7 11 2016 32923 Udbhav Retail Asset Group Guiding Document

Oriental Bank of Commerce
Project Udbhav
Guiding Document for Retail Assets
Group
Date: 8 July 2016
RAG Guiding Document version 1.0 | Draft | Confidential | July 08, 2016
Contents
1.
Glossary of terms ...................................................................................................................... 4
2.
Scope of the guiding document ................................................................................................ 5
3.
Overview of the overall organization structure........................................................................ 6

3.1.
Principles of the design.......................................................................................................... 6
3.1.1. Clusters ................................................................................................................................. 6

3.1.2. Cluster Monitoring Offices (CMOs)....................................................................................... 7
3.2.
4.
Organization structure ........................................................................................................... 8
Overview of structure, processes, and roles in RAG vertical ............................................... 14

4.1.
Organization Structure ......................................................................................................... 15
4.1.1. Head Office ......................................................................................................................... 15

4.1.2. Cluster Monitoring Office .................................................................................................... 17
4.1.3. Clusters ............................................................................................................................... 18
4.1.4. Role of the branches ........................................................................................................... 19
4.1.5. Role of the Cluster Sales Team .......................................................................................... 20
4.1.6. Role of the Cluster Operations and Sanctioning Team ...................................................... 22
4.1.7. Role of the Cluster Collections and Monitoring Team ........................................................ 24
4.2.
Process Flow mapping of the Retail Assets Group (RAG) - Mortgage Backed
Credit facilities1 .................................................................................................................... 25
4.2.1. Sourcing .............................................................................................................................. 25

4.2.2. Processing........................................................................................................................... 26
4.2.3. Sanctioning ......................................................................................................................... 28
4.2.4. Execution of the Sanction ................................................................................................... 29
4.2.5. Disbursement ...................................................................................................................... 31
4.2.6. Post Sanction ...................................................................................................................... 32
4.2.7. Collection and Monitoring ................................................................................................... 33
4.2.8. Account Closure .................................................................................................................. 34
4.2.9. Reporting System ............................................................................................................... 35
4.2.10. Collection of Charges.......................................................................................................... 35
4.2.11. Processing of Service Requests post disbursement .......................................................... 35
4.2.12. Other Activities .................................................................................................................... 36
RAG Guiding Document version 1.0 | Draft for discussion only | Confidential | July 08, 2016
Page 2
4.2.13. Delegated Powers ............................................................................................................... 36

4.3.
Process Flow for non-mortgage backed credit facilities (Vehicle Loan, Personal
Loan and Educations Loans without Collateral Security) ................................................... 37
4.4.
Comparison of before and after work flow .......................................................................... 39
4.5.
Touchpoints for the customer and external linkages .......................................................... 40
4.6.
Role Mandates ..................................................................................................................... 42
4.6.1. Cluster Sanctioning Authority ......................................................................................... 42

4.6.2. Loan processing officer ................................................................................................... 43
4.6.3. Cluster Operations Officer ............................................................................................... 44
4.6.4. Cluster Sales ..................................................................................................................... 45
4.6.5. Collections and Monitoring Officer................................................................................. 46
4.6.6. Cluster Monitoring Office Head ....................................................................................... 47
4.6.7. Sales and Product Head ................................................................................................... 48
4.6.8. Operations and Collections Head ................................................................................... 49
5.
30-day Roll-out plan ................................................................................................................. 50
6.
Frequently Asked Questions (FAQs) ...................................................................................... 52
7.
Annexure 1: Checklists ........................................................................................................... 55
Page 3
1. Glossary of terms
Abbreviation
BCC
Full form
CIR
Branch Certificate of Compliance

Central Registry of Securitization Asset Reconstruction and
Security
Credit Information Report
CMO
Cluster Monitoring Office
CRG
Customer Relations Group
DP
Drawing Power
ECS
Electronic Clearing Service
JRC
Joint Registration Certificate
LC
Letter of Credit
LRM
Loan Review Mechanism
MOR
Monitoring Officers Report
NACH
National Automated Clearing House
NOC
No Objection Certificate
OSV
Original Seen and Verified
QIS
Quarterly Information System
RBS
Risk Based Supervision
RI
Regional Inspectorate
CERSAI
Page 4
2. Scope of the guiding document

This guiding document covers the changes in the organizational structure and
operating model with respect to the Retail Assets Group (RAG) vertical. The new
organizational structure and operating model for the organization will be
implemented on ground for Wave 1 branches effective July 11, 2016.
The manual maps the activities required to be undertaken for lending retail loans, to
the new organization structure detailing the different stakeholders across the work
flow. This manual on Retail Assets should be read in conjunction with the various
Retail Credit Schemes/guidelines (available on the Home Page of the OBC Web
under Retail Credit Corner), Advance Manual (Volume 1, 2 and 3), Loan Policy of
the Bank and any other circulars/guidelines/amendments issued by the Bank from
time to time.
The manual begins with an overall explanation of the new vertical organization
structure and introduces two new business units viz. Cluster Monitoring Office (CMO)
and Clusters, in place of the erstwhile geography based Regional Office (RO)
structure. In addition, this section also covers a brief description of all the verticals in
the organization.
The next section details out the organization structure of the RAG vertical and
different roles at HO, CMO and cluster level. The section details the process flow to
highlight new role boundaries and handoffs. Dependencies on other departments
have also been highlighted. The Key Responsibility Areas (KRAs) of the new roles
introduced at different levels in the vertical are detailed along with their KPIs.
The penultimate section has an indicative list of activities spread over the first 30
days for employees in their new roles to facilitate easy transition and settling in. This
is followed by the last section, which lists answers to a few frequently asked
questions.
The Delegated Powers for loans & advances have been circulated vide Circular No.
HO/ RMD/20/2016-17/241 dated June 30, 2016. In addition to this guiding document,
following documents will be circulated separately
Mapping of branches to clusters
Mapping of clusters to CMOs
Page 5
3.
Overview of the overall organization structure
3.1.
Principles of the design

The banks new organization structure is based on the principle of functional
specialization instead of geography driven approach. In the new structure, two
new entities Clusters and Cluster Monitoring Offices (CMOs) are introduced
and Regional Office structure has been discontinued. The new operating unit
structure is outlined in the figure below.
Fig 1: New organization structure based on vertical functions
3.1.1. Clusters
Clusters will take over business vertical specific activities from branches.
For example, in case of MSME lending business, clusters will be
responsible for sourcing leads from non-branch customers; processing,
sanctioning and monitoring of loans.
Branches will now be responsible for sourcing business from walk-in
customers and coordinating with clusters on a few operational activities
such as loan agreement execution and day-to-day transaction support
1,754 branches, called Udbhav Branches, are mapped to clusters though
there is no reporting line between branches and clusters. Please refer
Page 6
annexure 1 for mapping of the branches

There are 81 distinct clusters each for MSME, Retail Assets Group,
Customer Relations Group (CRG) and Recovery verticals
There are 34 clusters each for Branch Business, Information Technology
(IT), and ADC & COPEC verticals
3.1.2. Cluster Monitoring Offices (CMOs)
CMOs monitor clusters for respective verticals, and drive CMO-level
business and relationships
CMOs do not have any sanctioning authority; all sanctioning to happen at
either branches, clusters or head office depending on delegation of powers
Clusters in each vertical are mapped to CMOs for the vertical and there is
no overall CMO Head
CMO Head for Branch Banking vertical will be responsible for coordination
across different verticals for cross-sell, relationship management and HR
meetings
10 CMOs are created across India:
Fig 2: Cluster Monitoring Offices spread across India
o Eastern and Central UP (Uttar Pradesh)

o Eastern India
Page 7
o
o
o
o
o
o
o
o
3.2.
Haryana
NCR
Punjab & HP (Himachal Pradesh)
Punjab & JK (Jammu and Kashmir)
Rajasthan & MP (Madhya Pradesh)
Southern India
UP & UK (Uttar Pradesh and Uttarakhand)
Western India
Organization structure
New organization structure constitutes of 22 verticals:
Business functions
o Large Corporate business (LCB)
o Mid Corporate business (MCB)
o Retail Assets Group (RAG)
o Customer Relations Group (CRG)
o Agriculture and Financial Inclusion
o Branch Business
o Resolution, Recovery and Law
o Treasury, IBD and MBD
o Classic Branches (detailed subsequently)
Support functions
o Project Udbhav
o IT
o Services, Security and Rajbhasa
o ADC and COPEC
o Human Resources
o Learning
Control Functions
o Inspection and Control
o Risk Management
o Compliance and RBS
o CS&P and MIS
o CFO and Accounts
o SLBC and Central Government
Page 8
Fig 3: New organization consists of 22 groups
Each of the verticals is to have a clearly defined role and team. Salient
activities of these verticals are outlined below:
Large Corporate business (LCB), this vertical is responsible for:
o Driving advances more than Rs. 50 Cr
o Handling business from 5 core LCB branches, which work directly with
HO, and LCB business from other branches
o 5 core branches include - Hyderabad, Jubilee Hills (SOL 1110);
Chennai, RK Salai (SOL 1043); Mumbai, LCB (SOL 902); Kolkata, LCB
(SOL 171) and New Delhi, E-block Connaught Place (SOL 7)
Mid Corporate business (MCB), this vertical is responsible for:
o Driving advances above Rs. 10 Cr. and up to Rs. 50 Cr.
o Handling business from 43 core branches, which work directly with HO,
and MCB business from other branches
Retail Assets Group (RAG), this vertical is responsible for:
o Driving and monitoring retail advances through 81 clusters formed
across the country
o Sourcing from tie-ups such as dealers, builders, etc.
Customer Relations Group (CRG), this vertical is responsible for:
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o Driving institutional CASA business such as state government,

