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Transcript of SIBM 13092010
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Syndicate Institute of Bank
Management, Manipal
Training Program on High Value Advances
13 to 18th September, 2010
Credit Appraisal for Large and
Corporate Advances
Prof Chowdari Prasad, TAPMI, Manipal
Sept 13, 2010
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Financial Results March, 2010
Parameters Year endedMar 09
Year endedMar 10
Quarter ended
Mar 09
Quarter ended
Mar 10
Operating Profit 1671 1873 466 552
Net Profit 913 813 207 168
Net Interest Income 2548 2740 547 861
Net Interest Margin 2.75 2.35 2.37 2.89Capital Adequacy Ratio (%) 12.68 12.70 12.68 12.70
Gross NPA Ratio (%) 1.93 2.19 1.93 2.19
Net NPA Ratio (%) 0.77 1.07 0.77 1.07
Business 198380 208476
Deposits 115885 117026Advances 82495 91450
Cost of Deposits (%) 6.98 6.14
Yield on Advances (%) 10.73 9.40
CASA Share (%) to Dom. Dep 28.89 32.86
Credit- Deposit Ratio (%) 71.19 78.15 Rs. In Crore9/13/2010 High Value Advances 3
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About Syndicate Bank 2010
www.syndicatebank.in Rs. In Cr
Parameters Quarter endedJun 09
Quarter endedJun 10
Operating Profit 516 587
Net Profit 262 265
Net Interest Income 565 964
Net Interest Margin (%) 2.12 3.09Capital Adequacy Ratio (%) 13.39 12.37
Gross NPA Ratio (%) 1.91 2.31
Net NPA Ratio (%) 1.02 1.06
Earning per Share 20.04 20.34
Business 199686 202622Deposits 116317 108560
Advances 83367 94062
Cost of Deposits (%) 6.62 5.27
Yield on Advances (%) 9.71 9.08
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About TAPMI in 2010
www.tapmi.edu.in
Founded by late Shri TA Pai in 1980 as MIM
Renamed as TAPMI after his demise
First Batch of 2 year PGP commenced in 1984
Completed 25 plus years of Excellence inManagement Education as on date
Fully residential top-class Campus in 2009 Eminent Personalities visit TAPMI in 26 years
Expansion, diversification & collaborations
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TAPMI : Vision and Mission
VISION: to make TAPMI an excellent institution in theIndia / Asia-Pacific region, a place that is intellectually exciting, financially and academically autonomous, withsustainable competitive advantage in all its activities.
MISSION: "We are committed to excellence inmanagement education, research and practice bynurturing and developing global wealth creators andleaders. We shall continually benchmark ourselvesagainst the best-in-class institutions. We shall fostercontinuous learning and reflection, achievement-orientation, creative interdependence, and respect fordiversity with a holistic concern for ethics, environmentand the society"
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About me Four decades of service in Public / Pvt Orgns (1971)
Post Graduate in Commerce, Osmania University plusCAIIB, CIF, Dip TD, Dip MB, Dip IR, CompHindi (GOI)
Worked in Andhra Bank, SBI, VBLL 25 years
Vice President in a 100% EOU for 3 years in Hyd, AP
Teaching at TAPMI, Manipal since May 1999
<3 years break in Alliance B-School (2006-2009)
Academic Admn, Training, Research, Consulting etc.
Life Member IIBF, ISTD, AIMA, Director LC, 2 BOS
Reach : [email protected] or 9482549472
Find me in google.com; scribd.com; or wiziq.com
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Agenda for Today
Advances Portfolio
Lending Policies
Credit Management
Credit Policy in a Bank
Regulatory Framework
Prudential Norms
Types of Borrowers
Credit Evaluation : WC
Credit Evaluation : TLs Dynamics of Foreign Exch
EXIM Bank, ECGC
Types of Credit Facilities
Documentation
Monitoring & Follow Up
Prudential Norms on
Capital Adequacy andCredit Risk Management
Recovery Management
Microfinance
Credit Rating, Credit
Scoring and CreditInformation Bureau
Comprehensive Case Study
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Advances Portfolio1. Working Capital Advances Cash Credit a/cs
