Dipesh Kumar

CREDIT MONITORING
It is a process of safe guarding and keeping healthy advance portfolio. It is also very helpful in mitigating Risk in the area of Credit. There are various tools through which quality of credit portfolio can be improved.

Tools of Credit Monitoring

Post Sanction Review Post Disbursement/Periodical Inspection & Valuation Monthly Stock & BD Statement MMR/QMR/QIS/Quarterly CA Certified BD Statements Stock Audit & Credit Audit Insurance Review Credit Rating Enforcement of Documents Registration of Charges ASCROM

Post Sanction Review (PSR)

Timely Submission for PSR / Reporting of sanctions to the

controlling office. PSR Observations are received and rectification thereof Whether all the terms and conditions of sanction / disbursements are complied . Whether disbursement authority has been obtained from appropriate authority . Disbursement/ release made according to terms of sanction / Banks guidelines Vetting of documents done as per banks guidelines

Post Disbursement /Periodical Inspection & Valuation of Securities

Periodic

inspection of Primary and collateral securities to be done as per guidelines. Periodic valuation of securities as per guidelines and necessary steps are taken in case of erosion in value of securities.

Stock & Book Debt Statement (DP Statement)

Timely submission of DP statement as

per sanction. Fixing of DP is done on monthly basis and correctly fed in CBS system. (DP indicator i.e. Equal / Derived / Parent / Maintained, to be correctly selected)

MMR / QMR /QIS / Qtly CA certified BD Statement

Whether quarterly CA certified book debt

statement & QIS statements are submitted in time / regularly Proper Scrutiny of QIS / Compare with the Projection Monthly Monitoring reports / QMR are submitted to Controlling Authority in time. All field in MMR/QMR to be correctly fed

Stock Audit & Credit Audit

Whether Stock audit is conducted as per

Banks guidelines, deficiencies rectified & Rectification Certificate submitted Credit Audit reports are available in all eligible accounts as per banks guidelines and deficiencies rectified & Rectification Certificate submitted

Insurance
whether due date diary for insurance is maintained and fed in system Insurance covers for full value / insurable value has been obtained

and in force Insurance with bank clause.

Review
Timely

receipt of renewal proposal (Financial Papers) from Borrower. Timely Renewal of limits, and submission of proposal/ recommendation for renewal to higher authorities in applicable cases. Short review / Technical review conducted as per guidelines. Timely submission of reviewed proposal for PSR to higher authorities.

Credit Rating
Whether Internal credit rating in appropriate

model i.e. BOBRAM / MSME/ Retail credit has been carried out as per latest credit policy guidelines. Credit Rating to be done timely and ROI to be reset accordingly. Reviewing and obtaining fresh external ratings in applicable cases as per guidelines

Enforcement of Documents
Whether Acknowledgement Of Debts Revival Letters Renewal of documents Renewal of Mortgages have been obtained within time as per guidelines / Limitation Act Documents / mortgages are in force .

Registration of Charges
Whether charge created with ROC at the time of fresh /enhancement of limit /disbursement.
Whether Search / Verification of charge conducted

with ROC once in a year In respect of Equitable Mortgage / banks lien is notified to Central Registry/ Revenue Authority . In case of vehicles / other retail Loans banks lien / charge is to be registered with RTO / concerned authorities and all necessary compliances made as per guidelines.

ASCROM
Whether the classification of assets as NPA in

ASCROM & FINACLE are common in both the lists & there is no divergence. Obtaining the potential NPA A/cs list generated in ASCROM and recovery of CADU amount. Preparation of ASCROM data input sheet in eligible accounts as per the guidelines.

THANKS