Off Amount Permitted To Delegatee Shall Be In Percentage Terms As Mentioned Above Or Following Stipulated Limit Whichever Is Higher As Under: Regional Manager Up To Rs. 25,000/- Senior Regional Manager Up To Rs. 50,000/- Field General Manager Up To Rs.1,00,000/- (B) WITH PRIMARY SECURITY The NPA Accounts Satisfying Following Conditions Would Be Eligible For Consideration Under Cent OTS Scheme When RLB Is Up To Rs. 20 Lakhs And Primary Security Is AVAILABLE. B.1. ELIGIBILITY: (A) All Doubtful And Loss Asset Accounts Including PWO Accounts. (B) Sub-Standard Accounts Provided They Remained In PA Category At Least For 18 Months. (C) Scheme Will Not Cover Cases Of Fraud And Malfeasance, Gold Loan. Such OTS Cases Should Be Referred To Recovery Department, Central Office. (D) Loan A/Cs Covered Under CGTMSE Scheme, Where The Claim Is Rejected By The Corporation Due To Any Reason, The Same Are Eligible Under This Scheme. B.2.SANCTIONING AUTHORITY: The Delegated Powers For Approving The Compromise Proposals Are As Under:B2.(I). The Followings Are The Powers Given To Delegatee In OTS For Approving The Compromise Proposals When The Existing Distress Sale Value Of Security Excluding Land & Building Is Less Than 100% Of RLB. S. No. SANCTIONING AUTHORITY POWER OF DELEGATES FOR WRITE OFF OF RLB SSA % *DA% Loss Assets% 1 BM Up To Scale III Nil CM Committee At Branch Nil AGM Committee At R.O/Br DGM Committee At ZO/RO/Br FGM Committee At ZO

50 6 HLCC II (ED Committee) (Above Write Off Of RLB Is Over And Above The Waiver Of Uncharged Interest) B 2.(Ii). In Case Where Distress Sale Value Of Security Excluding Land And Building Is Between 100% To 200% Of RLB, Power Of Delegatees Shall Be Reckoned 10% Less In Each Category Of The Above Schedule. B 2.(Iii). In Case Where Distress Sale Value Of Security Excluding Land And Building Is More Than 200% Of RLB, Power Of Delegatees Shall Be Reckoned 20% Less In Each Category Of The Above Schedule. Note: - Overall Write Off Amount Permitted To Delegates Shall Be In Percentage Terms As Mentioned Above Or Following Stipulated Limit Whichever Is Higher As Under: Regional Manager: Up To Rs 25,000/- Senior Regional Manager: Up To Rs 50,000/- Field General Manager: Up To Rs 1,00,000/- C.WITH COLLATERAL & PRIMARY SECURITY If The Distress Sale Value Of Security Includes Land And Building Plus Primary Security Then Compromise Amount Shall Be Calculated Considering On Following Parameters With Their Corresponding Points Taken Together. S.No. PARAMETERS POINTS 1 Distress Sale Value Of The Securities Charged To The Bank 12 (a) Exceeds 200% Of The RLB. 10 (b) Exceeds 150% &Upto 200% Of The RLB. 8 (c) Exceeds 100% &Upto 150% Of RLB. 6 (d) Exceeds 75% &Upto 100% Of The RLB. 4 2 (e) Exceeds 50% &Upto 75% Of The RLB. 0 (f) Exceeds 25% &Upto 50% Of The RLB. 2 (g) 25% Or Less Than The RLB. Aggregate Means Of Borrowers/Guarantors (To Be Calculated Excluding The Securities Charged To Us) (a) More Than The RLB. 4 (b) Exceeds 75% &Upto 100% Of The RLB. 3 (c) Exceeds 50% & 75% Of The RLB. 2 (d) Exceeds 25% &Upto 50% Of The RLB. 1 (e) 25% Or Less Than The RLB. 0 49

51 3 Marketability Of Securities 4 (a) Easily Marketable 3 (b) Not Easily Marketable 2 (c) Not Marketable 1 (d) No Securities 0 Age Of The NPA (No Of Years Remained In NPA Status) 5 (a) Upto 2 Years 2 (b) More Than 2 Years &Upto 5 Years 1 (c) More Than 5 Years 0 Legal Position Of The Bank (a) No Defects/Deficiencies In Documents And Equitable Mortgage Is 2 In Order. 0 (b) Documents Are Defective/Equitable Mortgage Not Enforceable. Based On Above Scale Of Points The Settlement Amount Is Calculated As Below: Points Scored Methodology For Calculation Of Settlement Amount 0-6 As Much As Possible % To 70% Of Outstanding In Running Ledger (RLB + Legal Expenses) Outstanding In Running Ledger (RLB + Legal Expenses) 20 & Above Outstanding In Running Ledger (RLB + 10% (Simple) + Legal Expenses) Note: (a) OTS Cases Where There Is Availability Of Collateral Security Over And Above Primary Security Of Land And Building Such Proposals Shall Be Considered Under Scheme (C). (b) If Primary Security Is NIL But Collateral Security Is There, Then Such Proposals Will Also Be Considered In Scheme C. C.1. SANCTIONING AUTHORITY: The Delegated Powers For Approving The Compromise Proposals Are As Under:- The Maximum Amount Of Sacrifice Under Scheme C Shall Be As Under: (I) RM/SRM Committee At RO Level If Write Off Of RLB Is Upto 55%. (Ii) FGM Committee At ZO Level If Write Off Of RLB Is Above 55% To 70%. FOR CENT OTS SCHEME, THE REPAYMENT TERMS AND OTHER CONDITIONS ARE AS UNDER: 1. REPAYMENT: (A) Repayment Within 30 Days. However In Deserving Cases If The Payment Of Settlement Amount Is Made Upto 6 Months, Then Interest Is To Be 10% (Simple) 50