1. Against Stocks, Bills Receivables, etc.(Hypn/Pledge)
2. Bridge Loans, Overdrafts, Consortium, etc.
3. Pre-Shipment and Post-Shipment Advances
2. Term Loans for (with or without mortgages)
1. Land, Buildings
2. Plant & Machinery moveable or immoveable
3. Lease Financing, Hire Purchase of machinery4. Non-Fund Based
1.LCs 2.Guarantees 3.Deferred Payment Guarantees
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Lending Policies of Bank
Primary and Secondary Functions of a Bank
Directed Lending and Normal Lending
Wholesale and Retail Banking / Lending
Requirements for Effective Lending Various Laws like Contract Act, Partnership Act,
Companies Act, Sale of Goods Act, Transfer of Property Act, Stamp Act, Information Technology
Act, Income Tax and other Acts (Sales Tax, Excise& Customs Rules) Registration Act, IndustrialLaws (PF, Wages, Bonus, ESI etc), FEMA, etc
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Bank Lending Directed or Normal Lending
Retail or Wholesale Lending?
± Wholesale Lending is lending to Corporates
± Small number of Large Advances : Follow up is easy
± Products are customized and complicated too ± Cost of maintenance is low
± Personal attention can be extended; Relationship
± Risk is very high
± Yields may be low
± Highly demanding customers;
± Encourages concentration of wealth in few hands
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Principles & Objectives of
Credit Management
Objectives of Credit Management
Qualities of a Good Borrower : 6 Cs of a Bank
Cardinal Principles of Bank Lending
An Ideal Advance?
Stages in a Credit Cycle
Client / Customer Acceptance Criteria?
Modes of Credit Disbursement
Fair Practices Code
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PROJECT APPRAISAL
a) Market and Economic aspects.
b) Technical aspects.
c) Financial aspects.
d) Managerial aspects.
Post-sanction Supervision and Follow Up of Loans
Post-sanction, supervision and follow-up of loans is an important function as it
helps in keeping a watch on conduct and operational/financial performance of
the borrowal accounts.
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6 Cs
1. Character: difficult to judge / measure2. Capacity: To possess required skills
3. Capital: Owners stake in business or Margin
4. Collateral: additional / secondary security5. Conditions: Economy, Demand, Prospects,
availability of raw material/men,
Infrastructural facilities, etc.6. Credit Record: Track Record, Market Credit
Reports or through CIBIL sources.
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Ideal Advance
According to L.C. Mather, an ideal advance isone which is
± Granted to a reliable customer;
± For an approved purpose;
± In which the customer has adequate experience;
± Safe in the knowledge that the money will be usedto advantage and
±Repayment will be made within a reasonableperiod from Trading receipt or other knownmaturities.
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Credit Cycle
1. Prospecting: present customers/market survey
2. Credit Investigation: gathering information
3. Credit Proposal: Basic info, Risk Assessment, etc
4. Credit Approval: critical stage;
5. Credit Disbursement: related to progress of
work; Mode of Disbursement cash / kind.
6. Credit Monitoring: On an on-going basis thro
visits to unit, inspections, stock statements, bills
and transactions in the loan account..
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CONSIDERATIONS BEFORE MAKING OR
RECOMMENDING ADVANCESi. The means of the applicant and guarantors should be verified by
independent enquiries and if possible by examination of their books.
ii. The details of the assets of the applicant, with specific reference to his liquid
assets viz. cash, book debts, stocks etc.
iii. The details of the liabilities of the applicant ± whether short-term or long-term.
iv. The extent of the margin available with the applicant, which is indicated by
the excess of the liquid assets over the current liabilities.
v. The experience of the applicant in the business or the line of activity in which
he proposes to utilize the money to be borrowed from the bank.Pre-sanction and Post-sanction Follow Up Check List
In order to strengthen the pre-sanction appraisal and to avoid the quick mortality
cases, banks today have evolved check lists governing areas of pre-sanction
appraisal and post-sanction follow-up for meticulous compliance by all those
associated with the credit dispensation.