societies, salary accounts, etc.
o Driving cross-sell advances and fee products to institutional CASA
customers
o Managing local relationships through 81 clusters
o Conducting Publicity and PR activities
Micro, Small and Medium Enterprises (MSME), this vertical is responsible
for:
o Driving commercial loans up to Rs. 10 Cr., through 81 clusters across
India
o Processing of LCB and MCB files in non-LCB / MCB branch locations
o Processing and sanctioning commercial Agriculture and RD&PS loans
such as food processing units
o Processing and sanctioning retail agriculture loans (e.g. OGC, OKGC)
beyond the sanctioning powers of the branches
o The scope of this vertical may not include priority sector lending as per
the RBI definition; the scope is defined in terms of loan value
Agriculture and Financial Inclusion, this vertical is responsible for:
o Handling retail agriculture advances such as OGC, OKGC, etc.
o Agriculture loan officers are co-located with MSME cluster
Branch Business, this vertical is responsible for:
o Driving retail CASA, Third Party Product (TPP) sales and managing
support operations such as currency chest, CASA account opening
back-office, customer care, complaints, DEAF, etc. through 34 clusters
o Prospecting advances customers and referring to respective verticals
Resolution, Recovery and Law, this vertical is responsible for:
o Driving NPA recovery and resolution across all verticals
o Managing legal proceedings in NPA cases
Treasury, IBD and MBD (operations), this vertical is responsible for:
o Maintaining SLR, CRR, Investments and Fund Management
o Handling treasury dealing room operations
o Handling forex policy formulation, forex operations and forex support to
branches
Classic branches:
o 545 branches are not mapped to vertical clusters, due to distance and
small size constraints, and function independently under Classic
Branches vertical
o These branches and vertical continue to function as per the old system
and focus on all advances and deposits business based in their
Page 10
geographical location, reporting to 10 CMOs they are mapped to

o Such branches constitute less than 15% of the banks business
Fig 4: Business group consists of 10 verticals
Fig 5: Support group consists of 6 verticals
Page 11
Fig 6: Control group consists of 6 verticals
Page 12
Fig 7: Summary of all 22 verticals in the new structure
Page 13
4.
Overview of structure, processes, and roles in RAG

vertical
Retail Assets Group (RAG) shall be responsible for the overall growth of the
Retail Assets portfolio of the Bank. The group shall be responsible for:
Growth and quality of the retail assets portfolio
Layout and implementation of the strategy for ensuring robust retail assets
portfolio including driving internal campaigns
Designing of retail assets products and formulation of policies with regard
to retail assets
Leading sales and marketing initiatives related to institutional, builder and
Original Equipment Manufacturer (OEM) tie-ups, etc.
Market research and business intelligence, new initiatives
Vendor management and Service Level Agreements (SLAs)
Monitoring sales performance and productivity management
Sanctioning, collection and monitoring of retail assets
Managing co-ordination with other verticals including Information
Technology, Resolution, Recovery & Law, Inspection & Control, Risk
Management, Human Resource and Compliance.
The following credit facilities to individual borrowers shall fall under the
purview of Retail Assets Group:
Housing Loan
Education Loan
Vehicle Loan
Personal Loan
Oriental Mortgage Loan
Finance against Government Securities/LIC etc.
Reverse Mortgage
Loan against Gold Ornaments
Earnest Money
Loan against Banks own Deposit
Credit facilities to Staff members
In case above mentioned credit facilities are to be sanctioned to non-individual

borrowers, the same shall be dealt by MSME Vertical. However, Loan
against Banks own Deposit irrespective of the constitution of the
borrower shall be dealt by the Retail Assets Group.
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4.1.
Organization Structure
Fig 8: Overview of RAG organization structure
4.1.1. Head Office

The Retail Assets Group (RAG) shall be headed by a General Manager (GM)
at the Head Office. He shall be responsible for driving overall business
performance of the Retail Assets portfolio, setting and monitoring of targets,
and overall co-ordination across the Group. The ten Cluster Monitoring Heads
(Retail Assets Group) shall report to the General Manager (RAG).
Page 15
Fig 9: Overview of HO organization structure
The General Manager (Retail Assets Group) at Head Office shall be

supported by:
Head, Sales and Product responsible for o Driving sales performance across the vertical by allocation and
monitoring of targets
o Establishing national level tie-ups with builders, original equipment
manufacturers (OEMs), educational institutes and coordinating internal
campaigns
o Management of product portfolio
o Designing strategy and implementation plan with regard to new
Initiatives and products
o Market research and intelligence
o Analysis of IT Infrastructure requirements and necessary
customizations across various IT Systems
o Formulation of policies with regard to Retail Assets in co-ordination
with Risk Management
Page 16
Head, Operations, Sanctioning & Collection responsible for o Processing and sanctioning of credit proposals/deviations falling under
the Delegated Powers of Head Office
o Overseeing sanctioning, disbursement, collection and monitoring of the
retail assets portfolio across the Bank
o Vendor management
o Monitoring of Service Level Agreements (SLAs)
o Processing and lodging of subsidy claims
o Co-ordinating with various verticals like Recovery, Resolution & Law
(RR&L), Information Technology (IT), Inspection & Control (I&C),
Human Resource (HR), Risk Management (RM) and Compliance &
RBS
4.1.2. Cluster Monitoring Office
Fig 10: Overview of CMO organization structure
The Cluster Monitoring Head (CMH) at the Cluster Monitoring Office shall be
responsible for the business performance of the retail assets portfolio at the
CMO and target allocation and monitoring for all assigned Cluster Offices Retail Assets. The Cluster Monitoring Head (Retail Assets) shall work in
coordination with the Cluster Monitoring Head (Branch Business) to allocate
Page 17
and monitor the targets of the branches with respect to retail assets and
insurance products. The Cluster Monitoring Head (Retail Assets) shall be
supported by the following officers at the Cluster Monitoring Office:
Head, Sales and Product responsible for o Driving sales performance across the CMO by allocation and
monitoring of targets
o Establishing regional level tie-ups with builders, Original Equipment
Manufacturers (OEMs), educational institutes, large auto dealers
o Execution of internal campaigns across various Cluster Offices-Retail
Assets
Head, Operations, Sanctioning & Collection responsible for o Overseeing sanctioning, disbursement, collection and monitoring of all
Cluster Offices (Retail Assets) under their supervision
o Regional level vendor management
o Monitoring of Service Level Agreements (SLAs)
o Consolidation and validation of Subsidy Claims from the Cluster Offices
(Retail Assets)
o Co-ordination with various verticals like Recovery, Resolution & Law
(RR&L), Inspection & Control (I&C), Human Resource (HR) and Risk
Management (RM)
The Cluster Offices - Retail Assets shall report to Cluster Monitoring Head
(Retail Assets) and the Cluster Office - Retail Assets shall have following
teams:
Cluster Sales Team
Cluster Operations & Sanctioning Team
Cluster Collection and Monitoring Team
The senior-most person in the Cluster Operations and Sanctioning Team shall
be the de-facto Head of the Cluster Office.
4.1.3. Clusters
The Cluster Office- Retail Assets shall be responsible for sourcing Retail
Assets business form external tie ups, appraisal, sanctioning, servicing and
monitoring of retail credit proposals. However, Udbhav Branches (mapped to
Cluster Office-Retail Assets) shall continue to sanction Loans against Banks
own Deposit and Loan against Gold Ornaments within their respective
Delegated Powers. Branches shall also be responsible for monitoring of the
Page 18
above portfolios irrespective of the sanctioning authority.

The credit proposals related to Loan against Deposit and Loan against
Ornaments falling beyond the Delegated Powers of the Branch Incumbents of
Udbhav Branches shall be sanctioned at the Cluster Office-Retail Assets and
Head Office within their respective Delegated Powers.
The review/renewal of the existing credit proposals (except Loan against
Deposit and Loan against Gold Ornaments) shall be done by Cluster OfficeRetail Assets and Head Office within their respective Delegated Powers.
Fig 11: Overview of Cluster roles and responsibilities
4.1.4. Role of the branches

