ssg GROUP

7/23/2019 ssg GROUP

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Mentor: Sharad Agrawal (JGM)

Supervisor: Rajesh Narnolia(CM II)

Novemer !"# !$%&

Internship 'resentationermI*Strategi+ Solutions Group

(SSG) Rahul Mishra

,nrollNo-'.$%/%/CMG/&.

0AN I1: 0AN"//&"

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Content

Wholesale Banking Group (WBG)

ICICI Performance Highlights & Loan Portfolio’s

Aout !trategic !olutions Group (!!G)

"esolution #etho$ologies

!peci%c Actiities an$ 'ork $one

Conclusion

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2holesale 0an3ing Group(20G)

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ICICI 'er4orman+e 5ighlights

A$ances increase$ * +,-. *ear/on/*ear to "s- 0112-3

illion at 4une 50 5+,

"etail a$ances gro'th at 6-,. *ear/on/*ear at 4une 505+,

7erall $omestic loan gro'th at +2-6.

Perio$/en$ CA!A ratio at 66-+. at 4une 50 5+, compare$to 6-5. at 4une 50 5+6

8et 8PA ratio at +-65. at 4une 50 5+, 0 4une 50 5+695-32.)

6

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Composition o4 loan oo3 (6o 6)

,

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Aout SSG

:

Improving asset 7ualit8 and +losel8

monitoring e9posures under stress-'roa+tive a+tion whenever re7uired to

minimie the provisions and the lossesto the 0an3-

*arious me+hanisms are used 4orre+over8 o4 mone8• Restru+turing

• ;ne ime Settlement

•

Redu+tion o4 e9posure• Sale o4 assets to Asset Re+onstru+tion Companies

(ARCs) et+-

• Corporate 1et Restru+turing (C1R)

• Spe+ial 1et Restru+turing (S1R)

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Resolution Methodologies

2

Corre+tive A+tion 'lan (CA') under Joint

<ender =orum (J<=)Re+ti>+ation

Restru+turing

Re+over8

Settlement

<egal Re+ourse

Assignment o4 1et

Strategi+ 1et Restru+turing (S1R)

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Strateg8 =ramewor3 4orResolution

3

,n4or+ement S1R

Negotiated ,9it Restru+turing

Mgmt7ualit8

5igh

<o

w

<ow 5igh

*iailit8

N'A

A?2

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Restru+turing

1

A restru+tured a++ount is one where the an3# 4or e+onomi+ or

legal reasons relating to the orrower@s >nan+ial di+ult8#

grants to the orrower +on+essions that the an3 would not

otherwise +onsider-

Normall8 involves modi>+ation o4 terms o4 the

advan+esBse+urities# ma8 in+lude alteration o4 repa8ment

periodBrepa8ale amountB the amount o4 instalmentsBrate o4interest (due to reasons other than +ompetitive reasons)- he

aim is to preserve e+onomi+ value o4 viale assets-

<enders sign Inter Creditor Agreement (ICA) and lender and

orrower sign 1etor Credit Agreement (1CA)- J<= +an re4erthe orrower to Corporate 1et Restru+turing (C1R)