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RBI Guidelines : Fair Practices
DBOD Leg.No.BC.104/09.07.007/2002-03 dated May05, 2003 to all the banks / AIFIs : Guideli nes on Fai r Pract i ces Code f or Lenders
DBOD No. Leg. BC.65/09.07.005/2006-07 datedMarch 06, 2007 to ASCBs/AIFIs : Guideli nes on Fai r Pract i ces Code f or Lenders
DBOD No. Leg.BC.28/09.07.005/2007-08 datedAugust 22, 2007 to ASCBs/AIFIs : Guideli nes on Fai r Pract i ces Code f or Lenders : F urni shi ng Copy o f Loan
Agr eement
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FAIR PRACTICE CODE
Credit Information Bureau (I) Ltd. (Cibil)
Loaning Powers And Responsibilities of Incumbents
Pricing of Credit (Interest Rates) and Credit Rating System
Advances to Limited Liability Companies
Advances To Partnership Firms
Advances to Hindu Undivided Families (Huf)
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Credit Policy in Banks
Meaning of Credit Policy of a Bank
Four Types of Credit Culture:
± 1. Quality of Loans
± 2. Short term gains are priority ± 3. Market Share and Growth and
± 4. No clear priorities or focus leading to ambiguity!
Objectives of a Sound Credit Policy
Regulatory requirements under Credit Policy
Credit Policy as a Risk Management Tool
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Regulatory Framework
Cash Reserve Ratio (CRR)
Methodology for maintenance of CRR
Statutory Liquidity Ratio (SLR)
Approved Securities for SLR
Penalty for Non-Maintenance of CRR / SLR
Priority Sector Lending @ 40% of Advances
Capital Adequacy Ratio at 9% and above
Basel I, II and now towards III
Asset Liability Management / Risk Management
Benchmark Prime Lending Rate / Base Rate?9/13/2010 23High Value Advances
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CREDIT RISK MANAGEMENT
"Credit risk," means the possibility of loss associated with diminution in the credit
quality of borrowers or counter parties. These counter parties may include an
individual, corporate, bank, financial institution or a sovereign.
In a bank's portfolio, losses stem from outright default due to inability or
unwillingness of a customer or counter party to meet, commitments in relation to
lending, trading, settlement and other financial transactions.
Banks have put in place "Credit Risk Management Division" to monitor credit
portfolio from time to time on a periodical basis besides enabling Technology-
based risk rating tools to assess the loan proposals and track deficiencies.
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Prudential Norms
Income Recognition & Asset Classification norms
Meaning of Standard Asset, Sub-Standard,
Doubtful and Loss Assets
Norms for treating an advance as Non-
Performing Asset
Provisioning norms for various classes of assets
RBI Guidelines on appropriation of recoveries
Concept of ENPA (Earnings to Net NPAs)
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Types of Borrowers
Various types of borrowers: Sole Prop; HUF; PartnershipFirms (AOPs, LLPs and LLCs); Societies / Clubs /Associations / Trusts / Multi-National Companies and
Private and Public Limited Companies MOA / AOA / Listof Directors /Cert of Incorporation/ Cert of
Commencement/ Common Seal/ Powers / Prospectus forIPO / Resolutions / AGMs and EGMs / Registrar of Companies requirements / Listing requirements / Q1-4
Special features of each type of borrower as above
Salient points to be noted while dealing with Minors
Limited Co formalities for creation of charge on assets
MCA 21e-Filing of returns of Limited Companies
Hindu Undivided Family precautions to be taken
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Types of Credit Facilities
Types of facilities
Overdraft, Cash Credit, bills facility, Term Loans
Fund-Based and Non-Fund Based facilities Bank Guarantees (BG)
Letter of Credit (LC)
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Credit Evaluation :
Working Capital Finance
Meaning of Working Capital
Kinds of Working Capital
Operating cycle Factors affecting the level of working capital
Assessment of Working Capital
Methods of Assessment of Working Capital Tools of financial statement analysis
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10 Factors affecting WC1. Nature of Business
2. Growth of Business
3. Seasonality of Business
4. Production Policy
5. Period of Conversion6. Selling Policy
7. Taxation Policy
8. Government Regulations
9. Ploughing back of Profits and
10.Business Cycles
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Working Capital Loan And Cash Credit System
Working capital lending still a major
functional area for commercial banks
Conventionally, working capital financing in
India is in the form of cash credit facility
Under the cash credit system, the lending
bank sanctions a maximum loan limit to a
customer Utilisation is subject to availability of
adequate assets pledged or hypothecated
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Working Capital Loan And Cash Credit System
The drawing power is adjusted at regular
intervals (normally once a month) by
considering the level of current asset that
has been paid for and deducting margin(s)
therefrom at stipulated rate(s)
These margins are worked out in line with
the lending norms of Tandon Committee.