Branches shall be responsible for sourcing of Retail Assets (RA) business
from the walk-in customers, referrals and leads generated from CIBIL
Consumer Triggers. The Branches shall also be responsible for
cross-selling of insurance products for such walk-in customers. The
Branches shall discuss the requirements of the customer and explain the
product features to the prospective borrowers.
Branches shall collect loan application form and other related documents
as per the list for the particular scheme/product and forward the same to
Page 19
Cluster Operations and Sanctioning Team after entering in the details of

the lead in Loan Origination System (Oriental Lend Smart). While
forwarding the credit proposal to the Cluster Operations and Sanctioning
Team, the branch shall ensure that the application form is duly filled in and
accompanied by all the related documents as per the Scheme guidelines.
The branch shall verify KYC documents with original documents and
stamp OSV. Ensuring compliance of KYC norms shall be the responsibility
of the branch. (Refer Circular No. HO/CS&P/ 39 /2015-16/649 dated
November 12, 2015).
The online verification of Income Tax Return shall be done by the Branch.
(Refer Circular No. HO/ RMD/65/2015-16/790 dated January 07, 2016).
The Branches shall not reject any credit proposal on account of any
deviation/relaxation sought by the prospective borrower from the extant
guidelines. The request for deviation/relaxations shall be dealt by the
Cluster Operations and Sanctioning Team within their respective
Delegated Powers. The request for deviation/relaxations falling beyond the
Delegated Powers of the Cluster Office-Retail Assets shall be forwarded
by the Cluster Operations and Sanctioning Team to Head Office along with
the justification and recommendations for necessary approval.
In case of delay by the Cluster Operations and Sanctioning Team in
conveying the decision, the Branch Incumbent shall take up the matter
with their Cluster Monitoring Head-Branch Business who shall in turn
co-ordinate with the Cluster Monitoring Head -Retail Assets and ensure
quicker decision making and reduced turnaround time (TAT). However, the
branch shall follow up with the Customer for early availment of the credit
facility after it has been sanctioned.
The Loan Processing Officer shall communicate the sanction to the
branch. Documentation and Disbursement shall be done by the disbursing
branch in close co-ordination with the Loan Processing Officer (LPO).
The disbursement voucher shall be prepared by the Branch in duplicate.
The original vouchers shall be sent by the Branch to the Cluster OfficeRetail Assets to be kept with the loan documents and the duplicate copy of
the disbursement voucher shall be retained by the Branch.
The branches shall provide the borrower statement of account and interest
certificate. However, all other services requested like fore-closure of the
credit facility, partial disbursement, issuance of NOC shall be forward by
the branch to the Cluster Operations and Sanctioning Team.
4.1.5. Role of the Cluster Sales Team

Page 20
The Cluster Sales Team shall be responsible for making various

institutional tie-ups with builders, real estate brokers, educational
Institutes, dealers etc. The Cluster Sales Team shall maintain MIS of
various institutional tie-ups with builders, real estate brokers, educational
Institutes, dealer etc. and shall be placed to Cluster Monitoring Office Retail Assets.
The Cluster Sales Team shall have an active follow up with the various
institutional tie-ups with builders, real estate brokers, educational
Institutes, Original Equipment Manufacturers, dealer etc. so as to ensure
maximum leads are generated through those institutional tie-ups.
Cluster Sales Team shall discuss the requirements of the customer and
explain product features to the prospective borrowers.
Cluster Sales Team shall collect loan application forms and other related
documents as per the list for the particular scheme/product and forward
the same under a covering letter of the Sales Team to Cluster Operations
and Sanctioning Team. While forwarding the credit proposal to the Cluster
Operations and Sanctioning Team, the Cluster Sales Team shall ensure
that the application form is duly filled in and accompanied by all the related
documents as per the Scheme guidelines.
The Cluster Sales Team shall verify the KYC documents with original
documents and stamp OSV. Ensuring Compliance of KYC norms shall be
the responsibility of the Cluster Sales Team (Refer Circular No. HO/CS&P/
39 /2015-16/649 dated November 12, 2015)
The online verification of Income Tax Return shall be done by the Cluster
Sales Team. (Refer Circular No. HO/ RMD/65/2015-16/790 dated January
07, 2016)
The Cluster Office - Retail Assets shall communicate the sanction to the
Cluster Sales Team (in cases where lead was generated by the Cluster
Sales Team), the borrower and the disbursing branch. Documentation and
disbursement shall be done by the disbursing branch in close co-ordination
with the Loan Processing Officer (LPO).
The lead shall be accounted to the Branch or Cluster Sales Team
based on who does the collection and submission of the loan application
form along with the documents to the Cluster Operations and Sanctioning
Team.
Selection of a branch for booking of loan in cases of leads sourced by
the cluster sales team will be done as per the convenience and will of the
customer.
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4.1.6. Role of the Cluster Operations and Sanctioning Team

The Cluster Operations and Sanctioning Team shall have Sanctioning
Authority, Loan Processing Officers (LPOs) and Cluster Operations Officers
(COO).
Sanctioning Authority
The senior-most person in the Cluster Office-Retail Assets shall be part of
the Cluster Operations and Sanctioning Team and shall be the de-facto
Head of the Cluster Office. The Delegated Powers for sanction of credit
facilities shall be vested with the de-facto Head of the Cluster Office-Retail
Assets
Loan Processing Officers (LPOs)
The Loan Processing Officer shall be responsible for processing of the
credit facilities at the Cluster Office-Retail Assets. The Loan Processing
Officer shall scrutinize the loan application form for ensuring that the
documents are complete in all respects. In case of any discrepancy, the
Loan Processing Officer shall collect relevant information/ documents from
the Branch/ Cluster Sales Team (depending upon who has submitted the
documents).
The Loan Processing Officer shall ensure that all the discrepancies are
communicated in a single instance to the Branch/ Cluster Sales Team so
as to avoid multiple iterations and ensure shorter turnaround time (TAT).
The Loan Processing Officer shall carry out thorough due-diligence of the
borrower/guarantor, conduct pre-sanction visit(s) and carry out verification
of securities/credentials etc.
The Loan Processing Officer shall obtain Non-Encumbrance Certificate
(NEC)/Legal Opinion and Valuation report from the advocate and valuer
respectively.
The Internal Credit Risk Rating of the borrower shall be initiated/ carried
out by the Loan Processing Officer.
The Loan Processing Officer shall prepare the process note and place the
same along with their views/ recommendation before the sanctioning
authority (Cluster Head-Retail Assets) for sanction / rejection of proposal.
The credit facilities shall be sanctioned by the Cluster Head-Retail Assets.
In case of credit proposals falling under the Delegated Powers of Head
Office, the Loan Processing Officer shall forward the credit proposals to
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Head Office after incorporation of the recommendations of the Cluster

Head-Retail Assets.
The Loan Processing Officer shall communicate the decision of the
sanctioning authority to the Branch, Cluster Sales Team, Cluster
Operations Officer and Borrower.
The Loan Processing Officer shall ensure that all the pre-disbursement
conditions have been complied with and all the documents as per
NEC/Legal Opinion have been obtained and kept on record.
The Loan Processing Officer shall prepare and send the complete set of
documents (after duly filling in all the required information in the
documents) to be executed by the borrower to the Branch. The set of
documents being sent to the Branch Office shall be accompanied by a
covering letter specifically delineating the details of all the documents to be
executed by the borrower.
CERSAI search at the time of creation of mortgage and registration of
Security Interest shall be done by the Loan Processing Officer (LPO).
The documentation and creation of mortgage and obtaining of
ECS/NACH/Standing Instructions mandate from the customer shall be
done by the branch in close co-ordination with the Loan Processing Officer
(LPO).
The registration/notification of the equitable mortgage shall be done by the
Loan Processing Officer (LPO) in coordination with the Loan Processing
Officer, wherever applicable.
The assignment of LIC policies and pledge of NSC/RBI Relief Bond etc.
shall be the responsibility of the Loan Processing Officer (LPO).
The Loan Processing Officer (LPO) shall get the documents vetted from
the Local Legal Counsel/Legal Retainer/Law Officer as per the Banks
extant guidelines.
The Loan Processing Officer (LPO) shall ensure that all other post
disbursement activities like obtaining of Joint Registration Certificate (JRC)
of the Vehicle are completed in a time bound manner.
The Loan Processing Officer shall prepare Branch Certificate of
Compliance (BCC).
The Loan Processing Officer shall be responsible for recovery of all the
charges including those related to CERSAI, Credit Information Report
(CIR) from Credit Information Companies (CICs), processing fee etc.
The Loan Processing Officer shall process the request for partial
disbursements and communicate the disbursement details to the Branch.
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The disbursement shall be made by the Branch.

The audit related activities shall be carried out by the Loan Processing
Officers in coordination with other members of the Cluster Operations and
Sanctioning Team.
Cluster Operations Officers (COOs)
The Cluster Operations Officer (COO) shall open the loan account.
ECS/NACH/Standing Instruction shall be fed into the system/executed by
the Cluster Operations Officer (COO).
The satisfaction of Security Interest on Central Registry (CERSAI) shall be
done by the Cluster Operations Officer (COO).
The Cluster Operations Officer (COO) in co-ordination with the Branch
shall ensure that the Balance Confirmation/Letter of Revival has been
obtained as per the Banks extant guidelines.
The Cluster Operations Officer (COO) shall be responsible for ensuring
that all the assets financed by the Bank are adequately insured at all times
and the information with regard to insurance is updated in the system.
The request for closure of the credit facility shall be received by the Branch
and the branch shall forward the same to the Cluster Operations Officer
(COO). The Cluster Operations Officer (COO) shall process the closure
request and issue No-Objection Certificate (NOC) to the borrowers. In
case of mortgage backed credit facilities, the Cluster Operations Officer
(COO) shall make arrangements for handover of the original property
documents to the borrower.
The Cluster Operations Officer (COO) shall prepare and submit the
Monthly statement of Regular Advances sanctioned i.e.STM-41 to the
Cluster Monitoring Office (Retail Assets).
The audit related activities shall be carried out by the Cluster Operations
Officer (COO) in coordination with Loan Processing Officers.
4.1.7. Role of the Cluster Collections and Monitoring Team
The Cluster Collection & Monitoring Team shall track all the borrowers
accounts to ensure that repayment is being made as per schedule.
The Cluster Collection & Monitoring Team shall contact the borrowers
whose accounts are classified as SMA-0, 1 and 2 and persuade them for
regularization. The Cluster Collection & Monitoring Team shall contact the
customer through phone calls, overdue notice and personnel visit in case
of SMA-0, SMA-1 and SMA-2 respectively.
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The Cluster Collection & Monitoring Team shall be responsible for handing
over the borrowal account to the Cluster Office-Resolution, Recovery &
Law as and when the account is classified as Non-Performing Asset.
4.2.
Process Flow mapping of the Retail Assets Group (RAG) - Mortgage

