Request for Proposal and Quote Providing Consultancy ... FINAL 15 06 2013 (2).pdfRequest for Proposal and Quote For Providing Consultancy Service for “Implementation of Advanced

Request for Proposal and Quote

For

Providing Consultancy Service for

“Implementation of Advanced Approaches of Basel-II,

Achieving compliance with Basel III norms and Refinement of FTP & ALM in line with RBI guidelines

& International Best Practices in an Enterprise wide Integrated Risk Management System”

(Also referred to as Project in this RFP)

(Experience Next Generation Banking)

Integrated Risk Management Department

SIB House, 4th Floor, Mission Quarters,

Thrissur, Kerala-680001

Ph:-0487-2423858/2420020(Ext:-374)

Name of the Company : The South Indian Bank Limited

Date of issue of RFP document : 15-06-2013

RFP reference number : IRMD/ RFP /001/2013

Last Date and Time for receipt of RFP : 03-07-2013, 4.00 PM

Integrated Risk Management Department, The South Indian Bank Limited. Page 2

Disclaimer

The information contained in this Request for Proposal (RFP) document or information provided

subsequently to bidder(s) or applicants whether verbally or in documentary form by or on behalf

of The South Indian Bank Limited, is provided to the bidder(s) on the terms and conditions set out

in this RFP document and all other terms and conditions subject to which such information is

provided.

This RFP document is not an agreement and is not an offer or invitation to bid by The South

Indian Bank Limited to any parties other than the applicants who are qualified to submit the bids

(“bidders”). The purpose of this RFP is to provide the bidder(s) with information to assist them in

formulation of their proposals. This RFP does not claim to contain all the information each bidder

may require. Each bidder should conduct its own investigations and analysis and should check the

accuracy, reliability and completeness of the information in this RFP and where necessary obtain

independent advice. The South Indian Bank Limited makes no representation or warranty and

shall incur no liability under any law, statute rules or regulations as to the accuracy, reliability or

completeness of this RFP. The South Indian Bank Limited may in its absolute discretion, but

without being under any obligation to do so, update, amend or supplement the information in this

RFP.


TABLE OF CONTENTS

1. ABOUT THE SOUTH INDIAN BANK LIMITED ..................................................................... 9

2. BACK GROUND ........................................................................................................................ 10

3. OBJECTIVE OF RFP .................................................................................................................. 11

4.A. BROAD SCOPE OF WORK ...................................................................................................... 11

4.A.1. CREDIT RISK............................................................................................................................. 12

I. Phase I: Preparatory tasks to be performed prior to implementation of IRB .............................. 12

II. Phase II: Implementation of Enterprise wide risk management architecture for complying with

IRB Approach .............................................................................................................................. 14

III. Phase-III Review the results of Parallel run ................................................................................ 17

IV. Phase-IV Assistance in preparing application for approval, solving queries and obtaining

Approval from RBI ...................................................................................................................... 17

4.A.2. MARKET RISK .......................................................................................................................... 17

I. Phase I. Preparatory tasks to be performed prior to implementation of IMA ............................. 17

II. Phase II. : Implementation of Enterprise wide risk management architecture for complying with

IMA Approach............................................................................................................................. 18


IV. Phase IV. Assistance in preparing application for approval, solving queries and obtaining


4.A.3. OPERATIONAL RISK ............................................................................................................... 21

I. Phase I: Preparatory tasks to be performed prior to implementation of AMA ............................ 21

II. Phase-II Implementation of Enterprise wide risk management architecture for complying with

AMA Approach ........................................................................................................................... 25


IV. Phase IV. Assistance in preparing application for approval, solving queries and obtaining


4.A.4. Pillar 2 - ICAAP Development & Implementation ..................................................................... 28

4.A.5. BASEL III ................................................................................................................................... 30

4.A.6. ALM & FTP ................................................................................................................................ 30

4.A.7. Preparation of RFP document for selection of vendor for supply of hardware and software

required for implementation ........................................................................................................ 31

4.A.8. The Pillar-3 aspects ..................................................................................................................... 34

4.A.9. Training ....................................................................................................................................... 34

4.A.10. Project Documentation and Manuals ........................................................................................... 34

5. REPORTING PROGRESS ......................................................................................................... 34


6. AMENDMENT OF RFP: ............................................................................................................ 34

7. SUBMISSION OF BIDS ............................................................................................................. 35

8. ELIGIBILTY CRITERIA ........................................................................................................... 37

9. SELECTION STRATEGY ......................................................................................................... 39

10. AWARD OF CONTRACT ......................................................................................................... 43

11. TERMS OF PAYMENT ............................................................................................................. 49

12. PROPOSED TIME SCHEDULE FOR COMPLETION OF ASSIGNMENT ............................ 49

13. GENERAL TERMS AND CONDITIONS ................................................................................. 50

14. LITIGATION .............................................................................................................................. 51

15. INFORMATION SECURITY ..................................................................................................... 52


LIST OF ANNEXURES

Annexure-1

Particulars to be furnished in the bid/ proposal ................................................................................ 53

Annexure 2

Format for furnishing the profile of the consulting Project Manager, team leader and members: ... 54

Annexure-3

Forwarding Letter Format ................................................................................................................. 55

Annexure 4

Undertaking Format .......................................................................................................................... 57

Annexure-5

Bidder‟s proposed methodology / approach for providing services to the Bank with respect to the

scope of consultancy work: .............................................................................................................. 58

Annexure-6

Commercial Bid ................................................................................................................................ 59

Annexure-7

Agreement Form ............................................................................................................................... 61

Annexure 8

Performance Bank Guarantee Format............................................................................................... 67

Annexure-9

Non-Disclosure Agreement Form ..................................................................................................... 71

Annexure-10

Notification of Acceptance ............................................................................................................... 77

Annexure 11

Authorization Letter Format ............................................................................................................. 78


INVITATION FOR BIDS:

The South Indian Bank Ltd, hereinafter called “The Bank” intends to have Consultancy Services

for implementation of Advanced Approaches of Basel-II, achieving compliance with Basel III

norms and Refinement of FTP & ALM in line with RBI Guidelines & International Best Practices

in an Enterprise wide Integrated Risk Management System. The Bank invites separate sealed

bids, both technical bid and commercial bid, from eligible bidders for the above mentioned

purpose.

A complete set of Request for Proposal (RFP) can be purchased during office hours on all

working days either in person or by Post/E-mail on submission of a written application. The

bidders who purchase the RFP in their names only are eligible for submission of bid. The bid shall

be accompanied with a non-refundable fee of Rs.10, 000/- in the form of Demand Draft in favour

of “The south Indian Bank Ltd” payable at Thrissur.

Complete set of RFP for the above purpose can also be downloaded from Bank‟s official website

www.southindianbank.com - Quick Access-Tender/auction-RFP for consultancy services .The

bidder who has downloaded the RFP from the above website, is required to submit a non-

refundable fee of Rs.10, 000/- in the form of DD, in favour of “The South Indian Bank Ltd”

payable at Thrissur during office hours within the last date and time of submission of bid, failing

which the bid of the concerned bidder will not be entertained. The hard copy of this document

(RFP) procured from the bank or downloaded from the official website, will alone be treated as

authenticated copy for all purposes.

Bid Collection and submission details are given below.

Bid Reference number RFP IRMD/001/2013

Date of issue of RFP : 15.06.2013

Last date and time for seeking

Clarification

: 27.06.2013 , 4 PM

Last date and time for submission of

Bids

: 03.07.2013, 4.00 PM

Completion of Technical & Commercial

Bid evaluation by Bank and last date for

informing the qualified bidders for

presentation and negotiation

:

16-07-2013

Last date for final negotiation with the

qualified bidders

: 23-07-2013

Cost of RFP document (non refundable) : Rs. 10,000/- in the form of Demand Draft in

favour of “The South Indian Bank Ltd” payable at

Thrissur. The DD should be submitted along with

the Bid


Address for submission of bids : The Chief General Manager (IRMD)

The South Indian Bank Ltd

Integrated Risk Management Department,

SIB House, Head Office,

2nd Floor, Mission Quarters

Thrissur , Kerala,

India – 680001

Contact Person : Ms Chithra H, AGM


Telephone and Fax : Tele: 0487-2423858/2420020(Ext:-374)

Mobile: 9447904585

Fax: 0487-2424551

E– mail : [email protected], [email protected]

Note:-

Before bidding, the bidders are requested to carefully examine the RFP Document and the

terms and conditions specified therein. If any bidder requires any clarification on this RFP,

may notify the Bank in writing or by email at the Bank‟s mailing address indicated in the

RFP on or before 27.06.2013, 4 PM.

Bidders should notify the Bank of any error, omission, or discrepancy found in this RFP

document not later than 25.06.2013 4:00 PM.

All costs and expenses (whether in terms of time or money) incurred by the bidders in any

way associated with the development, preparation and submission of responses, including

but not limited to attendance at meetings, discussions, demonstrations and for providing

any additional information required by Bank, will be borne entirely and exclusively by the

bidders.

All bids (Technical & Commercial) must be submitted at the same time giving full

particulars in separate sealed envelopes at the bank‟s address within the time period

specified above.

The Bank reserves the right to accept or reject in part or full any or all the offers without

assigning any reasons whatsoever.

No further discussion/interface will be entertained with bidders whose bids have been

technically disqualified.

Those qualified bidders may depute their representative/s (not more than 3) to attend the

negotiation meeting held on or before 23-07-2013. The representative/s has/have to submit

an authority letter duly signed by the bidder, authorizing him to represent and attend the

negotiation process on behalf of the bidder. The format of the authorization letter is given

in Annexure-11.

The scope of the services specified under this RFP is governed by the guidelines issued by

RBI on implementation of IRB, IMA and AMA approaches of Basel- II. Any change

made by RBI on these matters by way of amending the existing guidelines or issue of

fresh guidelines on these matters shall automatically enlarge the scope of work specified

under this RFP and the duties of consultant shall deemed to be discharged only when the

mailto:[email protected]

mailto:[email protected]


bank complies with the revised guidelines issued on this matter.

The Bank expressly stipulates that the selection of Consultant under this RFP is on the

understanding that this RFP contains only the principal provisions for the entire

assignment and the services rendered in accordance with the scope of work defined under

this RFP are only a part of the assignment. The Consultant shall perform all such tasks,

render requisite services as may be required for successful completion of the project to the

satisfaction of the Bank at no additional cost to the Bank.

Chief General Manager



Thrissur


• Number of years in banking business84Years

• Number of branches750

• Number of ATM‟s800

• Business as on 31.03.2013Rs. 76077 Crore

• Business Growth (Y – to – Y)19.28%

• Last 5 years business CAGR26%

• Net Profit for the year ended March 2013Rs.502.27 Crore

• Net Interest Margin (March 13)3.21 %

• Capital Adequacy Ratio (Basel II –March 13)13.91%

• Net Non-Performing Assets (March 13)0.78%

1. ABOUT THE SOUTH INDIAN BANK LIMITED

The South Indian Bank Limited (website- www.southindianbank.com) is one of the leading

Scheduled commercial banks having more than 750 branches spread across 29 States/ Union

Territories in India. The Head (Registered) Office of the Bank is situated at Thrissur, Kerala State.

There are Nineteen Regional Offices (ROs), geographically spread across the country, coming

under the administrative control of the Head Office. The Bank plans to open 50 new branches and

200 ATMs in the current financial year so as to reach the corporate goal of 800 Branches and

1000 ATMs and a business target of Rs.100, 000 Crores by March 31, 2014.

The South Indian Bank Limited offers various customer services such as Anywhere-Any Time

Banking supported with online ATMs, Internet Banking, International ATM-Cum-Debit Cards,

Mobile Banking, online payment, on line trading etc. The Bank has already adopted significant

technological advancements and uses them to leverage business operations such as NDS-PDO,

RTGS, NEFT, Domestic ATM sharing, NPS, SWIFT, Treasury, Forex, etc.

The bank is using „Finacle‟ (from M/s. Infosys Technologies Ltd) as the Core Banking Solution

(CBS).The bank achieved 100% roll out of Finacle as on March, 31, 2007. The Bank presently

uses Finacle 7.0.25 version and it proposes to upgrade the Core Banking Software to Finacle

version 10 by February 2014. The bank has setup a robust scalable state-of-the art Wide Area

Network connecting its various branches and offices with its Data Centre. These branches are

connected to datacenter through dual redundant MPLS WAN connectivity.

The South Indian Bank Limited… At A Glance (As on 31.03.2013)


2. BACK GROUND

In terms of RBI guidelines vide circular DBOD.No.BP.BC.90/20.06.001/2006-07 dated April 27,

2007 and subsequent guidelines on the New Capital Adequacy Framework our bank has adopted

following methods for calculation of Capital Adequacy under BASEL II norms.

Credit Risk Standardized Approach

Market Risk Standardized Duration Method

Operation Risk Basic Indicator Approach

The bank is presently using 19 internally developed rating models to measure the credit risk

associated with different exposures. The computation of risk weighted assets for credit risk under

standardized approach is done in Excel sheet after obtaining required information from Finacle

and external rating database. The capital charge for market risk is computed in Excel sheet using

M-Duration function after obtaining data from Treasury software and necessary market

information. The capital charge for operational risk is computed in Excel sheet, in accordance

with formula prescribed by regulator. In short, the computation of CRAR under standardized

approach is being done/managed using MS- Excel and without use of any software solution.

To improve the risk management practices of Indian banks, RBI has come out with guidelines &

time schedule for migrating to advanced approaches for all the above three risks. Hence we intend

to upgrade our existing risk management systems and processes and implement Enterprise-wide

Integrated Risk Management Solution compliant with the requirements prescribed under the

guidelines issued by RBI in respect of advanced Approaches (AMA-Operational Risk, IMA-

Market Risk and IRB - Credit Risk) of Basel-II and in respect of Basel-III. We also plan to

benchmark our ALM and FTP methodology in tune with leading international best

practices/extant RBI guidelines. Implementing such a system will help the Bank to integrate risk

management into day-to-day decision making.

To assist us in abovementioned tasks, we are planning to use the services of a competent

consultant. The selected consultant is required to hand hold the Bank till RBI gives approval for

risk management framework adopted by bank to comply with advanced approaches of Basel-II.

The period of contract with the selected consultant will expire only when our bank receives

approval from RBI for migration to advanced approaches. The scope of the consultant‟s

engagement shall also include the assistance in any change required to be made in risk

management framework on account of new guidelines/changes in existing guidelines issued by

RBI on these matters in future.

http://rbi.org.in/scripts/NotificationUser.aspx?Id=3464&Mode=0


3. OBJECTIVE OF RFP

The Bank has decided to float this RFP to achieve the following objective:

To invite techno-commercial bids from corporate body/ Public or Private Ltd

company/Public sector undertaking/ Partnership Firm/LLP, for the scope of work as

outlined in Point No:-4

To appoint a competent consultant, through an open tendering process, for assisting in

implementing Advanced Approaches of the Basel II framework for Credit, Market and

Operational Risks in line with the guidelines of RBI, for achieving compliance with

Basel-III norms and refinement of FTP & ALM in line with RBI Guidelines &

International Best Practices in an Enterprise wide Integrated Risk Management System.

4.A. BROAD SCOPE OF WORK

To Study the existing Risk Management systems, policies and processes implemented by

the Bank vis a vis regulatory requirements under Advance Approaches of Basel II and

suggest, guide and assist the Bank in enhancement/ up gradation of existing risk

management systems, policies and processes for implementing Enterprise-wide

Integrated Risk Management System, compliant with the regulatory requirements for

Advanced Approaches (TSA & AMA-Operational Risk, IMA-Market Risk, Standardized

& IRB Approaches - Credit Risk).

To assist the Bank in selection, acquisition and customization of suitable software

solution and hardware for implementing existing as well as Advanced Approaches under

Basel II guidelines for Enterprise-wide Integrated Risk Management System suitable for

the Bank.

To assist the Bank in implementing advanced approaches of Basel II under all the three

pillars

Assist Bank in preparing application to the RBI for getting approval in respect of

migration to the Advanced Approaches and assisting the Bank in replying to the

observations of RBI and extend assistance till the approvals are received.

To assist the Bank for achieving compliance with Basel-III norms and refinement of

FTP & ALM in line with RBI Guidelines & International Best Practices

To hold training program for the staff involved in identification, measurement and

monitoring of risks required for implementation of advanced approaches, compliance

with Basel- III norms and refinement of ALM and FTP.