52 On Reducing Balance. (B) No Interest Will Be Charged On Compromise Cases In Government Sponsored Schemes For Full And Final Repayment Up To 6 Months. (C) In Case Of Agriculture Accounts If Compromise Amount Is Received Within 7 Working Days From Date Of Settlement, Additional Concession To The Extent Of 5% Of RLB May Be Permitted By OTS Sanctioning Authority. 2. PERIOD: Validity Of This Scheme Is Valid For One Year I.E To The Scheme Will Be Valid For Acceptance Of Application Till Only. The The Scheme Application Received Up To Should Be Disposed Off On Or Before By Recovering Full Amount And Raising C2C. 3. TERMS & CONDITIONS: (A) If A/Cs Under DA-3 Where Bank Has Already Provided For 100% Provision The Powers As For Loss Assets May Be Allowed. (B) Upfront Payment Of 10% Of Offer Amount Should Be Insisted. In Deserving Cases SRM/RM Can Take Decision To Reduce Upfront Payment Of 5% Of Compromise Amount. (C) In Cases Of PWO Accounts Where Balance Is Rs 100/- Only And Proper Record Of PWO Amount Is Not Available With The Branches Due To Various Reasons, In Such Circumstances RLB Will Be Reckoned For Settlement Under Compromise As Under: RLB= Present Ledger Balance I.E. Rs 100/- + Limit Sanctioned. (D) Branch Manager/ Regional Manager/ Senior Regional Manager Who Has Sanctioned The Particular Loan Will Not Consider The Compromise/OTS Application Of Same Loan Account And Such Types Of Cases Are To Be Referred To Next Higher Authorities. (E) Power Of Delegatees For Written Off Of RLB Balance Up To Delegated Limit Is Over And Above The Waiver Of Uncharged Interest. While Arriving At The Sacrifice, URI Reversed/Credited To The Account Is To Be Added. However, While Claiming Write Off Amount Through C2C, URI Should Not Be Included. (F) RLB= Present Ledger Balance + Amount Of PWO + Unrecovered Amount Of URI + Any Legal Expenses Less Amount Of Subsidy/FD/Residual Balance After Benefit Under Agriculture Debt Relief Scheme (ADWDR-2008). (G) (I) If The Distress Sale Value Of Collateral Securities At The Time Of Sanction Is Upto Rs 10 Lakhs Then Branch Manager Along With Other Official/Head Cashier Of The Branch Will Certify Existing Distress Sale Value. (Ii) If The Distress Sale Value Of Collateral Securities At The Time Of Sanction Is Above Rs 10 Lakhs, Then Present Distress Sale Value The Property Shall Be Obtained From Approved Panel Valuer Of The Bank. (H) Value Of Security Shall Be Excluding Value Of Agriculture Land. (I) Value Of Tractor, Vehicles, Auto Rickshaws Etc Is To Be Arrived By Applying 20% Depreciation P.A As Per Straight Line Depreciation Method. (J) The Cent OTS Scheme Will Also Cover All Suit Filed Accounts And Written Off Accounts With RLB Uptors 20 Lakhs With Or Without Securities. (K) If The Accounts Are NPA As Per IRAC Norms But Due To Feeding Of Incorrect Data/ Migration Etc Our CBS Has Not Marked The Accounts As NPA Then In Those Accounts OTS Proposals Can Be Accepted And Sanctioned As Per Delegation Based On The Calculations Of The NPA Date As Per The IRAC Norms. (L) Condonation Of Delay With Payment Of 12 % Simple Shall Be Considered By 51

53 The Sanctioning Authority & Maximum Period For Condonation Of Delay Shall Not Exceed 12 Months. If Delay Is Beyond 12 Months, Borrower Has To Submit A Fresh Compromise Proposal. NOTE: In Case Any OTS Offer Is Not Acceptable To The OTS Sanctioning Authority, The Same Should Be Sent To The Next Higher Authority With Cogent Reasons For Declining The OTS Proposal. OTS SCHEME SUIT FILED The Salient Features Of NEWCENT OTS SCHEME- SUIT FILED NPA A/Cs Are As Under: GENERAL CONDITIONS The OTS Proposal Is For Suit Filed Accounts With RLB Above Rs.20 Lacs& Up To Rs. 5 Crore. Security Will Include Both Primary And Collateral, Wherever Available. NEW CENT OTS SCHEME In Suit Filed Accounts Above Rs.20 Lacs And Up To Rs.1 Cr Will Be Sanctioned By SRM /RM Duly Recommended By Settlement Advisory Committee (SAC) At RO Wherein CM/AGM Of Local Branches (Not Connected With The Branch Where OTS Was Initiated) May Be Included In The Committee. NEW CENT OTS SCHEME, Proposals Above Rs.1 Cr And Up To Rs.5 Cr Will Be Sanctioned At ZO Level By A Committee Consisting Of FGM, DZM And CM (Recovery) And CM/AGM Of Local Branches (Not Connected With The Branch Where OTS Was Initiated) May Be Included In The Committee. NEW CENT OTS SCHEME, Proposals In Suit Filed Accounts Above Rs.5 Cr Shall Be Considered As Per The Guidelines Of Compromise Contained In The Recovery Policy. The Proposal Will Have To Be Forwarded To Recovery Department At CO Under The Signature Of FGM For Consideration. To Show Genuineness Of Intent, A Minimum Of 5% Of Compromise Offer Amountmust Be Paid As Down Payment And Balance Amount To Be Paid Within A Maximum Period Of 6 Months. Condonation Of Delay Beyond 6 52