The amount of loan outstanding can vary
freely within the drawing power and at times
the balance in the cash credit account can
even be in credit
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Working Capital Loan And Cash Credit System
Interest is payable based on the actual level of loan enjoyed on a daily product basis
Thus, a fixed limit is worked out for any loan
account by assessing the customer¶s peak
requirement on the basis of its projected holding of current asset
Once this limit is set, the borrower becomes
virtually entitled to draw, subject to sufficientcurrent asset holding, any amount up to the limit.
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Working Capital Loan And Cash Credit System
The borrower hasthe option to draw at any point of time,
without any prior notice, up to the extent of
the limit
but no corresponding obligation either to
compensate the banker for this option or to
ensure an optimum utilization of the facility at
all points of time
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Tandon Committee Norms ± Style Of Credit
The first and the most substantial work in the fieldof working capital finance in India was done by the
Tandon Committee
The Committee aimed at inculcating in theborrowers the habit of making an effective financial
planning through a system of reward and penalty
It suggested that the working capital facility shouldbe bifurcated into two components
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Tandon Committee Norms ± Style Of Credit
(i) A fixed or demand loan component,interest on which is to be charged at a certain fixed
rate throughout the year
(ii) A variable or cash credit component,interest on which is to be charged at a somewhat
higher rate. This component would indicate by
what amount the level of borrowing for a particular
customer exceeds the demand loan component
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Tandon Committee Norms ± Style Of Credit
If a borrower projects the demand loan componentat a ³higher than necessary´ level, he would end
up paying interest on amounts not actually
required by it.
If he projects the demand loan at a low level, much
of its withdrawals will attract a higher rate of
interest and the overall interest cost over the year
would not be minimized.
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Tandon Committee Norms ± Style Of Credit
It would, therefore, be in the interest of theborrowing company to ensure an efficient financial
planning and to project correct levels for its
projected fund requirement
Once the monthly requirement of working capital is
submitted by a borrowing company, the lending
bank has to work out the optimum level for
demand loan that will minimize the annual interest
burden
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CHORE COMMITTEE
Recommendations of the committee are summarized below:-
I. Continuance of the existing system
II. No bifurcation of cash credit accounts
III. Separate limit for peak level and non peak level periods
IV. Regulation of drawal of funds/Qtrly Statements:
V. No frequent sanction of Adhoc or Temporary Limits.
VI. Enhancement of Borrowers contribution
VII.Compulsory implementation:
a) Exception
b) Encouraging Bill Finance
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WORKING CAPITAL ASSESSMENT
GROSSWORKING CAPITAL AND NETWORKING CAPITAL ± AN EASY UNDERSTANDING
Areas GrossWorking Capital NetWorking Capital
Meaning
Refers to the sum of current assets employed in the business for day-to-day operations and for utilizing the fixed assets at the optimum level. Total
of the current assets is not deducted from the total of current liabilities
Refers to the difference between current assetsand current liabilities. Excess of current assets
over current liabilities is net working capital
Components
Cash and bank balances,
sundry debtors and bills receivables, raw materials, work in progress,
finished goods, consumable stores ,
prepaid expenses, advances given to suppliers of raw materials
Total current assets said in the opposite sideminus
creditors for raw materials and consumable
stores bills payable advance payments received from customers
deferred installments payable within a year term loan and debenture payable within a
year Salary, wages, sales tax, excise duty, PPF,
ESI outstanding dividend and tax payable
Financing
Generally current assets are financed by both long
-term and short-term sources of funds. Long-term source of funds refer toshare capital, debentures, term loans and short-term sources refer to bankoverdrafts, cash credit and sundry creditors
Net working capital is financed only by long-
term sourcesFor e.g.; share capital, debtors,term loans
Sign conventionIt is always a positive figure which suggests that without current assets, acompany cannot run. Hence gross concept is nothing, but the sum of all
current assets
It may be positive or negative. Positive figuregives the company¶s financial strength.
Negative figure indicates the company¶s poor financial position.
