NPA Tracking in CBS

CPBM
 AREAS FOR DISCUSSION

• Asset Classification
• Risk Grades
• Arrear Conditions
• Asset Tracking & Stamping
• Theo Balance
• Auto upgradation
• Income Recognition

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 AREAS FOR DISCUSSION

• Recovery appropriation
• Provisioning Norms
• NPA Enquiry Functions
• NPA Norms for AGRI ACCOUNTS
• Granting NPA Holiday
• Amendments in Theo balance
• Regeneration of Repayment Schedule on
Theo bal
• Asset Monitoring Reports
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CPBM
 CONDITIONS AFFECTING
ASSET QUALITY
Cash Credits / Over Drafts
• Out of order –OS>DP
• Interest not serviced
• Stock Statement not submitted
• Account not renewed
• Erosion in security >90%
Term Loans / Demand Loans
• EMI/Principal and/or Interest not paid
• Erosion in security >90%

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 ASSET CLASSIFICATION
• RBIs Policy and Guidelines on
IRAC Norms
• Standard Assets
• Sub Standard Assets
• Doubtful Assets ( D1, D2, & D3)
• Loss Assets

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 RISK GRADES(IRAC STATUS)IN CBS

• 00 -STANDARD ASSET
• 01 -STANDARD BUT TEMPORARILY IRREGULAR 7 – 29
DAYS
• 02 -STANDARD BUT IRREGULAR FOR 30 DAYS BUT< 60
DAYS [SMA –I]
• 03 -STANDARD BUT IRREGULAR FOR 60 DAYS BUT< 90
DAYS [SMA-II]
• 04 -SUB STANDARD (IRREGULARITY FOR 90 DAYS AND
ABOVE)
• 05 -DOUBTFUL LESS THAN 1 YEAR (D1)-[SUBSTD>1 YEAR]
• 06 -DOUBTFUL => 1 YR < 3 YRS (D2)
• 07 -DOUBTFUL = > 3 YEARS (D3)
• 08 -LOSS ASSETS
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 ARREAR CONDITIONS
• Conditions affecting asset quality
are known as Arrear Conditions in
CBS
• Each arrear condition is assigned
a distinct number
• There are 26 such conditions
EMI Dues 4 Interest Not Serviced 4
Age of Stock Statement 5 Security Erosion 2
Renewal Pending 4 Common Irregularity 7
( CC/OD & DL/TL)

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 ASSET TRACKING IN CBS
• All asset accounts are tracked for
the irregularity / arrear conditions
during EOD every day.
• Appropriate risk grade / IRAC status
is assigned to all the accounts.
• Such risk grade or Status is known
as New IRAC Status
• Also known as Indicative IRAC
Status
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 STAMPING

• Updating the Actual (Old) IRAC

Status with New IRAC Status by
CBS
• Takes place on stamping days

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 RECENT DEVELOPMENT

IR NO: 76166 DATED 21-05-2016

Up-gradation of accounts should happen on daily basis after satisfaction of all

arrear conditions whereas accounts would be stamped as NPA only on the last date
of each month.

In view of above, following two types of functionalities created for stamping

process:

1. Up gradation Stamping on daily basis once all the arrear conditions are satisfied.
2. Down gradation Stamping on the last date of every month.

CPBM
 NPA TRACKING IN CBS

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 TRACKING OF EMI DUES
Arrear Irregularity Description CHANGE IN Applicable
Condition RISK GRADES To
From To

501 EMI Overdue : 7-29 days 0 1 DL/TL

504 1 EMI overdue >= 30 days 1 2 DL/TL

505 2 EMIs overdue >=30 days 2 3 DL/TL

506 3 EMIs overdue >=30 days 3 4 DL/TL

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CPBM
 RECENT DEVELOPMENT
Education Loan : One month before repayment
start date, system will automatically move
unpaid moratorium period interest to Principal
Bucket and regenerate repayment schedule to
avoid moratorium period interest getting
converted into URI (Unrealised Interest) in case
of an education loan turns NPA.
SMS will be sent to borrower advising the new
EMI amount.
A report will be generated and sent to
Branches for their information and record.