54 Months And Up To 12 Months May Be Permitted By CO. Thereafter OTS Will Lapse. (A) NEW CENT OTS IN SUIT FILED ACCOUNTS WITHOUT SECURITY Up To 50% Ofrunning Ledger Balance (RLB) Shall Be Considered Field Functionaries Will Discuss With Borrowers Against Whom Suit Is Filed And Consider Sacrifice Up To A Maximum Of 50% Of The RLB. The Endeavor Of The Field Should Be To Get The Best Possible Deal For The Bank.(Live Example In 2 Accounts Have Been Worked Out And Given In Annexure I) (B) NEW CENT OTSSCHEME IN SUIT FILED ACCOUNTS WITH SECURITY VALUE OF PROPERTIES SHOULD INCLUDE MARKET VALUE AND DISTRESS SALE VALUE AND IT SHOULD BE DONE BY TWO DIFFERENT BANK S APPROVED VALUERS. INCASE THE DIFFERENCE IN 2 DISTRESS SALE VALUES IS MORE THAN 10% THEN THE AVERAGE OF THE 2 VALUES HAS TO BE TAKEN. IN OTHER CASES WHERE DIFFERENCE IN DISTRESS SALE VALUE IS LESS THAN 10% THEN THE LOWER OF THE TWO DISTRESS SALEVALUES IS TO BE CONSIDERED. PRESENT VALUE OF SECURITY UP TO ONE YEAR OLD WILL BE CONSIDERED. JOINT INSPECTION OF THE MORTGAGED PROPERTIES SHOULD BE DONE BY BRANCH OFFICIALS. IF VALUE OF SECURITY IS MORE THAN RS. 1CR.,SENIOR REGIONAL MANAGER / REGIONAL MANAGER OR HIS NOMINATED OFFICER NOT BELOW THE RANK OF CHIEF MANAGER (NOT CONNECTED WITH THE PARENT BRANCH) SHOULD INSPECT THE MORTGAGED PROPERTIES, IN ADDITION TO BRANCH INSPECTION. (B)(1) WHERE SECURITY IS LESS THAN RLB Minimum OTS Amount Would Be 50% Of RLB Or 90% Distress Sale Value Of Security Whichever Is Higher. (B)(11)WHERE SECURITY IS MORE THAN RLB AND UP TO 200% OF RLB 53

55 Minimum OTS Amount Would RLB Or 90% Of Distress Sale Value Of Security, Whichever Is Lower. (B)(11I)WHERE SECURITY IS MORE THAN 200% OF RLB If Distress Value Of Security Is More Than 200% Of RLB, Then Minimum Compromise Amount Would Be Lower Of The Following 2 Values -Distress Sale Value Of Mortgaged Properties + Legal Charges. -Running Ledger Balance + Bank Rate (At Present 7%) From Date Of NPA + Legal Charges. IRAC NORMS & RECOVERY OF NPA NPA-TL-Installments,Interest Remain Unpaid For 90 Days CC/OD-Account Remains Out Of Order For 90 Days Or Limits Not Renewed For More Than 180 Days. AGRI- 2crop Seasons For Short Duration Crops,1 Crop Season For Long Duration Crops. Net NPA= Gross NPA Less (Provisions,DICGC/ECGC Claims,Part Payment Received Held In Sundry,Other Provisions) Provisions Standard-General-0.40% Agri/SME-0.25% CRE-1% CRE HOUSING- 0.75% Sub Standard-=Overall-15%For Unsecured Portion Additional 10%.(25%) For Infrastructure Accounts Additional (20%) Doubtful(Secured)- Upto 12 Months-25%(D1) 1 To 3 Years-40%(D2) More Than 3 Years-100%(D3) For Unsecured Portion In Doubtful Assets(Whether D1,D2 And D3)-100% And Loss -100% 54

56 IRAC STATUS : SUBSTD- 4 DOUBTFUL-D1-5 D2-6 D3-7 LOSS- 8 SPECIAL MENTION ACCOUNTS. SMA 0 Principal Or Interest Payment Not Overdue For More Than 30 Days But Account Showing Signs Of Incipient Stress SMA 1 Principal Or Interest Payment Overdue Between Days SMA 2 Principal Or Interest Payment Overdue Between Days Identification Of Stress. 1. Delay Of 90 Days Or More In (A) Submission Of Stock Statement / Other Stipulated Operating Control Statements Or (B) Credit Monitoring Or Financial Statements Or (C) Non-Renewal Of Facilities Based On Audited Financials. 2. Actual Sales / Operating Profits Falling Short Of Projections Accepted For Loan Sanction By 40% Or More; Or A Single Event Of Non-Cooperation / Prevention From Conduct Of Stock Audits By Banks; Or Reduction Of Drawing Power (DP) By 20% Or More After A Stock Audit; Or Evidence Of Diversion Of Funds For Unapproved Purpose; Or Drop In Internal Risk Rating By 2 Or More Notches In A Single Review. 3. Return Of 3 Or More Cheques (Or Electronic Debit Instructions) Issued By Borrowers In 30 Days On Grounds Of Non-Availability Of Balance/DP In The Account Or Return Of 3 Or More Bills / Cheques Discounted Or Sent Under Collection By The Borrower. 4. Devolvement Of Deferred Payment Guarantee (DPG) Instalments Or Letters Of Credit (Lcs) Or Invocation Of Bank Guarantees (Bgs) And Its Non-Payment Within 30 Days. 55