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Credit Evaluation : Term Loans
Meaning of Term Loan
Deferred Payment Guarantee (DPG)
Factors to be considered while considering a
Term Loan proposal
Technical, Economic and Financial Feasibility of a
Project
Use of Break Even Analysis, Sensitivity Analysis,Leverage, Interest Coverage and Debt Service
Coverage Ratios
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Dynamics of Foreign Exchange
Foreign Trade Policy in India : 2009-14
Foreign Exchange Rates : Direct / Indirect; (TT /
BC / TC /Currency) Buying/Selling; Spot/Forward
Pre-Shipment and Post-Shipment Credit Meaning and Types of Letter of Credit
Common Documents used in International Trade
EEFC., Exchange Earners Foreign Currency a/cs External Commercial Borrowing (ECB)
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Various Types of LCs
1. Inland and Foreign Letters of Credit
2. Demand and Usance Letter of Credit
3. Confirmed and Unconfirmed LC
4. Revocable and Irrevocable LC
5. Revolving LC
6. Red-Clause and Green Clause LC
7. Back-to-Back LC
8. Transferable and Non-Transferable LC
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Common Documents under L/C
1. Commercial Invoice
2. Consular Invoice
3. Packing Note / List
4. Certificate of Origin5. Insurance Certificate
6. Bills of Exchange orDrafts (DA or DP basis)
in 2 or 3 sets
7. Drawing arrangements
8. Bill of Lading
9. Airway Bill
10. Post Parcel
11. Railway/Lorry Receipt12. Bill of Entry
13. Exchange RegulationForms for Exports GR.
Or PP or VP/COD orSOFTEX Form
14. Customs Clearance.
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LETTER OF CREDIT
Definition
In simple terms, a letter of credit is an undertaking by a bank to make a payment to
a named beneficiary within a specified time, against the presentation of documents
which comply strictly with the terms of the letter of credit. The following diagram
shows those involved in a Letter of Credit transaction:
Issuing Bank
Importer
(Applicant) Underlying
contract
Advising/
Confirming Bank
Exporter
(Beneficiary)
Cont«.
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SWIFT www.swift.com Society for Worldwide Inter-bank Financial Telecommunication
HQ La Hulpe, Brussels, Belgium Provides reliable, fast tele-communication facilities for exchange
of financial messages all over the world between Banks and FIs
As non-profit making co-operative society in 1973 by 239 banksin 15 countries
Hubs in Brussels, New York and Netherlands
Rules in 1975; first message in 1977
>7,000 members in 200 countries now
Handles over 7 million messages every day
India a member since 1991
88 Indian banks are members as on date
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SWIFT contd...
Any Bank / FI can become a member Allots an address called Bank Identi-fication
Code (BIC) of 8 characters
Enables members to send secure and reliablemessages authenticated...
Correspondent bank arrangements...
Advantages: 24 hours service, system based fraud-free faster accurate confidential
funds/LCs/Guarantees
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Documentation
Meaning & Importance
Evidence
Steps involved in documentation
Procedure for execution of documents
Attestation / Registration of Documents
Time Barred / Renewal of Documents
Documents normally obtained from borrowers Types of Charges / Hypothecation/ Pledge/ Lien/
Assignment and / Different Types of Mortgages
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Monitoring and Follow-up
Meaning
Importance of Monitoring
Pre & Post-Disbursement Care
Off-Site and On-Site Monitoring
QIS Returns
Unit Inspection / Insurance of Assets
Early Warning Signals
Unfair Practices normally followed by borrowers
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Prudential Norms on Capital Adequacy
and Credit Risk Management
Narasimham Committee Recommendations
Basel I, II and now III norms
Approaches under Basel II
Tier I, II and III Capital
Meaning of Risk Weighted Assets
Mode of Computing the Capital Adequacy
Ratio of a Bank
Various Risk faced by a Bank
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Recovery Management
Legal and Non-Legal Methods of Recovery
Debt Recovery Tribunals (DRTs)
Compromise / One Time Settlements Corporate Debt Restructuring (CDR)
Asset Securitisation and Asset Reconstruction
SARFAESI Act, Provisions applicable to Banks Notices Issued to Borrowers under the Act
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Microfinance
Financial Problems faced by rural people in India
Meaning of Microfinance
Origin and Growth of Micro Finance in India and
abroad
Self Help Groups (SHGs) and their formation
Role of NABARD in Micro Finance
Assessment of Micro Finance Proposal
Grading of MFIs and NGOs
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Credit Rating, Credit Scoring & Credit
Information
Credit Scoring Mechanism of Syndicate Bank?
