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CRITICAL AREA’S OF INSPECTION CREDIT MONITORING
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 MonitoringPost Sanction ReviewPost Disbursement/Periodical Inspection & ValuationMonthly Stock & BD StatementMMR/QMR/QIS/Quarterly CA Certified BD
StatementsStock Audit & Credit Audit InsuranceReviewCredit RatingEnforcement of DocumentsRegistration of ChargesASCROM
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 / Bank’s 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 AuditWhether Stock audit is conducted as per
Bank’s 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.
ReviewTimely 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 RatingWhether 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 DocumentsWhetherAcknowledgement Of DebtsRevival LettersRenewal 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 yearIn respect of Equitable Mortgage / bank’s 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.
ASCROMWhether 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
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