The consultant will be responsible for monitoring the project till completion of all the

stages of the project and satisfactory full implementation.

To provide assistance in any change required to be made in risk management framework

on account of new guidelines/changes in existing guidelines issued by RBI on these

matters in future.

To explore the possibility of obtaining the benefit in terms of reduced capital charge from

correlation between the credit and market risk


To review the current method followed in computation of CRAR under standardized

approach and suggest for improvements in view of the emphasis laid down by RBI on

reduction in manual intervention

To verify the consistency between various reports generated under current MIS and assist

in developing an MIS which provide consistent and reliable information to facilitate

smooth transition to ADF.

The detailed scope of assistance has been given below

4.A.1. CREDIT RISK (Scope specific to credit risk management shall include but not

limited to following)

I. Phase I: Preparatory tasks to be performed prior to implementation of IRB

1. Basel II Diagnostic Study & Data Gap Analysis for Credit Risk

To review the current methodology applied in computation of credit risk weighted assets

under standardised approach.

Re-defining the roles and responsibilities and accountability of the risk management

committees and authorities, with regard to Credit risk Management, if required.

Study the existing policies related to credit and credit risk management and benchmark

the same with Basel II guidelines and identify the gaps.

The consultant would conduct a gap study to identify the missing data elements which are

currently not being captured and/or stored in our current CBS system. The gap

assessment should be done based on Basel II requirements and leading global practices in

risk management and suggest methods to bridge the gap.

Determine the data required to be captured by the Bank for calculating PD, LGD, EAD &

effective maturity, supervisory slotting and retail pooling under IRB approach.

Review the present Data collection system and MIS for evaluating gaps in procurement

and processing of data elements needed for computation of the RWA/ Regulatory Capital

under Standardized approach and IRB for Credit Risk.

To assist in developing data collection templates for data elements which are not being

captured by the Bank

To assist in development and implementation of a strategy to roll out the data collection

templates across the Bank for timely collection of data.

To assist in training the Bank personnel to collect the required data.

Assist the IT department of the Bank in closing any data gaps.

Review the methodology for computing haircuts, currency mismatch, maturity

mismatches etc for computing risk weights

To assess the preparedness of the bank in moving over to advanced approach and submit

a realistic time frame for implementing IRB approaches.


Deliverables:

Data remediation report containing findings of data gap analysis and list of missing data

elements required to be captured in information system to compute capital charge under

the IRB approaches of Basel II

Data collection template for capturing missing data elements.

Roll out the data collection templates across the Bank for timely collection of data.

Trainings on data collection to the Bank‟s personnel.

Realistic time schedule for implementation of IRB approaches

A report showing the gaps in present Data collection system and MIS procurement

needed for computation of the RWA/ Regulatory Capital under Standardized approach

and IRB for Credit Risk

Report on review of the methodology for computing haircuts, currency mismatch etc for

computing risk weights

2. Validation of existing models and development of validation framework

Review of the existing rating framework, which includes 19 internally developed rating

models of the Bank and suggest improvements / modification for better measurement of

credit risk.

To review the models which are developed by the bank during the course of

implementation of advanced approach and suggest improvements

Review the need for existing/new models and to assist in establishing a logical rationale

for development/rejection of a model.

To assist in development of models compatible with two dimensional rating system

Develop policy for model validation

To establish a system to facilitate regular and timely model validation

Perform qualitative validation of the current/proposed rating models to assess the model

design, governance, documentation, and usage of models in business decision making

Perform quantitative validation to assess the discriminatory power (in case of borrower

ratings only), calibration and stability of the current/proposed models.

Provide recommendation on the usability of the current/proposed models in Basel II

implementation, need for re-calibration or re-building of models

Impart training to IRMD and Internal Audit Dept personnel on performing model

validation

If the consultant is assisting us in development of models they shall be responsible for

getting these models validated by an appropriate external agency acceptable to the bank

To recalibrate or rebuild rating model for NON SLR BONDS

Deliverables:

Validation Report of existing rating models of the Bank both qualitative and quantitative.

Model Validation Policy and benchmarking the model using internal/external data.

User Guide for Quantitative and Qualitative Validation.


Recommendation on the usability of the current models in Basel II implementation, need

for re-calibration or re-building of models.

Comprehensive report to be submitted covering the above scope in whole.

Excel templates for performing model validation techniques

Models compatible with two dimensional rating system

Rating model for NON SLR BONDS

Further the consultant shall also ensure that the models are properly validated in accordance with

RBI guidelines/best international practices.

3. Credit Risk Control Unit (CRCU):

The consultant should assist the Bank in setting up Credit Risk Control Unit/units for

review of rating grades, rating process and rating criteria.

The consultant should advise on the organization structure, roles & responsibilities of

human resources of the CRCU.

Provide the skill set specification, required for each of the staff members.

To assist in identifying training requirements for the staff, design training programs and

develop the relevant training material for credit risk advanced approaches.

Develop an Internal Audit (IA) check list for review of rating system and provide training

to the Internal Audit (IA) Department.

Deliverables:

Documented roles and responsibilities of the Credit Risk Control Unit including

Staffing and skill set requirements.

IA checklist and training to IA Department.


II. Phase II: Implementation of Enterprise wide risk management architecture for

complying with IRB Approach

1) Up-gradation of Policies related to credit and credit risk:

Enhance the current credit risk management policy (Document B) to make it compliant

with IRB approach requirements specified by RBI

Enhance/develop policies related to Credit including but not limited to Document A,

Counter party credit risk policy, retail lending policy to make the credit policy framework

compliant with IRB approach requirements specified by RBI

Policy on NPA management covering the following:

i) Methodology for identification and monitoring for NPAs.

ii) Standards to monitor stress assets, restructured assets.

iii) Standards for capturing recovery information.

iv) Methodology to compute best estimate of expected loss.


Policy on Collateral Management should cover the following:

i) Methodology for categorization, valuation of collaterals.

ii) Methodology for collateral mapping to various facilities of a customer.

iii) Monitoring the performance credit risk mitigation techniques.

iv) Usage of collateral in estimation of Risk components under IRB approach.

Develop a policy for credit rating (covering governance, development, usage, validation,

risk parameter estimation aspects of rating models).

Deliverables:

Revised policies related to Credit Risk Management compliant with IRB approach

requirements specified by RBI

Policies on NPA management and collateral management in compliance with IRB

requirements specified by the RBI.

Revised policies on credit, counterparty credit risk and retail lending

2) Retail Pooling

The consultant should study the composition of the retail portfolio of the Bank and

develop methodologies to perform retail pooling. The retail pooling exercise should use

the retail scorecards which take into account application information and behavioural

information of the customers. The following aspects are to be covered

To facilitate pooling of retail exposure based on borrower risk characteristics and

transaction risk characteristics

To assist in developing the criteria for retail pooling methods based on statistical factors

for cluster identification

To assist in developing prototypes for retail pooling and tests to assess homogeneity

within a pool and heterogeneity across pools to distinguish default behavior.

To assist in Pool / group the retail exposures of the Bank to various asset classes as

prescribed in Basel II, IRB approach, based on statistical methods

To assist in developing reporting templates to monitor pool stability and migration.

To assist in design the rating score cards/models for rating all retail exposures

To assist in developing methods to capture required data to compute Probability of

Default (PD), Loss given default (LGD) and Exposure at default (EAD) for each retail

pool.

To assist in computing pool-wise PD, LGD and EAD in respect of retail exposures.

Back testing the model for predictive power of the model using various statistical

techniques for in the sample and out of the sample

Develop a behavioural scoring methodology for the bank.


Deliverables:

A comprehensive report, including all related excel templates, containing the criteria for

retail pooling methods, methods to capture required data to compute PD, LGD and EAD

for each retail pool and other aspects covered in the scope of services listed out above

Rating score cards/models for rating all retail exposures

Training to staff for retail pooling

3) Estimation of PD, LGD, EAD and Effective maturity (M) for non-retail exposures

To design appropriate methodologies and processes to classify the assets in banking book

to five broad categories namely Corporate, Bank, Sovereign, Retail and Equity Exposure

as defined by RBI

To design a system to group relevant part of the corporate portfolio into four Specialized

Lending categories prescribed by RBI

To design and document the rating system in tune with RBI Guidelines on IRB Dec 2011.

The consultant shall also assist in modifying the rating system designed , if such

modification is necessitated by change in the abovementioned guidelines or issue of fresh

guidelines in this matter.

To design and refine rating models for non-retail exposures

To record actual default on IRB exposure classes using the definition prescribed in RBI

Guidelines

To establish a process for the capture, collection and storage of data fields relevant to

Probability of Default (PD), LGD and EAD estimation for the non-retail borrowers.

To establish PD computation framework for Sovereigns and Banks portfolio

To develop framework for calculation of normal and downturn Loss given Default (LGD)

considering relevant macroeconomic factors

To develop framework and methodology to calculate Exposure at default (EAD) for both

on and off balance sheet exposures.

To assist in building PD, LGD and EAD predictor models and conduct stress testing on

LGD and EAD

Develop implementation standards and operating guides for PD, LGD, and EAD model

development. The standards should cover the following aspects: a) Governance and

controls over the model development process, b) Process to approve and use a model, c)

Guidance on portfolio segmentation to determine the number of rating models to be

developed and allocation of exposures to various rating models, d) Guidelines on data

collection for model development, sample creation process and time weighting of

historical data e) Guidelines on the usage of statistical techniques and expert judgment in

model development and incorporation of conservatism in model development exercise

To develop a frame work for computation of capital charge under IRB


Deliverables:

A comprehensive report containing all aspects covered in the scope of services listed out

above.

A frame work for computation of capital charge under IRB

Rating system in tune with RBI Guidelines on IRB issued in December 2011

Rating models for non-retail exposures

Predictor models for PD, LGD and EAD

Implementation standards and operating guides for PD, LGD, and EAD model

development.

III. Phase-III Review the results of Parallel run

To assist the bank in conducting parallel run for minimum two quarters

To review the results of parallel run. The review shall essentially include the comparison

of capital charge under standardized approach and IRB

To review the assumptions used for IRB

Deliverables:


above.

IV. Phase-IV Assistance in preparing application for approval, solving queries and

obtaining Approval from RBI

To assist in preparation of application to RBI for migration to advance approaches for

IRB (Credit Risk)

To assist the Bank in finalization of the application for filing with the regulator.

To assist the bank in addressing the RBI queries and comments and making suitable

changes in the Basel II implementation (if necessary) The contract would only end after

RBI gives the permission to migrate to advanced approaches for Credit, market and

operational risks and the guidelines under the three pillars are fully implemented

4.A.2. MARKET RISK (Scope specific to Market Risk Management shall include but not

limited to the following)

I. Phase I. Preparatory tasks to be performed prior to implementation of IMA

Study the existing systems and procedures in Treasury Dept and suggest improvements in

the systems/procedures/new systems, if required for compliance /monitoring/reporting of

Regulatory Guidelines/ Internal Limits.

To assess the preparedness of the bank to move over to advanced approaches and submit

a realistic time schedule for implementation of IMA approaches within the overall

schedule for implementation.


Enhancement of the market risk related policies, processes, and governance structure and

control framework in line with the qualitative requirements prescribed under IMA


committees and authorities, with regard to Market risk Management, if required

Study the Investment Valuation systems and procedures of investment portfolios in

Treasury books as per RBI guidelines and suggest improvements/customizations etc.

Validation of Mark to Market methodology, calculation methodology of various risk

factors and suggest the appropriate methodology in case the existing methodologies are

insufficient or inappropriate

Review of existing methods applied to compute VaR – assumptions, merits and

limitations, computational accuracy etc

Review the methodology applied in computation of Duration, Modified Duration of

SLR/Non SLR portfolio of Investments as well as Trading HFT, AFS & HTM separately

in Treasury Dept. Suggest improvements in systems/procedures in computation of

Duration /Modified Duration of SLR/Non SLR portfolios under different market

conditions.

Document report on systems and procedures for on line monitoring of regulatory limits,

operational limits, counterparty limits /Settlement limits & Country limits under all

portfolios of Treasury Operations as set out in various policies of the Bank.

Deliverables

A realistic time schedule for implementation of IMA approaches

Revised market risk management policy

Detailed gap analysis report on findings and recommendations for enhancement of

Market Risk Management (MRM) framework and bank‟s readiness for moving towards

IMA.

Report on systems and procedures for on line monitoring of regulatory limits, operational

limits, counterparty limits /Settlement limits & Country limits under all portfolios of

Treasury Operations as set out in various policies of the Bank.

Report on investment valuation systems, valuation methodologies and methods applied in

computation of VaR and duration.

II. Phase II. : Implementation of Enterprise wide risk management architecture for

complying with IMA Approach

To assist in developing and validating a framework for quantifying market risk under

IMA

To assist in preparing the market risk file and dossier as per RBI prudential guidelines

for IMA

To assist in developing back testing and stress testing framework in line with IMA


To provide framework for fixing VaR based limits on an aggregate portfolio and

individual asset class levels in accordance with leading industrial practices

To establish an internal audit unit with the requisite qualifications and skills to audit

statistical models which shall review all calculations required for IMA

Suggest methodology for computation of capital charge including illiquid position for

incremental risk in the trading book.

To develop a market risk file which contains full technical specification of the model

To implement a system which facilitates computation of VAR of the trading book on a

daily basis

To prepare a purely non technical document with supporting excel templates for use of

inspecting officials and users to understand the assumptions used/ revised from time to

time and thereby enabling validation/ vetting from time to time

Develop VaR based Computation of capital requirement under IMA comprising, Normal

VaR measure (general market risk and specific risk), Stressed VaR measure (for general

market risk and specific risk) and Incremental Risk Charge (IRC) (for positions subject to

interest rate specific risk capital charge).

Comprehensive Validation of VaR models for various risks for different Asset Classes.

Define methodology for Value adjustment for illiquid positions as required under

Prudential Guidelines on Capital Adequacy and Market Discipline

To assist in developing methodology for Specific risk computation for equity, foreign

exchange contracts(including spot, forwards, options and swaps) , fixed income and

derivatives using internal data –The specific risk should have special emphasis on

computation of product specific credit estimation factors on account of market variables.

Develop framework for capturing Interest rate risk, Equity price risk (general and

specific) exchange risk and other risk as per guidelines.

Assist the Bank in segregating the trading book positions into the different categories like

Interest Rate risk, Equity position risk, Foreign Exchange risk, Commodities risk (as

applicable to Indian banking scenario) with interface with Bank‟s Integrated Treasury

Solution being procured by Treasury Branch Mumbai.

To suggest and implement methodology to avail benefit of correlation within and across

various portfolios in computation of VaR

To perform the statistical analysis to justify the level of correlation established between

portfolios/asset classes.

To establish a process for using data source/assumptions where historical prices are not

available.

To lay down reporting framework ( regulatory and internal MIS related in summary and

detailed form) for Capital charge, VaR statistics, Daily capital requirement, Back testing

zone report, PVBP analysis , stress testing summary and detailed report.


Deliverables

A framework for quantifying market risk under IMA. The framework shall include excel

models which demonstrates computation of capital charge using dummy data.

The market risk file and dossier as per RBI prudential guidelines for IMA, which also

contains full technical specifications of the model

Back testing and stress testing framework in line with IMA

Framework for fixing VaR based limits on an aggregate portfolio and individual asset

class levels in accordance with leading industrial practices

Methodology for computation of capital charge including illiquid position for incremental

risk in the trading book

A purely non technical document with supporting excel templates for use of inspecting

officials and users to understand the assumptions used

VaR based Computation methodology to compute capital requirement under IMA

comprising, Normal VaR measure (general market risk and specific risk), Stressed VaR

measure (for general market risk and specific risk) and Incremental Risk Charge (IRC)

(for positions subject to interest rate specific risk capital charge)

Methodology for Specific risk computation for equity, fixed income and derivatives using

internal data

Reporting framework ( regulatory and internal MIS related in summary and detailed

form) for Capital charge, VaR statistics, Daily capital requirement, Back testing zone

report, PVBP analysis , stress testing summary and detailed report




of capital charge under standardized approach and IMA

To review the assumptions used for IMA

Deliverables:


above.