Backed Credit facilities1
4.2.1. Sourcing
Sourcing shall be done by the Branches and the Cluster Sales Team. The
Branch/ Cluster Sales Team shall discuss the requirements of the
customer and explain the product features to the prospective borrowers.
The sourcing of the Retail Assets business shall be done by the Branches
and the Cluster Sales Team. The Branch/ Cluster Sales Team shall
discuss the requirements of the customer and explain the product features
to the prospective borrowers.
After having the proposal discussion with the customer, the Branch/
Cluster Sales Team shall collect all the required documents as per the
checklist for sanction of the credit facilities and get the application form
duly filled by the customer
The Branch/ Cluster Sales Team shall verify the KYC documents with
original documents and stamp OSV. Ensuring Compliance of KYC norms
shall be responsibility of the Branch/ Cluster Sales Team. (Refer Circular
No. HO/CS&P/ 39 /2015-16/649 dated November 12, 2015).
The online verification of Income Tax Return shall be done by the Branch.
(Refer Circular No. HO/ RMD/65/2015-16/790 dated January 07, 2016).
The Branch/Cluster Sales Team shall input the lead in the Oriental Lend
Smart) and forward the same to the Cluster Office-Retail Assets. A unique
acknowledgement Number is generated for every lead that is input in the
system (Oriental Lend Smart).
The system generates three copies of the acknowledgement letter one to
be duly signed and handed over to the customer, one to be duly signed
and sent along with the application form and other documents to the
Cluster Operations and Sanctioning Team (Loan Processing Officer) and
one to be retained by the Branch/Cluster Sales Team.
The Branch/ Cluster Sales Team shall submit the duly filled application
form along with the documents, checked checklist (Refer Annexure 4) and
system generated acknowledgement letter to Cluster Operations and
Sanctioning Team of the Cluster Office-Retail Assets (Loan Processing
Page 25
Officer).
The Branch/Cluster Sales Team while forwarding the lead to the Cluster
Office-Retail Assets shall ensure that there are sufficient funds available in
the saving/current account of the borrower for recovery of fees/charges
including fee to be paid for obtaining Non Encumbrance Certificate (NEC)/
Legal Opinion and Valuation Report from the Advocate and Valuer. The
Branch shall mark a lien in the borrower saving/current account on the
tentative amount to be paid for obtaining Non Encumbrance Certificate
(NEC)/ Legal Opinion, Valuation Report and other charges.
The Cluster Sales Team shall also ensure that lien is created in the
borrower saving/current account for recovery of fees/charges in cases
where lead has been generated by the Cluster Sales Team.
The Branch/ Cluster Sales Team shall clearly communicate to the
borrower regarding applicable fees/charges and marking of lien in the
saving/current account.
1-
Housing Loan, Oriental Mortgage Loan, Reverse Mortgage and Education Loans with
Collateral Security Housing Loan, Oriental Mortgage Loan, Reverse Mortgage and Education
Loans with Collateral Security
4.2.2. Processing
The Loan Processing Officer from the Cluster Operations and Sanctioning
Team shall acknowledge the application received from the Branch/Cluster
Sales team and scrutinize the loan application form for ensuring that the
documents are complete in all respects.
In case any document is missing, information is incomplete or any other
discrepancy, the Loan Processing Officer shall collect the relevant missing
information/ documents from the Branch/ Cluster Sales Team (depending
upon who has submitted the documents).
Fig 12: RAG loan process flow Sourcing, Processing
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The Loan Processing Officer shall check the Credit Information Report
(CIR) provided by the Credit Information Companies (CICs), Defaulter List,
Caution List etc. as per the guidelines issued by the Head Office from time
to time.
In case of mortgage backed credit facilities, the Loan Processing Officer
shall search the details of the property proposed to be mortgaged on the
Central Registry (CERSAI) portal for ensuring that the property is free from
all encumbrances. (Refer: Circular No. HO/RMD/71/2014-15/860 dated
January 30, 2015, Circular No. HO/RMD/13/2016-17/127 dated May 24,
2016, Circular No. HO/RMD/16/2016-17/207 dated June 15, 2016 and
amendments issued by the Bank from time to time)
Further, the Loan Processing Officer shall carry out in-depth study of the
property documents like title deeds/ allotment letter/ leasehold letters etc.
and entrust the job of issuance of NEC/ Legal Opinion and Valuation
Report to the Advocate and Valuer respectively on the panel of the Cluster
Office-Retail Assets.
The Cluster Office-Retail Assets shall have at least four advocates and
similar number of valuers on its panel and job for issuance of NEC and
Valuation Report shall be assigned to them by the Cluster Office-Retail
Assets (Loan Processing Officer). Assigned advocate and valuer shall be
required to visit the Cluster Office-Retail Assets to collect papers and to
Page 27
submit the report thereon. Similarly, the Valuer shall have to submit the
Valuation Report within 2 days of collection of papers from the Cluster
Office-Retail Assets. (Refer Circular No. HO/RMD/07/2016-17/46 dated
April 15, 2016)
The Loan Processing Officer shall carry out pre-sanction visit and thorough
due diligence of the prospective borrower.
The Loan Processing Officer shall verify the property for its marketability
and realizable value. During the visit, the Loan Processing Officer shall
ascertain the Sale Price/Realizable Value of similar House/Flat/Plot from
the market/ nearby areas and shall ensure that value of property as
assessed by the valuer is in accordance with the rates prevailing in the
area.
As quite a large number of frauds on account of forged title deeds/stamp
papers are taking place, the Loan Processing Officer shall exercise utmost
care to mitigate the frauds. The Loan Processing Officer shall ensure
meticulous compliance of all the guidelines issued by the bank for
prevention of frauds.
The Loan Processing Officer shall carry out/initiate the Internal Credit Risk
Rating of the borrower and shall forward the same to the sanctioning
authority at the Cluster Office-Retail Assets for vetting of Internal Credit
Risk Rating. (Refer: Circular No. HO/RMD/26 /2016-17/261 dated July 02,
2016).
After having conducted legal formalities, verification of Realizable Value of
property, personal verification and thorough due diligence of the
prospective borrower, the Loan Processing Officer shall prepare a
process note on the basis of the guidelines issued by the Bank from time
to time and place the same along-with his views/ recommendation before
the sanctioning authority (Cluster Head-Retail Assets) for sanction /
rejection of proposal. The senior-most person in the Cluster Office
shall be part of the Cluster Operations and Sanctioning Team and
hence be the de-facto Head of the Cluster Office.
4.2.3. Sanctioning
The sanctioning authority shall scrutinize the process note and accordingly
approve/reject the credit proposal depending upon the merits of the case.
In case of credit proposals falling beyond the Delegated Powers of the
sanctioning authority at the Cluster Office, the credit proposal shall be sent
to Retail Assets Group (RAG) at Head Office for sanctioning.
The de-facto Cluster Head-Retail Assets shall vet and sanction the Internal
Page 28
Credit Risk Rating of the borrower. (Refer: Circular No. HO/RMD/26 /201617/261 dated July 02, 2016).
Fig 13: RAG loan process flow Sanctioning
On approval by the sanctioning authority, Sanction/ Rejection Letter shall

be conveyed by the Loan Processing Officer to the Branch, Cluster Sales
Team (if lead was sourced by the Cluster Sales Team), and the borrower.
4.2.4. Execution of the Sanction
The Loan Processing Officer while conveying the sanction to the borrower,
requests him/ her to visit the Branch for completion of documentation
formalities and disbursement of the credit facility thereafter. If customer is
required to bring additional documents, he/ she shall be informed
accordingly.
The Loan Processing Officer shall ensure that all the pre-disbursement
conditions have been complied with and all the documents as per
NEC/Legal Opinion have been obtained and kept on record.
The Loan Processing Officer shall prepare and send the complete set of
documents (after duly filling in all the required information in the
documents) to be executed by the borrower to the Branch. The set of
documents being sent to the Branch Office shall be accompanied by a
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covering letter specifically delineating the details of all the documents to be

executed by the borrower.
The Loan Processing Officer shall coordinate with the branch for execution
of the documents and creation of mortgage. The Branch shall get the
documents executed from the borrower and the Branch Manager shall sign
the loan documents on behalf of the Bank.
The Branch in coordination with Loan Processing Officer shall obtain
ECS/NACH/Standing Instructions mandate from the customer at the time
of execution of the documents.
In case of mortgage backed credit facilities, the mortgage shall be created
at the Branch and the Mortgage Register (Recital of Title Deeds) shall be
updated and maintained by the Branch. (Refer Chapter 7 of Advances
Manual Volume II)
Before creation of mortgage, the Loan Processing Officer shall check on
the Central Registry (CERSAI) that the property being mortgaged is free
from all encumbrances.
The registration of Security Interest pertaining to immovable, movable and
intangible assets on Central Registry (CERSAI) shall be done by the Loan
Processing Officer subsequent to creation of charge on the security.
The Branch Manager shall update the details in the Document Register.
The Document Register shall be kept in the Branch under the custody of
the Branch Manager.
The registration/notification of the equitable mortgage shall be done by the
Loan Processing Officer, wherever applicable.
The Branch Manager shall get the registered mortgage created, wherever
applicable. The mutation in the records of the Revenue authorities
(Patwari, Tehsildar, Incharge of Consolidation/Chakbandi etc. as per the
state laws) shall be done by the Loan Processing Officer.
After execution of the documents, the Branch shall send the loan
documents and title deeds in original to the Cluster Office-Retail Assets
with a forwarding letter stating that the documents have been executed in
his presence and clearly specifying the details of the documents that have
been executed. Besides, photocopy of the relevant pages of the Mortgage
Register (Recital of Title Deeds) and Document Register verified by the
Branch Manager shall also be sent to Cluster Office-Retail Assets.
Documents (loan documents, original title deeds) shall be kept at the
Cluster Office.
The Loan Processing Officer shall get the documents vetted from the Local
Legal Counsel/Legal Retainer/Law Officer as per the extant Banks
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guidelines. (Refer: Circular No. HO/RMD/21/2016-17/241 dated June 30,

