L&A

Cir. No. 47/2014

PUNJAB NATIONAL BANK INTEGRATED RISK MANAGEMENT DIVISION (CREDIT POLICY SECTION) HO : 7, Bhikhaiji Cama Place, New Delhi – 110 607.

CPY-2 April 23, 2014

TO ALL OFFICES

LOANS & ADVANCES CIRCULAR NO.47

Format for Sanction of Adhoc Limits/ Amendment in Terms and conditions/Confirmation of Action/ Relaxation in

ROI and Service Charges

Attention of Incumbents is invited to Annexure VII of L&A Circular No. 133 dated 30.8.2008, inter-alia, advising the format for Relaxation in ROI and Service Charges. Reference may also be made to L&A Circular No. 132 dated 21.10.2009 inter-alia advising Revised Standardized formats for Sanction of adhoc limits/Confirmation of action/ Amendment of terms & conditions.

2. Based on the experience and feedback, some modifications/additions in

the format available at Annexure have been carried out, so as to make it more objective and facilitate decision making. 3. It is advised that henceforth, the revised format may be used for proposals for Adhoc limits/Confirmation of action/Amendment of terms & conditions/Relaxation in ROI and Service Charges.

(B L PATHEJA) GENERAL MANAGER

INDEX: LOAN APPLICATION & PROPOSALS  

Annexure

Amendment in Terms & Conditions /Sanction of Adhoc limits/Confirmation of Action / Relaxation in ROI & Service Charges

SANCTIONING AUTHORITY 1. CRR “ “ (Score) ABS 31.03.____under

____rating model signifying__________Risk 2. External Rating:_______as per

___________Rating 3. Activity: 4. Group: 5. Banking: Sole/Multiple/Consortium/JLA 6. Lead Bank( if applicable) 7. PNB Share (if applicable) 8. Project Loan( if applicable)

Total cost of project: Rs.________________ Total Debt: Rs.___________ Our share: Rs.___________

MC HO CAC III HO CAC II HO CAC I Others

The proposal falls under the powers of MC/HOCAC III /II /I /Others on account of ____________________ Proposal Tracking No./date

1. Name of the Borrower: BO & Controlling Office:

(Rs.in crore) GIST OF THE PROPOSAL

A. Approval for amendments in Terms & Conditions

B. Sanction of Adhoc Limits

Existing Proposed Period of

adhoc ROI/ Charges

Income earned (Rs. In lac)

Last year Current year

FB NFB

C. For Confirmation of action (Mention particulars of action to be confirmed)

D. Relaxation in ROI and Service charges

Whether Adhoc/Confirmation/Amendment/Relaxation in ROI/service charges

Asset Classification as on_____

Credit Risk Rating by Bank

Facility Rating

RatingDate of Rating

ScoreABSReasons for degradation

Present Previous Present Previous

Rating from External Agency (The external rating should be mapped to the internal rating)

Facility Rated

Rating Date of Rating

Rating Agency

Remarks

Whether Agriculture/Retail/ SME/Large

a) Whether Sensitive Sector – Real Estate/Capital Market b) Applicable Risk weight

Consortium/Multiple Banking Lead Bank PNB’s Share % Date of Receipt of Proposal at BO/CO/HO

Date of last sanction & authority

2 Dealing with PNB since

3 Business Activity (Product)/ Installed Capacity.

4. Position of Account as on______

a) WC Limits

(Rs. in Crore) Nature Limit VS DP Balance Irregularity, if

any FB NFB Total b) Term Loan(s) (Rs. in Crore)

Nature Loan Sanctioned

Disbursed amount@

Value of security

Operative Limit*

Balance outstanding

Irregularity, if any

@Disbursed on__________________ *Note: The Operative Limit shall be as under: 1. In case fully disbursed, fully disbursed amount to be mentioned. 2. In case partly disbursed, partly disbursed amount to be mentioned. 3. In case repayment started, the amount due to be mentioned. 5. Financial Position of the Company

(Rs. in Crore)

31.3. 31.3. 31.3. Latest up to__ Audited Audited Audited Audited/Unaudited

I. Gross Sales II. % growth

III. Other Income IV. Profit before tax V. Profit after tax

VI. Tangible Net Worth VII. Net Working Capital

VIII. Current Ratio IX. Debt Equity Ratio X. TOL/TNW

6. SECURITY

A. Primary

B. Collateral

1) Exclusive charge by way of EM of ___ IPs with market value of Rs._________as on ________ and realizable value of Rs. _____.

2) I/II (pari-passu) charge over block assets of the company with residual

value of Rs.__________ .

3) Personal Guarantees of __ guarantors with combined Net Means of Rs.___________ including IPs worth Rs. _________.

4) Corporate Guarantee of M/s._____________ with TNW of Rs. as on

______.

C. Value of Our Share in Primary Security for Term Loan (in case of consortium Finance):

D. Collateral Coverage (our share): Amount:Rs._______________; __________%

7. Conduct of the Account: Satisfactory/ Unsatisfactory 8. Whether terms & conditions of previous sanction complied with:

Yes/No (Details of un-complied Terms to be furnished)

9. Rate of Interest Facility Existing Applicable CC TL

10. For Amendments in Term and Conditions / Confirmation of action/ Adhoc Sanction

A. For amendment in Terms and Conditions

Existing stipulation Proposed amendment Justification

B. Particulars of action to be Confirmed

Date of overdrawing

Nature of limit

Amount of sanctioned limit

Excess given Date of regularization

(Whether matter discussed with CO/FGMO/HO for concurrence/permission) Justification

C. Sanction of Adhoc facilities Accepted Level of Sale as per last assessment 200_ - 200_

Actual level of Sales

%age achievement

Sales upto last month of current year

Sanctioned FBWC limits

Adhoc limit proposed

Justification

D. For relaxation in ROI/ Service charges

Nature Facility Existing Proposed Applicable Rate of interest

Service charges

Justification

(Rs. In crore) Income value of borrowal

Sr. No.

Interest/discount income from:

Actual income during

current FY

Budgeted income for

the next FY

Remarks

1

Total Income from FB Credit Facilities (Interest - CC, OD, PC, TL, Bills - Inland & Foreign, Commitment Charges, TL Review Charges

A

2 Total Income from NFB credit Facilities

B

3Total Other Income (Processing Fee, Upfront Fee, Documentation Charges, Mi I )

C

Net Interest Income on balance lying in Current Account @ 9.00% p.a. on average balance (including Allied / G C )

4Net Interest Income on balance lying in Saving Accounts @ 4.00% p.a. on average balance (Promoters / F il A t )

D

Grand Total (A+B+C+D) 11. Recommendations

MANAGER/SR MANAGER CHIEF

MANAGER/AGM CIRCLE HEAD

FIELD GENERAL MANAGER