IV. Phase IV. Assistance in preparing application for approval, solving queries and


To assist in preparation of approach for application to RBI for migration to advance

approaches for IMA (Market Risk)

To assist the Bank in finalization of the application for filing with the regulator


changes in the Basel II implementation (if necessary) The contract would only end after


RBI gives the permission to migrate to advanced approaches for Credit, market and

operational risks and the guidelines under the three pillars are fully implemented

4.A.3. OPERATIONAL RISK (Scope specific to Operational Risk Management shall

include but not limited to the following)

I. Phase I: Preparatory tasks to be performed prior to implementation of AMA

1) Gap Analysis & ORM Governance:

Conduct a gap analysis of the existing OR management vis-à-vis desired level of

Operational Risk (OR) management in accordance with the RBI guidelines issued on

Basel II advanced approach.

To assist in developing operational risk reporting system and strategies to identify,

measure and control / mitigate OR.

Advising on risk governance architecture suitable to the organizational structure of the

bank as a whole and for each business unit and detail roles and responsibilities at each

level.

To assist in developing an OR Management strategy and objectives for the Bank.


committees and authorities, with regard to OR Management.

To assist in formulating the roles and responsibilities of the independent bank wide OR

Management function.

To provide a description and statistical analysis of the internally derived analytical

framework that quantifies the operational risk exposure of the Bank.

Defining qualitative and quantitative factors and risk mitigants and incorporate them into

the OR Framework.

A discussion and documentation of the testing and verification processes and procedures.

To assist in regular reporting of critical risk issues facing the banks and its

control/mitigations to senior management and Board.

To assist in inserting appropriate provisions in OR management policy for review,

treatment, and resolution of non-compliance issues.

To create a system for validating/reviewing the OR Management processes and

assessment.

To assist in developing a methodology for risk reporting covering OR exposures, material

OR losses, material near-misses to the Board, Management and risk analysis.

Suggestion of suitable enhancements in arrangements required with relation to Business

Continuity (BCP) including Disaster Recovery (DR) AND Operational Risk for all areas

of Operations (Including Information Technology).

Review of existing ORM Policy for making the same compliant to the advanced

approaches of Basel II and regulatory requirements.


To assess the preparedness of the bank to move over to advanced approaches and submit

a realistic time schedule for implementation of AMA approaches within the overall

timeframe fixed.

Deliverables:

Gap analysis report of the existing OR management vis-à-vis desired level of OR

management.

A realistic time schedule for implementation of AMA approaches

Risk reporting system and strategies to identify, measure and control / mitigate OR.

Report on risk governance architecture suitable to the organizational structure of the

bank as a whole and for each business unit.

Report on OR Management strategy and objectives for the Bank.

Document on description and statistical analysis of the internally derived analytical

framework that quantifies the operational risk exposure of the Bank, defining qualitative

and quantitative factors and risk mitigants, testing and verification processes and

procedures.

Reporting mechanism of critical risk issues facing the banks and its control/mitigations to

senior management and Board.

Documented methodology for risk reporting covering OR exposures, material OR losses,

material near-misses to the Board, Management and risk analysis throughout the Bank.

Report suggesting the required enhancements in MIS system for ensuring timely

operational risk reporting.

Documented reports on revision of framework and suggestion of suitable enhancements

in arrangements required with relation to Business Continuity (BCP) including Disaster

Recovery (DR) AND Operational Risk for all areas of Operations (Including Information

Technology).

Revision in ORM Policy to make it compliant to the Basel II and regulatory

requirements.

Report on gap analysis on MIS to capture all OR loss events including financial, non

financial, potential, near miss events etc.

2) The Standardized Approach (TSA)

Identification of business lines with reference to the Bank and methodology to meet

qualifying criteria as per TSA.

Mapping of Income / Expenditure heads in business lines as per Basel II and RBI

guidelines on TSA.

Develop a framework for capital computation as per The Standardized Approach (TSA)

and provide an approach to arrive at gross income across Basel business lines.

Oversee and manage the implementation of The Standardized Approach (TSA).

Assistance in developing the application to RBI to migrate to TSA approach of

operational risk, if required.


Deliverables:

Framework for capital computation as per Standardized Approach of Basel II.


One training on TSA methodology for personnel of Risk Management Dept at Head

Office.

Application to RBI to migrate to TSA approach of operational risk if required.

3) Risk & Control Self Assessments (RCSA):

Assistance in conduct of RCSA shall include but not limited to:

Develop at least 10 RCSAs for each business line and individual processes of the bank

Develop criteria to assess risk and control, identification of alternate approaches

available, selection of a suitable approach or combination of approaches, on the basis of

size, structure and business mix of the Bank and by analyzing cost benefit analysis of

various approaches.

The scope of the exercise and the areas/units to be covered and the priority of

identification. Advising on the process of risk identification.

Develop methodology and policy for conducting risk and control assessment and the roll

out plan across various units. The methodology should include setting up of rating scales

for risks and controls and evaluation of residual risks.

Suggesting templates to measure OR in terms of financial impact and likelihood of

occurrence, achievement of objectives etc. and its level and direction.

Conduct RCSA for all key business and processes (including Branches) across the Bank.

The key businesses should include but are not limited to: Treasury, Retail Banking

(liabilities, assets and cards), Trade Finance and Corporate Banking, Rural/priority sector

lending, Information Technology and International Banking.

Methodology to analyze the results and evaluation methods and criteria of controls.

Method of setting priority of risks/control and its application.

MIS templates for monitoring and analyzing the RCSA results.

Devise reports which includes Risk map, heat map, dashboards etc at each level starting

from process owners to the Bank as a whole.

Structure training and assessment workshops.

Conduct training sessions for RCSA (including methodology of risk and control

identification, assessment and rating)

Integrating risk assessment exercise with internal and risk based audit to avail maximum

benefit of it.

Deliverables:

RCSA Policy and Methodology.

RCSA Implementation across all the key businesses of the Bank.

Methodology for RCSA roll-out and aggregation of results.


MIS templates for reporting RCSA results on an aggregated basis.


Comprehensive training to Risk management department and 6 workshops for business

units.

4) Loss event management framework:

Development of loss data management framework and policy for capturing loss data

(including objective loss classification criteria).

Template for capturing the OR incidents, OR loss, potential loss and near-miss events in

day to day management.

Develop methodology for avoiding double counting of operational risk losses and

reconciliation of these losses with those in books of accounts / General Ledger.

Designing MIS for capturing the loss, potential loss and near- miss events.

Develop methodology to identify loss events to classify the events to a risk type e.g.

Credit / Market Risk.

Develop guidelines on boundary events.

Develop process to capture non financial loss.

Develop mechanism to follow up and update loss event until the event is closed.

Develop methodology for mapping/classification of Bank‟s loss events to different

business lines and loss event types.

Develop methodology for integration of external data with internal data and methods for

scaling external data with internal data.

Root cause analysis of all losses captured and other MIS templates for Operational Loss

reporting.

Fixing threshold limits for various operational risk loss event types/Business lines.

Develop framework to capture any potential increase in risk with account to increased

complexities arising out of business activities/volumes.

Conduct training sessions on the methodology of loss data identification, capturing,

analyzing and classification as mentioned in this scope.

Deliverables:

Loss event management Policy.

Template for Loss data collection.

Methodology for avoiding double counting of operational risk losses and reconciliation

of these losses with those in books of accounts / General Ledger.

Design MIS for capturing the loss, potential loss and near- miss events.

Methodology to identify loss events to classify the events to a risk type e.g. Credit /

Market Risk.

Methodology for integration of external data with internal data and methods for scaling

external data with internal data.



Comprehensive training to Risk management department and 6 workshops for business

units.

5) Key Risk Indicators (KRI) framework:

Development of KRI framework and KRI policy.

Developing a framework for identification and usage of KRI, setting thresholds for KRI,

frequency of reporting, frequency of KRI data collection etc.

Develop KRIs for key risks for all key business and processes across the Bank, including

capture of source system and calculation methodology. The key businesses should

include but not be limited to: Treasury, Retail Banking (liabilities, assets and cards),

Trade Finance and Corporate Banking, Rural/priority sector lending, Information

Technology and International Banking.

Develop KRI monitoring process (including KRI data collection).

Develop KRI monitoring and validation process and methodology to ensure effectiveness

of KRI in measuring risk level.

MIS templates for management reporting.

Develop a risk dashboard providing periodic snapshot of a top down assessment of key

risks, mitigation plans and effectiveness of controls.

Develop methods on scaling KRI with that of Industry trends.

Suggest on minimum and maximum number of KRI‟s at Bank level and reporting of such

KRI.

Conduct training sessions on KRI identification and monitoring methodology including

calibration of thresholds for key risk indicators as mentioned in the scope.

Deliverables:

KRI Policy

MIS template for KRI reporting and aggregation.

Statement showing the methodology document for identifying KRI‟s.

Identification of KRI‟s for all key risks identified during the RCSA exercise including

data elements and related calculations.


Comprehensive training to Risk management department and 4-6 workshops for business

units

II. Phase-II Implementation of Enterprise wide risk management architecture for

complying with AMA Approach

1) Methodology and framework for quantifying operational risk under AMA:

Setting up qualitative and quantitative standards as per Basel II and RBI guidelines.

Develop methodology for recognizing insurance under the AMA, which will require

capturing elements through appropriate discounts or haircuts in the amounts of insurance


recognition.

Develop statistical methodologies including the capture and use of internal and external

operational risk loss data including data potential events (including the use of Scenario

Analysis).

Build framework for quantifying operational risk under AMA and perform capital

computation (including stress testing) for key business areas.

Methodology for integration of external loss data with internal loss database.

The development and incorporation of business environment and internal control factor

assessments into the OR Framework.

To provide guidance on use of scenario analysis, internal loss data, BE&ICF and External

loss data for quantification of capital charge.

Provide support to define, assess levels of Correlation and Dependence of loss events,

other data elements and their application in AMA Models.

Provide data collection templates and road map for operational risk modelling under

AMA.

Setting distributional assumptions as well as modelling for operational risk loss severity

and the frequency of operational risk loss events.

Analyse the scope for back testing to validate operational risk models.

Documentation of any mathematical and statistical basis of the operational risk

measurement model.

Perform Sensitivity analysis of the operational risk measurement model and suggest

necessary modifications in bank‟s policies and methodology.

Coordinate the internal and external validation of Operational risk management system.

Perform Capital computation including stress testing for key business areas of the Bank.

Deliverables:

Framework for quantification of capital under Advanced Measurement Approach of

Basel II.

Setting up qualitative and quantitative standards (AMA soundness standards) as per Basel

II and RBI guidelines.

Methodology for recognizing insurance under the AMA.

Statistical methodologies including the capture and use of internal and external

operational risk loss data including data potential events (including the use of Scenario

Analysis).

Prototype for computation under AMA approach.

Capital computation models including stress testing for key business areas.

Document in relation to the mathematical and statistical working of the operational risk

measurement model.


Comprehensive Training material to the Bank‟s Risk Management department on AMA

approach


2) Internal Audit Convergence, new product/process approval and Use test approaches/

Validations

Methodology for assessing Operational Risk (OR) in new product / process Approval

Deliverables:

Framework document for assessing Operational Risk (OR) in new product / processes

3) Framework for leveraging existing risk based audit in ORM and integration of ORM

and audit

Deliverables:

Framework document for integration of ORM with Internal Audit.

Training programme and training material for Audit and Inspection professionals on

integration of ORM and audit.

4) Framework for embedding Risk Management in the day-to-day operations of the Bank

(mapping ORM to performance measurement system)

Deliverables:

Use test framework for ORM.

Suggesting techniques for creating incentives to improve the management of OR

throughout the Bank.

General Awareness Training Programme for Senior Management

5) Approach on use tests/validations.

Devise methodology to validate RCSA exercise to ensure its effectiveness in measuring

risk at various levels and address the gaps identified in the validation process.

Devise methodology to ensure effective monitoring and validation of KRI to ensure its

effectiveness in measuring risk level of each process and address the gaps identified in

the validation process.

Validate and assist the bank in internal reviews of BE&ICF‟s and address the gaps

identified in the validation process.

Provide validation services for internal and/or vendor models for Capital computation

under AMA and address the gaps identified in the validation process.

Testing and validation of all procedures and processes with regard to Enterprise wide

operational risk management and address the gaps identified in the validation process.

Assist bank in developing document for convergence of internal audit including Risk

Based Audits with Operational Risk Management.

Provide assistance to the bank in “Use test” approaches


Deliverables:

Document methodology to validate RCSA exercise to ensure its effectiveness in

measuring risk at various levels.

Devise methodology to ensure effective monitoring and validation of KRI to ensure its

effectiveness in measuring risk level.

Documented reports for validation of Internal and/ or vendor model(s).

Documented reports on Internal review of BE&ICFs.

Documented report on “Use test” approaches.

Documented report on testing and verification of the processes and procedures with

respect to Enterprise wide Operational risk Management.

Documented report on internal audit convergence with Operational Risk Management.

Submit reports covering above Scope of Work in whole.




of capital charge under standardized approach and AMA

To review the assumptions used for AMA

Deliverables


above.

IV. Phase IV. Assistance in preparing application for approval, solving queries and


To assist in preparation of approach for application to RBI for migration to advance

approaches for AMA (Operational Risk)

To assist the Bank in finalization of the application for filing with the regulator


changes in the Basel II advanced approach implementation (if necessary) The contract

would only end after RBI gives the permission to migrate to advanced approaches for

Credit, market and operational risks and the guidelines under the three pillars are fully

implemented

4.A.4. Pillar 2 - ICAAP Development & Implementation

Review the existing ICAAP framework and risks identified under Pillar and conduct a

gap analysis in view of Basel II, Basel-III and RBI guidelines.

Identification of Bank specific risks and materiality testing framework

To assist in developing governance structure for the Bank‟s ICAAP and identify the roles

and responsibilities of Risk, Finance teams and senior management.


Study the risk philosophy of the Bank, future growth strategies and stakeholder

expectations to formulate the risk appetite of the Bank for various risks faced.

To assist in defining qualitative and quantitative tolerance level for key risks of the Bank

to formulate and frame the risk appetite of the Bank.

To assist in developing standards and framework to integrate ICAAP in the day to day

management and business decisions.

To assist in refining the existing stress testing framework of bank. The framework should

facilitate assessing the impact of macroeconomic stress scenarios on the capital position

(for all quantifiable risks) and P& L of the Bank.

To assist in developing a stress testing system capable of testing for each of the credit,

market, interest rate, forex, liquidity, concentration risk on individual basis and aggregate

the results of stress testing. The system should at the same time assist in reporting, back

testing and assessment of capital for Pillar‐II risks. Additionally, the system should also

support aggregation of Pillar‐II capital into Bank‐wide capital (regulatory & Economic

capital) assessed.

To assist in developing and implementing measurement techniques for quantifiable risks

such as Concentration risk, Liquidity risk, IRRBB, Business risk, Residual Risk,

Counterparty Credit Risk etc. The latest RBI guidelines on Interest Rate Risk should be

taken into consideration for Liquidity Risk and IRRBB.

Provide risk assessment methodologies for non-quantifiable risks like Strategic risk,

Reputation risk etc.

Define capital cushion to cover other risks as per Pillar 2. All the Pillar 2 aspects should

be covered as per Basel II and RBI guidelines.

Report on the process for assessing overall capital adequacy in relation to risk profile.

Formulation of the procedures to be used for evaluating the correlation between various

risks

To assist the Bank in upgrading the existing ICAAP document.

To assist in ensuring compliance with the New Capital adequacy Framework (NCAF) of

RBI and all other related guidelines issued from time to time including those for

Supervisory Review Process (SREP), ICAAP as well as Market discipline.

Assess requirement of any system / software solution for the purpose of ICAAP.

To assist in developing methodology for assessing the Country Risk

Training of risk management department on ICAAP preparation and internal audit

department on ICAAP validation

Suggest ways for ICAAP validation, review and risk aggregation and address the gaps

identified in the validation process

Identify data elements to be captured for Risk adjusted return on capital employed (

RAROC), Risk Based pricing and suggest data remediation

To assist in developing a risk based pricing framework containing: a) Mechanism to

allocate costs to a new transaction and assess the marginal capital requirement for a new

transaction. b) Methodology to compute RAROC and price a new loan


Deliverables:

Report on the risk philosophy of the Bank, future growth strategies and stakeholder

expectations to formulate the risk appetite of the Bank for various risks faced.

