Dipesh Kumar

CREDIT MONITORING
It is a process of safe guarding and
keeping healthy advance portfolio.
It is also very helpful in mitigating
Risk in the area of Credit.
There are various tools through which
quality of credit portfolio can be
improved.
 Tools of Credit Monitoring
Post Sanction Review
Post Disbursement/Periodical Inspection & Valuation
Monthly Stock & BD Statement
MMR/QMR/QIS/Quarterly CA Certified BD Statements
Stock Audit & Credit Audit
Insurance
Review
Credit Rating
Enforcement of Documents
Registration of Charges
ASCROM
 Post Sanction Review (PSR)
Timely Submission for PSR / Reporting of sanctions to the
controlling office.
PSR Observations are received and rectification thereof
Whether all the terms and conditions of sanction /
disbursements are complied .
Whether disbursement authority has been obtained from
appropriate authority .
Disbursement/ release made according to terms of
sanction / Banks guidelines
Vetting of documents done as per banks guidelines
 Post Disbursement /Periodical
Inspection & Valuation of Securities
Periodic inspection of Primary and
collateral securities to be done as per
guidelines.
Periodic valuation of securities as per
guidelines and necessary steps are taken in
case of erosion in value of securities.
 Stock & Book Debt Statement
(DP Statement)
Timely submission of DP statement as
per sanction.
Fixing of DP is done on monthly basis
and correctly fed in CBS system. (DP
indicator i.e. Equal / Derived / Parent /
Maintained, to be correctly selected)
 MMR / QMR /QIS /
Qtly CA certified BD Statement
Whether quarterly CA certified book debt
statement & QIS statements are submitted in
time / regularly
Proper Scrutiny of QIS / Compare with the
Projection
Monthly Monitoring reports / QMR are
submitted to Controlling Authority in time.
All field in MMR/QMR to be correctly fed
 Stock Audit & Credit Audit
Whether Stock audit is conducted as per
Banks guidelines, deficiencies rectified &
Rectification Certificate submitted
Credit Audit reports are available in all
eligible accounts as per banks guidelines
and deficiencies rectified & Rectification
Certificate submitted
 Insurance
whether due date diary for
insurance is maintained and fed in
system
Insurance covers for full value /
insurable value has been obtained
and in force
Insurance with bank clause.
 Review
Timely receipt of renewal proposal
(Financial Papers) from Borrower.
Timely Renewal of limits, and submission of
proposal/ recommendation for renewal to
higher authorities in applicable cases.
Short review / Technical review conducted
as per guidelines.
Timely submission of reviewed proposal for
PSR to higher authorities.
 Credit Rating
Whether Internal credit rating in appropriate
model i.e. BOBRAM / MSME/ Retail credit has
been carried out as per latest credit policy
guidelines.
Credit Rating to be done timely and ROI to be
reset accordingly.
Reviewing and obtaining fresh external ratings
in applicable cases as per guidelines
 Enforcement of Documents
Whether
Acknowledgement Of Debts
Revival Letters
Renewal of documents
Renewal of Mortgages
have been obtained within time as per
guidelines / Limitation Act
Documents / mortgages are in force .
 Registration of Charges
Whether charge created with ROC at the time of
fresh /enhancement of limit /disbursement.
Whether Search / Verification of charge conducted
with ROC once in a year
In respect of Equitable Mortgage / banks lien is
notified to Central Registry/ Revenue Authority .
In case of vehicles / other retail Loans banks lien /
charge is to be registered with RTO / concerned
authorities and all necessary compliances made as
per guidelines.
 ASCROM
Whether the classification of assets as NPA in
ASCROM & FINACLE are common in both the
lists & there is no divergence.
Obtaining the potential NPA A/cs list generated
in ASCROM and recovery of CADU amount.
Preparation of ASCROM data input sheet in
eligible accounts as per the guidelines.
THANKS