57 5. Third Request For Extension Of Time Either For Creation Or Perfection Of Securities As Against Time Specified In Original Sanction Terms Or For Compliance With Any Other Terms And Conditions Of Sanction. 6. Increase In Frequency Of Overdrafts In Current Accounts. 7. The Borrower Reporting Stress In The Business And Financials. 8. Promoter(S) Pledging/Selling Their Shares In The Borrower Company Due To Financial Stress. CRILC Central Repository Of Information On Large Credits. Set Up By RBI. Banks To Inform Credit Information Including SMA Of Rs 5.00 Crores And Above To CRILC Banks To Form A Committee Called Joint Lenders Forum If Aggregate Loan Amount Of Rs 100 Crores And Above Is Reported As SMA 2 To CRILC, For Setting Right The Weakness Of The Account.(Consortium/Multiple Banking) Accelerated Provisioning In Cases Where Banks Fail To Report SMA Status Of The Accounts To CRILC Or Resort To Methods With The Intent To Conceal The Actual Status Of The Accounts Or Evergreen The Account, Banks Will Be Subjected To Accelerated Provisioning For These Accounts And/Or Other Supervisory Actions As Deemed Appropriate By RBI.: NPA STATUS PROVISIONING ACCELERATED PROVISIONING OVERALL BALANCE 15% UNSECURED 10% (Additional)-Total-25% SUB STANDARD(INFRASTRUCTURE) 20% UPTO 6 MONTH S-15%, MORE THAN 6 M ONTHS TO 1 YEAR25% 25%(Period Of Substd Upto 6 Months) 40%( Period Of Sub Standard Is 6 Mont Months To 1 Year) Same DOUBTFUL ASSETS PROVISIONING ACCELERATED PROVISIONING D1 Upto 1 Year 25%(Secured) 100% (Unsecured) 40% ( Secured) 100% ( Unsecured) SUB STANDARD(Other Than Infrastructure) 56

58 D 2 (2 And 3rd Year) 40% (Secured) 100% (Unsecured) 100% SARFAESI Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Not Applicable To Agriculture Property. Wherer Loan O/S Is Less Than Rs 1.00 Lac. Where Loan O/S Is Less Than 20% Of Sanctioned Limit. Notice Served Under 13(2)-Demand Notice- 60 Days 13(4)- Possession Notice.( To Be Published Within 7 Days Of Taking Possession In Two Daily Newspapers) Sale Notice-30 Days Notice To Be Published In Two Daily Public Newspapers. Aggrieved Party Can Make An Appeal To DRT. If Still Not Satisfied With The Decision Of DRT, He Can Approach DRAT. Under Sarfaesi Act-For Making An Appeal To DRAT-Deposit Of 50% Of The Due Amount Should Be Made, DRAT May Reduce It To 25% Right Of Redemption For The Borrower Ceases Before The Publication Of Sale Notice. Bank Reply To Borrower Notice Should Be Done Within 15 Days From The Date Of Receipt. Application Under Sec 14 To DM/CMM- 30 Days. Failure Of First Auction, The Authorised Officer Can Sell The Property Through Second Auction Immediately After 15 Days From The Date Of Publication/Service Of Sale Notice. CERSAI-CENTRAL REGISTRY OF SECURITISATION RECONSTRUCTION AND SECURITY INTEREST OF INDIA ASSET EM To Be Registered Within 30 Days With CERSAI From The Date Of Creation Of Mortgage. DRT- DEBT RECOVERY TRIBUNAL-COVERS LOANS OF RS LACS AND ABOVE. Presiding Officer Appointed By Central Govt For 5 Years Maximum Age Of 62 57

59 Disposal Of Application Within 180 Days From The Date Of Receipt. Appeal Can Be Made To DRAT(DEBT RECOVERY APPELATE TRIBUNAL) Within 45 Days From The Date Order Subject To Deposit Of 75% Of The Due Amount. DRAT To Dispose The Case Within 180 Days LOK ADALATAccount Should Be Classified As Doubtful And Loss Category. Cases Involving Upto Rs Lacs. Lok Adalat If Conducted By DRT No Ceiling Is Applicable. Supreme Court Has Suggested That Personal Loans Upto Rs Lacs Should Be Settled Through Lok Adalats FOREX AND BALANCESHEET ANYALYSIS. FOREIGN EXCHANGE Irrevocable LC-Cancelled Only With The Consent Of Beneficiary,Applicantbank,Confirming Bank. Nothing Mentioned Means It Is An Irrevocable LC. Red Clause LC-PRESHIPMENT FINANCE For Packing 58

60 Green Clause LC- Advance For Storage Of Goods In Warehouse. Standby LC- Performance/Bid Guarantee. Documentary LC-Bill Drawn Under Document Of Title To Goods. Revolving LC-Reinstatement Of Credit. Examination Of Documents By Issuing Bank-5 Banking Days Documents To Be Presented Not Later Than 21 Calendar Days After Shipment. FEMA( Foreign Exchange Management Act)-2/12/1999.,REMIttance Under Liberalised REMIttance Scheme-USD ( For Medical And Education, REMIttance Shall Be Done Beyond The Limit Under LRS Under Proper Estimation) Foreign Currency That Can Be Carried In Cash Libya/Iraq- USD 5000 Iran/Russian Federations/Common Wealth Of Pilgrimage- USD Others- USD 3000 Independent States/Haj Indian Currency That Can Be Brought To India- Rs 25000( Only Rs 100 For Nepal And Bhutan And Rs If He Is Returning From Pakistan And Bangladesh) Foreign Exchange Can Be Drawn 60 Days In Advance Foreign Exchange Upto USD 25000, A2 Need Not Be Insisted. Foreign Coins Can Be Held Without Any Limit. Dance Troupes, Artistes, Etc., Who Wish To Undertake Cultural Tours Abroad, Should Obtain Prior Approval From The Ministry Of Human Resources Development (Department Of Education And Culture), Government Of India, New Delhi. Diamond Dollar Account-, Firms And Companies Dealing In Purchase / Sale Of Rough Or Cut And Polished Diamonds / Precious Metal Jewellery Plain, Minakari And / Or Studded With / Without Diamond And / Or Other Stones, 59