Report on qualitative and quantitative tolerance level for key risks of the Bank to

formulate and frame the risk appetite of the Bank

Formulation of the refined risk appetite statement of the Bank and capital cushion to

cover the risks as per Pillar 2.

Models to support quantification of Pillar 2 risks, compute bank wide economic capital

and enhanced stress testing.

Framework to integrate ICAAP in the day to day management and business decisions.

Frameworks to support management of qualitative risks.

Report on the process for assessing overall capital adequacy in relation to risk profile.

Formulation of the procedures to be used for evaluating the correlation between various

risks.

Audit Manual and check list for internal audit department to conduct ICAAP validation.

Report to be submitted covering the above scope in whole.

4.A.5. BASEL III

To provide guidance in computation of Leverage ratio, Liquidity coverage ratio and net

stable funding ratio in accordance with RBI‟s guidelines

To assist in developing a framework for computation of CRAR under Basel-III

To provide guidance in computation of additional capital charge for Credit valuation

adjustment (CVA) under Basel-III

To comply with Pillar-II and Pillar- III requirements prescribed under Basel-III

Deliverables:

Statement and procedure showing computation of LCR, NSFR ratio and other liquidity

ratios prescribed by RBI.

Framework for computation of CRAR under Basel-III

Model disclosures prescribed in RBI Circular DBOD. No.BP. BC.98/21.06.201/12-13 or

amended /revised from time to time.

4.A.6. ALM & FTP

To enhance ALM policies as per latest RBI guidelines

To enhance framework and templates for Net Interest Income (NII) and Market Value of

Equity (MVE) for interest rate risk in banking book

To enhance framework and templates for Structural and Dynamic Liquidity analysis

To enhance framework and templates for conducting behavior analysis of assets and

liabilities for liquidity risk


Suggest methodology to conduct behavioural study on distribution of assets & liabilities

for liquidity risk under embedded optionality etc including drawdown pattern of undrawn

balance under Cash Credit and Term Loan

To develop behavioral models for assets & liabilities like Term Deposits & Term Loans.

To enhance the existing stress testing policy framework for ALM

Validation of the existing slotting of RSA and RSL into respective buckets

Enhance Dynamic Liquidity Report & Earning at Risk Report and methodology and

framework for change in Market Value of Equity for domestic, overseas and Global

position

Review the present Contingency Funding Plan and provide recommendations

Validations/ back testing of ALM models, its assumptions on various behavioural

patterns

To develop a framework for Matched Maturity method for FTP

To develop a fund transfer pricing framework as per the leading industry practice

To assess whether the existing software systems are capable of computing the ratios

prescribed under Basel- III and RBI guidelines on liquidity

Deliverables:

Fund transfer pricing framework as per the leading industry practice

Revised ALM policy

Revised framework for conducting behavioural study

Enhanced templates for Structural and Dynamic Liquidity analysis

Report on suitability of the existing software systems in computing the ratios prescribed

under Basel- III and RBI guidelines on liquidity


above.

4.A.7. Preparation of RFP document for selection of vendor for supply of hardware and

software required for implementation

In this phase the consultant is expected to assist the Bank in purchase of integrated

software solution for Implementation of Advanced Approaches of Basel-II, Achieving

compliance with Basel III norms and Refinement of FTP & ALM in line with RBI &

International Best Practices

Rendering necessary assistance to Bank in procurement of the required solution: - The

major steps involved (which are not exhaustive) include-

i. To provide a brief report on major players in the market who offer hardware and

software for this type of services. The report shall include a cost –benefit analysis.

ii. To define the scope, evaluation methodology, eligibility criteria, penalty clauses, bill

of materials, payment terms and other terms & conditions of the software solution.


iii. Collate all the documents including the defined and agreed service levels and prepare

the RFP for Procurement of Solution for Enterprise wide Integrated Risk Management

Architecture in the Bank.

iv. To assist in defining Functional & technical requirement of hardware and software

v. To provide formats & schedules for the bidders to submit the technical information

vi. To provide format for submission of commercial bid.

vii. Delivery of the final RFP documents to the Bank for floating the same

Assist the Bank in conducting pre-bid meetings.

i. Assists the Bank in carrying out technical bid evaluation based on defined criteria and

format in RFP & provide a report to the Bank listing all technically qualified vendors

for RFP.

ii. Assist the Bank to carry out commercial bid evaluation based on defined criteria and

format in RFP.

iii. Assist in Total Cost of Ownership (TCO) analysis & provide a report to Bank detailing

the results of commercial evaluation.

iv. To assist in ensuring that the proposed solution has the capability to scale up for

meeting future requirements

To assist in solving Hardware and Network Related Issues

i. To specify the hardware requirement taking into consideration of efficiency level,

response time, data processing requirement, number of users, and all other parameters

to ensure that the efficiency of software system is not affected because of limitations

of hardware.

ii. Assess the Hardware benchmark, with the expected volume levels as specified by

Bank

iii. Assessment of the hardware configurations required to implement the proposed

solution/s including sizing of server (CPU, main memory required, storage

requirements etc.) taking into consideration the present and future volume estimates,

current technology and path for upgrade/growth.

iv. The Consultant will define the requirements of various other service providers, assist

in evaluating and selecting the prospective service providers. Consultant will also

monitor and assist the Bank in execution of services by said service providers.

v. To present a hardware topology diagram depicting the following :- a) Overall

hardware architecture Hardware requirements including sizing of the hardware and b)

Operating system and Relational Database Management System (RDBMS)

requirements


Rendering assistance in customisation of the purchased solution, if required

i. To provide a list of prominent system integrators (i.e. parties who are capable of

customising the purchased software to requirements of the bank) in the market. The

report shall include a cost –benefit analysis.

ii. To assist in drafting RFP for selection of the integrator

iii. To assist in developing selection criteria for selection of integrator.

iv. To assist in defining the responsibilities of integrator at the time of signing the contract

with integrator

v. To ensure that the software customised by the integrator meet the requirements of the

bank.

(Note: - Please note that the steps mentioned herein shall apply only when the software

vendor does not customise the software without external assistance.)

Review of SRS & Assistance in UAT

i. Review of Software Requirement Specifications (SRS) and suggesting improvements.

ii. Assist in conducting the User acceptance testing (UAT) of the software solution &

Hardware during the Pilot implementation.

iii. Assist the Bank in implementation of the solution in tune with the deliverables

provided.

iv. Regular updates by way of presentations to the committee/s agreed in accordance with

the consultancy agreement

v. Assist the Bank in constructing test scenarios for functional testing of solution

procured

vi. Report on test results and level of compliance of the implemented solution

vii. Assist the Bank in addressing the gaps identified during Pilot implementation of the

Solution.

viii. Assist in integration of various existing/proposed networks relating to Enterprise-wide

Integrated Risk Management Architecture solution.

Validation of the software solutions

i. Assist in validation of the Enterprise-wide Integrated Risk Management solution by an

independent validating agency acceptable to the Bank.

ii. Full rollout of the solution across all the branches and assess the gaps.

iii. Assist in addressing the gaps identified during independent validation of the

Enterprise-wide Integrated Risk Management solution.

iv. Assist in Bank wide integration of the Enterprise-wide Integrated Risk Management

solution and fine tuned with the deliverables.


v. To assist in drafting the contract and terms of the assignment with the software vendor

vi. To assist in ensuring that the proposed solution has the capability to scale up for

meeting future requirements

4.A.8. The Pillar-3 aspects

To assist in attaining compliance with disclosure standards as per Advanced approaches

of Basel II / RBI guidelines

Evaluation of Pillar 3 disclosures made by the Bank and suggesting suitable

enhancements

Suggest the voluntary disclosures both qualitative and quantitative

Deliverables

Report to be submitted covering the above scope in whole.

4.A.9. Training

The Consultant is expected to provide training at various stages in all areas of risk

management during the course of implementation.

The target group will include:

Board of Directors / Executives / Officials of Risk Management Dept

Trainers/faculty members from staff training college

Internal Inspectors, IS-auditors/ DICT personnel, Concurrent auditors etc

The number of sessions and number of trainees will depend upon the adequacy required

to implement the concepts in the organization. The contents of the training programme

will be finalized after discussions with the Bank. The consultant has to provide user

manuals, case studies and training materials to the participants.

4.A.10. Project Documentation and Manuals

All works related to the assignment handled are to be well documented and will form the

part of deliverables. They should be delivered both in hard copy and soft copy at the end

of the each stage.

5. REPORTING PROGRESS

The Consultant/ Bidder shall report progress of all the activities specified above and

submit free of cost fortnightly progress report about various aspect of the

works/Service(s) to The South Indian Bank Limited. The South Indian Bank Limited on

mutual agreement between both Parties may change the periodicity of such reports.

6. AMENDMENT OF RFP:

At any time prior to the deadline for submission of bids, The South Indian Bank Limited,


for any reason, whether at its own initiative or in response to a clarification requested by a

prospective Bidder, may modify the RFP by amendment.

In order to afford prospective Bidders reasonable time in which to take the amendment

into account in preparing their bid, The Bank, at its discretion, may extend the deadline

for the submission of bid.

All bidders who have procured this RFP document from the bank shall be notified of the

amendment in writing by e-mail or fax or post, and all such amendment(s) shall be

binding on them

7. SUBMISSION OF BIDS

Technical bid & Commercial bids must be submitted at the same time in separate sealed

envelopes, giving full particulars at the Bank‟s address given below, on or before 3rd July

2013. All envelopes should be securely sealed and stamped. The Bidders shall seal the

Technical and Commercial bids separately. Thus there will be 2 envelopes one for

Technical Bid and one for Commercial Bid. The envelope containing the Technical Bid

should be super-scribed as “Technical bid for Consultancy Services” .The envelope

containing the Commercial Bid should be super-scribed as “Commercial Bid for

Consultancy Services”.

A. Bid Closing Date:

Bids should be submitted on or before 4:00 PM IST (Indian StandardTime) 03.07.2013.

B. Instruction to Bidders

RFP contains only the principal provisions for the entire assignment and that the services

in connection therewith are only a part of the assignment. The Consultant shall be

required to undertake to perform all such tasks, render requisite services as may be

required for the successful completion of the entire project at no additional cost to the

Bank.

The bidder is expected to examine and understand all terms and conditions in this RFP.

Bid shall be deemed to have been made after careful study and examination of the scope

of work given in this RFP with full understanding of its implications. The bid should be

precise, complete and it should include all particulars prescribed under Annexure-1 of this

RFP. Failure to furnish all information required under this RFP or submission of a bid not

as per RFP requirements will be at the bidder‟s risk and may result in rejection of the bid

and the decision of The South Indian Bank Limited in this regard will be final, conclusive

and binding.

The bidders have to clearly specify in the technical bid, the composition of the members

of the team/s proposed to be deployed to execute the assignment as per Scope of Work

mentioned in the RFP for respective risk areas. The composition of the team should be

furnished in the format given in Annexure-2


The bidder should have the capability and experience of providing consultancy services

for smooth implementation of Advanced Approaches of the Basel II framework in Banks

This RFP is not transferable. Only the bidder, who has purchased this RFP in its name or

submitted the necessary RFP price (for downloaded RFP) will be eligible for participation

in the evaluation process.

Signing of Bid documents: Only authorized person of the organization shall sign all the

pages of the bid document and such bids shall only be binding. Digital signature is not

acceptable

A bidder can submit only one technical bid and one commercial bid.

Joint bidders will not be allowed.

C. Conditions related to Commercial Bid

The best and firm price (Professional fee) should only be quoted. It may be noted that

Bank will pay only the agreed price (professional fee) and no other expenses/fees claimed

shall be entertained.

The price should be quoted in Indian Rupees and should be exclusive of all applicable

taxes. However, the bidders should provide the break- up of the base price, taxes and cess

etc. The price shall be on a fixed price basis and should not be linked to the Foreign

Exchange. The proposed format for submitting commercial bid is attached in Annexure-

6

Escalation in price quoted is not permitted for any reason whatsoever. The price quoted

must be firm till complete execution of the Contract.

It may be noted that Bank will not pay any amount/expenses / charges / fees / traveling

expenses / boarding expenses / lodging expenses / conveyance expenses / out of pocket

expenses other than the “Agreed Professional Fee”.

D. Modification and Withdrawal of Bids

The bidder may modify or withdraw its bid after the bid‟s submission, provided that The

South Indian Bank Limited receives written notice addressed to CGM - Integrated Risk

Management Department, SIB House, 2nd Floor, Mission Quarters, Thrissur, and Kerala-

680001 of the modification or withdrawal, before the expiration of deadline prescribed

for submission of bids. In case of modifications, the bidder is expected to resubmit entire

bid. Only addendums/amendments will not be accepted.

E. Rejection / Acceptance of Bid

The South Indian Bank Limited reserves the right to accept or reject any or all the bids

without assigning any reason whatsoever. Any decision of The South Indian Bank

Limited in this regard shall be final, conclusive and binding on the bidder.

F. Cancellation of Bid

The South Indian Bank Limited reserves right to re-issue/re-commence the entire bid


process and or any part in case of any anomaly, irregularity or discrepancy in regard

thereof without assigning any reason whatsoever, at the sole discretion of The South

Indian Bank Limited. Any decision in this regard shall be final, conclusive and binding

on the bidder.

G. Period of Validity of Bids

Validity Period: - Bids shall remain valid for 90 days after the date on which The South

Indian Bank limited has received the bid submitted by the party. The South Indian Bank

Limited holds the rights to reject a bid valid for a period shorter than 90 days.

Extension of Period of Validity :- In exceptional circumstances, The South Indian Bank

Limited may solicit the Bidder‟s consent to an extension of the validity period. The

request and the response thereto shall be made in writing. Extension of validity period by

the Bidder should be unconditional and irrevocable.

8. ELIGIBILTY CRITERIA

The bidders are required to meet the following eligibility criteria and provide adequate

documentary evidence for each of the criteria stipulated below. Only those bids satisfying all the

eligibility criteria would be further processed.

Sl No Eligibility criteria Details of Proof

1 Should be a Government Organization/ PSU /PSE

/ registered partnership firm/LLP/ a limited

company under Indian Laws / an autonomous

Institution promoted by RBI/GOI

Reference of Act/Notification,

Registration Certificate or any

document evidencing the

formation of entity

2 Should have existence in India for five years as

on 31.03.2013. (In case of mergers / acquisitions /

restructuring or name change, the date of

establishment of earlier / original Partnership

Firm / Limited Company / Institution can be

taken into account).

Letter of Commencement of

Business in case of Company,

Registration in case of others.

3 Should have a minimum average annual turnover

of Rs. 10.00 crores during last three financial

years for its India located office. (Not applicable

for nonprofit making organizations).

Should have made operating profits for the past 3

years in succession from its Indian Operations

(Not applicable for non-profit making

organizations).

Annual report, Balance Sheet /

P&L statement (Audited).

4 The firm should have never been blacklisted /

barred / disqualified by any regulator / statutory

body.

Self Declaration subject to

satisfaction of South Indian Bank


Sl No Eligibility criteria Details of Proof

5 Should have been assigned /undertaken

consultancy for at least 1 Indian Scheduled

commercial bank for implementation of Basel- II

guidelines for advanced approaches for credit

risk, market risk and operational risk

Copies of the credential letters

from the clients

6 The consulting firm or its subsidiaries engaged in

providing software solution may bid for this RFP,

subject to the condition that any of their software

solutions under this project will not be considered

by the Bank for purchase during the period of

assignment, if the bidder is engaged by the Bank

for consultancy.



7 Should have complete understanding of Basel II

and Reserve Bank of India Guidelines on Risk

Management Systems and best practices to guide

the Bank to move to advanced approaches



8 Should have resources who have worked on

similar engagement of providing consultancy

services for Basel II, Credit, Operational and

Market risk management, developing RFP,

vendor evaluation and selection, defining the

functional requirements, project management of

implementation and UAT. All resources to be

deployed for the project should have had similar

experience in at least one scheduled commercial

bank in India. The Engagement Manager

proposed should have been with the firm for a

minimum of three years with the firm and the

engagement team should always have sufficiently

experienced hands during the pendency of the

engagement with SIB.

Confirmation from the Vendor

and profile of team members.

9 Should have a minimum income in consultancy

of at least INR Three crores per annum in the past

two years ended on 31-03-2012 from its Indian

operations and should not have incurred losses

during the last 3 years period ended on 31-03-

2012.

Audited financial statements and

I.T.

