QUESTIONS for III to

SN Questions

1 Which one of the following area is not defined in loan policy for credit
deployement
2 To regulate the deployment of credit as well as sanction of credit who
determines the lending and discretionary powers of various sanctioning
authorities?

3 In case of review based on PBS of Corporate Borrower, a condition is to be

reviewed stipulated by the sanctioning authority that in case Variations more
than ___ in the financials in the ABS, the Bank reserves the right to stipulate
additional conditions, as deemed fit.

4 Branches need to submit Variation/exception/concession/ mitigations

proposals to the competent authorities within ____ after the sanction at their
end.

5 In case misuse of Individual sanctioning powers by Branch Manager is

observed who is the authority to suspend the powers of BM?
6 As per loan policy unregistered Trusts are classified in the category of
7 A branch headed by a Scale IV received a proposal of Bank guarantee of Rs.5
crore backed by 100% time deposits of our bank, can be sanctioned by___

8 A loan of Rs 25 crore against time deposit in favour of Govt Institutions / Trusts

shall be sanctioned by ___
9 What is the sanctioning powers of ZLCC (GM) for individual borrowers?

10 Outlook is applicable only to the accounts with exposure of above Rs.

11 In case of “AAA” (CBI-1) rated borrowers RLCC/ZLCC can sanction higher
lending powers up to ___ of their normal lending powers
12 Minimum authroity to review/renewal of limits in respect of accounts where
one of the Group Account is NPA with our Bank or any other Bank /NBFC / FI
within their respective lending powers is____

13 Relatives of Ex-Staff members and they will be treated as staff relative after
superannuation /VRS/ Resignation/Dismissal up to ___
14 Which of the following is incorrect with respect to governing rules of
Credit Approval Committees?

15 In respect of Adjusted TNW which is most appropriate

16 A proposal under the delegated powers of scale IV branch & there is no

deterioration in financial ratios approved earlier by the higher authorities and
only renewal of existing limits/ facilities is sought.

17 A proposal sanctioned by ZLCC who can allow the interim disbursement

pending security perfection as per policy?
18 Authority to permit to release part of primary/collateral/Substitution of
Security if the account falls under the powers of RPC where ACR is 80% of the
last review after release of the security, is

19 In case the company is incurring losses for the last three years but the Tangible
Net Worth (excluding quasi capital) is negative, which is true

20 NBG clearance from central office is not required where ___

21 The credit proposal exceeding the powers of BLCC (AGM branch) & the
proposal falls under the powers of ZLCC will be submitted

22 The following exposures that will not be exempted from the Large Exposure
Framework (LEF) ___

23 The exposure to a particular bank should not exceed __ of the net worth of the
Bank at the end of previous year and it should not exceed __ of the net worth
of the borrowing bank at the end of previous year.

24 The normal exposure cap for LLP at entry level (New Account) as per policy is

25 Export Credit is thrust area of our Bank, Our endeavor will be to achieve an
export credit target of
26 Branches are required to refer the certain list while prepareing the credit
proposal, which is not to be referred.
27 A proposal under the delegated powers of scale IV branch but at the time of
renewal the rating of the account is CBI-VII, renewal will be done by__

28 As per our policy external rating is required to be done for all accounts with
our bank's exposure of Rs. ___ crores or exposure with all banks is __ crores

29 The IRR approach is applicable for term loan of Rs. ___ with repayment period
of ___
30 Working capital finance to information technology and software industry,
based on the projected turnover will be done up to Rs. ___
31 Any fresh/additional exporsure in NBFC will be considered by ___
32 The management of risk does not involve the following as per loan policy

33 In case of non-consortium trading accounts, seeking fresh limit / enhancement,

the minimum collateral coverage ___ of the total credit facilities if the proposal
is under the delegatee powers of Credit Approval Committees headed by DGM.
34 Legal vetting of security documents for accounts with limit of Rs.1.00 crore and
above up to Rs.5.00 crore should be done by ___