61 With A Track Record Of At Least 2 Years In Import / Export Of Diamonds / Coloured Gemstones / Diamond And Coloured Gemstones Studded Jewellery / Plain Gold Jewellery And Having An Average Annual Turnover Of Rs. 3 Crores Or Above During The Preceding Three Licensing Years (Licensing Year Is From April To March) Are Permitted To Transact Their Business Through Diamond Dollar Accounts Balance Of Trade=Exports-Imports Direct Quotation Buy Low Sell High,Foreign Currency Is Fixed,Variable Unit Of Home Currency Value Date-Date Of Credit To Nostro TOM-Settled On Next Working Day,Spot-Within 48 Hours. Forwards-Predetermined Future Date Nostro-Our Account With You, Vostro-Your Account With Us, LORO-Their Account With Them. Gold Card Scheme For Exporters-For Worthy Exporters Without Any Default,Additional Stand By Limit Of Minimum 20% Will Be Given Apart From Regular Limit For Business Needs With Auto Renewal For 3 Years. Deemed Exports-Trade And Supplies Made Within India. Ex Sale To Foreign Tourists. R RETURN-ONCE IN 15 DAYS, XOS -6 MONTHS BEF-IMPORTS-6 MONTHS TO BE SUBMITTEDTO RBI. Bills Discount-Bill Buying Rate To Be Applied Encashment Of TC-TT Buying Rate To Be Applied. Retirement Of Bill-Bill Selling Rate To Be Applied. Direct Quotation- 1 $= Say Rs

62 Indirect Quotation- Rs 61.93= 1$ NRO Can Be Opened By Any Person Resident Outside India In Indian Rupee.Repatriation Is Restricted To Usd One Million-Can Be Opened In The Form Of SB/CD/TD.Joint Account With Resident Permitted. Foreign Nationals Visiting India Can Also Open NRO Accounts For A Maximum Period Of 6 Months, Loans Permitted. Incoterms-International Commercial Terms.(FOB- On Board, C&FCost And Freight, CIF- Cost, Insurance, Freight) Period Of Credit For Packing Credit- 360 Days Post Shipment- 365 Days. Transit Period- 25 Days. UCPDC 600- Uniform Customs And Practice For Documentary Credits- Has 39 Articles. 61

63 Accounts NRE NRO Park FCNR (B) To Park Overseas To Overseas Savings REMItted Savings REMItted To India After Converting To To Park Overseas Purpose To Of Savings Without India After Account Converting Converting To Rupees Rupees Earnings Into And Indian Rupees USD, EURO, GBP, CAD, JPY, Currency Rupees Rupees AUD, CHF, DKK, NZD, SEK Minimum USD Rs. 1,000 Balance Type 1000 Or Rs. 1,000 Equivalent Of Savings, Current, Savings, Current, TDR, TDR, STDR Account TDR,STDR STDR Investment Term Min: 1 Year Max: 10 Years Min: 7 Max: 10 Years Joint Holding Days Only With Nris(F Or S With Close Relatives Both With Resident And Permitted Now) Nris Repatriability Up To USD 1 Million Min: 1 Year Max: 5 Years Only With Nris ly ly Repatriable Of Principal (Conditional) Repatriable Repatriability ly Repatriable Subject To Deduction Of ly ly Repatriable 62

64 Of Interest Repatriable Tax Interest Income Is Taxed As Per India Income Tax Rules. Taxability In India Interest Income Tax In India Reduced Interest Income Tax In India INCOTERMS (INTERNATIONAL COMMERCIAL TERMS ) Abbreviation FOB Contract Terms On Board CFR Cost & Freight CIF Cost, Insurance & Freight Cost & Insurance C&I Explanation The Seller Delivers The Goods Only. The Buyer Will Bear The Costs And Risks Thereafter. The Seller Delivers The Goods And Pays The Freight. The Seller Delivers Goods Duly Insured And Pays The Freight. The Seller Delivers The Goods And Insures The Same. MAIN PARTIES TO LC Importer/Applicant Opening Bank Beneficiary Advising Bank Buyer Or Importer On Whose Request The LC Is Opened LC Opening Bank, Which Opens LC On Behalf Of Importer. Party In Whose Favors LC Is Opened I.E. Exporter Of Goods Bank Authorized By The Opening Bank, To Advise The 63