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 RECENT DEVELOPMENT
• EDUCATION LOAN : REPAYMENT SCHEDULE:-
Regeneration of repayment schedule during
moratorium period in Education Loans has been
restricted.
• Repayment schedule would be regenerated by the
system (CBS) itself on the last day of the moratorium
period with accrued interest and EMI would be arrived
at.(ii) System would also generate and send one SMS
to the borrower informing that "Your Education Loan
EMI of Rs.... is due for payment from...(date).Contact
Branch/RACPC for further clarifications".(iii) CBS
would generate one report every month on 25th
advising the "Education Loans First EMI falling due
during the next month".

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 RECENT DEVELOPMENT
• (iv) The function of Changing the TERM and Regeneration
of repayment schedule during holiday period i.e. Course
Period + Moratorium period has been disabled and if the
tellers attempt to regenerate repayment schedule during
the moratorium period, the system would display
message that "Moratorium Period Not Yet Over”

• STAMPING: The EMI accounts shall be stamped NPA on

quarterly basis on balance sheet dates i.e. 30th June,
30th Sept., 31st Dec and 31st March. However, CBS shall
track accounts on daily basis and place it in risk group
RG-0 to RG-8 and during the quarter the status of NPA
account would be as Indicative NPA which shall get
classified as NPA as on Quarter end only if it continues to
have three or more EMIs outstanding. The up gradation of
all such accounts will be upgraded only on recovery of all
the arrears/EMIs.
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 RECENT DEVELOPMENT
STAMPING:
The EMI accounts shall be stamped NPA on quarterly
basis on balance sheet dates i.e. 30th June, 30th
Sept., 31st Dec and 31st March.
However, CBS shall track accounts on daily basis and
place it in risk group RG-0 to RG-8 and during the
quarter the status of NPA account would be as
Indicative NPA which shall get classified as NPA as
on Quarter end only if it continues to have three or
more EMIs outstanding.
The up gradation of all such accounts will be
upgraded only on recovery of all the arrears/EMIs.

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CPBM
 TRACKING
INTEREST NON SERVICING
Arrear Irregularity Description CHANGE IN Applicable
Condition RISK GRADES To
From To

601 Interest not serviced 0 1 CC/OD

7 to 29 days
602 Interest not serviced 1 2 CC/OD
> = 30 days
603 Interest not serviced 2 3 CC/OD
> = 60 days
604 Interest not serviced 3 4 CC/OD
> = 90 days

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 A separate input menu 'Interest repayment start date' to be provided in
Negotiated Repayment option screen. For interest portion, tracking of
irregularity in the account should start as and when interest is applied after
start date of interest repayment.

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CPBM
 TRACKING
AGE OF STOCK STATEMENT
Arrear Irregularity Description CHANGE IN Applicable
Condition RISK GRADES To
From To

611 Stock statement age > = 97 days 0 1 CC/OD

612 Stock statement age > = 120 days 1 2 CC/OD

613 Stock statement age > = 150 days 2 3 CC/OD

614 Stock statement age > = 180 days 3 4 CC/OD

631 Stock statement age > = 365 days 0/1/2/3 4 CC/OD

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 RECENT DEVELOPMENT

LOANS: Stock statement : Additional

field for capturing stock statement
month and year along with the date
of receipt of the Stock Statement
has been made available in CBS.

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 TRACKING
RENEWAL OVERDUE
Arrear Irregularity Description CHANGE IN Applicable
Condition RISK GRADES To
From To

621 Renewal due > = 97 days 0 1 CC/OD

622 Renewal due > = 120 days 1 2 CC/OD

623 Renewal due > = 150 days 2 3 CC/OD

624 Renewal due > = 180 days 3 4 CC/OD

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 RECENT DEVELOPMENT

• Renewal / review profile set up

made mandatory at the time of
opening of account itself at
product level and NPA tracking for
non-renewal / review enabled in
CBS.