2016).
The authority that has carried out the vetting of the documents i.e., Law
Officer/Legal Retainer/Local Legal Counsel (as the case may be) shall
scrutinize the records with Revenue Authorities (Patwari, Tehsildar,
Incharge of Consolidation/Chakbandi etc. as per the state laws) to verify
the noting of Banks charge/mutation in favour of the Bank.
In cases where vetting of Loan Documents is not required, the Branch
shall send a confirmation by e-mail to Loan Processing Officer that
documents have been executed and enforceable charge has been created
on the security so that Cluster Office-Retail Assets can open the Loan
account for disbursement. However, the Branch shall send the original
loan documents subsequently to the Loan Processing Officer for safe
custody.
4.2.5. Disbursement
The Cluster Operations Officer (COO) shall open the loan account. The
disbursements shall be made by the Branch in coordination with Loan
Processing Officer. The Loan Processing Officer shall provide the details
of disbursement to the Branch.
The disbursement voucher shall be prepared by the Branch in duplicate.
The original Vouchers shall be sent by the Branch to the Cluster OfficeRetail Assets to be kept with the loan documents and the duplicate copy of
the disbursement voucher shall be retained by the Branch.
In cases where disbursement has to be done using Demand
Draft/Bankers Cheque, the branch shall handover the Demand
Draft/Bankers Cheque to the seller/deal, as the case may be.
In cases that involve multiple partial disbursements, the borrower shall
make a request to the branch along with relevant information/papers. The
Branch shall in turn forward the request for partial disbursement to the
Loan Processing Officer. After scrutinizing the request for partial
disbursement, the Loan Processing Officer shall provide the details of
partial disbursement to the Branch and subsequently the disbursement
shall be done by the Branch.
The Cluster Operations Officer (COO) shall feed into the system/execute
ECS/NACH/Standing Instruction before disbursing the credit facilities.
Fig 14: RAG loan process flow Execution, Disbursement
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4.2.6. Post Sanction

The Loan Processing Officer shall obtain the insurance certificate at the
time of sanction/disbursement and ensure that the details with regard to
insurance are fed into the system.
The Loan Processing Officer shall prepare the Branch Certificate of
Compliance (BCC) and BCC shall be cleared by the sanctioning authority.
(Refer: Circular No. HO/RMD/26 /2016-17/261 dated July 02, 2016).
The Loan Processing Officer shall be responsible for carrying out post
sanction visits as per the Banks extant guidelines.
The Cluster Operations Officer (COO) in co-ordination with the Branch
shall ensure that the Balance Confirmation/Letter of Revival has been
obtained as per the Banks extant guidelines. (Refer: Para 15.10 of the
Loan Policy Circular No. HO/ RMD/80/2013-14/948 dated January 14,
2014)
Fig 15: RAG loan process flow Post Sanction, Mortgage Creation
Page 32
Fig 16: RAG loan process flow Post Sanction, Mortgage Creation
4.2.7. Collection and Monitoring

Page 33
The Cluster Collection & Monitoring Team shall track all the borrowers
accounts to ensure that repayment is being made as per schedule.
The Cluster Collection & Monitoring Team shall contact the borrowers
whose accounts are classified as SMA-0, 1 and 2 and persuade them for
regularization of account. The Cluster Collection & Monitoring Team shall
contact the customer through phone calls, overdue notice and personnel
visit in case of SMA-0. SMA-1 and SMA-2 respectively.
Fig 17: RAG loan process flow Collection, Monitoring
The Cluster Collection & Monitoring Team shall be responsible for handing
over the borrowal account to the Cluster Office-Resolution, Recovery &
Law as when an account is classified as Non-Performing Asset.
4.2.8. Account Closure
If customer comes to the branch for account closure or foreclosure, the
branch shall accept the payment so that interest accrual stops for the
repaid amount. For further processing of account closure, the branch shall
refer the case to the Clusters Operations Officer (COO).
The Cluster Operations Officer (COO) shall process the closure request
and issue No-Objection Certificate (NOC) to the borrowers. In case of
mortgage backed credit facilities, the Cluster Operations Officer (COO)
Page 34
shall make arrangements for handover of the original property documents

to the borrower.
Fig 18: RAG loan process flow Account closure
The satisfaction of Security Interest with CERSAI shall be done by the

Cluster Operations Officer (COO).
4.2.9. Reporting System
The credit proposals sanctioned by the Cluster Office-Retail Assets shall be
reported in the Monthly statement of Regular Advances sanctioned i.e.,
STM-41 by Cluster Operations Officer (COO) to the Cluster Monitoring Office
(Retail Assets)
4.2.10.Collection of Charges
The Loan Processing Officer shall be responsible for recovery of all charges
including those related to CERSAI, Credit Information Report (CIR) from
Credit Information Companies (CICs), processing fee etc.
4.2.11.Processing of Service Requests post disbursement
Page 35
The branches shall provide the borrower statement of account and interest
certificate. All other service requested like fore-closure of the credit facility,
partial disbursement, issuance of NOC shall be forward by the branch to the
Cluster Operations Officer (COO).
4.2.12.Other Activities
The Cluster Operations Officer (COO) shall be responsible for ensuring

that all the assets financed by the Bank are adequately insured at all
times and the information with regard to insurance is periodically updated
in the system.
Fig 19: RAG loan process flow On-going activities
The concurrent audit of the Cluster Office shall be done on the basis of
the loan documents and title deeds in original along with the photocopy of
the relevant pages of the Mortgage Register (Recital of Title Deeds) and
Document Register and proof of notification/registration of equitable
mortgage, wherever applicable. .
The audit related activities shall be carried out by the Cluster Operations
and Sanctioning Team.
4.2.13.Delegated Powers
Page 36
The senior-most person in the Cluster Operations and Sanctioning Team

shall be the de-facto Head of the Cluster Office. The Delegated Powers for
sanction of credit facilities shall be vested with the de-facto Head of the
Cluster Office-Retail Assets.
In case of high value loans/deviations, that do not fall under the Delegated
Powers of the Head of the Cluster Office-Retail Assets, the credit proposals
shall be sent to Retail Assets Group (RAG) at Head Office for sanctioning
along with the recommendations of the Cluster Head-Retail Asset. (Refer:
Circular No. HO/ RMD/20/2016-17/241 June 30, 2016).
The guidelines with regard to takeover of Retail Credit proposal shall be as
per respective scheme.
4.3.
Process Flow for non-mortgage backed credit facilities (Vehicle Loan,

Personal Loan and Educations Loans without Collateral Security)
The process flow for non-mortgage backed credit facilities shall be as
mentioned for mortgage backed credit facilities. However, the processes with
regard to visit, valuation verification of immovable property and creation of
mortgage shall not be applicable in case of non-mortgage backed credit
facilities.
The specific processes to be carried out in case of non-mortgage backed
credit facilities are as shown below:
Vehicle Loan
The Loan Processing Officer in close co-ordination with the Branch shall
ensure that the Joint Registration Certificate (JRC) of the Vehicle is
obtained in a time bound manner.
The Loan Processing Officer shall ensure that same chassis number and
engine number is mentioned on the following:
o Vehicle
o Invoice
o Registration Certificate (RC)
Car dealers have adopted a practice of taking photographs while handling
over the vehicle keys to their customers. Wherever possible, a copy of the
same needs to be obtained by the Loan Processing Officer and kept on
record.
Page 37
Financing against Govt. Securities/ LIC Policies

The Loan Processing Officer shall ensure that the credit facility against
Government Securities/LIC Policies etc. is allowed after registration of
lien/assignment/ endorsement on securities in Banks favour/or receipt of
confirmation to this effect from the issuing office.
The Loan Processing Officer shall ensure that the maturity date of all Govt.
securities kept as security are noted and payment of the same is
immediately collected from the issuing institution, otherwise the Bank will
not get the overdue interest over that instrument.
The Cluster Operations Officer (COO) shall calculate the Drawing Power
(DP) on regular intervals.
The Cluster Collection & Monitoring Team shall ensure that Interest shall
be recovered from the borrower(s) whenever charged so that outstanding
in the loan/advance may not exceed the maturity value of the security
pledged/assigned/lien etc. with the Bank.
Loan against Banks Own Deposit and Loan against Gold Ornaments
The Loan against Banks own Deposit and Loan against Gold Ornaments
shall be sanctioned by the Branch Managers of Udbhav Branches within
their respective Delegated Powers. The review/renewal of the credit
proposals shall also be done by the Branch.
The documentation and charging of securities shall be done by Udbhav
Branches. The gold Ornaments shall be stored at the Branches.
The opening of loan account and disbursement shall also be done by the
Branch.
The closure of the credit facilities including pre-mature closure shall be
dealt at the Branch.
In case of credit facilities falling beyond the Delegated Powers of the
Branch Manager, the credit facilities shall be sanctioned by the Cluster
Office-Retail Assets and Head Office within their respective Delegated
Powers. The Head Office shall communicate the sanction to the Branch
and Cluster Office-Retail Assets. The documentation, charging of
securities and disbursement shall be done by the branch.
Monitoring of the portfolio of Loan against Banks Deposit and Loan
against Gold Ornaments shall be the responsibility of the Branch.
Loan Origination System (Oriental Lend Smart)
The Bank has put in place a Loan Origination System (Oriental Lend Smart) whereby
the complete journey of a credit facility from origination till disbursement is made
Page 38
through the System.