65 Confirming Bank Negotiating Bank LC To The Beneficiary. It Is Liable For Ensuring The Gaminess Of LC Bank Authorized By The Issuing Bank To Confirm The LC. By Confirmation, This Bank Adds Its Guarantee And Undertakes To Negotiate The Documents As Per The Terms Of LC The Bank, Which Negotiates The Documents. It May Be Confirming Bank Or Any Other Bank. IMPORTANT TYPES OF LCS S N TYPES 1 Irrevocable LC 2 Irrevocable Confirmed LC 3 Transferable LC 4 Red-Clause LC 5 Green-Clause Lc 6 Back To Back Lc SHORT DESCRIPTION An LC In Which Issuing Bank Gives A Definite Absolute And Irrevocable Undertaking To Honors Its Obligations Provided The Beneficiary Complies With All The Terms And Conditions Of LC. Once An Irrevocable LC Is Issued It Cannot Be Revoked/Amended Without The Consent Of The Beneficiary An Irrevocable LC Where Another Bank Adds Its Confirmation In Such A Credit. Confirming Bank Gives Definite Undertaking To Pay/Accept/Negotiate If The Terms And Conditions Of The Credit Are Complied With. An Lc Containing A Specific Clause That It Is Transferable. This Gives The Beneficiary The Right To Request The Bank To Make The Credit Available In Whole Or In Parts To One Or More Beneficiaries. Transferable LC Can Be Transferred In Part Or Full. But It Can Be Transferred Only Once. An LC In Which A Provision Exists For Allowing Pre Shipment Credits To The Beneficiary For Procurement/Mfg Of Goods To Be Exported. An LC In Which Apart From Provisioning Of Allowing Pre Shipment Credit To The Issuing Bank Also Has To Arrange For Storage/Warehouse Facilities. Back To Back LC Involves To Irrevocable Credit. 64

66 7 Stand By LC 8 Revolving LC 9 Restricted LC Firstly The Inward Credit(Original LC) And The Second Called As Outward Credit( Back LC) Which Is Open On The Basis And Security Of The Original LC An LC Very Similar To Bank Guarantee By The Issuing Bank Guarantying Payment And /Or Or Performance(No Movement Of Goods) Under Lcs The Part Amount Which Has Been Utilized, Is Automatically Restored And Is Available For Further Use. These Are Meant For More Than One Dealing. In Such LC Role Over Of Transaction Takes Place. LC In Which Negotiation Is Restricted To A Particular Bank TYPES OF BILL OF LADING On Board Bill Of Lading : It Acknowledges That The Goods Have Been Put On Board Of The Shipment. This Is Considered Safe For Negotiation Purpose. Clean Bill Of Lading : Which Bears No Superimposed Clause Or Notation That Expressly Declares The Defective Condition Of Goods Or Packaging. Ship Owner Can Disclaim His Liability On Loss To Goods In Case Of Such BL. Hence It Is Not Considered Safe. Long Form Bill Of Lading :All Terms And Conditions Of Carriage Are Given On The Document. Through Bill Of Lading : That Covers The Entire Voyage Covering Several Modes Of Transport. There Is No Guarantee Of The Carriers For Safe Carriage Of Goods. Short Form Bill Of Lading : Terms And Conditions Of Carriage Are Not Printed On The Bill Of Lading But A Reference To Another Document Containing Term And Conditions Is Made. Chartered Party Of Lading : Issued To Chartered Party Who Has Hired Space In Vessel. Straight Bill Of Lading : Non-Negotiable BL That Is Issued Directly In The Name Of The Consignee, Where The Goods Will Be Delivered To The Consignee. 65

67 RFC A Non Resident Indian, Who Returns To Homeland (India), Is Allowed To Open, Hold And Maintain Account In Foreign Currency With Authorised Dealer Banks In India. The Account Is Called 'RESIDENT FOREIGN CURRENCY (RFC) ACCOUNT'.Example-Terminal Benefit,Pension From Employer. RFC Account May Be Opened By An Individual In The Form Of Savings, Current Or Term Deposit Account. Account Can Be Opened Singly Or Jointly.No Loan Is Permitted Against RFC Deposits. RFC DOMESTIC-Resident Individuals-ONLY CURRENT PERMITTED,FOREIGN CURRENCY ACQUIRED BY GIFT ETC ACCOUNT EEFC- Indian Exporter,100% Foreign Exchange Earnings Can Be Placed In Account,No Loan,Only Current Account Can Be Opened. ECB- External Commercial Borrowings- Loan Raised By Corporates,Hotels Software Companies From Non Resident Lenders. Maximum Amount Is USD 750 Million. ECGC Prior Permission Is Required For Negotiating Bills In Relation To Exports To : Group II Countries( North Korea, Syria, Palestine)-Cover Will Be Given On Case To Case Basis. Importer Can Receive Bills Directly If Value Of Import Is Not Exceeding: USD 3,00,000 Main Server Of Swift( Society For Worldwide Interbank Financial Telecommunication) In India Is Located At : Mumbai The Most Popular Bench Mark Rate For Indian Money Market For One Day Call Rates Is: MIBOR( Mumbai Interbank Offer Rate) What Is Current Account (Export Import Of Goods/Services + Net Income From Abroad+ Net Current Transfers). International Chamber Of Commerce Head Quarters Located In Paris France The Increasing Foreign Exchange Reserves In India Are Costly Because : Funds Are Idle And There Is Fluctuation Risk An Export Bill Purchased Is Returned Unpaid. Which Exchange Rate Will Be Applicable For Crystallising The Same: TT Selling Rate If Foreign Currency Position Is Oversold And Currency Is Appreciating : Bank Will Incur Loss 66