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CPBM
 TRACKING OUT OF ORDER
(O/S > DP/THEO BAL)

Arrear Irregularity Description CHANGE IN Applicable

Condition RISK GRADES To

From To

701 Irregularity 7 to 29 days 0 1 CC/OD/DL/TL

702 Irregularity > = 30 days 1 2 CC/OD/DL/TL

703 Irregularity > = 60 days 2 3 CC/OD/DL/TL

704 Irregularity > = 90 days 3 4 CC/OD/DL/TL

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 THEORETICAL BALANCE

• Similar to Drawing Power in CC /OD

• Disbursements + Interest applied –

Scheduled Repayments (Principal +

Interest) i.e. as per sanction terms

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 THEORETICAL BALANCE
• Calculate Theoretical Balance
• Loan Limit & disbursement Rs.5,00,000
• Interest applied in the account Rs. 8,000
• Repayment (EMI) per month Rs. 4,000
• Assume 10 months have elapsed, since commencement of
repayment.
• Assume Upfront fee of Rs.5000 is levied.
• What is the Theoretical Balance for this account ?
• Disbursement Rs.5,00,000
• Add Interest Rs. 8,000
• Minus scheduled repayments (4000 X 10) Rs. 40,000
• Theoretical Balance Rs.4,68,000
• Upfront fee is recoverable upfront- NOT a part of
Theoretical Balance

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CPBM
 TRACKING
SECURITY EROSION

Arrear Irregularity Description CHANGE IN RISK Applicable

Condition GRADES To
From To

711 Security Erosion > 50% 4 5 CC/OD/DL/TL

712 Security Erosion > 90% 0/1/2/3 8 CC/OD/DL/TL

4/5/6/7

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CPBM
 RECENT DEVELOPMENT

CPPD Requirement: Following functionality need to be developed

in respect of valuation of Collateral securities. CPPD has advised as
under.
i. The ‘Expiry Date’ field should be masked in case of Collateral
Type 1 and Collateral Type 2.
ii. Name of the field ‘Commencement Date / Stock Statement
Date’ should be changed to ‘Valuation Report Date / Stock
Statement Date’ and to be made mandatory. A validation will
be put so that Valuation Report Date/Stock Statement Date
will not be a future date or past date exceeding three years.

07/04/2021 SBIICM HYDERABAD 27

CPBM
 RECENT DEVELOPMENT
• On completion of 2 years 10 months from the
Valuation Report date, reminder alert to be
generated, bringing the impending expiry date to
the attention of the operating functionaries. Such
alerts to continue to be generated, say weekly, till
such time fresh valuation report date is entered.
• On completion of 3 years from valuation report date,
system should not auto-zeroise the collateral security
value. Reminders should continue to be generated,
this time daily, till such time the fresh valuation
report date is fed by the operating units.

07/04/2021 SBIICM HYDERABAD 28

CPBM
 RECENT DEVELOPMENT
SUBSIDY LINKED LOAN
ACCOUNTS:
Where loan is linked to subsidy
account, system would prompt
teller for subsidy appropriation
whenever NPA account is
transferred to Recalled Assets
Account.

07/04/2021 SBIICM HYDERABAD 29

CPBM
 TRACKING AGE OF NPAs

Arrear Irregularity Description CHANGE IN Applicable

Condition RISK GRADES To
From To

801 Sub Standard > = 1 year 4 5 CC/OD/DL/TL

802 Doubtful > = 1 year 5 6 CC/OD/DL/TL

803 Doubtful > = 2 years 6 7 CC/OD/DL/TL

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 AUTO UPGRADATION

• On regularization of all arrear

conditions
• Auto upgradation takes place
during EOD
• New IRAC Status will be upgraded
• On stamping day Old IRAC Status
will be updated with upgraded New
IRAC Status
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 INCOME RECOGNITION

• Income recognition in Non Performing Assets

is based on record of recovery
• On classification as NPA the unrealized
portion of the interest is reversed
• Interest application stops in these accounts
• Interest accrual continues at applicable rate
• Interest rate should not be made as ‘Zero’

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 O/S Rs. 655060

A/C IS STANDARD

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 Unrealized Interest of
Rs.40,000 reversed
in the account and the
Amount transferred to
Interest accrued bucket
i.e. 655060
MINUS 40000
615060

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 UNREALIZED INTEREST REVERSED & CREDITED

NARRATION

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 RECOVERY IN NPAs
PRIORITY OF APPROPRIATION