Return. Bidders have to submit

IT returns with bid (envelope A)

for eligibility criteria.


10 The bidder should have experience in

extending consultancy services in risk

Management in Indian Banks.

Copies of the credential letters

from the clients

11 The bidder shall be able to show case at least one

site visit



9. SELECTION STRATEGY

The bank has formed an Executive level committee for selection of the consultant. The

committee shall recommend the consultant to be engaged for this assignment before Board and

the decision of our Board shall be final, conclusive and binding on the bidders.

The tentative evaluation criteria of the selection committee are given below.

A. Evaluation of Technical Bid:-

First, Technical bid documents will be examined from the Eligibility Criteria angle. The

bids of those bidders, who fulfill the eligibility criteria conditions related to bidder‟s

financial stability and experience fully, will be taken up for further evaluation/selection

process rejecting the remaining bids.

A maximum of 100 marks will be allocated for the technical bid. The details of technical

bid are given below.

Technical Evaluation Criteria

Sl.

No Major area

Marks

1 Experience of the consultant in India 5

having experience in risk management consultancy services-above 5 years 5

having experience in risk management consultancy services-above 4 years &

up to 5 years

4

having experience in risk management consultancy services - above 3 years

& upto 4 years

3

2 Specific Experience 75

Experience of executed/ executing Enterprise-wide Integrated Risk

Management Consultancy Services for Advanced Approaches in the Banks

operating in India (as demonstrated by the credential letters in Banks‟ letter

head submitted) as under:

Experience in

Five or more Scheduled Commercial Banks (with at least One Private Sector

NOTE: The Bank's decision in respect of eligibility criteria, evaluation methodology and

short listing of bidders will be final and no claims, whatsoever in this respect, shall be

entertained.


Bank) - ( 100% Weightage)

Four Scheduled Commercial Banks (with at least One Private Sector Bank) -

( 90% Weightage)

Three Scheduled Commercial Banks (with at least One Private Sector Bank)

- ( 80% Weightage)

Two Scheduled Commercial Banks (with at least One Private Sector Bank) -

( 60% Weightage)

One Scheduled Commercial bank-50% weightage

Marks to be awarded for each sub-section of item no. 2.1 to 2.7 shall be as

per the above stated weightage

2.1 Credit Risk

1.Gap Analysis in respect of advanced approach (IRB)-1

2. Development of Policy Framework in tune with IRB guidelines issued by

RBI – 1

3. Development of Credit Rating Model for different asset classes as per IRB

approaches – 2

4. Rating Model Validation – 1

5. Developed Framework for capturing PD-1

6. Developed Framework for capturing LGD-1

7. Developed Framework for capturing EAD-1

8. Experience in Mapping/Categorization of assets as per requirements of

IRB approach – 2

9. Experience in retail pooling-1

10. RWA Computation methodology for Advanced Approaches – 3

11. Submitted application before RBI for FIRB/AIRB-1

15

2.2 Operational Risk

1. Gap Analysis in respect of advanced approach (AMA)-1

2. Development of Operational Risk Policy Framework in compliance with

IMA – 1

3. Implementation of RCSA framework – 3

4. Implementation of KRI framework – 3

5. Loss event management framework– 2

6. Identification of Scenarios for scenario assessments – 2

7. Capital calculation for AMA & Modelling – 3

15

2.3 Market Risk

1. Gap Analysis in respect of advanced approach (IMA)-2

2. Development of Market risk management Policy and Market risk Dossier

in compliance with IMA – 2

3.Assist in development and validation of Va R models-2

4. Devised a methodology for computing capital charge under IMA -2

5.Framework for improved technical analysis/monitoring/reporting

framework-2

10


2.4 Pillar 2

1. Pillar II risk assessment and Capital required assessment – 4

2.Enhanced Stress Testing policy framework – 2

3. ICAAP Validation-2

4. Capital Planning – 2

10

2.5 System Implementation

1. RFP Preparation and vendor evaluation & selection – 5

2. Review / development of Software Requirement Specification & Function

Requirement Specification – 5

3. Performing/Assistance in UAT – 5

15

2.6 ALM, FTP and Basel-III

1. Assisted in computation of liquidity ratios prescribed under Basel-

III – 3

2. Experience in refinement of fund transfer pricing policy – 2

3. Experience in refinement of ALM – 2

4.Assist in computation of CRAR under Basel-III-1

8

2.7 Experience in working with regulatory bodies and industry bodies (like RBI

& IBA)

1. Yes -2

2. No - 0

2

3 Presentation by the Bidders 10

3.1

Demonstration of In-depth understanding of Bank‟s project requirements

through the technical proposal supplemented by power point presentation

covering detailed broken down activities to be performed, efforts estimation,

manpower to be deployed, planning, design and time frame

5

3.2 Answers to the Bank during presentation 5

4 Profile of the Team proposed to be deputed for implementing the

project referred in this RFP

10

4.1 Number of team members who have credit management consulting

experience in India

1. Number - 3 or more – 2

2. Number - Less than 3 – 1

2

4.2 Number of team members with Market Risk consulting experience in India



2

4.3 Number of team members with ORM consulting experience in India



2

4.4 Number of team members with ICAAP review or development experience in

India



2


4.5 Number of team member with experience in conduct of UAT, software

selection, software customisation for risk solutions in India



2

The technical proposals only will be subjected for evaluation at this stage. The bidders

scoring less than 70 marks (cut-off score) out of 100 marks in the technical evaluation

shall not be considered for selection process. Once the evaluation of technical proposals is

completed, the bidders who score equal to, or more than the prescribed cut-off score will

only be short listed. The scoring will be done by the bank‟s own team or experts engaged.

In case none of the bidders score 70 or more, the Bank may, at its sole discretion,

consider 3 bidders who has scored highest technical score for next round of evaluation.

B. Evaluation of Commercial Bid:-

The commercial bids shall comprise of Professional Fees / Price quoted in Indian

Currency only and shall be all inclusive. The Commercial Bid shall be on a fixed price

basis. The price must include all costs, taxes and levies including Service Tax.

C. Combined Evaluation of Technical and Commercial Bids

A comprehensive “Score (S)” will be arrived at after considering the commercial quote

and the marks obtained in technical evaluation with relative weights of 30% for

commercials and 70% for technical.

Computation Methodology for arriving at “Best Price”

Bank will give 70% weightage to technical score while comparing the commercial

quote.

The procedure is as under:

A ‟Score (S)” will be calculated for all qualified bidders using the following formula:

Where C stands for commercial price quoted, C Low stands for the price quote of the

lowest commercial bid. T stands for technical evaluation score and T High stands for the

score of the technically highest bidder. X is equal to 0.30.


Sl.

No Bidder

Technical

Evaluation

Marks(T)

Commercial

Bid Price in

lakhs ( C)

(C low/C)x0.30 (T/T-high)x

0.70

Score

(S)

1 ABC 95 71 0.85*0.30=0.25 1.00*0.70=0.70 0.95

2 DEF 85 66 0.92*0.30=0.27 0.89*0.70=0.63 0.90

3 GHI 80 60 1*0.30=0.30 0.84*0.70=0.59 0.89

In the above example, ABC has scored highest score and hence the price quoted by ABC

will be called “Best Price”. The bank may at its sole discretion call the bidders who score

highest combined score for negotiation. The bank has the right to restrict the number of

bidders and just because of scoring the cut off does not confer any right to be called for

negotiation.

10. AWARD OF CONTRACT

A. Notification of Acceptance of Bid

Before the expiry of the period of validity of the proposal, The South Indian Bank

Limited shall notify the successful bidder in writing by registered letter or by fax or by

hand-delivery or by email, that its bid has been selected. The bidder shall acknowledge in

writing receipt of the notification of selection and has to convey his absolute,

unconditional and unqualified acceptance and thereafter enter into agreement / Contract

within 15 days from the date on which selection is notified to bidder. The proposed

format is given in Annexure-10

B. Project management:

The Bank and the bidder consultant will nominate a Project Manager each immediately

on acceptance of the order, who will be the single point of contact for the project.

The selected bidder cannot change the Project Manager or any other members of the

team/s during the entire period of execution of the consultancy project unless consented

in writing by the Bank. In the eventuality of any such change the personnel brought in

should have equivalent or more exposure and qualifications compared to the personnel

replaced and it should be with the Bank‟s concurrence.

The selected bidder shall ensure that personnel deployed are competent, do not violate

any of the contractual obligations under this contract and while on the premises of the

Bank conduct them in a dignified manner & shall not behave in any objectionable

manner

C. Signing of contract

Acceptance of selection shall be followed by signing of the Contract. However selection


committee may negotiate certain terms & conditions with successful bidder and obtain

necessary approvals from higher authorities, before signing of the Contract. The Bidders

should sign the Agreement Form. A specimen of contract proposed to be executed is

given in Annexure 7. Besides, the successful vendor should also sign a non-disclosure

agreement in the format specified in Annexure-9. The signing of Contract will amount

to award of contract and Bidder will initiate the execution of the work as specified in the

Contract. The signing of contract shall be completed within 30 days of receipt of

notification of the acceptance of bid. Annexure 7 and 9 may be modified if deems fit by

the bank.

D. PERFORMANCE BANK GUARANTEE

a. The successful bidder shall submit a Performance Guarantee issued by a Scheduled

Commercial Bank in favour of The South Indian bank Limited as per the format given

in Annexure -8 for 100 % value of the contract in Indian Rupees along with the letter of

acceptance of the assignment.

b. The guarantee period shall be valid for 3 year from the date of signing the contract. If

the scope of work specified in this RFP is not completed within 3 years the tenure of

guarantee shall be extended further.

c. The Bank guarantee will be returned to the selected bidder after the selected bidder‟s

performance obligations under the agreement are completed and accepted by the Bank.

d. The selected bidder shall be responsible for extending the validity date of the Bank

guarantees as and when it is due, on account of incompletion of the project.

e. The Bank shall invoke the Bank guarantee before the expiry of validity, if work is not

completed / the guarantee is not extended before the due date as the case may be, or if

the selected bidder fails to complete his obligations under the contract or the bidder

becomes insolvent or goes into liquidation voluntarily or otherwise. The Bank shall

notify the selected bidder in writing before invoking the Bank guarantee. The proceeds of

the guarantee shall be payable to the Bank for any loss arising from the selected Bidder‟s

failure to complete his obligations under the contract.

E. TIME PERIOD FOR COMPLETION OF ASSIGNMENT

The Successful Bidder/Consultant will be expected to assist the Bank in successful

implementation of project including UAT of the software solution and calculation of the

CRAR in accordance with advanced approaches of the Basel II with in a period of

30 months. This period does not take into account time involved in getting approval

from RBI. However it is expected that all other tasks including placing of application

before RBI would be completed within the abovementioned time frame

The contract will be for a period till approval for migration to Advanced IRB, IMA

and AMA is given by Reserve Bank of India

The Consultant should also assist the Bank in finalization of the application for filing

with the regulator and responding to RBI queries and comments on the application for


migration to advanced approaches and making suitable changes to the Basel II

implementation (if necessary).

The Bank, at its option may extend the timeframe, depending on its requirements. Any

new guidelines given by RBI and Basel with regard to advanced approaches will

automatically form a part of the contract

The successful Bidder/Consultant shall complete the project / perform and render the

Services within the agreed time frame starting from the date of award of

Contract/Agreement.

F. DELAY IN ADHERING TO THE PROJECT TIMELINES

The Successful Bidder/Consultant must strictly adhere to the time schedule, as specified

in the Contract, executed between the bank and the Consultant, pursuant hereto, for

performance of the obligations arising out of the contract and any delay will enable the

Bank to resort to any or all of the following at sole discretion of the bank.

(a) Penalty;

(b) Termination of the agreement fully or partly

If there is any delay in the implementation of the project due to bidder /consultant‟s

fault in complying with time schedule furnished by the bidder/ consultant and accepted

by the Bank, it will recover 1% on the total consultancy fees paid to the bidder

consultant for each week of delay. This recovery will be subject to an upper limit of

10%. Thereafter the order/contract may be cancelled and amount paid if any, may be

recovered with 1.25% interest per month. Any deviations from the norms would be

treated as breach of the contract by the consultant and will be dealt with accordingly.

The Bank also reserves its right to claim damages for improper or incomplete execution

of the assignment.

G. Expected standards of performance

The Consultant/Bidder shall perform the service(s) and carry out its obligations under

the Contract with due diligence, efficiency and economy, in accordance with generally

accepted techniques and practices which are currently used in industry. It shall employ

appropriate advanced technology, procedures and methods. The Consultant/Bidder shall

always act, in respect of any matter relating to the Contract, as faithful advisors to The

South Indian Bank Limited and shall, at all times, support and safeguard The South

Indian Bank Limited's legitimate interests in any dealing with third parties.

Consultant must provide professional, objective and impartial advice at all times and

hold the Bank‟s interest paramount, without any consideration for future work, and

strictly avoid conflicts with other assignments or their own corporate interests.


H. Use of Contract Documents & Information

The Bidder/Consultant shall treat all documents, information, data and communication

of and with The South Indian Bank Limited as privileged and confidential and shall be

bound by the terms and conditions of the Non-Disclosure Agreement. The

Bidder/Consultant shall execute the Non-Disclosure Agreement simultaneously at the

time of execution of the Contract.

The Bidder/Consultant shall not, without The South Indian Bank Limited‟s prior written

consent, disclose the Contract, or any provision thereof, or any specification, plan,

sample or information or data or drawings / designs furnished by or on behalf of The

South Indian Bank Limited in connection therewith, to any person other than a person

employed by the Bidder/ Consultant in the performance of the Contract.

Any document in any form it has been obtained, other than the Contract itself,

enumerated in this Bid Documents shall remain the property of The South Indian Bank

Limited and shall be returned (in all copies) to Bidder / Consultant on completion of the

Bidder's/Consultant's performance under and in accordance with the Contract, if so

required by The South Indian Bank Limited.

I. „NO CLAIM‟ Certificate

The consultant shall not be entitled to make any claim, whatsoever, against The South

Indian Bank Limited, under or by virtue of or arising out of, the Contract/Agreement,

nor shall The South Indian Bank Limited entertain or consider any such claim, if made

by the Consultant after he has signed a „No Claim‟ Certificate in favor of The South

Indian Bank Limited in such forms as shall be required by The South Indian Bank

Limited after the works are finally accepted.

J. Conditions precedent to contract

The Contract is subject to the fulfillment of the following conditions precedent by the

Consultant:-

a) Obtaining of all statutory, regulatory and other permissions, approvals, consents and

no-objections required under applicable laws or RBI for the performance of the

service(s) under and in accordance with the Contract.

b) Furnishing of such other documents as The South Indian Bank Limited may specify.

K. CANCELLATION/ TERMINATION OF CONTRACT

The Bank reserves its right to cancel the order in the event of, but not limited to, one or

more of the following situations:

a) Unnecessary or unwarranted delay in execution of the work allotted.

b) Delay in providing the requisite manpower at the Bank‟s site.

c) Delay in submission of reports beyond the stipulated periods.

d) Change in the composition of staff as furnished in the bid


e) Breach of trust is noticed during any stage of the consultancy assignment.

f) The selected bidder commits a breach of any of the terms and conditions of the bid.

g) The selected bidder goes in to liquidation voluntarily or otherwise.

h) If it is found at any stage that the bidder has concealed any important information or

has submitted any false information or declaration particularly regarding any pending

legal action or blacklisting status.

i) The Bank reserves the right to recover any dues payable by the selected bidder from

any amount outstanding to the credit of the selected bidder, including the pending

bills and security deposit, if any, under this contract or any other contract/order.

j) The decision of the bank as to whether or not any one or more of the above situation

has(have) arisen shall be final and binding on the vendor

In addition to the cancellation of order, The Bank reserves the right to appropriate the

damages from foreclosure of the Bank guarantee given by the consultant.

L. PUBLICITY

Any publicity by the bidder consultant in which the name of the Bank is to be used

should be done only with the explicit written permission of the Bank.

M. SUBCONTRACTING

The Bidder will not subcontract or delegate or permit anyone other than the Bidder

personnel to perform any of the work, service or other performance required of the

Bidder under this agreement without the prior written consent of the Bank and the bank‟s

decision in this regard will be final and acceptable to the bidder.