68 What Type Of Exchange Rate Will Be Applied, For Opening Of FCNR With USD 10000/-: No Rate Will Be Applied( Notional Rate Will Be Applied For Book Purpose) Realisation And Repatriation Of Proceeds Of Export Of Goods / Software / Services Shall Be Nine Months From The Date Of Export. Foreign Tourist / NRI On Their Visit To India Can Encash How Much Foreign Currency: Ans :US$ 3,000/- Per Month. PCFC Refinance From RBI- No Refinance Ceiling For FCNR Loans As Per RBI Guidelines- No Ceiling Pre-Shipment Export Concessional Rate Of Interest Can Be Extended Up To A Period Of Days? Ans:- According To Sanction Period Only (360 Days Can Be Given If Extended) Post Shipment Finance For Duty Drawback Entitlements/Receivables And Covered By ECGC Guarantee Is Available To Exporters At Concessional Rate And Refinance From RBI Upto A Maximum Period Of 90 Days From The Date Of Advance. Post-Shipment Advances Against Duty Drawback Entitlements: Eligible For Concessional ROI And Refinance From RBI Up To A Maximum Period Of 90 Days From The Date Of Advance. Concessional Rate Applicable To Exporters Under The Gold Card Scheme. Ans: Up To 365 Days Exchange Rates Are Determined By Market Forces Importer Exporter Code Is Allotted By...DGFT( Director General Of Foreign Trade). Form A1 : Forex Payment Exceeding USD Foreign Students Opening Accounts In India Should Be Submit Valid Proof Of Local Address Within 30 Days What Is The Target For Indian Banks For Export Credit Within Priority Sector: 2% Of ANBC Or OFF Balance Sheet Item Whichever Is More( Incremental Credit Over Preceding Year) ECGC Permission Is Required To Extend The Period Of PC: More Than 360 Days Liberalized REMIttance Is Available To: Resident Individuals Only. Why Crystallisation Is Done For Import Bill Or Export Bill?: To Convert Foreign Exchange Liability By Rupee Liability And Debiting The Account. Unspent Foreign Currencies To Be Returned Within 180 Days. Selling Rate Of Foreign Currency Is Higher Than TC- Holding Cost Of Currency Is High Export Bill O/S Reversed By Debiting Account- Crystallisation 67

69 Resident Returning From India Need Not Surrender Any Currency On Arrival-Only CDF To Be Given(Currency-$5000,TC-$ 10000). SWAP Mean Covering Loss Interest Rate On FCNR Should Not Exceed LIBOR/SWAP 200 Basis Points( Maturity 1 To 3 Years) And 300 Basis Points(3 To 5 Years) Retention Of Foreign Exchange Is Permitted Upto USD 2000 After Return From Overseas BALANCE SHEET ANALYSIS Ratio Analysis Liquidity Ratios Current Ratio= CA/CL Quickratio = CA-STOCK/CL Net Working Capital=CA-CL. Solvency Ratios Debt Equity Ratio=Long Term Debt/TNW DSCR=Debt Service Coverage Ratio-NP After Tax+Depreciation+Int On TL/Int On TL+Installment(Principle). Tangible Net Worth=Capital+ Reserves-Intangible Assets Activity Ratios. Fixed Assets Turnover =Sales/Fixed Assets. Inventory Turnover=Sales/Average Stock Debtor Turnover-=Sales/Average Debtors. Sales (-) VC(Variable Cost) = Contribution Contribution (-) FC(Fixed Cost) = PROFIT. 68

70 BEP In Units-FC/CONT PER UNIT PV Ratio(Profit Volume)-Contribution/Sales. Preliminary Expenses / Preoperative Expenses / Goodwill / Patents / Copyrights Are Examples Of Intangible Assets. Break Even Sales=Fixed Cost+ Variable Cost. Margin Of Safety-Sales Break Even Sales. Working Capital Gap= CA-(CL-BANK FINANCE). NWC= Current Assets Minus Current Liabilities Interest Coverage Ratio : EBIT (Earning Before Interest & Tax) Total Interest Obligation Turnover Method= 25% Of Projected Sales Less=5% Of Sales Or NWC Whichever Is Higher Balance Will Be MPBF II Method Of Lending. Working Capital Gap Less 25% Of Current Assets Or NWC Whichever Is Higher Balance Will Be MPBF. Example: Current Liability Is Rs 20 And NWC Is 10.What Is The Current Ratio. Solution= CA-CL= NWC X- 20=10 X Or Current Asset Will Be 30. CR Ratio-CA/CL I.E 30/20=1.50:1 BRREAKUP OF BALANCE SHEET 69

71 Current LiabilitiesDue Within One Year From Date Of Balance Sheet Short Term Bank Borrowing ( CC/ OD) Sundry Creditors For Trade, Bills Payable Advance From Customers For Supply Of Goods Outstanding/Accrued Expenses (Rent, Insurance) Unsecured Loans Provision For Taxation Installments Of Term Loan (Due Within 1 Year) Debentures, Preference Shares Due In 1 Year Other Current Liabilities Payable Within 1 Year Term LiabilitiesDue After One Year From Date Of Balance Sheet Term Loans Deferred Payment Credits Debentures, Deposit From Public Advance From Dealers (Payable After Termination Dealership) Unsecured Loans Preference Shares ( Due After 1 Year To 12 Years) Other Term Liabilities Of Net Worth- Owners Fund Paid-Up Capital Preference Share Capital (Due After 12 Years) General Reserve Capital Reserve (Excluding Revaluation Reserve) Capital Redemption Reserve Dividend Equalisation Reserve Unsecured Loans With Undertaking (Letter Of Pegging) & Conditions As Quasi Capital Current AssetsTo Be Converted To Cash Within One Operating Cycle 70