Presently, three credit facilities i.e., Housing Loan, Vehicle Loan and Education Loan
are available in the Oriental Lend Smart. The functionaries are advised that the
processing, sanctioning and all other activities with regard to Housing Loan, Vehicle
Loan and Education Loan are done using Oriental Lend Smart. The other credit
product shall also be brought under the ambit of the Oriental Lend Smart.
The lead generation for all the retail credit facilities shall be done using
Oriental Lend Smart.
The job card for Oriental Lend Smart is available on the Banks internal portal
(OBCWeb).
4.4.
Comparison of before and after work flow
The following tables summarize key differences with the existing process
Fig 20: Comparison between the process flows- Part 1
Page 39
Fig 21: Comparison between the process flows- Part
4.5.
Touchpoints for the customer and external linkages
Following figure shows customer touch points across the life cycle of the loan
Fig 22: Customer touchpoints in the new process
The following figure illustrates linkages to other verticals for RAG

Page 40
Fig 23: External linkages to other verticals
Page 41
4.6.
Role Mandates
The following section should be read in conjunction with the process flow.
4.6.1. Cluster Sanctioning Authority
Review Authority: Cluster Monitoring Head, RAG
Direct Reports: Cluster Sales Team, Loan processing officers, Operations officers,
Collections and Monitoring officers
Key Responsibility Areas
Nonbudgetary
Budgetary

Individual
Sanction all loans coming to the cluster (deviations within authority)
Escalations coordination
Manage operating, credit risks
o Pre-emptively identify and manage risks with a mitigation approach
o Escalate exceptions/ risks in a timely manner
Supervision Formulate cluster strategy and annual operating plan
Monitoring cluster teams, performance and productivity
Key Performance Metrics
Units
Yield on advances
Non-interest income
% GNPA
Fresh slippage
% of accounts,
% of value
Growth in advances
Value of loans originated
Rs.
Value of loans sanctioned
Rs.
Regularization of SMA by accounts and value
% of accounts,
% of value
Proposals disbursed within defined TAT
Number
Service requests TAT
Number
# of meetings per sales person
Number
Page 42
4.6.2. Loan processing officer

Review Authority: Cluster Sanctioning Authority
Individual
Coordinate with branches and sales team for sourcing of

leads and document collection
Processing of loan applications: pre-sanction visits, legal
and technical approval, CIC and CERSAI checks, credit risk
rating, process note preparation
Coordination with sanctioning authority for sanction letter
preparation
Coordinate with branch in execution of documents and
mortgage creation
Post-sanction visits for part-disbursement cases
Nonbudgetary
Budgetary

Units
Yield on advances
Non-interest income
% GNPA
Fresh slippage
% of accounts,
% of value
Growth in advances
Rs.
Number
Page 43
4.6.3. Cluster Operations Officer


Individual
Account opening
Storage of documents will be done at the cluster by the loan
processing officer
Account closure - documents execution and in system
Generation of monthly reports like STM-41
BCC preparation and closure
Insurance details update
Service requests Issuance of NOC, pre-payment etc.
Budgetary
Units
Loans sanctioned
% of
accounts, %
of value
Non-budgetary

Number
Page 44
4.6.4. Cluster Sales


Individual
Generate/source leads within geographical area assigned to
cluster - make telephone calls, in-person visits and
presentations to existing and prospective customers
Research sources for developing prospective customers and
determine potential
Conduct initial prospecting and customer meetings
Identify advantages of OBC products over competitors
NonBudgetary
budgetar
y

Units
Rs.
Ratio of value of loans sanctioned to value of loans

originated
Number
Number
# of months for which monthly target is achieved
Number
Page 45
4.6.5. Collections and Monitoring Officer


Individual
Track borrowers accounts to ensure that repayment is being
made as per schedule
Contact borrowers whose accounts are classified as SMA-0,
1 and 2 and persuade them for regularization of account
Contact customer through phone calls, overdue notice and
personnel visit in case of SMA-0, SMA-1 and SMA-2
Handing over borrowal account to the Cluster OfficeResolution, Recovery & Law as and when account is
classified as NPA
Budgetary
Fresh slippage
Units
% of
accounts, %
of value
% of
accounts, %
of value
Page 46
4.6.6. Cluster Monitoring Office Head

Review Authority: GM Head Office, RAG
Direct Reports: Cluster Heads, Operations and Collections Head, Sales and
Product Head

Individual
Drive RAG business within clusters assigned; set targets
for each cluster head
Conduct meetings with key accounts within cluster (with
cluster head)
Manage operating and credit risks:
o Pre-emptively identify and manage risks and define
mitigation approach
Supervision
Monitor sanctions conducted at clusters as per bank
policies
Overall performance of the clusters and the productivity of
cluster heads
Conduct training sessions for cluster heads
NonBudgetary
budgeta
ry
Units
Yield on advances
Non-interest income
% GNPA
Fresh slippage
% of
accounts, %
of value
Growth in advances
Rs.
Rs.
% of
accounts, %
of value
Number
Number
Page 47
4.6.7. Sales and Product Head

Review Authority: Head, Cluster Monitoring Office, RAG

Individual
CMO level institutional tie-ups - generate/source leads within
geographical area - make telephone calls, in-person visits
and presentations to existing and prospective customers
Execution of local campaigns
Sales performance monitoring through CMOs
Research sources for developing prospective customers and
determine potential
Conduct initial prospecting and customer meetings
Identify advantages of OBC products over competitors
Non-budgetary
Budgetary
Units
Rs.
Ratio of value of loans sanctioned to value of loans

originated
Number
Number
# of months for which monthly target is achieved
Number
Page 48
4.6.8. Operations and Collections Head

Review Authority: Head, Cluster Monitoring Office, RAG
Individual
High importance loan sanctioning and deviations
Over-seeing monitoring and collection of past-due accounts
Geography level vendor management (E.g. field verification
agencies, legal retainers, cross-coordination with other
departments)
Monitoring of SLAs and productivity of cluster teams
Coordination with CMO level Recovery Team
Nonbudgetary
Budgetary

Units
Yield on advances
Non-interest income
% GNPA
Fresh slippage
% of
accounts, %
of value
Growth in advances
Rs.
% of
accounts, %
of value

Number
Page 49
5.
30-day Roll-out plan
The following figures denote the key activities to be conducted by various

stakeholders over the first 30 days post roll out.
Fig 24: Key activities as part of roll out plan at HO
Page 50
Fig 25: Key activities as part of roll out plan at CMO
Fig 26: Key activities as part of roll out plan at Cluster
Page 51
6.
Frequently Asked Questions (FAQs)
Q1. Who will collect the required documents for the Retail Loan?
The Branch/ Cluster Sales Team, who has mobilized/marketed the loan proposal,
shall collect all required documents as per the checklist for sanction of the credit
facilities and get the application form duly filled by the customer.
Q2. Who will verify the KYC documents?
The Branch/ Cluster Sales Team, who has mobilized/marketed the loan proposal,
shall verify the KYC documents with original documents and stamp OSV. Ensuring
Compliance of KYC norms shall be responsibility of the Branch/ Cluster Sales Team.
Q3. Who will carry out the Internal Credit Risk Rating?
The Loan Processing Officer shall carry out/initiate the Internal Credit Risk Rating of
the borrower and shall forward the same to the sanctioning authority at the Cluster
Office-Retail Assets for vetting of the Internal Credit Risk Rating.
Q4. Where will the mortgage be created?
The mortgage shall be created at the Branch and the Mortgage Register (Recital of
Title Deeds) shall be updated and maintained by the Branch.
The Branch shall send the title deeds in original along with the photocopy of the
relevant pages of the Mortgage Register (Recital of Title Deeds) and to the Cluster
Office.
Q5. Who will online verify Income Tax Return (ITR)?
Branch/Sales team, who has mobilized/marketed the loan proposal, shall online
verity Income Tax Return (ITR).
Q6. Who shall get the documents executed?
The Loan Processing Officer shall prepare and send the complete set of documents
(after duly filling in all the required information in the documents), to be executed by
the borrower/guarantor, to the Branch. The set of documents being sent to the
Branch Office shall be accompanied by a covering letter specifically delineating the
details of all the documents to be executed by the borrower/guarantor.
The Loan Processing Officer shall coordinate with the branch for execution of the
documents and creation of mortgage. The Branch Manager shall sign the loan
documents on behalf of the Bank.
Page 52
Q7. Where will the documents be kept?