• Charges Pending

• Penal Interest Pending

• Interest Pending
• Principal Pending

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CPBM
 PROVISIONING
• STD ASSETS- AGL,MICRO,SMALL ENTERPRISES 00.25%
• STD ASSETS-OTHERS 00.40%
• COMMERCIAL REAL ESTATE 01.00%
• TEASER LOANS 02.00%
• SUB STD 15.00%
• SUB STD UNSECURED AB INITIO 25.00%
• If the Flag Unsecured ab initio is not marked “Y”
100.00 %
• DOUBTFUL D1 25% ON SECURED+100% ON UNSECURED
• DOUBTFUL D2 40% ON SECURED+100% ON UNSECURED
• DOUBTFUL D3 100%
• LOSS ASSETS 100%

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CPBM
 NPA ENQUIRY FUNCTIONS

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CPBM
 NPA STATUS ENQUIRY

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CPBM
 NPA STATUS ENQUIRY

ALL ARREAR
CONDITIONS
TRACKED CAN
BE SEEN HERE

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RECTIFICATION OF NON FINANCIAL ARREAR
CONDITIONS-RENEWAL

DOUBLE
CLICK

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 RISK GRADE HISTORY
ENQUIRY

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 RISK GRADE HISTORY
ENQUIRY

DURING
EOD

AMENDMENT AT FRONT END BY USER

CPBM
 NPA Norms for Agricultural Acco
unts

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NPA RECKON DATE
short duration Mono- Cropping (for KHARIF)

Particulars For Kharif

Sanction of loan APRIL TO SEPTEMBER
Date of sanction 01.05.2015
Start of season June 2015
Harvest time December 2015
Due date for repayment 31.01.2016
2nd crop seasons 24 months from the due date
NPA Reckon Date 31.01.2018

Planting DUE DATE Remains

season Not paid unpaid

NPA

June 2015 31.01.2016

2 seasons of 1year each 31.01.2018

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 NPA RECKON DATE- short duration
Mono- Crop (for RABI SEASON)

Particulars For Rabi

Sanction of loan October- March
Date of sanction 01.10.2015
Start of season October 2015
Harvest time March 2016
Due date for repayment 31.07.2016
2nd crop seasons from the due date 24 months from the due date
NPA date 31.07.2018

Planting DUE DATE Remains

season Not paid unpaid

NPA

Oct 2015 31.07.2016

2 seasons of 1year each
31.07.2018

47
ABU, CC, Mumbai CPBM
NPA RECKON DATE for short duration
Double Cropping (KHARIF& RABI)

Particulars A. For Kharif

Sanction of loan 2015
Date of sanction Any day during the year (2015)
12 MONTHS FROM THE DATE OF FIRST
Due date for repayment
DISBURSEMENT
2 crop seasons from the due date 12 months
NPA Reckon date 12 MONTHS FORM THE DUE DATE

Sanction of Loan Due for Not

payment Remains
Paid unpaid

NPA

31.07.2015 31.07.2016 31.01.2017

2 seasons of 6 months each
(ASSUME)

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 FIRST DEBIT INTEREST
APPLICATION START DATE

• To coincide with the due date

07/04/2021 SBLC/TIRUCHIRAPALLI/VTV 49
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 RECENT CHANGES
• AGRICULTURE QUICK GOLD
LOAN : Provision for capturing
interest subvention details is
made mandatory in Agri Quick
gold loan screen and Loan Term
plus Crop period should not
exceed Maximum product level
term.

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CPBM
 GRANTING NPA HOLIDAY

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 INCREASING THEO
BALANCE
• If Theo Bal shown in the system is
Rs.4,38,000/- instead of Rs.4,68,000/-,
• What is the method of increasing Theo
Balance?
• Calculate the correct Theo balance
manually
• Common Processing  Overdue / NPA 
Adjust overdue or prepayment balance
credit

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CPBM
 DECREASING THEO
BALANCE
• If Theo Bal shown in the system is
Rs.4,98,000/- instead of Rs.4,68,000/-,
• What is the method of decreasing Theo
Balance ?
• Calculate the correct Theo balance
manually
• Common Processing  Overdue / NPA
 Adjust overdue or prepayment
balance debit

