Special Assets Management - SME and Retail Operations

Special Assets Management-SME & Retail Banking is a special department under Operations. Its vital role is to recover the bank s bad port!olio as "ell as smooth management o! #egal persuasion. SAM deals "ith Bank s non-per!orming loans $%&#s' through legal persuasion(procedure and !acilitates e)ternal and internal recover* !orces to maintain Bank s port!olio at risk $&AR' at a stead* position. &resentl* SAM has more !ocused on its e)pansion as da* b* da* this is becoming more challenging !or managing the huge %&#s.

VISION: Sustainable Recovery Throughout The Year OBJE TIVES: 01. Improve Strategic Thinking 02. Strengthen of Legal Aspects 03. Continuous Involvement and ffective Supervision to !ursue the "oal 0#. !eople $evelopment and %otivation 0&. !roper scalation of Issues and Its %itigation !lan

Bac!groun" #istory o$ S%&: Year 200& 200' 200+ 2012 2013 &onth $ec (ul (un .e/ .e/ Credit %$)s *ffice C,% ,%$ *perations 'ivision IA% IA% IA%-SA% SA% SA% 'e(art)ent

SA% department esta/lished the finest structure in the 0anking industr1 of the countr1. 0ased on priorit12 SA% is designed mainl1 as S% 3ing and ,etail 3ing considering as 4,ecover15 unit and also three other separate units for 4Legal Coordination52 4Settlement 6 7egotiation5 and 4%IS 6 %onitoring5 unit 3hich facilitates legal supports and internal audit of the /oth portfolio.

.or /etter performance and case to case close monitoring2 ,ecover1 unit has segregated the SA%8S% 3ing into four separate ,egions i.e Central2 South2 7orth and ast. At the same time2 SA%8,etail unit has divided into t3o separate 3ings i.e ,etail8,ecover1 and ,etail8Legal. SA%8,etail8,ecover1 3ing is a com/ination of in8 house recover1 team and Third part1 recover1 agencies.

SAM Structure and Activities

a9 SA%8,ecover1 a. SA%8S% i. ii. iii. iv. /. SA%8,etail i. 1. 2. /9 In :ouse 3rd part1 ii. SA%8Legal Coordination a. 7egotia/le Instrument /. Artho ,in Adalat SA%8Settlement 6 7egotiation SA%8%IS 6 %onitoring a. %IS /. %onitoring Legal ,ecover Central South 7orth ast

c9 d9

;e have an e<cellent e<ternal and internal recover1 channel encompasses of our ,ecover1 <ecutives2 ,ecover1 *fficers2 Associate %anagers2 Territor1 %anagers2 ,egional %anagers2 :ead of ,ecover1 and 3rd !art1 ,ecover1 Agencies and La31ers 3orking together across the countr1. ;e have an e<pedient !olic1 and !rocesses 3hich 3orks as a guideline and recommendation to control classification and provision e<penses of the 0ank.

S%& %ctivities: The main activit1 of SA% is , C*= ,> of S% and ,etail impaired loans through 1. 2. 3. #. &. '. @. +. A. 10. recover1 channel cost effective legal procedures amica/le settlement e<ecution of decrees repossession of car arrangement of auction to sell the mortgaged propert1? collateral securit1 e<ternal 3rd part1 agencies 3rite8off management 3aiver process a/sconding /orro3er identification

It is not the department to solicit(!acilitate all legal services to BRA+ Bank s all departments. SAM department deals "ith the legal actions regarding mitigation o! bad port!olio under SME & Retail Banking ,ivision.

File Transfer: -iles trans!er to SAM !rom SME and Retail "hen the loan reaches at ,&, ./0 as per SAM &olic* and -ile 1rans!er &rocess. I! deviation2 need consent o! 3ead o! the business division.

Legal Actions
SAM processes the !ollo"ing t*pes o! cases4 a9 /9 c9 d9 e9 f9 7egotia/le Instrument Act81++12 under section 13+ Artha ,in Adalat Ain82003 Civil !rocedure code81A0+ !enal Code8#20-#0'-10A Appeal-,evie3-,evision ;rit !etition

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Legal proceedings filed against 00L Staff in relation to recover1 of loans.

Lawyer recruitment: 5enerall* 6 $t"o' la"*ers "ould be enlisted in each district. I! the che7ues are destro*ed (damaged (utili8ed case to be !iled in Artho Rin Adalat Ain-6009. I! the loans are non-collateral2 SAM !iles cases under section .9/ o! %I Act-.//.. I! the che7ue is dishonored(returned !or insu!!icient !und. SAM !iles cases under %I Act-.//.2 section .9/. Legal otice:

#egal notice issued to SME and Retail at ,&, ./02 SAM-S&R "ould arrange to serve .st legal notice !or "arning the de!ault borro"er to ad:ust the total outstanding and 6nd legal notice "ould be served a!ter bouncing the che7ue or be!ore litigation under Artha Rin Adalat Ain 6009. .st legal notice served centrall* across the countr* and 9 rd part* recover* agencies are "orking "ith retail de!aulters. .; $!i!teen' da*s in .st legal notice and 90 $thirt*' da*s in 6nd legal notice under %I Act given to the de!aulter to ad:ust the total outstanding. ! Act-"#$: #egal name o! che7ue dishonored case is case under Section .9/ o! %egotiable Instrument $%I' Act-.//.. Art%orin Adalat Ain-&''#:

Artha Rin Adalat Ain-6009 is a civil nature la". SAM !iled case !or recover* o! loan against a deceased borro"er under Artho Rin Adalat Ain-6009.1he legal successor(s o! a deceased borro"er2 the third part* guarantor(s $i! an*' and the third part* mortgagor(s $i! an*' "ill be the necessar* opposite parties in an Artha Rin case against recover* o! loan o! a deceased borro"er. 1he principal debtors2 the third part* guarantor(s $i! an*'2 and the third part* mortgagor(s $i! an*' "ill be the necessar* opposite parties in an Artha Rin case. I! the decree holder "ants to e)ecute an* :udgment o! Artha Rin Adalat2 he(she should !ile an e)ecution suit $Artha <ari' "ithin . $one' *ear o! e)pir* o! stipulated time. Bank !iles cases to recover their claim under Artha Rin Adalat Ain 6009. SAM "ill o!!er Auction to recover the overdue loan against mortgaged properties be!ore !iling the case under section .6 o! Artha Rin Adalat Ain 6009. (enal )ode: SAM !ile case under &enal +ode-=60(=0>(.0? !or committing criminal breach o! trust2 unauthori8ed sale o! mortgaged propert* or assets created out o! bank loan2 !ake loans2 closing o! a(c "here !rom securit* che7ues are provided etc. SAM has to obtain special recommendation !rom the respective @nit 3eads i! the* "ant to !ile a criminal case under section =60(=0>(.0? o! &enal +ode.

*rite- off Management: 0,AC 0ank has a specific ;rite8off polic1 developed /ased on 00 circulars. SA% takes initiative to 3rite8off /ad portfolios as per polic1 if follo3ing criteria satisfied2 a9 /9 c9 Classification status 3ill /e 0L 100B provided Litigated Cunder an1 kind of La3 of the land9

In case of deviation2 0ank can /e 3ritten8off 3ithout litigation2 /ut need to take prior approval from *ff Site Supervision department of 00. In that case2 immediate after 3rite8off2 case must /e lodged against the /orro3er. )ase *it%draw: SAM "ithdra" the case "hen a litigated de!aulter ad:usts outstanding amount in !ull "ith updated interest2 legal costs and other e)penses i! an*2 and(or upon amicable settlement SAM "ithdra"s the case against such de!aulters on receipt o! clearance certi!icate !rom Operations. E+ternal #rd party agency Management: SAM hands over the !iles to 9rd part* recover* agenc* $i.e. Impetus Enterprise2 Mars -inancial2 Auorum -inancial2 S++A and SSE' a!ter one month o! issuance o! .st legal notice. Onl* the retail loan !iles2 "hich are delin7uent $i! minimum 90B o! outstanding is not recovered "ithin 90 da*s a!ter .st legal notice' are handed over to outsource. SAM has takeover the !iles !rom 9rd part* recover* agenc* a!ter ?0 da*s.

,irect Monitoring Activities: )ollection end: -&hone +all(Cisit -&1&(Regular -ollo"up to pa*' -So!t Reminder -.st Reminder -6nd Reminder -9rd Reminder --inal Reminder(+all Back #etter - 5roup Cisit(&1& --inal #egal %otice -+ase -ile $%IA(ARA' -Auction -Amecable Settlement Recovery -SAM. end: - .st #egal %otice - &hone +all(Cisit(&1& $promise

Specific Monitoring: 1he ma:or monitoring !unctions are as !ollo"s4 a' b' c' d' e' !' Account #evel Monitoring and le!t over Settlement Monitoring and le!t over Reconciliation o! ,ail* Recover* and Repa*ment Summar* &ro:ection Cs Recover* Monitoring RE &roductivit* Monitoring 1op Supervision $Big 1icket #oans2 +ar repossession and Auction'

,efinition of A/sconded 0 Traceless 1orrower:

A/sconding 1orrower: &rincipal Borro"er is absent and 5uarantor and Immediate !amil* members an* one present or Address $present2 business2 permanent' an* address is authentic or &a*ments $an* pa*ment made "ithin last 9 months'

Traceless 1orrower: &rincipal Borro"er is absent and 5uarantor and Immediate !amil* members all are absent or Address $present2 business2 permanent' all addresses are !ake or %o &a*ments $no pa*ments made "ithin last 9 months'.

)ARMA: +ollection and Recover* Management Application $+ARMA' is a case management I1 s*stem based on intelligent "ork!lo" rules that helps organi8ations in the management o! receivables and outstanding debts. 1he s*stem is designed to e!!ectivel* get customers to pa* their dues in an e!!icient manner2 thereb* increasing coverage o! the customer base and subse7uentl* returns too. Special Assets Management-SME & Retail is the department "ith overall responsibilit* !or Recover* and #itigation. +onse7uentl* the* have a number o! special re7uirements "ithin the +ARMA application. 1he solution is delivered to the users entirel* via a "eb

$bro"ser' inter!ace and it is user !riendl* through using Mo8illa -ire!o). 1his not onl* provides a !riendl* cohesive inter!ace that masks the comple)it* o! the back-end s*stems but also provides a degree o! "ork!orce !le)ibilit* as the s*stem can be made available remotel* to an*"here in Bangladesh. FOR 23ER!ES RE4AR,! 4 T5E )O TE T6 (LS )O TA)T
Mezbahul Huque, Senior Manager MiS & Monitoring, Special Assets Management-SME & Retail Banking Ext -!!"#, E-mail$ mezbahul huque%bracbank com Mobile$ &'(' )&) (* #!