35 In respect of sanction of a FITL, sanction will be valid for ___ months from the
date of sanction or ___ months from the date of documents provided
documents are executed within ___ months from the date of sanction

36 Full Form of HAM is

37 Time norms of disposal of proposals received at CO and falling within the
powers of Management committee of Board

38 All rejections of Export Credit Proposals shall be brought to the notice of __

39 Which of the following is incorrect?

40 larger borrowers enjoying working capital facility from the banking system,
delivery of bank credit in respect of borrowers having aggregate fund based
working capital limit of Rs.___ crores and above from the banking system, a
minimum level of "loan component" of __ shall be adhered.
 QUESTIONS for III to IV
A B C

Directed Credit Thrust Area Low Priority Area

Executive directors MD, CEO Board of directors

5% 10% 15%

7 days 15 days 21 days

Regional manager RLCC FGM/Zonal Manager

Individual Corporate Non-Corporate

RLCC (DGM) RLCC (AGM) RPC

ZLCC RLCC RPC

20 crore 25 crore 30 crore

5 crores 10 crores 25 crores

110% 110% subject to reporting to next 125%
higher Committee
Branch Head in Scale IV RPC RLCC

1 year 2 years 6 months

No Veto Power shall be Sanction should be unanimous Both A and B

exercisable.

TNW + Unsecured loan TNW + Unsecured loans eligible to TNW + Unsecured loans up to the
be treated as Quasi Equity minus 100% of TNW
investments and loans to group
companies

Proposal will be renewed by Proposal will be renewed by the Approval of limit will be done by
the BM BM and approval of variation will the authority in whose powers
be done by the authority in whose variation falls
powers variation falls

HLCC-ED HLCC-GM ZLCC

RPC RLCC ZLCC

RLCC can consider ZLCC can consider enhancement Enhancement upto 25% shall be
enhancement in the account in the account upto 25% considered by HLCC-ED within their
upto 25% delegated powers

In case of existing accounts Proposal of Rs. 6 crores to Gems CRE / CRE-RH, All fresh proposals
where proposed and jwellery sector canvassed under Consortium /
enhancement is more than Multiple lending)
100% and the proposed
exposure exceeds Rs 25 crore.

Directly to ZLCC to RLCC and RLCC will forward to Proposal will be submitted to ZLCC,
ZLCC with recommendations later on RLCC with submit its
comments on the proposal

Exposure to Reserve Bank of Exposures where the principal and Intra-day interbank exposures
India interest are fully guaranteed by
the Government of India

10%, 20% 10%, 25% 15%, 25%

30 crores 50 crores 100 crores

10% of net bank credit 12% of net bank credit 14 % of Net bank credit

RBI willfull defaulter list SAL of ECGC Caution advices issued by the bank

Branch Head in Scale IV RPC RLCC

25, 50 25, 75 25, 100

10 crore and above, 3 years 10 crore and above, 5 years 5 crore and above, 3 years

1 crore 2 crores 5 crores

ZLCC(DGM) ZLCC (GM) HLCC-GM

Identification Monitoring Measurement

Between 50% to 60% 50% 60%

Panel advocate Law officer Panel advocate if bank's law
officers arenot in a position to do
the same

6,6,6 6,3,6 3,3,3

Hi-tech Annuity Mode Hybrid Annuity Mechanism Hi-tech Annuity Mechanism

45 days from the receipt of 30 days from the receipt of 15 days from the receipt of
recommendation recommendation of Zonal recommendation of Zonal manager
of Zonal manager manager

Regional head Zonal Head Executive directors

CBI-I = highest safety CBI II- High Safety CBI IV- Adequate safety
150, 40% 100, 60% 100, 40%
 D Answe
r
Outlook C