N. Payment Terms:

Payment will be released by the Bank after deduction of applicable taxes at source of the

agreed professional fees to the Consultant (for which contract will be executed) in stages

on completion of the activities to the satisfaction of the Bank as per the phases defined in

the scope of services under the RFP. No advance payment will be made. The schedule of

payments is given in Para 11 of this RFP

The release of payments and retention money will be further subject to the following

conditions.

a) The consultant should delegate all the scope into deliverables.

b) All the deliverables as mentioned under „Scope of services under the RFP‟ should be

covered phase-wise.

c) Any tasks/ services, which is outside the „Scope of services under the RFP‟ and required

for successful completion of the project, are performed to the satisfaction of the Bank

d) The documents, reports and drafts submitted by the consultant should comply with Basel

II and RBI guidelines and are subject to acceptance by the Bank.


e) The bidder cannot change the Project Manager during the entire period of execution of

project unless consented by the Bank in writing by the Bank.

O. TAXES AND DUTIES:

a) The Successful Bidder/Consultant will be entirely responsible to pay all taxes whatsoever

in connection with delivery of the services at the sites including incidental services and

commissioning.

b) Wherever the laws and regulations require deduction of such taxes at the source of

payment, Bank shall effect such deductions from the payment due to the Consultant. The

remittance of amount so deducted and issue of certificate for such deductions shall be

made by Bank as per the laws and regulations in force.

c) Nothing in the contract shall relieve the Consultant from his responsibility to pay any tax

that may be levied in India/abroad on income and profits made by the Consultant in

respect of this contract.

P. AUTHORIZED SIGNATORY

The selected bidder shall indicate the authorized signatories who can discuss and

correspond with BANK, with regard to the obligations under the contract. The selected

bidder shall submit at the time of signing the contract a certified copy of the resolution of

their board authenticated by the company secretary or a letter duly signed by the

managing partner of the firm, authorizing an official or officials of the bidder to discuss,

sign agreements/contracts with BANK, raise invoice and accept payments and also to

correspond. The bidder shall provide proof of signature identification for the above

purposes as required by BANK. The format for nominating the authorized signatory is

furnished in Annexure-11

Q. RESOLUTION OF DISPUTES:

The Bank and the bidder shall make every effort to resolve amicably, by direct informal

negotiation, any disagreement or dispute arising between them under or in connection

with the contract. If after thirty days from the commencement of such informal

negotiations, The South Indian Bank Limited and the bidder are unable to resolve

amicably a contract dispute; either party may require that the dispute be referred for

resolution by formal arbitration.

All questions, disputes or differences arising under and out of, or in connection with the

contract, shall be referred to two Arbitrators: one Arbitrator to be nominated by the Bank

and the other to be nominated by the Bidder. In the case of the said Arbitrators not

agreeing, then the matter will be referred to an umpire to be appointed by the Arbitrators

in writing before proceeding with the reference. The award of the Arbitrators, and in the

event of their not agreeing, the award of the Umpire appointed by them shall be final and

binding on the parties. The Arbitration and Conciliation Act 1996 shall apply to the

arbitration proceedings and the venue & jurisdiction of the arbitration shall be Thrissur.


The cost of arbitration (except the cost & fees of Advocates) shall be borne by each party

in equal proportion. The cost of the advocates shall be borne by respective party

appointing the Advocates.

11. TERMS OF PAYMENT

The payment shall be released in accordance with table given below

Type of risk

Total Particulars of tasks to be

performed Credit Operational Market

Preparatory tasks to be performed

prior to implementation 3% 3% 2% 8%

Implementation(including RFP for

software selection & system

integrator)

6% 6% 3% 15%

Training 2% 2% 2% 6%

Parallel run 5% 5% 5% 15%

RBI application 6% 5% 5% 16%

RBI approval 10% 10% 10% 30%

ALM, FTP and Basel III 5%

Retention money(to be released

after one year from the date of

receipt of approval from RBI) 5%

Total 32 31 27 100

12. PROPOSED TIME SCHEDULE FOR COMPLETION OF ASSIGNMENT

* Month 1 refers to the month in which contract is signed

Work stream/Phase Timelines

Start End

Preparatory tasks to be performed prior to

implementation of IRB

Basel II Diagnostic Study & Data Gap Analysis

for Credit Risk

Validation of existing models and development

of validation framework

Setting up of Credit Risk Control Unit

Month 1* Month 6

Implementation of IRB

Pillar 2 - ICAAP Development &

Implementation

Retail Pooling

Estimation of PD, LGD and EAD for non-retail

exposures

Month 7 Month 12


Review of Parallel run (capital charge under IRB in

comparison with standardized approach) Month 13 Month 18

Assistance in preparing application for approval from

RBI Month 19 Month 21


implementation of IMA Month 4 Month 6

Implementation of Enterprise wide risk management

architecture for complying with IMA Approach Month 7 Month 15

Review of Parallel run (capital charge under IMA in

comparison with standardized approach) Month 16 Month 21

Gap Analysis & ORM Governance Month 4 Month 6

Classification of business lines under TSA Month 7 Month 8


implementation of AMA

Risk & Control Self Assessments

Development of Loss event management

framework

Development of KRI framework

Month 9 Month 15

Methodology and framework for quantifying

operational risk under AMA Month 16 Month 18

Internal Audit Convergence, new product/process

approval and Use test approaches/ Validations for

complying with AMA Month 19 Month 20

Review the results of Parallel run under AMA Month 19 Month 24

Assistance in preparing application for approval for

AMA and obtaining Approval from RBI Month 22 Month 24

Basel III, ALM and FTP Month 13 Month 18

Preparation of RFP document for selection of vendor for

supply of hardware and software required for

implementation

Month 7 Month 12

The above time frame does not take into account time taken for obtaining approval. As

indicated in this RFP, the consultant is bound to provide his assistance in getting

approval, in spite of the duration of delay in getting approval. The bank may prior to the

date of signing contract, alter the time frame specified above after obtaining the consent

of the selected bidder.

13. GENERAL TERMS AND CONDITIONS

Consultant should compulsorily respond to any clarification (technical, functional,

commercial) letter/E-mail sent by the bank.


The assignment shall be completed within the specified time frame agreed upon in the

contract/ proposal/ bid or two years, whichever is shorter.

The South Indian Bank Limited reserves the right to open the quotations soon after their

receipt from all the Consultants without waiting till the last date specified.

Continuity of project team members of Consultancy should be ensured during the period

of project.

Bid should necessarily include the particulars prescribed in Annexure-1. Bids not

containing these particulars will be rejected.

Presence of any incomplete or ambiguous terms/ conditions/ quotes will disqualify the

offer.

The Bank reserves the right to cancel the contract entered with the selected Consultant if

the Consultant commits a breach of any of the terms and conditions of the bid.

The South Indian Bank Limited is not responsible for non-receipt of quotations within the

specified date and time due to any reason including postal holidays, or other types of

delays.

The South Indian Bank Limited is not bound to place the order from the lowest price

bidder or the most competent consultant.

Consultant shall share its technology strategies and research & development efforts,

conducted in the course of this assignment with The South Indian Bank Limited.

All inquiries, communications and requests for clarification shall be submitted in Hard

copies/e-mail to The South Indian Bank Limited and response for the same shall be

obtained in writing. Only such documents shall be considered as authoritative.

Successful consultant shall be responsible for compliance with all requirements under the

laws and shall protect and indemnify completely The South Indian Bank Limited from

any claims /penalties arising out of any infringements.

All intellectual property related to the project shall be the property of The South Indian

Bank Limited and The South Indian Bank Limited reserves the right from its sole

discretion to implement the same at other centers in future with/without involving

successful consultant.

Consultant should ensure that all points in the RFP document are taken into account

before submitting the Bid Documents.

Consultant should have implemented similar assignment and necessary verifiable

references in this effect should be submitted with the proposal.

Consultants are bound to make full disclosure of information required to judge them on

the basis of selection criteria specified in Point No.8 and Point No.9

14. LITIGATION

If it comes to the notice of the Bank that the consultant has suppressed any information

either intentionally or otherwise, or furnished misleading or inaccurate information, the

Bank reserves the right to disqualify the consultant. If such information comes to the

knowledge of the Bank after the award of work, The South Indian Bank Limited reserves

the right to terminate the Contract unilaterally at the total cost and risk of the consultant.


The Bank also reserves the right to recover any dues payable by the selected consultant

from any amount outstanding to his credit, including the pending bills etc., if any. The

Bank will also reserve the right to recover any Advance paid.

Governing Law: - The Contract/Agreement shall be governed in accordance with the

laws of Republic of India. These provisions shall survive the Contract/Agreement.

Jurisdiction of Courts:-The courts of India at Thrissur have exclusive jurisdiction to

determine any proceeding in relation to the Contract/Agreement. These provisions shall

survive the Contract/Agreement.

Work under the Contract shall be continued by the selected consultant during the

arbitration proceedings unless otherwise directed in writing by the Bank unless the matter

is such that the works cannot possibly be continued until the decision of the arbitrator or

of the umpire, as the case may be, is obtained. Except as those which are otherwise

explicitly provided in the Contract/this document, no payment due or payable by the

Bank, to the Consultant shall be withheld on account of the ongoing arbitration

proceedings, if any, unless it is the subject matter or one of the subject matter thereof.

The venue of the arbitration shall be at Thrissur, Kerala State, India.

15. INFORMATION SECURITY

a. The consultant/Bidder and its personnel shall not carry any written material, layout,

diagrams, floppy diskettes, hard disk, storage tapes or any other media out of The South

Indian Bank Limited‟ s premises without written permission from The South Indian Bank

Limited.

b. The consultant / Bidder shall acknowledges that The South Indian Bank Limited‟s

business data and other proprietary information or materials, whether developed by The

South Indian Bank Limited or being used by The South Indian Bank Limited pursuant to

a license agreement with a third party (the foregoing collectively referred to herein as

“proprietary information”) are confidential and proprietary to The South Indian Bank

Limited; and the consultant / Bidder shall agrees to use reasonable care to safeguard the

proprietary information and to prevent the unauthorized use or disclosure thereof.The

caution exercised by the consultant shall not be less than that used by consultant / Bidder

to protect its own proprietary information. The Consultant / Bidder recognizes that the

goodwill of The South Indian Bank Limited depends, among other things, upon

consultant / Bidder keeping such proprietary information confidential and that

unauthorized disclosure of the same by consultant / Bidder could damage The South

Indian Bank Limited. Consultant / Bidder shall use such information only for the purpose

of rendering the Service(s) to The South Indian Bank Limited.

c. The consultant / Bidder‟s personnel shall follow The South Indian Bank Limited‟s

Information System security policy and instructions in this behalf.

d. The consultant / Bidder shall, upon termination of the Contract/Agreement for any

reason, or upon demand by The South Indian Bank Limited, whichever is earliest, return

any and all information provided to consultant / Bidder by The South Indian Bank

Limited, including any copies or reproductions, both hardcopy and electronic.


Annexure-1

Particulars to be furnished in the bid/ proposal

Name of the organization

Office Address

Email Address

Contact Person with telephone number

Constitution of the organization

Income Tax / PAN Details/Service Tax Reg.No, if any

Registered / Corporate Office Location

Business Lines and Brief Description

Curriculum Vitae of Key project team members

Total cost of assignment in INR. The total cost should be clearly bifurcated into out of

pocket expenses and fee

All other details required to judge the bidder based on the criteria specified in Point 8 and

Point 9.

Scope of the assignment

Period of validity of the bid/proposal

Detailed work schedule which specify the work to be completed in each month.

Methodology/approach for providing services to the bank with respect to the scope of

consultancy work as specified in the format given in Annexure-5

Any other important point, whether consultant would like to mention

The undertaking in the format specified in Annexure-4

Name and designation of the person authorized to make commitments to The South

Indian Bank Limited

Requirements from the Bank for implementing the assignment. This should include the

details of the manpower required from the Bank to implement the framework in terms of

the RFP.

A realistic time schedule for implementation of the assignment whose scope is described

in this RFP. Kindly note that this time schedule will form part of contract proposed to be

entered with bank.

DECLARATION in the format given below.

„We hereby declare that the information submitted above is complete in all respects and

true to the best of our knowledge. We understand that in case any discrepancy or

inconsistency or incompleteness is found in the information submitted by us, our

application is liable to be rejected

Authorised Signatory‟


Annexure 2

Format for furnishing the profile of the consulting

Project Manager, team leader and members:

(On organizations‟ letter head)

1. Name:

2. Designation:

3. Professional Qualifications:

4. Period and nature of experience with the consulting (bidding) organization:

5. Period and nature of experience with other organizations:

6. IT Expertise in terms of years and areas of expertise:

7. Details of projects handled / consultancy services rendered with details of client, representing

which organization, as member of the team or team leader or project leader etc:

Note: The detailed CV to be submitted along with the Technical Bid including at the minimum

above mentioned details.

The abovementioned details of the team members who is expected to work under the following

areas should be given separately.-

1. Credit risk

2. Operational risk

3. Market risk

4. Pillar-II- ICAAP Development and implementation

5. Basel-III

6. ALM

7. FTP

8. Selection of systems(software and hardware), customization and UAT

Authorised Signatory


Annexure-3

Forwarding Letter Format

(On organization‟s letter head)

Bid Reference No. : Date:

The Chief General Manager





Thrissur , Kerala,

India – 680001

Dear Sir,

Subject: Consultancy for Implementation of Advanced Approaches of Basel-II,

Achieving compliance with Basel III norms and Refinement of FTP & ALM in line with RBI &

International Best Practices in an Enterprise wide Integrated Risk Management System

In respect of the providing consultancy support on Implementation of Advanced Approaches of

Basel-II, Achieving compliance with Basel III norms and Refinement of FTP & ALM in line with

RBI & International Best Practices in an Enterprise wide Integrated Risk Management System

meant for The South Indian Bank, please find enclosed our response to your RFP dated

15.06.2013

We agree and undertake that if our bid is accepted, we shall provide the Services comprised in

the Contract within timeframe specified, starting from the date of receipt of notification of award

from The South Indian Bank Limited.

We confirm that we have noted the contents of the RFP, we have not made any modification in

the original copy of RFP, have ensured that there is no deviation in filing our response to the

RFP and are aware that the Bank will have the right to disqualify us in case of any such

modifications or deviations.

We agree and undertake to abide by the RFP terms and conditions, provisions, stipulations and

covenants including the price quoted therein for the period of 90 days from the bid closing date

and it shall remain binding upon us and may be accepted at any time before the expiration of that

period.

All the details mentioned by us are true and correct and if Bank observes any misrepresentation

of facts on any matter at any stage, Bank has the absolute right to reject the bid / proposal and

disqualify us from the selection process.

We agree and undertake to execute a Consultancy Agreement and Non Disclosure Agreement in

the form to be communicated by The South Indian Bank, incorporating all agreements with such

alterations or additions thereto as may be necessary to adapt such agreement to the circumstances


of the standard and notice of the award within time prescribed after notification of your intention

to accept this proposal.

Unless and until a formal Consultancy Agreement is prepared, finalized and executed this bid

together with the entire set of documents, technical presentations and the written acceptance

thereof by The South Indian Bank, shall constitute a binding Agreement between The South

Indian Bank and us.

We understand that you are not bound to accept the lowest or any bid that you may receive; not

to give any reason for rejection of any bid and that you will not defray any expenses incurred by

us in biding.

We are also aware that The South Indian Bank has also right to re-issue / recommence the bid, to

which we do not have right to object and have no reservation in this regard; the decision of The

South Indian Bank in this regard shall be final, conclusive and binding upon us.

We enclose a Demand Draft /Bankers' Cheque bearing No……………. dated ……/ …../20

drawn by ……….. Bank, branch, in favour of The South Indian Bank, payable at Thrissur for a

sum of Rs10,000/.(Rupees Ten Thousand. only) towards non-refundable Bid document price

The entire set of RFP documents together with The South Indian Bank‟s acceptance of

expression of interest, etc. are enclosed hereto and form the part of this Bid.

Dated this _____ day of ____________________ 2013 at

Signature

(Seal)

In the capacity of ……………………………..

Duly authorized to sign bids for and on behalf of:


Annexure 4

Undertaking Format


1. This is to certify that the information furnished here in and as per the document submitted is

true and accurate and nothing has been concealed or tampered with. We have gone through

all the conditions of RFP document and is liable to any punitive action for furnishing false

information / documents.