The Branch Manager shall send the documents to the Cluster Office-Retail Assets
with a forwarding letter stating that the documents have been executed in his/her
presence and clearly specifying the details of the documents that have been
executed. The documents (loan documents, original title deeds) shall be kept at the
Cluster Office.
Q8. Who will open the Loan account in the system?
The Cluster Operations Officer (COO) shall open the loan account in the system.
Q9. Who shall disburse the credit facilities?
The disbursements shall be made by the Branch in coordination with Loan
Processing Officer. The Loan Processing Officer shall provide the details of
disbursement to the Branch.
The disbursement voucher shall be prepared by the Branch in duplicate. The original
Vouchers shall be sent by the Branch to the Cluster Office-Retail Assets to be kept
with the loan documents and the duplicate copy of the disbursement voucher shall
be retained by the Branch.
Q10. Who will ensure end use of funds?
Cluster Operation and Sanctioning team shall ensure end use of funds.
Q11. Who will obtain Balance Confirmation/Letter of Revival?
The Cluster Operations Officer (COO) in co-ordination with the Branch shall ensure
that the Balance Confirmation/Letter of Revival has been obtained as per the Banks
extant guidelines
Q12. Which facilities will be exempt from vetting?
The following facilities will be exempt from vetting
Loans to staff members (under Staff or General Loans Schemes) which are
not secured by immovable property (ies).
Loan against self-Deposit to an individual.
Loan against Third Party Deposit to an individual where the Deposit Receipt is
also in the name of an individual.
Loan to individuals against Shares/Bonds /Debentures /Mutual funds, NSC,
LIC Policy and other Government securities.
Page 53
Purchase of Government cheques, Pay orders, bank draft issued by

Scheduled Commercial Banks.
Occasional cheques purchase and withdrawal against uncleared
instruments/cheques in case of non-borrowal accounts. (In case of borrowal
accounts, Occasional cheques purchase and withdrawal against uncleared
instruments/cheques is done within Over Limit and no documentation is done
in case of Over Limit.)
Credit facilities upto `10 Lacs sanctioned under Government Sponsored
Schemes.
Oriental Green Card (OGC) upto ` 10 Lacs.
Credit facilities covered under Mudra Scheme.
Credit facilities upto ` 10 Lacs sanctioned under Retail Credit Schemes which
are not secured by immovable property (ies).
Q13. Who will sanction loans beyond powers of Branch Incumbents in case of
Loan against deposit?
Cluster Office (RAG) shall sanction the loan beyond the powers of branches.
Q14. Whether 3rd Housing Loan can be considered by Cluster Office -Retail
Assets?
Yes, Cluster Office-Retail Assets can consider 3rd Housing Loan (as per Oriental
Home Loan Scheme).
Q15. Who will be responsible for creation of hypothecation on Vehicle (in case
of Vehicle Loan) and obtaining JRC?
Loan Processing Officer shall be responsible for creation of hypothecation on the
vehicle financed with RTO and obtaining JRC.
However, the Branch Manager of respective branch shall sign on RTO form for
creation of hypothecation on the vehicle on behalf of the Bank.
Page 54
7.
Annexure 1: Checklists
Oriental Car /Vehicle Loan Scheme (New Vehicle)
Checklist to be attached at the time of submission of proposal
S.
No.
1
3
4
Particular
Attached
(Mark )
For all borrowers/co-borrowers/guarantors

Identification of the borrower :
KYC complied
a) Loan application form(LF2) and (LF 4),as applicable, duly
completed with photographs of the applicant/co-applicant
/guarantors etc. (attested by the branch officials)
b) Passport size photograph of applicant,
co-applicant &
guarantor
c) Customer identification proof (Pan Card/Voter ID/Driving
License/ration card/Aadhar Card etc.)
d) Address Proof (Passport/Voter ID/Ration Card/Aadhar Card
etc.)
e) Copies of constitution documents like copy of partnership deed,
Memorandum & Article of Association etc. in case of advances
to borrowers other than individuals
f) Bank Statement: Copy of bank account statement for last 12
months
i. Where salary is credited , for salaried applicants
ii. Saving/current accounts, if any for other than salaried
applicants
Proof of Income
For Salaried: Salary certificate issued by the employer /
Income Tax return / Proof of confirmed service / proof of
length of service
For Agriculturist: Record of land holding & cropping
pattern or any other proof of incom.
For all other individuals: Last 2 yrs. Income Tax Return &
computation sheet / Bank A/C statement
Quotation from authorized dealer for vehicle to be purchased
Any other information/documents/papers which may be necessary
as per requirement of the case
Page 55
Oriental Car/Vehicle Loan Scheme (Second hand Car)

S.
No.
1
3
4
5
6
Particular
Attached
(Mark )

KYC complied
b) Passport size photograph of applicant, co-applicant & guarantor
d) Address Proof (Passport/Voter ID/Ration Card/Aadhar Card etc.)
e) Copies of constitution documents like copy of partnership deed,
Memorandum & Article of Association etc. in case of advances to
borrowers other than individuals
f) Bank Statement: Copy of bank account statement for last 12
months
i. Where salary is credited , for salaried
applicants
ii. Saving/current accounts, if any for other than
salaried applicants
Proof of Income
length of service
For Agriculturist: Record of land holding & cropping pattern
or any other proof of income.
For all other individuals: Last 2 yrs. Income Tax Return &
computation sheet / Bank A/C statement
Particulars of vehicle to be purchased and copy of Registration
Certificate of vehicle.
Agreement to Sell between Seller and Purchaser
Prescribed Transfer Form duly executed by the Seller for onward
submission to RTO
Copy of receipt of up-to-date deposit of Road tax/other taxes
Page 56
Certificate as to the Age of the Vehicle, Residual Life, Valuation of

Vehicle etc. from the approved surveyors of General Insurance
Companies or authorized dealer under True Value Scheme
alongwith RC and Insurance
Any other information/documents/papers which may be necessary

as per requirement of the case
Page 57
PERSONAL LOAN TO CORPORATE EMPLOYEES/GOVERNMENT EMPLOYEES

S.
No.
1
Particular
Attached
(Mark )

KYC complied
a) Loan application form, duly completed with photographs of
the applicant/co-applicant /guarantors etc. (attested by the
branch officials)
b) Passport size photograph of applicant, co-applicant &
guarantor
etc.)
e) Bank Statement: Copy of bank account statement for last
12 months (Where salary is credited)
Proof of Income Salary certificate issued by the employer /
Income Tax return / Proof of confirmed service / proof of length
of service
Any other information/documents/papers which may be
necessary as per requirement of the case
Page 58
PERSONAL LOAN TO PENSIONERS

S.
No.
1
2
3
Particular
Attached
(Mark )

KYC complied
a) Loan application form, duly completed with photographs of
the applicant/co-applicant /guarantors etc. (attested by the
branch officials)
guarantor
etc.)
12 months (Where pension is credited)
Pension Payment Order.(wherever applicable)
Page 59
EDUCATION LOAN
S.
No.
1
3
4
5
6
7
Particular
Attached
(Mark )

KYC complied
a) Loan application form(LF2), duly completed with
photographs of the applicant/co-applicant /guarantors etc.
(attested by the branch officials)
b) Customer identification proof (Pan Card/Voter ID/Driving
c) Address Proof (Passport/Voter ID/Ration Card/Aadhar Card
etc.)
d) Proof of age of the applicant should also be obtained
12 months
i. Where salary is credited , for salaried
applicants
ii. Saving/current accounts, if any for other
than salaried applicants
Proof of Income of parents/co-obligants For Salaried: Salary certificate issued by the employer /
length of service
pattern or any other proof of income.
For all other individuals: Last 2 yrs. Income Tax
Return & computation sheet / Bank A/C statement
Matriculation or Higher Secondary or Senior School Board
Certificate / Marks Sheet / Degree (last exam passed)
Admission Letter / Slip issued by the Institution in India or
Abroad giving complete details of Fee/Charges
Receipt of Fees, if any
Details of Scholarship available, if any
Brochure issued by the institution giving information about
Page 60
8
9
10
11
12
13
14
recognition of the course by appropriate authority/university

Declaration/Affidavit (duly notarized) that no loan has been
taken for this purpose from other financial institutions/Banks
Passport /Visa in case of Students going abroad and
Permission for release of Foreign Exchange wherever required
Documents/ proof of Movable collateral security like
FDR/NSC/LIP, wherever required in case of Loans exceeding
Rs.7.50 Lac
Details of collateral securities offered along with proof of
ownership with complete chain of Title deeds, latest House Tax
Receipt, Income Tax and Other Statutory dues clearance
certificates. , in case of Loans exceeding Rs.7.50 Lac
Salary certificate along with deductions duly certified by
employer in case of working professionals/Defense Personnel
seeking assistance for part-time courses
In case of Loan to working executive, Letter of authority duly
confirmed by the employer for deduction of monthly installment
from salary OR ECS/NACH debit Mandate/Standing Instruction
be obtained
Page 61
ORIENTAL MORTGAGE LOAN SCHEME