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Credit Rating Agencies in India
Rating and Methodology
Regulatory frame : SEBI
CRISIL
ICRA
CARE
Fitch (formerly Duffs & Phelps)
ONICRA SMERA
Brickwork Ratings
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www.brickworkratings.com
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1 2 3 4 5
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No
Initial
contact by
issuer
Introductory meet
of CRA & Issuer
Supply of data by
issuer
Rating Exercise by
analysts team
Analysis of new facts and
enlisting new unresolved
questions
Analysis of new
data on
company
Locating
possibility of
rating
Credit watch
Notification to
issuer
Detailed analysis
meeting with issuer
Meeting withissuer resolving
questions or
site visit by
analyst
Preparation of rating profile
for rating
committee
Rating committeediscussion & vote
to determine
rating
Notification of rating decision to
issuer
Issuer appeals
against rating
Formal
notification to
issuer
Additional facts
are presented
to rating
committee for
decision
Rating
surveillance
system
Yes
1 2 3 4 5
6 7 8
1 2 43
9
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9/15/2010 Credit Information Bureau 56
C I B I L : Background
October 1999 : Working Group constituted by
RBI recommends
Imperative Need for C I Bureau
To be in the private sector
To be of world class
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Membership of CIBIL
Banks : Public, Private, Foreign etc
All Financial Institutions
Non-Banking
Financial Companies
Housing Finance Companies
Credit Card Companies
Members will also be Customers !
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9/15/2010 Credit Information Bureau 58
C I B (India) Ltd.
March 2000 : MOU signed by SBI, HDFC, TransUnion International Inc., and Dun & Bradstreet
Information Services P Ltd.
January 2001 : Shareholders Agreement signedto establish
SBI : HDFC : T U : D & B
40% : 40 % : 10 % : 10 % Authorised Cap Rs 50 cr; Issued Rs 25 cr
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THANKS
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Comprehensive Case Study
9/13/2010 60High Value Advances
Ab id d B/S f MMC Ltd
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Abridged B/S of MMC Ltd.( as on 31st March, 2xx0) Rs in Lakhs
Liabilities Amount
Capital 900
Reserves 50
Profit and Loss a/c 90
Term Loan 150
Bills Payable 40
Deposits Short Term 125
Trade Creditors 250
Bank Borrowing 110
Total 1715
Assets Amount
Goodwill 200
Land and Building 200
Plant and Machinery 400
Furniture and Fixtures 200
Stocks 400
Trade Debtors 300
Cash at Bank 15
Total 1715
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B/S of MMC Ltd2
Other Information: ± Projected Sales for next year Rs. 1,200 lakhs
± Term Loan Instalment for next year Rs. 15 lakhs
Required:1. Regroup the B/S as per Bankers requirement
2. Calculate Current Ratio, Quick Ratio, Long Term
Debt Equity Ratio and TOL / TNW
3. What points you would take into account while
preparing the proposal recommending the limits
requested?
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B/S of MMC Ltd3
4. Work out the Working Capital Requirement of the Company under MPBF (Method 2) andProjected Turnover Methods.
5. What are the terms and conditions you would
prescribe when the request is favourablyconsidered?
6. What are the securities you insist and how theywill be taken as security for the banks facilities?
Mr M, one of the Directors has agreed to offerhis residence as a security for the proposal.
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B/S of MMC Ltd4
7. List out the important documents to be obtainedand procedure for creation of the banks interests onthe securities.
8. After two months of disbursement, you visit theunit. What points do you look for before, during andafter the visit?
9. After a couple of years, you find that the account isalways overdrawn, the borrower is not able toservice the interests, the cheques are bouncing,
Stock Statements not being submitted, despitebeing repeatedly followed up. How would you reactto the situation?
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B/S of MMC Ltd510. The bank is forced to classify the a/c as NPA. The
particulars of the account are:-a. Sanctioned Limit Rs. 2 cr
b. Balance Outstanding Rs. 2.20 cr
c. Interest debited / not recoveredRs. 0.10 crd. Value of stocks Rs. 1.00 cr
e. Value of Residential Building Rs. 0.50 cr
Find out the provisioning required during the
satisfactory conduct of the a/c; in the yearfollowing the a/c becoming NPA (Assuming thatthere is no recovery after declaring it as a NPA)
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B/S of MMC Ltd6
11. If a dialogue with the borrower and its
directors / key personnel fails, what measures
should the bank adopt to recover its dues?
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Any Questions Please?