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CPBM
 REGENERATION OF EMI AS PER
THEO BALANCE

• DL /TL Account & Services 

• Loan Processing
• Generate repayment schedule -
Theo bal

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CPBM
 ASSET MONITORING-
REPORTS
• CC/OD Balance file
– Segment-wise having the following Columns: ACCOUNT
NUMBER; ACCOUNT TYPE (DESCRIPTION); CUSTOMER
NAME; INT.RATE; LIMIT; DRAWING POWER; CLEARED
BALANCE; UNCLEARED BALANCE; IRREGULARITY; IRAC-
NEW; IRAC- OLD

• CC/OD Accounts which are

irregular (excess-drawn)
The date of irregularity is shown.
BR2397-01 Irregular_excess_draw_lond2397.txt

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 ASSET MONITORING-
REPORTS
• DL/TL Loan balances file:
BR2390-01 LoansBalanceFile-lond2390.txt
Sorted Product wise (Product-wise total is also
shown) Columns include Limit, Int. rate, Theo.
Balance, Outstanding, Irregularity, EMIS due, EMIS
overdue, New IRAC and Old IRAC.
• DEMAND LOAN IRREGULARITY REPORT:
BR2391-01 DemandLoanIrregularity-lond2391.txt
• DL/TL accounts, which are irregular:
BR2490-01
Irregular_Overdue_Statement_lond2490.txt

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CPBM
 ASSET MONITORING-
REPORTS
• CC/OD List of Accounts With Stock Expired / To be
expired in 15 days
BR2582 Listof_StockExpired_accounts_lond2582.txt
• List of Loan accounts where limits are due for review
and renewal
BR2394-01 Review_Renewal_lonm2394.txt
• LIST OF SPECIAL MENTION ACCOUNTS (CATEGORY I)
CEBR2553-01
List_Special_Mention_AccountsI_lonm2553
• LIST OF SMA ACCOUNTS (CATEGORY II)
CER BR2556-01
List_Special_Mention_Accounts2_lonm2556
• Security created but not authorized report

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CPBM
 ASSET MONITORING-
REPORTS
• LIST OF NPA ACCOUNTS BECOME NPA TODAY (Shows
the arrear condition due to which the Account has
become NPA) BR2467-01
List_NPA_Accounts_Become_NPA_Today_lond2467.txt
• LIST OF NPA ACCOUNTS (CC/ OD and DL/TL with NPA
Date) BR2572-01 Listof_NPA_Accounts_lond2572.txt
• LOANS DOCUMENT RENEWAL REPORT: CER
BR2436-01 Loans_Doc_Ren_rep_lonm2436.prt
On the first working day of every month, provides a list
of all loan accounts where documents are due for
Renewal during the month

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CPBM
 RECENT REPORTS
• A daily report on debit transactions
performed in NPA accounts capturing
supervisory override ID will be generated and
sent to respective branch reports folder
• A monthly report on Xpress Credit Loans and SBI Pension
Loans where SI not set-up will be generated and sent to
branch reports folder. The report Name : SI not Set-up in
Xpress Credit/SBI Pension Loan Accounts. The report contain
the following fields : (i) Loan A/C No (ii) Date of Sanction (iii)
CIF No
• LOANS: REPORT : A monthly report on accounts where
Stock Audit falling due in next month will be generated
and sent to Branches.

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CPBM
 RECENT REPORTS
• CERSAI: Monthly exception report to
Branches made available wherein CERSAI
particulars are blank in CBS. Columns
provided : 1. Account No 2.Name of customer
3. Particulars of Collateral Security 4.
Collateral No 5. Value of Collateral 6. Date of
Sanction 7. Limit Sanctioned

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CPBM
 SUMMING UP

• Asset Classification
• Risk Grades
• Arrear Conditions
• Asset Tracking & Stamping
• Theo Balance
• Auto upgradation
• Income Recognition

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CPBM
 SUMMING UP

• Recovery appropriation
• Provisioning Norms
• NPA Enquiry Functions
• NPA norms for Agricultural Advances
• Granting NPA Holiday
• Amendments in Theo balance
• Regeneration of Repayment Schedule on
Theo bal
• Asset Monitoring Reports
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?
CPBM
Thank You

CPBM