SUMMER TRAINNING

PRESENTATION
ON
CREDIT MANAGEMENT
AT

PREPARED BY:-
SHAVINDAR PAUL SINGH
ROLL NO. A-51
SANJAY ASARANIYA
ROLL NO. A-3
 Established in 1895 in Lahore , first bank to be
started solely with Indian capital.
 Nationalized in 1969 with 13 other banks
 It is ranked 1st in FY09 among the Nationalized

banks in terms of profit, has the 2nd largest

network of branches(4668) and 3rd largest bank
in the country.
 On march09 its gross and net NPA ratio was

only 1.77% and 0.17% respectively

 Anytime anywhere banking facility with more

than 2000 rural branches

 CREDIT : To give money in advance on the
basis of eligibility criteria ,terms and
condition of bank

 CREDIT MANAGEMENT means the total

process of lending starting from inquiry
from potential borrower to recover the
lending amount from borrower.
 Loan/term loan; a specified amount is sanctioned repayable
in installment or in lump sum

 Cash credit; credit in the form of cash against the security of

tangible assets or guarantees.

 Overdraft; when current amount holder is permitted to draw more

than what stands to his credit

 Bills purchase and bills discount; the bank credits the amount of the
bill to the customers account and drawers account respectively

 Bank guarantee; bank takes the responsibility to pay the amount to

seller if buyer will not pay amount in time
 Application inward
 Dedup report

 Processing of application

 Inspection report

 Manager approval

 Sign documents

 Insurance posting

 Record department filling

o Application form should be filled with all
details and particulars
o Submission of one to two guarantors
o Interest rate calculated as per RBI guidelines
o For companies AOA and MOA are compulsory
o In case of immovable properties
1. Title clear report
2. Equitable mortgage on non judicial stamp
paper
3. Insurance is compulsory
o In educational loan , life insurance of student is
necessary
o In car/vehicle/house loan margin money is
considered
 Housing loan
 Car finance

 Two wheeler finance

 Professional loan scheme

 Educational loan scheme

 Loan against mortgage of immovable property

 Agriculture loans

 Others
FORMAT FOR CREDIT APPRIASAL
 For Individual
 For Business
 Appraisal for Immovable Properties

FINDINGS
 It uses intranet for loan processing
 Great coordination with recovery department
 Well qualified and experienced processing
officer
 It has thousand of data of defaulter
 It collects details about guarantor
SUGGESTIONS

Speed for Intranet should be increased

Authority for section of loan should be increased

at various level
T.A.T for file process should be fixed
Recruitment of Sales Executives should be done

Direct Sales Agency should be appointed

CREDIT MONITORING
 Collect defaulter data from various branches
 Check details of applicant in defaulter data

and CIBIL
 Send all details to higher authority (if

required)
FOLLOW UP
 Update defaulter data from time to time
 Bank organize committee
 Members of committee are well experienced
 General Manager guides committee
 Installments
of loan has been remained
undue for more than three consecutive
months
FINDINGS
 Improper selection of borrowers
 Natural calamities
 Lack of proper follow up
 Effect of agricultural debt relief scheme
 Employees favoring toward relatives
SUGGESTIONS

Certain Areas should be excluded

All details of borrower and co borrower
should be obtained
Timely review credit policy
Branch should take advice from H.O.
time to time
Check KYC docs very properly with banking
 Recovery management consist of functions and
activities of acquiring back the advances with
principle from the borrowers
FINDINGS
 Start follow up after receiving delinquency data
 One time settlement scheme with less foreclose
charges
SUGGESTIONS
 Introduce incentive system
 Recruit genuine recovery staff
 Provide other allowances
 Practical work on intranet was restricted
 Some of the schemes not studied through file
 Personal visit with inspector not allowed
 Complete process of any file not done
 T.V.R not allowed
 CIBIL not allowed
SHAWINDER PAL
SINGH

NICM,GANDHINAGAR