2. We (and our employees) shall not, unless Bank gives permission in writing, disclose any

part or whole of this RFP document or any addition or amendments thereof, of the proposal,

and / or contract, or any specification, plan, drawing, pattern, sample or information

furnished by the Bank (including the users), in connection therewith to any person other than

a person employed by the bidder in the performance of the proposal and/or contract.

Disclosure to any such employed person shall be made in confidence and shall extend only

as far as may be necessary for purposes of such performance. The employees or the third

party engaged by us will maintain strict confidentiality.

3. We (and our employees and agents) shall not without prior written consent from the Bank

make any use of any document or information given by the user, except for purposes of

performing the contract award. In case of breach, the Bank shall take such legal action as

deemed fit.

4. We hereby declare that no inquiries or investigations have been threatened, commenced or

pending against by any statutory or regulatory or investigative agencies or lending

institutions.

5. We undertake that in competing for and if the award is made to us, in executing the subject

Contract, we will strictly observe the laws against fraud and corruption in force in India

namely “Prevention of Corruption Act 1988”.

Dated this _____ day of ____________________ 20

Signature

(Company Seal)

In the capacity of

Duly authorized to sign bids for and on behalf of


Annexure-5

Bidder‟s proposed methodology / approach for providing services to the Bank with respect

to the scope of consultancy work:

(A) Proposed methodology / approach on the following areas:

(B) Credit risk

(C) Operational risk

(D) Market risk

(E) Pillar-II- ICAAP Development and implementation

(F) Basel-III

(G) ALM

(H) FTP

(I) Selection of systems(software and hardware), customization and UAT

(J) Details of deliverables, other than the deliverables specified by the bank, proposed by the

bidder with specific reference to the scope of work:

Place :

Date: SEAL (Authorized Signatory)


Annexure-6

Commercial Bid

(To be included in Commercial Proposal Envelope)

Date: ..............................

Sir,

In terms of the above-mentioned RFP document we submit herewith the commercial bid (fees)

for the assignment proposed by the Bank as Consultant. (Commercial bid should be divided for

each area of work and phase-wise separately)

Area of

Work Phase Description

Estimated

Effort

(In man days)

Cost(Rs)

Credit

Risk

Phase I Preparatory tasks to be performed

prior to implementation of IRB

Phase II

Implementation of Enterprise wide

risk management architecture for

complying with IRB Approach

Phase III Review the results

of Parallel run

Phase IV

Assistance in preparing application

for approval and obtaining

Approval from RBI

Market

Risk


prior to implementation of IMA

Phase II



complying with IMA Approach

Phase III Review the results

of Parallel run

Phase IV



Approval from RBI

Operational

Risk


prior to implementation of AMA

Phase II



complying with AMA Approach

Phase-III Review the results

of Parallel run

Phase IV



Approval from RBI


Basel III Phase I Achieving compliance with the

Basel III guidelines of RBI

ALM

&

FTP

Phase I

Refinement of FTP & ALM in line

with RBI & International Best

Practices in an Enterprise wide

Integrated Risk Management

System

Sub Total

Out of Pocket expenses

Service Tax @ Applicable rates

TOTAL COST

TERMS AND CONDITIONS

The above quoted fee is for all the work streams (areas of work) and phases.

The fee quoted includes the cost of all the deliverables in the scope of work in the RFP.

The Bank will deduct applicable TDS, while releasing payment, applicable as per the law.

Some of the activities mentioned above can be taken up by the selected bidders

simultaneously for completion of the assignment in time.

Bid Cost should be on absolute basis and not on the basis of man-days

The total cost should include all nature of expenses including out of the pocket expenses.

We confirm that we will abide by all the terms and conditions mentioned in the RFP.

Dated this...................... day of ............................ 2013.

________________ _____________________________

(Signature) (in the capacity of)

Duly authorized to sign Proposal for and on behalf of _______________________


Annexure-7

Agreement Form

THIS AGREEMENT (the Agreement) made at…………………the………day of

……………………. 2013.

BETWEEN

The South Indian Bank Limited a company registered under the Companies Act, 1956 (1

of1956) and a banking company within the meaning of SECTION 5(c) of the Banking Regulation

Act, 1949 (10 of 1949) and having its registered office at The South Indian Bank Limited,

SIB House, Mission Quarters, Thrissur – 680 001 (hereinafter called “The South Indian Bank

Limited / Purchaser ” which expression shall unless it be repugnant to the subject, context or

meaning thereof shall be deemed to mean and include its successors and assigns) of the ONE

PART

AND

……………. (Name of successful Bidder / Consultant) of …………………… (Please specify the

registered office of the (Consultant) (hereinafter called “the Consultant which expression shall

unless it be repugnant to the subject, context or meaning thereof shall be deemed to mean and

include its successors) of the OTHER PART.

The Purchaser and Consultant are hereinafter collectively referred to as "Parties".

WHEREAS the Purchaser invited bids for certain Services namely „Consultancy Service for

Implementation of Advanced Approaches of Basel-II,

Achieving compliance with Basel III norms and Refinement of FTP & ALM in line with

RBI & International Best Practices in an Enterprise wide Integrated Risk Management

System‟ and has accepted a bid by the Consultant for rendering of the Services for the sum of

………………………( Contract Price in Words and Figures) (hereinafter called “the Contract

Price”).

NOW THIS AGREEEMENT WITNESSETH AND IT IS HEREBY AGREED BY AND

BETWEEN THE PARTIES HERETO AS FOLLOWS

In consideration of the payments to be made by the South Indian Bank Limited to the Consultant

as hereinabove mentioned, the Consultant hereby agrees with the Purchaser to provide / render the

Services, to furnish necessary undertakings, etc. as mentioned in the RFP document / the said

documents, strictly in conformity in all respects with the provisions of the said documents

(1) In this Agreement words and expressions shall have the same meanings as are respectively

assigned to them in the terms and conditions of RFP / Contract / Agreement referred to.


(2) The RFP Document titled_________________________ shall be deemed to form and be

read and construed as part of this Agreement, which, inter alia, includes

a. Scope of Work

b. Objective of RFP document

c. Eligibility Criteria

d. General terms and conditions

e. Invitation of bids

f. Payment terms

(All the above are collectively referred to as "the said documents")

(3) The Purchaser hereby agrees and covenants to pay the Consultant in consideration of the

rendering of the Services and the remedying of defects, if any therein, etc., the Contract price

or such other sum as may become payable under the provisions of the said documents at the

times and in the manner prescribed by the said documents

(4) The Consultant shall provide the services and other incidental documents / records as per the

scope of the service / work as contained in the RFP documents / the said documents

(5) All applicable taxes shall be deducted by the South Indian Bank Limited at source according

to the tax rate prevalent at the time of making payment.

(6) The Contract price quoted by the consultant in RFP document shall be finalized and

inclusive of all duties, service tax ,levies, other taxes, traveling expenses , lodging /boarding,

local conveyance or any other expenses of whatsoever nature for the said service.

(7) In order to induce The South Indian Bank Limited to enter into the Contract/Agreement, the

Consultant hereby make following representations

a. It is duly organized and validly existing organization under Indian Laws.

b. It has power and authority to execute and deliver this Agreement/Contract and has taken

all necessary steps to authorize execution, delivery and performance of this

Agreement/Contract

c. It has power and authority to do all things necessary and appropriate and to perform

Services contemplated under this Agreement/Contract

d. neither the execution and delivery by the Consultant of the Contract/Agreement nor the

Consultant's compliance with or performance of the terms and provisions of the

Contract/Agreement (i) will contravene any provision of any applicable law or any order,

writ, injunction or decree of any court or governmental authority binding on the

Consultant (ii) will conflict or be inconsistent with or result in any breach of any of the

terms, covenants, conditions or provisions of, or constitute a default under any

agreement, contract or instrument to which the Consultant is a party or by which it or any


of its property or assets is bound or to which it may be subject or (iii) will violate any

provision of the Memorandum and Articles of Association/ partnership deed of the

Consultant

e. has made or shall make all necessary arrangement for performance of the services. In

case of failure on the part of Consultant to provide any part of services as mentioned The

South Indian Bank Limited has a right not to pay for such particular part of services

f. That the Consultant is a company/ partnership firm which has the requisite qualifications,

skills, experience and expertise to give service to third parties

g. That Consultant possesses the technical know-how, the financial wherewithal, the power

and the authority to enter into the Contract /Agreement.

h. That the Consultant is not involved in any litigation, potential, threatened and existing,

that may have an impact of affecting or compromising the performance of Service under

the Contract/Agreement. No inquiries or investigations have been threatened,

commenced or pending against the Consultant or its team members by any statutory or

regulatory or investigative agencies.

i. That the representations made by the Consultant in its bid are and shall continue to

remain true and fulfill all the requirements as are necessary for executing the duties,

obligations and responsibilities as laid down in the Contract/Agreement and the Bid

Documents and unless The South Indian Bank Limited specifies to the contrary, the

Consultant shall be bound by all the terms of the bid

j. That the Consultant has the professional skills, personnel and resources/authorizations

that are necessary for giving the Service or to perform its obligations under the bid and

this Contract/Agreement

k. That the execution of the Service herein is and shall be in accordance and in compliance

with all applicable laws

l. That all conditions precedent under the Contract/Agreement / bid document have been

complied.

m. That the Consultant certifies that all registrations, recordings, filings and notarizations of

the Contract/Agreement and all payments of any tax or duty, registration charges or

similar amounts which are required to be effected or made by the Consultant which is

necessary to ensure the legality, validity, enforceability or admissibility in evidence of the

Contract/Agreement have been made.

n. That the Consultant confirms that there has not and shall not occur any execution,

amendment or modification of any agreement/contract without the prior written consent


of The South Indian Bank Limited , which may directly or indirectly have a bearing on

the Contract/Agreement

(8) Termination of Agreement /Contract

The South Indian Bank Limited may terminate this Agreement/Contract for any breach of the

terms and conditions of this Agreement/Contract / bid by giving 15 days notice to the

Consultant requiring it to make good the default(s) within notice period.

Termination of this Agreement/Contract shall not affect or prejudice any provisions of this

Agreement/Contract, which are expressly or by implication provided to continue in effect

after such termination

The South Indian Bank Limited may impose penalty, in case of delay of any deliverables at

the rate of 1% of the total Contract Price per week, or part thereof, of delay, subject to a

maximum of 10% of total Contract Price, for the delays attributable to Consultant. If the

delay exceeds six weeks, The South Indian Bank limited reserves the right to terminate the

services Agreement unconditionally and claim damages

(9) Notices

All notices in connection with this Agreement/Contract, shall be given in writing hand

delivered or sent by courier or by facsimile transmission, confirmed by courier to the address

or fax number specified below, or to such other address or number which the parties may

have last specified. All such notices shall be effective upon receipt to

The South Indian Bank Limited

SIB House

Mission Quarters,

Thrissur – 680 001 Fax No:-0487-2424551

Consultant,

Address

Either of the parties hereto may by notice change the address to which such notices and

communication are to be delivered or transmitted

(10) Compliance with RBI and other Regulatory Requirements

The Consultant shall individually obtain the necessary regulatory approvals from the RBI or

other regulatory bodies, if any required, for the Contract .Any demand for information

regarding any of the matters to the extent mutually agreeable under this Agreement called for

by the RBI or any other regulatory body shall be promptly responded to by the concerned

Party. The Consultant undertakes to comply all the statutory and regulatory requirements

under the applicable laws in connection with Service including Labour and Industrial Laws.


(11) Governing Law

The provisions of this Agreement shall be governed by the laws of India and the competent

court at Thrissur shall have exclusive jurisdiction in relation thereto even though other Courts

in India may also have similar jurisdictions.

(12) Headings

The heading of various Articles and Sections herein are for convenience of reference and are

not deemed to affect the construction of the relative provisions

(13) Effective date and validity

This Agreement/Contract shall become binding on the parties on and from ____________. It

shall be in force until its termination or _____________________, whichever is earlier

(14) Force Majeure

If the performance as specified in this Contract/Agreement is prevented, restricted, delayed

or interfered by reason of: Fire, explosion, cyclone, floods, war, revolution, acts of public

enemies, blockage or embargo, any law, order, proclamation, ordinance demand or

requirements of any Government or authority or representative of any such Government or

regulations , strikes, shutdowns or labor disputes which are not instigated for the purpose of

avoiding obligations herein, then, notwithstanding anything here before contained, the party

affected shall be excused from its performance to the extent such performance relates to

prevention, restriction, delay or interference and provided the party so affected uses its best

efforts to remove such cause of non- performance and when removed the party shall continue

performance with utmost dispatch

If a Force Majeure situation arises, the Consultant shall promptly notify The South Indian

Bank Limited in writing of such conditions and the cause thereof. Unless otherwise directed

by The South Indian Bank Limited in writing, the Consultant shall continue to perform its

obligations under the Contract/Agreement as far as is reasonably practical and shall seek all

reasonable alternative means for performance not prevented by the Force Majeure event.

The South Indian Bank Limited may terminate the Contract/Agreement, by giving a written

notice of minimum 15 days to the Consultant, if as a result of Force Majeure the Consultant

is unable to perform a material portion of the work assigned to him for a period of more than

30 days.


IN WITNESS WHEREOF the Parties hereto have caused this Agreement to be executed on

the day, month and year first above written.

Signed and Delivered by

The within named

The South Indian Bank Limited/ Purchaser

Signature:

Name

Date: - ….......................

IN THE PRESENCE OF

1. Signature : 2. Signature :

Name : Name :

Address : Address :

Signed and Delivered by ......... .........................

the within named

Consultant

M/s. ..................................

.................................

Date :- .......................

IN THE PRESENCE OF :

1. Signature : 2. Signature :

Name : Name :

Address : Address :


Annexure 8

Performance Bank Guarantee Format

Bank Guarantee No. :

Bank Guarantee Amount :

Expiry Date :

Claim Period :

Account :

GUARANTEE FOR PERFORMANCE OF CONTRACT/AGREEMENT

THIS GUARANTEE AGREEMENT executed at ________ day of_____________ Two

Thousand Thirteen

BY :

______________________ Bank, a body corporate constituted under _______________, having

its Registered Office/ Head Office at ______________, and a Branch Office

at_____________________________________________________ (hereinafter referred to as

“the Guarantor”, which expression shall, unless it be repugnant to the subject, meaning or

context thereof, be deemed to mean and include its successors and assigns)

IN FAVOUR OF:

The South Indian Bank Limited, a body corporate, established under the Companies Act 1956

and having its Registered Office at SIB House, Mission Quarters, Thrissur, Kerala – 680001

(hereinafter referred to as “Bank” which expression shall unless it be repugnant to the subject,

meaning or context thereof, be deemed to mean and include its successors and assigns),

WHEREAS Bank had called for the bids for engagement of Consultant who can provide

professional, objective and impartial advice on the domain of Integrated Risk Management and

procurement of the related software solution and for the purposes M/s………………………

have been appointed as the Consultant (hereinafter referred to as " Consultant") and accordingly

has entered into Contract / Agreement on ……….. (Agreement) with Bank subject to the terms

and conditions contained in the said documents and the Consultant has duly confirmed the same.

AND WHEREAS pursuant to the Bid Documents, the Agreement, and the other related

documents (hereinafter collectively referred to as “the said documents”, the Bank has agreed to

avail from M/s……………………. and M/s……………………………. has agreed to provide to

the Bank, the Services more particularly described in the the said documents (hereinafter

collectively referred to as “the Services”), subject to payment of the contract price as stated in

the said documents and also subject to the terms, conditions, covenants, provisions and

stipulations contained the said documents.


AND WHEREAS the Consultant has duly signed the said documents.

AND WHEREAS in terms of the said documents, inter alia, the Consultant is required to procure

an unconditional and irrevocable performance Bank guarantee, in favour of the Bank, from a

Bank acceptable to the Bank for a sum of Rs…………………………………

(Rupess…………………………………………………….. Only) being 100% of the total

contract value for the faithful observance and performance by the Consultant of the terms,

conditions, covenants, stipulations, provisions of the Agreement /the said documents.