72 Cash & Bank Balances Investments (As Per RBI Guidelines) Receivables, Sundry Debtors (Up To 6 Months) Bills Receivable Inventory- R.M., SFG, FG (Excluding Obsolete) Advances To Suppliers For R.M. Prepaid Expenses- Tax, Rent, Insurance Intangible AssetsGoodwill (Reputation Associated With Business) Copyright (Amount Paid To Author To Obtain Copyright Of Book) Patents (Amount Paid For Obtaining Patent Over A New Product) Trade Marks, Franchise ( Amount Paid For Getting Exclusive Right For Using A Brand) Preliminary Expenses (Company Formation Expenses Capitalised) Losses ( Debit Balance In P & L A/C) Bad Debts Not Provided Deferred Revenue Expenditure Pre-Operative Expenses ( Before Production) Unsecured Loans Unsecured Loans From Friends And Relatives Can Be Considered As A Part Of Net Worth If Such Borrowings Are Backed By A Letter Of Pegging That The Amount Will Not Be Withdrawn During The Currency Of The Bank s. No Interest Is Payable. IF Interest Is Payable Then The Same Can Be Considered As Quasi Capital And An Undertaking Should Be Obtained From The Borrower That The Same Will Not Be Withdrawn During The Currency Of The Loan. GOVT SCHEMES. PRADHAN MANDIRI JAN DHAN What Are The Features Of BSBDA. There Is No Requirement Of Minimum Balance. 71

73 The Services Available Include Deposit And Withdrawal Of Cash At Bank Branch As Well As Atms; Receipt/Credit Of Money Through Electronic Payment Channels Or By Means Of Collection/Deposit Of Cheques. Maximum Of 4 Withdrawals A Month Including ATM Withdrawal. No Such Limit For Deposits. Facility Of ATM Card Or ATM-Cum-Debit Card. These Facilities Are To Be Provided Without Any Extra Cost. Minimum Age Under BSBDA-Above 10 Years. Debit Card Given Under BSBDA. Rupay Card,To Be Used Atleast Once In 45 Days.Accident Insurance (Rs 1.00 Lac)Cover Available, Life Insurance Cover Of Rs Is Also Available. What Is The OD Amount Given Under BSBDA Rs 5000 After 6 Months Of Satisfactory Operation, Only One Person In The Family PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA (PMJJBY) Age Of The Insured Bank Account Holders Aged Between 18 And 50 Years Are Eligible To Apply For This Scheme. So, If You Are Aged More Than 50 Years, You Are Not Eligible To Enroll Yourself For This Scheme. But, Once Enrolled, You Can Continue With This Scheme Till You Attain The Age Of 55 Years. Premium Amount Less Than Re. 1 A Day Or An Annual Premium Of Rs. 330 Is What You Need To Pay To Get A Life Cover Of Rs. 2 Lacs. No Matter What Your Age Is, The Premium Is Fixed At Rs. 330 For A Life Cover Of Rs. 2 Lacs. This Annual Premium Of Rs. 330 Has Been Fixed For The First Three Years From June 1, 2015 To May 31, 2018, After Which It Will Again Be Reviewed Based On The Insurers Annual Claims Experience. Period Of Insurance June 1st, 2015 To May 31st, 2016 Is The Period For Which This Scheme Will Cover All Kind Of Risks To Your Life In The First Year Of Operation. Next Year Onwards As Well, The Risk Cover Period Will Remain June 1 To May 31. LIC As The Administrator The Scheme Would Be Offered / Administered By The Life Insurance Corporation (LIC) And Other Life Insurance Companies Like SBI, ICICI Etc. Through Their Tie Ups With The Interested Banks Like SBI, ICICI, Canara Bank Etc. Participating Banks Are To Engage Any Such Life Insurance Company For Implementing This Scheme For Their Subscribers. Auto Debit Facility Annual Premium Of Rs. 330 Will Get Deducted From Your Savings Bank Account Through Auto Debit Facility. You Will Have To 72

74 Give Your Consent For Auto Debit Of Premium From Any One Of Your Bank Accounts At The Time Of Enrolling For This Scheme. Last Date For Enrolment May 31, 2015 Is The Last Date For Getting Enrolled For This Scheme, But The Government Has Given An Extension Of Three Months Up To August 31, 2015 For Us To Get Enrolled And Give AutoDebit Consent For This Scheme. This Enrolment Period May Be Extended By The Government For Another Period Of Three Months, Up To November 30, PRADHAN MANTRI SURAKSHA BIMA YOJANA (PMSBY) Policy Coverage The Scheme Offers To Provide You Or Your Family A Cover Of Up To Rs. 2 Lacs In Case Of Any Mishappening, Resulting Into Death Or Disability Of The Insured. In Case Of Death Or Full Disability, You Or Your Family Will Get Rs. 2 Lacs And In Case Of Partial Disability, You Will Get Rs. 1 Lac. Full Disability Means Loss Of Both Eyes Or Both Legs Or Both Hands, Whereas Partial Disability Means Loss Of One Eye Or One Leg Or One Hand. Age Of The Insured Savings Bank Account Holders Aged Between 18 Years And 70 Years Are Eligible To Apply For This Scheme. People Aged More Than 70 Years Will Not Be Able To Get The Benefits Of This Scheme. PrEMIum Amount It Costs You Just Rs. 12 In Annual PrEMIum For Having An Accidental Death Or Disability Cover Of Rs. 2 Lacs Under This Scheme. It Works Out To Be Just Re. 1 A Month, Which Is Extraordinarily Low. Again, Your Age Has Nothing To Do With The PrEMIum Payable For Your Insurance Cover Under This Scheme As The PrEMIum Is Fixed At Rs. 12 For A Cover Of Rs. 2 Lacs. Period Of Insurance You Will Remain Insured For A Period Of One Year From June 1, 2015 To May 31, Next Year Onwards As Well, The Risk Cover Period Will Remain To Be June 1 To May 31. Administrators For PMSBY The Scheme Would Be Offered / Administered By Many Of The General Insurance Companies, Both In The Public Sector As Well As In The Private Sector. Participating Banks Will Be To Engage Any Such General Insurance Company For Implementing The Scheme For 73