la 2014047
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L&A
Cir. No. 47/2014
PUNJAB NATIONAL BANK INTEGRATED RISK MANAGEMENT DIVISION (CREDIT POLICY SECTION) HO : 7, Bhikhaiji Cama Place, New Delhi – 110 607.
CPY-2 April 23, 2014
TO ALL OFFICES
LOANS & ADVANCES CIRCULAR NO.47
Format for Sanction of Adhoc Limits/ Amendment in Terms and conditions/Confirmation of Action/ Relaxation in
ROI and Service Charges
Attention of Incumbents is invited to Annexure VII of L&A Circular No. 133 dated 30.8.2008, inter-alia, advising the format for Relaxation in ROI and Service Charges. Reference may also be made to L&A Circular No. 132 dated 21.10.2009 inter-alia advising Revised Standardized formats for Sanction of adhoc limits/Confirmation of action/ Amendment of terms & conditions.
2. Based on the experience and feedback, some modifications/additions in
the format available at Annexure have been carried out, so as to make it more objective and facilitate decision making. 3. It is advised that henceforth, the revised format may be used for proposals for Adhoc limits/Confirmation of action/Amendment of terms & conditions/Relaxation in ROI and Service Charges.
(B L PATHEJA) GENERAL MANAGER
INDEX: LOAN APPLICATION & PROPOSALS
Annexure
Amendment in Terms & Conditions /Sanction of Adhoc limits/Confirmation of Action / Relaxation in ROI & Service Charges
SANCTIONING AUTHORITY 1. CRR “ “ (Score) ABS 31.03.____under
____rating model signifying__________Risk 2. External Rating:_______as per
___________Rating 3. Activity: 4. Group: 5. Banking: Sole/Multiple/Consortium/JLA 6. Lead Bank( if applicable) 7. PNB Share (if applicable) 8. Project Loan( if applicable)
Total cost of project: Rs.________________ Total Debt: Rs.___________ Our share: Rs.___________
MC HO CAC III HO CAC II HO CAC I Others
The proposal falls under the powers of MC/HOCAC III /II /I /Others on account of ____________________ Proposal Tracking No./date
1. Name of the Borrower: BO & Controlling Office:
(Rs.in crore) GIST OF THE PROPOSAL
A. Approval for amendments in Terms & Conditions
B. Sanction of Adhoc Limits
Existing Proposed Period of
adhoc ROI/ Charges
Income earned (Rs. In lac)
Last year Current year
FB NFB
C. For Confirmation of action (Mention particulars of action to be confirmed)
D. Relaxation in ROI and Service charges
Whether Adhoc/Confirmation/Amendment/Relaxation in ROI/service charges
Asset Classification as on_____
Credit Risk Rating by Bank
Facility Rating
RatingDate of Rating
ScoreABSReasons for degradation
Present Previous Present Previous
Rating from External Agency (The external rating should be mapped to the internal rating)
Facility Rated
Rating Date of Rating
Rating Agency
Remarks
Whether Agriculture/Retail/ SME/Large
a) Whether Sensitive Sector – Real Estate/Capital Market b) Applicable Risk weight
Consortium/Multiple Banking Lead Bank PNB’s Share % Date of Receipt of Proposal at BO/CO/HO
Date of last sanction & authority
2 Dealing with PNB since
3 Business Activity (Product)/ Installed Capacity.
4. Position of Account as on______
a) WC Limits
(Rs. in Crore) Nature Limit VS DP Balance Irregularity, if
any FB NFB Total b) Term Loan(s) (Rs. in Crore)
Nature Loan Sanctioned
Disbursed amount@
Value of security
Operative Limit*
Balance outstanding
Irregularity, if any
@Disbursed on__________________ *Note: The Operative Limit shall be as under: 1. In case fully disbursed, fully disbursed amount to be mentioned. 2. In case partly disbursed, partly disbursed amount to be mentioned. 3. In case repayment started, the amount due to be mentioned. 5. Financial Position of the Company
(Rs. in Crore)
31.3. 31.3. 31.3. Latest up to__ Audited Audited Audited Audited/Unaudited
I. Gross Sales II. % growth
III. Other Income IV. Profit before tax V. Profit after tax
VI. Tangible Net Worth VII. Net Working Capital
VIII. Current Ratio IX. Debt Equity Ratio X. TOL/TNW
6. SECURITY
A. Primary
B. Collateral
1) Exclusive charge by way of EM of ___ IPs with market value of Rs._________as on ________ and realizable value of Rs. _____.
2) I/II (pari-passu) charge over block assets of the company with residual
value of Rs.__________ .
3) Personal Guarantees of __ guarantors with combined Net Means of Rs.___________ including IPs worth Rs. _________.
4) Corporate Guarantee of M/s._____________ with TNW of Rs. as on
______.
C. Value of Our Share in Primary Security for Term Loan (in case of consortium Finance):
D. Collateral Coverage (our share): Amount:Rs._______________; __________%
7. Conduct of the Account: Satisfactory/ Unsatisfactory 8. Whether terms & conditions of previous sanction complied with:
Yes/No (Details of un-complied Terms to be furnished)
9. Rate of Interest Facility Existing Applicable CC TL
10. For Amendments in Term and Conditions / Confirmation of action/ Adhoc Sanction
A. For amendment in Terms and Conditions
Existing stipulation Proposed amendment Justification
B. Particulars of action to be Confirmed
Date of overdrawing
Nature of limit
Amount of sanctioned limit
Excess given Date of regularization
(Whether matter discussed with CO/FGMO/HO for concurrence/permission) Justification
C. Sanction of Adhoc facilities Accepted Level of Sale as per last assessment 200_ - 200_
Actual level of Sales
%age achievement
Sales upto last month of current year
Sanctioned FBWC limits
Adhoc limit proposed
Justification
D. For relaxation in ROI/ Service charges
Nature Facility Existing Proposed Applicable Rate of interest
Service charges
Justification
(Rs. In crore) Income value of borrowal
Sr. No.
Interest/discount income from:
Actual income during
current FY
Budgeted income for
the next FY
Remarks
1
Total Income from FB Credit Facilities (Interest - CC, OD, PC, TL, Bills - Inland & Foreign, Commitment Charges, TL Review Charges
A
2 Total Income from NFB credit Facilities
B
3Total Other Income (Processing Fee, Upfront Fee, Documentation Charges, Mi I )
C
Net Interest Income on balance lying in Current Account @ 9.00% p.a. on average balance (including Allied / G C )
4Net Interest Income on balance lying in Saving Accounts @ 4.00% p.a. on average balance (Promoters / F il A t )
D
Grand Total (A+B+C+D) 11. Recommendations
MANAGER/SR MANAGER CHIEF
MANAGER/AGM CIRCLE HEAD
FIELD GENERAL MANAGER