AND WHEREAS at the request of the Consultant, the Guarantor has agreed to issue the

guarantee in favour of the Bank for a sum of Rs. ………………………………

(Rupees………………………………………………..Only) being the 100% of the total Contract

value

AND WHEREAS at the request of the Consultant, the Guarantor has agreed to guarantee the

Bank that the Consultant shall faithfully observe and perform the terms of the said documents

NOW THEREFORE THIS AGREEMENT WITNESSETH AS FOLLOWS:

In consideration of the above premises, the Guarantor hereby unconditionally, absolutely and

irrevocably guarantees to the Bank as follows:

(1) The guarantor hereby agree and guarantee that the Consultant shall faithfully observe and

perform all the terms and conditions stipulated in the Contract/Agreement and the said

documents.

(2) The Guarantor hereby guarantees and undertakes to pay, on demand and without demur,

reservation, contest, recourse or protest or without any reference to the Consultant, to the Bank at

its office at Bangalore forthwith, and all monies payable by the Consultant to the extent of

Rs.………………………………………. against any loss, costs, damages, etc. suffered by the

Bank on account of default of the Consultant in the faithful observance and performance of the

terms, conditions, covenants, stipulations, provisions of the Agreement / said documents, without

any demur, reservation, contest, recourse or protest or without any reference to the Consultant.

Any such demand or claim made by the Bank, on the Guarantor shall be final, conclusive and

binding notwithstanding any difference or any dispute between the Bank and the Consultant or

any dispute between the Bank and the Consultant pending before any Court, Tribunal, Arbitrator,

or any other authority.

(3) The Guarantor agrees and undertakes not to revoke this Guarantee during the currency of

these presents, without the previous written consent of the Bank and further agrees that the

Guarantee herein contained shall continue to be enforceable until and unless it is discharged

earlier by the Bank, in writing.

(4) The Bank shall be the sole judge to decide whether the Consultant has failed to perform the

terms of the Agreement / said documents for providing the Services by the Consultant to the


Bank, and on account of the said failure what amount has become payable by the Consultant to

the Bank under this Guarantee. The decision of the Bank in this behalf shall be final, conclusive

and binding on the Guarantor and the Guarantor shall not be entitled to demand the Bank to

establish its claim under this Guarantee but shall pay the sums demanded without any objection,

whatsoever.

(5) To give effect to this guarantee, the Guarantor will be deemed to be the Principal Debtor to

the Bank.

(6) The liability of the Guarantor, under this Guarantee shall not be affected by

(a) any change in the constitution or winding up of the Consultant or any absorption,

merger or

(b) amalgamation of the Consultant with any other company, corporation or concern; or

(c) any change in the management of the Consultant or takeover of the management of the

Consultant by the Government or by any other authority; or

(d) acquisition or rationalization of the Consultant and/or of any of its undertaking(s) pursuant to

any law; or

(e) any change in the constitution of Bank / Consultant; or

(f) any change in the set up of the Guarantor which may be by way of change in the constitution,

(g) winding up, voluntary or otherwise, absorption, merger or amalgamation or otherwise; or the

absence or deficiency of powers on the part of the Guarantor to give Guarantees and/or

Indemnities or any irregularity in the exercise of such powers.

(7) This Bank guarantee shall be valid for 3 year from the date of signing the contract.

(8) Notwithstanding anything contained in this Guarantee, the Guarantor hereby agrees and

undertakes to extend the validity period of this guarantee for a further period as may be requested

by the Bank, from time to time.

(9) This guarantee shall be binding upon us and successors -in - interest and shall be irrevocable.

(10) For all purposes connected with this Guarantee and in respect of all disputes and differences

under or in respect of these presents or arising there from the courts of Thrissur where the Bank

has its Registered Office shall alone have jurisdiction to the exclusion of all other courts.

(11) Notwithstanding anything contained herein above

I. Our liability under this Bank Guarantee shall not exceed Rs……………………………….

(Rupees ……………………….. only)

III. This Bank Guarantee shall be valid up to………………………….


IV. We are liable to pay the guaranteed amount or any part thereof under this Bank Guarantee

only and only if you serve on us a written claim or demand on or

before ……………………………..…

IN WITNESS WHEREOF the Guarantor has caused these presents to be executed on the day,

month and year first herein above written as hereinafter appearing.

SIGNED AND DELIVERED BY

the within named Guarantor,

________________________________,

by the hand of Shri.____________________, its authorised official.


Annexure-9

Non-Disclosure Agreement Form

This Non-Disclosure Agreement made and entered into at …………………. this…….day of

……………….. 2013

BY AND BETWEEN

………………………………… Company Limited, a company incorporated under the

Companies Act, 1956 having its registered office at ….………. (hereinafter referred to as the

Consultant, which expression unless repugnant to the context or meaning thereof be deemed to

include its permitted successors) of the ONE PART;

AND

The South Indian Bank Limited, a company registered under the Companies Act, 1956 and a

banking company within the meaning of the Banking Regulation Act, 1949 having its registered

office at SIB House, Mission Quarters, Thrissur, Kerala -680001 (hereinafter referred to as “The

South Indian Bank Limited” which expression shall unless repugnant to the context or meaning

thereof be deemed to include its successors and assigns) of the OTHER PART.

The Consultant and the South Indian Bank Limited are hereinafter collectively referred to as “the

Parties”and individually as “the Party”

WHEREAS:

1. The South Indian Bank Limited is engaged in banking business and intends to appoint a

consultant for implementing advanced approaches under Basel-II, for assisting in

compliance with Basel- III norms and refinement of ALM and FTP Gap Analysis, the scope

of which is specified in Point.4 of RFP Dt.15.06.2013. In the course of such assignment, it is

anticipated that The South Indian Bank Limited or any of its officers, employees, officials,

representatives or agents may disclose, or deliver, to the Consultant some Confidential

Information (as hereinafter defined), to enable the Consultant to carry out the aforesaid

exercise (hereinafter referred to as " the Purpose").

2. The Consultant is aware and confirms that the information, data and other documents made

available in the Agreement /Contract and thereafter regarding the services as furnished by

the Consultant in its RFP or otherwise.

3. The Consultant is aware that all the confidential information under the Bid documents / the

Agreement / Contract is privileged and strictly confidential and/ or proprietary to The South

Indian Bank Limited.

NOW, THEREFORE THIS AGREEMENT WITNESSETH THAT in consideration of the above

premises and the The South Indian Bank Limited granting the Consultant and or his agents,


representatives to have specific access to The South Indian Bank Limited property / information

and other data it is hereby agreed by and between the parties hereto as follows:

1. Confidential Information:

(i)“Confidential Information” means all information disclosed/furnished by The South Indian

Bank Limited to the Consultant whether orally, in writing or in electronic, magnetic or other

form for the limited purpose of enabling the Consultant to carry out the assignment, and shall

mean and include data, documents and information or any copy, abstract, extract, sample, note or

module thereof, explicitly designated as "Confidential"; Provided the oral information is set forth

in writing and marked"Confidential" within seven (7) days of such oral disclosure.

(ii) Information such as (i) intellectual property information; (ii) technical or business

information or material not covered in (i); (iii) proprietary or internal information relating to the

current, future and proposed products or services of the Parties including, financial information,

process/flow charts, business models, designs, drawings, data information related to products and

services, procurement requirements, purchasing, customers, investors, employees, business and

contractual relationships, business forecasts, business plans and strategies, information the

Parties provide regarding third parties; (iv) information disclosed pursuant to this Contract

including but not limited to Information Security policy and procedures , internal policies and

plans and Organization charts etc; and (v) all such other information which by its nature or the

circumstances of its disclosure is confidential

(iii) “Intellectual Property Rights” means any patent, copyright, trademark, trade name, design,

trade secret, permit, service marks, brands, propriety information, knowledge, technology,

licenses, databases, computer programs, software, know-how or other form of intellectual

property right, title, benefits or interest whether arising before or after the execution of this

Contract and the right to ownership and registration of these rights.

iv) The Consultant may use the Confidential Information solely for and in connection with the

Purpose and shall not use the Confidential Information or any part thereof for any reason other

than the Purpose stated above.

Confidential Information in oral form must be identified as confidential at the time of disclosure

and confirmed as such in writing within 15 days of such disclosure.

Confidential Information does not include information which:

(a) Is or subsequently becomes legally and publicly available without breach of this Agreement.

(b) was rightfully in the possession of the Consultant without any obligation of confidentiality

prior to receiving it from The South Indian Bank Limited, or prior to entering into contract, the

recipient shall have the burden of proving the source of information herein above mentioned and

are applicable to the information in the possession of the recipient.


(c) was rightfully obtained by the Consultant from a source other than The South Indian Bank

Limited without any obligation of confidentiality,

(d) was developed by for the Consultant independently and without reference to any

Confidential Information and such independent development can be shown by documentary

evidence, or is/was disclosed pursuant to an order of a court or governmental agency as so

required by such order, provided that the Consultant shall, unless prohibited by law or regulation,

promptly notify The South Indian Bank Limited of such order and afford The South Indian Bank

Limited the opportunity to seek appropriate protective order relating to such disclosure.

(e) the recipient knew or had in its possession, prior to disclosure, without limitation on its

confidentiality;

(f) is released from confidentiality with the prior written consent of the other party.

The recipient shall have the burden of proving hereinabove are applicable to the information in

the possession of the recipient.

Confidential Information shall at all times remain the sole and exclusive property of the

disclosing party. Upon termination of this Agreement, Confidential information shall be returned

to the disclosing party or destroyed, if incapable of return. The destruction shall be witnessed and

so recorded, in writing, by an authorised representative of each of the parties. Nothing contained

herein shall in any manner impair or affect rights of The South Indian Bank Limited in respect of

the Confidential Information.

In the event that any of the Parties hereto becomes legally compelled to disclose any

Confidential Information, such Party shall give sufficient notice to the other party to enable the

other Party to prevent or minimize to the extent possible, such disclosure. Neither party shall

disclose to a third party any Confidential Information or the contents of this Agreement without

the prior written consent of the other party. The obligations of this Clause shall be satisfied by

handling Confidential Information with the same degree of care, which the receiving party

applies to its own similar confidential information but in no event less than reasonable care. The

obligations of this clause shall survive the expiration, cancellation or termination of this

Agreement

2. Non-disclosure:

The Consultant shall not commercially use or disclose any Confidential Information or any

materials derived there from to any other person or entity other than persons in the direct

employment of the Consultant who have a need to have access to and knowledge of the

Confidential Information solely for the Purpose authorized above. The Consultant shall take

appropriate measures by instruction and written agreement prior to disclosure to such employees

to assure against unauthorized use or disclosure. The Consultant agrees to notify The South

Indian Bank Limited immediately if it learns of any use or disclosure of the Confidential


Information in violation of terms of this Agreement.

Notwithstanding the marking and identification requirements above, the following categories of

information shall be treated as Confidential Information under this Agreement irrespective of

whether it is marked or identified as confidential:

a) Information regarding The South Indian Bank Limited and any of its Affiliates, customers

and their accounts (“Customer Information”). For purposes of this Agreement, Affiliate means a

business entity now or hereafter controlled by, controlling or under common control. Control

exists when an entity owns or controls more than 50% of the outstanding shares or securities

representing the right

to vote for the election of directors or other managing authority of another entity; or

b) any aspect of The South Indian Bank Limited's business that is protected by patent,

copyright, trademark, trade secret or other similar intellectual property right; or

c) Business processes and procedures; or

d) Current and future business plans; or

e) Personnel information; or

f) Financial information.

g) Capital adequacy computation workings

3. Publications:

The Consultant shall not make news releases, public announcements, give interviews, issue or

publish advertisements or publicize in any other manner whatsoever in connection with this

Agreement, the contents / provisions thereof, other information relating to this Agreement,

including references whether through media, social network or otherwise, the Purpose, the

Confidential Information or other matter of this Agreement, without the prior written approval

Of The South Indian Bank Limited.

4. Term:

This Agreement shall be effective from the date hereof and shall continue till expiration of the

Purpose or termination of this Agreement by The South Indian Bank Limited, whichever is

earlier. The Consultant hereby agrees and undertakes to The South Indian Bank Limited that

immediately on termination of this Agreement it would forthwith cease using the Confidential

Information and further promptly return or destroy, under information to The South Indian Bank

Limited, all information received by it from The South Indian Bank Limited for the Purpose,

whether marked Confidential or otherwise, and whether in written, graphic or other tangible

form and all copies, abstracts, extracts, samples, notes or modules thereof. The Consultant


further agrees and undertake to The South Indian Bank Limited to certify in writing upon request

of The South Indian Bank Limited that the obligations set forth in this Agreement have been

complied with.

Any provisions of this Agreement which by their nature extend beyond its termination shall

continue to be binding and applicable without limit in point in time except and until such

information enters the public domain. The Consultant agrees and undertake to treat Confidential

Information as confidential for a period of [five (5)] years from the date of receipt and in the

event of earlier termination of the Contract/Agreement, the Parties hereby agree to maintain the

confidentiality of the Confidential Information for a further period of [two (2)] years from the

date of such early termination.

5. Title and Proprietary Rights:

Notwithstanding the disclosure of any Confidential Information by The South Indian Bank

Limited to the Consultant, the title and all intellectual property and proprietary rights in the

Confidential Information shall remain with The South Indian Bank Limited.

6. Remedies:

The Consultant acknowledges the confidential nature of Confidential Information and that

damage could result to The South Indian Bank Limited if the Consultant breaches any provision

of this Agreement and agrees that, if it or any of its directors, officers or employees should

engage or cause or permit any other person to engage in any act in violation of any provision

hereof, The South Indian Bank Limited may suffer immediate irreparable loss for which

monetary compensation may not be adequate. The South Indian Bank Limited shall be entitled,

in addition to other remedies for damages & relief as may be available to it, to an injunction or

similar relief prohibiting the Consultant, its directors, officers etc. from engaging in any such act

which constitutes or results in breach of any of the covenants of this Agreement. Any claim for

relief to The South Indian Bank Limited shall include The South Indian Bank Limited‟s costs

and expenses of enforcement (including the attorney's fees).

7. Governing Law:

The provisions of this Agreement shall be governed by the laws of India and the competent court

at Thrissur shall have exclusive jurisdiction in relation thereto even though other Courts in India

may also have similar jurisdictions.

8. Indemnity:

The Consultant shall defend, indemnify and hold harmless The South Indian Bank Limited, its

affiliates, subsidiaries, successors, assignees, and their respective officers, directors and

employees, at all times, from and against any and all claims, demands, damages, assertions of

liability whether civil, criminal, tortuous or of any nature whatsoever, arising out of or pertaining

to or resulting from any breach of representations and warranties made by the Consultant. and/or


breach of any provisions of this Agreement, including but not limited to any claim from third

party pursuant to any act or omission of the Consultant, in the course of discharge of its

obligations under this Agreement.

9. General:

The South Indian Bank Limited discloses the Confidential Information without any

representation or warranty, whether express, implied or otherwise, on truthfulness, accuracy,

completeness, lawfulness, and merchantability, fitness for a particular purpose, title, non-

infringement, or anything else.

In witness whereof, the Parties hereto have executed these presents the day, month and year first

herein above written.

For and on behalf of -------------------------- Ltd.

(Designation)

For and on behalf of The South Indian Bank Limited

(Designation)


Annexure-10

Notification of Acceptance


Place:

Date:

To

The Chief General Manager (IRMD)





Thrissur, Kerala,

India – 680001

Dear Sir,

SUB: RFP No IRMD/ RFP /001/2013 Dt 15.06.2013

REF: Your Letter No: - _________________ Dt ________________.

This has reference to your letter on the subject, notifying us about the selection of our bid.

We hereby convey our absolute, unconditional and unqualified acceptance for the work and

activities as per the Scope of Work mentioned in the subject RFP.

Signature of Authorised Person

(Seal)


Annexure 11

Authorization Letter Format


Place:

Date:

To

The Chief General Manager (IRMD)





Thrissur, Kerala,

Dear Sir,

SUB: Authorization Letter for attending the Pre-bid negotiations and signing of contract.

REF: YOUR RFP NO: - IRMD/ RFP /001/2013 Dt 15.06.2013

This has reference to our above RFP for providing consultancy services for Integrated Risk

Management Framework. Mr. / Ms. ________________________________________ is hereby

authorized to attend the Pre-bid negotiations & to discuss, sign agreements/contracts with you on

the subject RFP _____________ on _____________ on behalf of our organization.

The specimen signature is attested below:

______________________________

Specimen Signature of Mr. /Ms.

___________________________ __________________________

Signature of Authorizing Authority Name and designation of Authorizing Authority

____________________________

Name and designation of Attesting Authority

Attested

Photograph

of the Authorized

Representative