me+hanism or restru+ture independentl8 o4 it-

Restru+turing under C1R is a nonstatutor8# voluntar8

me+hanism 4or restru+turing-

C1R provides ene>t o4 +olle+tive argaining and e7ual terms

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Re+over8

+5

2hen re+ti>+ation are not seen as 4easile# re+over8 is

resorted to-

he J<= ma8 de+ide the est re+over8 pro+ess to e

4ollowed# among the various legal and other options

availale# to e9tra+t optimum results-

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Settlement

++

;ption normall8 e9plored in the +ase o4 orrowers with

lesser e9posure# or when orrower is unviale 4or

restru+turing# or re+over8 through legal re+ourse

seems remote-

he +riteria 4or de+iding on the settlement amount

would depend on the e9isting operations o4 the

+ompan8# 4uture prospe+ts# value o4 se+urit8 availale

to the an3 and 'resent *alue ('*) o4 returns-

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<egal Re+ourse

+

his option is e9plored when the promoter is not +o

operating# or where there are instan+es o4

diversionB4raud# or when the +ompan8 has +eased

operations-

he e9pe+ted '* o4 returns through the legal route to

e assessed against an8 settlement oer to de+ide on

the 4urther +ourse o4 a+tion-

In4ormation aout promoter and promoter assetsB other

engagements help while resorting to legal re+ourse-

he various means o4 legal re+ourse in+lude 1et

Re+over8 riunals (1R)# SAR=A,SI# +ivil re+over8 suit#

Se+tion %.D o4 the Negotiale Instruments A+t# or 8

de+laring the orrower as a wil4ul de4aulter-

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S1R

+

Gives lenders the right to +onvert their outstanding loans into

a majorit8 e7uit8 sta3e i4 the orrower 4ails to meet +onditions

stipulated under the restru+turing pa+3age-

his option must e in+orporated at the time o4 initial

restru+turing-

he de+ision on invo3ing the S1R should e ta3en within .$

da8s 4rom the aove review o4 the a++ount-

'ost the +onversion# all lenders under the J<= must +olle+tivel8

hold &%E or more o4 the e7uit8 shares issued 8 the +ompan8

he J<= must approve the S1R +onversion pa+3age within F$

da8s 4rom the date o4 de+iding to underta3e S1R# and this

+onversion should e +ompleted within a period o4 F$ da8s

4rom the date o4 approval o4 the S1R pa+3age 8 the J<=-

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Spe+i>+ A+tivities

+6

;ne 'agers

CMA

Credit Note

'ower 'oint 'resentation

Cover Note

,9press Renewal Note

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CMA

+,

'rovides a asis 4or >nan+ial anal8sis o4 a +ompan8

,9+el sheet +onsisting o4 several wor3sheets# with 'ro>t and<oss A++ount and 0alan+e Sheet (with proje+tions)# 2or3ing

Capital Assessment# Cash =low Statement# et+-

He8 =inan+ial 'arameters is an important sheet# whi+h

automati+all8 +al+ulates /D ratios whi+h give an insight into

the usinesss operations

Some o4 the major parameters are:

otal ;perating In+ome (;I): otal ;perating In+ome (;I)

growth or degrowth +an e used to determine demand

suppl8 s+enario 4or the +ompan8s produ+tsBservi+es-

Generall8 it should e loo3ed into in +onjun+tion with order

oo3 o4 the +ompan8-

,0I1A margin: It should e +ompared 4or +hange over the

8ears and in +omparison with peers

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CMA (+ontinuedK)

+:

Some o4 the major parameters are:

Interest: Compare 6o6 +hange- I4 in+reasing

signi>+antl8# it +an mean more det ta3en during

the 8ear# +apitalied interest now deited to 'L<# or

large depre+iation o4 rupee# i4 there are larger

4oreign +urren+8 loans

,9posure to group +ompanies: 1etails have to e

sought regarding proper valuation# and i4 it was

done out o4 additional e7uit8 or additional

orrowings-

1SCR: he higher# the etter

Guarantees: 5ow mu+h oligation +an 4all due on

the parent# and whether the guaranteed amountsare sel4sustainin

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Credit Note

+2

It is an e9haustive do+ument# providing a detailed

des+ription o4 the proposal- It +ontains details o4 assistan+e# R;,# pending

+omplian+es# usiness des+ription# >nan+ial

per4orman+e# proposal# and re+ommendations# et+- and

also +ontains several anne9ures 4or proje+t details#

CMA =orm * (4or +al+ulating ma9imum permissile an3

>nan+e)# R;, +al+ulator# se+urit8 +over# et+-

I was involved in the preparation o4 +redit note 4or the

susidiar8 o4 a real estate +ompan8 to e presented to

the Credit Committee (CC)

I was also involved in the preparation o4 a +over note

and '' 4or the same proposal

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,9press Renewal Note

+3

,9press renewal note is moved to renew

the +lients limits 4or a period o4 three

months-

I was involved in the preparation o4 an

e9press renewal note 4or the susidiar8

o4 an oshore servi+e provider oering

support servi+es to oil e9ploration and

produ+tion (,L') +ompanies-

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Spe+i>+ A+tivities

;ne 'agers 4or %$$ Companies

his +ontains a+3ground o4 the +ompan8# their

present status and management details-

It also +ontains >nan+ial details o4 the +ompan8

i-e- ;I# 'A# 1et et+-

'repared ;ne pagers 4or appro9- %$$

+ompanies and anal8e other 3e8 details o4

those +ompanies-

+1

A$oe Acroat

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Worksheet

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Companies Anal8sis

5

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Worksheet

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Spe+i>+ A+tivities

CMA

'rovides a asis 4or >nan+ial anal8sis o4 a

+ompan8

,9+el sheet +onsisting o4 several wor3sheets#

with 'ro>t and <oss A++ount and 0alan+e Sheet

(with proje+tions)# 2or3ing Capital Assessment#

Cash =low Statement# et+-

He8 =inan+ial 'arameters is an importantsheet# whi+h automati+all8 +al+ulates /D ratios

whi+h give an insight into the usinesss

operations

+

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?hank *ou

ssg GROUP

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