None of the above C

20% B

30 days D

ZLCC C

None of the above A

BM Scale IV of that branch D

Branch Head B

60 crore A

50 crores C
125% subject to reporting to D
next higher Committee
ZLCC C

not applcable D

A proposal rejected by the D

Committee can not be
readmitted

None of the above B

By next higher authority A

None of the above C

no release of security is D
allowed

No enhancement will be C
considered

None of the above D

None of the above B

None of the above D

20%, 25% C

300 crores A

16% of net bank credit B

None of the above D

ZLCC A

None of the above C

5 crore and above, 5 years B

10 crores B

HLCC-ED C
None of the above D

75% A
None of the above C

None of the above B

Hybrid Annuity Model D

None of the above A

MD & CEO D

CBI V- Moderate safety B

150, 60% D
 Questions from Scale II to Scale III:
1 As per loan policy what is the sanctioning powers of a 5 crores
Regional head of DGM rank?
2 ABS should be submitted by the borrower within ___ of 15 days
signing the Balance Sheet by the Statutory Auditors.

3 A credit proposal under the powers of RLCC, has a RLCC

variation which need to be approved by HLCC-ED.
Sanction of the proposal will be done by ___

4 As per policy sanction letter should also consist the 1%

terms and conditions as also the charges recoverable
for non- compliance, what would be the maximum cap
on interest rate for non-compliance of terms and
conditions?

5 What is the lending powers of a Scale IV branch 60 lacs

manager for advances against Book Debts?
6 A branch headed by CM who is due to retire within Chief manager
next 3 months and continued as branch head who will
exercise the individual sanctioning /discretionary
powers.

7 Which of the following Authority can sanction Adhoc to Scale IV branch

Borrowers? manager
8 Bench mark for Current Ratio (Seasonal Industry ) 1:01
9 In case of new accounts the sanctioning authority will Only up to RLCC
consider only those cases where all financial ratios are
within the level up to __

10 Miscellaneous requests or by giving NOC, there is no Branch Manager

effect on
pricing, margin, exposure, and ACR/FACR is above
benchmark, such
requests/NOC shall be entertained by

11 Authority to permit to release part of RPC

primary/collateral/Substitution of Security if the
account falls under the powers of RPC is

12 Restriction on Lending, which is not as per policy No loan/advance can

be granted against the
security of bank's own
shares

13 As per loan policy, CBI-V rating denotes Moderate safety

14 As per our policy external rating is required to be done 5 crores and above
for all accounts with our bank's exposure of Rs. ___

15 Traditional method for working capital assessment is 5 crore and above

applicable for limit Rs. ____
16 The working capital requirement for small Turnover method
manufacturing enterprises up to 5 crore is to be
assessed as per___

17 Credit facility to individual borrowers of commission 4:01

agent, DER should be ___
18 Assessement of working capital to cyclical industries is Turnover method
done through
19 Credit proposals above Rs.5 lacs received at branch 5 days
shall be disposed of or recommended to the higher
authority within ____ maximum from the date of
receipt of proposals complete in all respects

20 As per loan policy, where no primary security is 100%

available, minimum collaterals to the extent of __ of
loan amount to be insisted ___
rom Scale II to Scale III:
10 crores 15 crores None of the above D

30 days 45 days 60 days B

ZLCC HLCC-GM HLCC-ED A

2% 3% No limit B

100 lacs 120 lacs 150 lacs C

RPC RLCC 3 member committee D

at the branch
(comprising CM, SM
and Managers)

RPC RLCC no authority C

1.1:1 1.2:1 1.33:1 A

Only up to ZLCC Up to next higher No restriction C
authority

Regional head RPC Respective D

sanctioning authority

RLCC ZLCC no release of security B

is allowed

No loan/advances can No loans/advances No advance can be D

be granted against the can be granted granted against
certificate of Deposits against the bank's own deposit
gold/silver bullions

Adequate safety Sub-moderate Inadequate safety A

safety
above 5 crores 25 crores and above None of the above C

Above 5 crores but less 5 crore to 50 crore 5 crore to less than B

than 50 crore 50 crore
Traditional method Cash budget Any of the method A
method

3:01 2:01 None of the above C

Traditional method Cash budget Any of the method C

method
7 days 30 days 15 days D

75% 50% 25% B