S.
No.
1
Particular
Attached
(Mark )

KYC complied
guarantor
etc.)
e) Copies of constitution documents like copy of partnership
deed, Memorandum & Article of Association etc. in case of
advances to borrowers other than individuals
f) Bank Statement: Copy of bank account statement for last
12 months
i.
Where salary is credited , for salaried applicants
ii.
Saving/current accounts, if any for other than salaried
applicants
3
4
Proof of Income
length of service
Property Documents on which Loan is required
Page 62

HOME LOAN
S.
No.
1
3
4
Particular
Attached
(Mark )

KYC complied
guarantor
c) Customer identification proof(Pan Card/Voter ID/Driving
etc.)
advances to borrowers other than individuals.
f) Bank Statement: Copy of bank account statement for last
12 months
i. Where salary is credited , for salaried applicants
ii. Saving/current accounts, if any for other than
salaried applicants
Proof of Income
length of service
Property Documents on which Loan is required
Page 63
1.
PROPERTY DOCUMENTS:
Free Hold Land:
i) Copies of Agreement to sell/ Sale Deed in favour of the borrower
ii) Copy of Possession Letter
iii) Copy of Approved Drawings/Site plan of proposed construction issued by
the competent authority
iv) Estimate of proposed construction from an Architect
v) Proof of advance payments made, if any, by the borrower to the seller for
purchase of the plot / house
2.
3.
Land Allotted by DDA/Govt. Authority viz. HUDA,PUDA,MAHADA, Noida,

Greater Noida, GDA etc.:
i) Copy of Allotment Letter in favour of the borrower/seller/allottee
ii) Copy of Possession Letter
iii) Copies of Receipts of advance Payments made by allottee and/or borrower,
as the case may be
iv) Copy of Approved Drawings/Site Plans of proposed construction issued by
the competent authority
v) Estimate of proposed construction from an Architect
Plot purchased /Sub leased from Co- operative Housing Societies as
member:
i) Copy of Share certificate issued to the borrower by the society
ii) Copy of Registered Sale / Sub lease deed in favour of the borrower
iii) Copy of Possession Letter
iv) Proof of advance payments made to the society till date
v) Copy of Approved Drawings/Site Plans of proposed construction issued by
competent authority
vi) Estimate of proposed construction from an Architect
Additional documents to be submitted in cases when the plot/house is
acquired by way of Re-sale / Gift/ Transfer
i) Copies of complete correspondence with respect to the Transfer
permission from Govt. Authority viz. HUDA etc.
ii) Copies of Previous Conveyance Deeds / Transfer permissions
iii) Copy of transfer deed in favour of the borrower stamped and registered
with Govt. Authority viz. HUDA etc.
iv) Proof of payments in respect of stamp duty / applicable taxes, etc.
4.
Purchase of flat from Delhi Development Authority (DDA)
Page 64
i) Copy of Allotment / Allocation letter issued by DDA

The terms of allotment attached to it should also be submitted
ii) Copies of all challans for payments made to DDA in original
iii) Copy of registered deed (wherever applicable)
iv) Copy of Possession Letter (Wherever applicable)
In case of Re-Sale of a Free Hold Flat, all the above-mentioned documents must be
submitted along with:
i)
Copy of Stamped and Registered conveyance deed between the seller

and borrower in original
ii) Copies of receipt for the advance payments made to the seller till date.
Margin has to be brought in and paid to the seller equivalent to the
agreement value less the bank loan before the bank disburses the loan
amount in part or in full
iii) Copies of previous Conveyance Deeds/Transfer permissions, if any
5.
Purchase of flat from Development Authorities of various cities, Housing

Boards, Improvement Trust, GDA, NOIDA, GREATER NOIDA, etc.
i)
Copy of Allotment/allocation letter issued by the Housing Development

Authority
ii) Copy of Possession Letter (Wherever applicable)
iii) Copy of Stamped and registered conveyance deed
iv) Permission from concerned Housing Development Authority to mortgage
the plot in favour of the Bank
v) Copies of Receipts/Proof of the advance payments made to Housing
Development Authority till date
In case of these flats being sold in resale, all the above-mentioned
documents must be submitted along with:
i) Copy of Stamped and registered conveyance deed between the seller
and the borrower, if any
ii) Copies of receipts for the advance payments made by the borrower to the
seller till date
iii) Permission to mortgage in favour of the Bank
iv) Copies of Previous Conveyance Deeds/Transfer permissions, if any
Page 65
6.
Purchase of flat / Portion from Builder

i) Copy of stamped agreement of borrower with the builder. Copies of
Receipts / Proof of the advance payments made by original allottee and
complete chain of documents till date
ii) Copies of Original receipts for advance payments made by borrower to
the builder
iii) Copy of approved plan and sanction letter from the concerned authority
issued by the competent authority.
In case of these flats being sold in resale:Case 1: The seller has a registered sale deed in his favour.
In this case the borrower, in addition to aforesaid documents as the case may
be, is required to submit: i) Copy of stamped and registered original sale deed between the builder
and the seller, who sold the said property/plot to the said builder
Case 2: The seller has only an agreement to sell between him and the builder.
In this case the borrower, in addition to aforesaid documents as the case may
be, must submit:
i) Copy of stamped sale agreement between the seller of the plot/property
and the borrower and/or an undertaking to deposit the same, in original
with the bank as and when the same is ready
7.
Flat acquired as a member of a coop. group housing society

i) Copy of share certificate issued to the borrower by the society
ii) Copy of all receipts for the advance payments made by the borrower to
the society
iii) Certificate from the society in respect of the cost of the flat along with the
schedule of payments
iv) Copy of the bye laws of the society
v) Copy of the lease deed in the name of the society
vi) Copy of the approved plan issued by the competent authority
In case these flats/portions being sold in resale, all the above-mentioned

documents must be submitted along with
Page 66
i)
ii)
Copy of transfer of share certificate in the borrowers favour

Copy of chain of Title Deeds, if any, in respect of property to be mortgaged in
Original
LOAN AGAINST BANKS OWN DEPOSIT
S.
No.
1
Particular
Attached
(Mark )

KYC complied
guarantor
etc.)
advances to borrowers other than individuals
Duly discharges Original Deposit Receipt
2
3
Any other information/documents/papers which

may be
LOAN AGAINST GOVERNMENT SECURITIES

S.
No.
1
Particular
Attached
(Mark )

KYC complied
Page 67
f) Loan application form(LF2) and (LF 4),as applicable, duly

g) Passport size photograph of applicant, co-applicant &
guarantor
2
3
4
h) Customer identification proof (Pan Card/Voter ID/Driving

i) Address Proof (Passport/Voter ID/Ration Card/Aadhar Card
etc.)
j) Copies of constitution documents like copy of partnership
advances to borrowers other than individuals.
Letter/certificate issued by LIC/ Post offices gone thoroughly
and verified for genuineness.
The Securities issued by post office, the same are validly
charged to the bank by delivery or obtaining term fee
The securities are lodged for transfer/endorsement personally
by an official of the Bank or sent through registered AD to post
office.
Page 68

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Oriental Bank of Commerce

Oriental Bank of Commerce

Glossary of terms ...................................................................................................................... 4

Scope of the guiding document ................................................................................................ 5

Overview of the overall organization structure........................................................................ 6

Principles of the design.......................................................................................................... 6

3.1.1. Clusters ................................................................................................................................. 6

Organization structure ........................................................................................................... 8

Overview of structure, processes, and roles in RAG vertical ............................................... 14

Organization Structure ......................................................................................................... 15

4.1.1. Head Office ......................................................................................................................... 15

4.2.1. Sourcing .............................................................................................................................. 25

Oriental Bank of Commerce

4.2.13. Delegated Powers ............................................................................................................... 36

Comparison of before and after work flow .......................................................................... 39

Touchpoints for the customer and external linkages .......................................................... 40

Role Mandates ..................................................................................................................... 42

4.6.1. Cluster Sanctioning Authority ......................................................................................... 42

30-day Roll-out plan ................................................................................................................. 50

Frequently Asked Questions (FAQs) ...................................................................................... 52

Annexure 1: Checklists ........................................................................................................... 55

Oriental Bank of Commerce

Branch Certificate of Compliance

Cluster Monitoring Office

Customer Relations Group

Electronic Clearing Service

Joint Registration Certificate

Loan Review Mechanism

Monitoring Officers Report

National Automated Clearing House

Original Seen and Verified

Quarterly Information System

Risk Based Supervision

Oriental Bank of Commerce

2. Scope of the guiding document

Oriental Bank of Commerce

Overview of the overall organization structure

Principles of the design

Oriental Bank of Commerce

annexure 1 for mapping of the branches

o Eastern and Central UP (Uttar Pradesh)

Oriental Bank of Commerce

Oriental Bank of Commerce

Fig 3: New organization consists of 22 groups

Oriental Bank of Commerce

o Driving institutional CASA business such as state government,

Oriental Bank of Commerce

geographical location, reporting to 10 CMOs they are mapped to

Fig 4: Business group consists of 10 verticals

Fig 5: Support group consists of 6 verticals

Oriental Bank of Commerce

Fig 6: Control group consists of 6 verticals

Oriental Bank of Commerce

Fig 7: Summary of all 22 verticals in the new structure

Oriental Bank of Commerce

Overview of structure, processes, and roles in RAG

In case above mentioned credit facilities are to be sanctioned to non-individual

Oriental Bank of Commerce

4.1.1. Head Office

Oriental Bank of Commerce

Fig 9: Overview of HO organization structure

The General Manager (Retail Assets Group) at Head Office shall be

Oriental Bank of Commerce

Oriental Bank of Commerce