L&A

Cir. No. 47/2014

PUNJAB NATIONAL BANK
INTEGRATED RISK MANAGEMENT DIVISION
(CREDIT POLICY SECTION)
HO : 7, Bhikhaiji Cama Place, New Delhi 110 607.



CPY-2
April 23, 2014

TO ALL OFFICES




LOANS & ADVANCES CIRCULAR NO.47

Format for Sanction of Adhoc Limits/ Amendment in Terms
and conditions/Confirmation of Action/ Relaxation in
ROI and Service Charges

Attention of Incumbents is invited to Annexure VII of L&A Circular No. 133
dated 30.8.2008, inter-alia, advising the format for Relaxation in ROI and
Service Charges. Reference may also be made to L&A Circular No. 132 dated
21.10.2009 inter-alia advising Revised Standardized formats for Sanction of
adhoc limits/Confirmation of action/ Amendment of terms & conditions.

2. Based on the experience and feedback, some modifications/additions in
the format available at Annexure have been carried out, so as to make it more
objective and facilitate decision making.

3. It is advised that henceforth, the revised format may be used for
proposals for Adhoc limits/Confirmation of action/Amendment of terms &
conditions/Relaxation in ROI and Service Charges.




(B L PATHEJA)
GENERAL MANAGER

INDEX: LOAN APPLICATION & PROPOSALS

Annexure
Amendment in Terms & Conditions /Sanction of Adhoc limits/Confirmation
of Action / Relaxation in ROI & Service Charges
SANCTIONING AUTHORITY

1. CRR (Score) ABS 31.03.____under
____rating model signifying__________Risk
2. External Rating:_______as per
___________Rating
3. Activity:
4. Group:
5. Banking: Sole/Multiple/Consortium/JLA
6. Lead Bank( if applicable)
7. PNB Share (if applicable)
8. Project Loan( if applicable)
Total cost of project: Rs.________________
Total Debt: Rs.___________
Our share: Rs.___________

MC HO CAC III HO CAC II HO CAC I Others

The proposal falls under the powers of MC/HOCAC III /II /I /Others on account of
____________________

Proposal Tracking No./date

1. Name of the Borrower:
BO & Controlling Office:

(Rs.in crore)
GIST OF THE PROPOSAL

A. Approval for amendments in Terms & Conditions

B. Sanction of Adhoc Limits

Existing Proposed Period of
adhoc
ROI/
Charges
Income earned
(Rs. In lac)
Last year Current
year
FB
NFB
C. For Confirmation of action
(Mention particulars of action to be confirmed)

D. Relaxation in ROI and Service charges

Whether
Adhoc/Confirmation/Amendment/
Relaxation in ROI/service charges

Asset Classification as on_____


Credit Risk Rating by Bank



Facility Rating


RatingDate of
Rating
ScoreABSReasons for
degradation
Present
Previous
Present
Previous

Rating from External Agency (The
external rating should be mapped to
the internal rating)
Facility
Rated
Rating Date
of
Rating
Rating
Agency
Remarks


Whether Agriculture/Retail/
SME/Large

a) Whether Sensitive Sector
Real Estate/Capital Market
b) Applicable Risk weight

Consortium/Multiple Banking
Lead Bank
PNBs Share %
Date of Receipt of Proposal at
BO/CO/HO

Date of last sanction & authority




2 Dealing with PNB since

3 Business Activity (Product)/
Installed Capacity.


4. Position of Account as on______

a) WC Limits
(Rs. in Crore)
Nature Limit VS DP Balance Irregularity, if
any
FB
NFB
Total


b) Term Loan(s)
(Rs. in Crore)
Nature Loan
Sanctioned
Disbursed
amount@
Value of
security
Operative
Limit*
Balance
outstanding
Irregularity,
if any

@Disbursed on__________________
*Note: The Operative Limit shall be as under:

1. In case fully disbursed, fully disbursed amount to be mentioned.
2. In case partly disbursed, partly disbursed amount to be mentioned.
3. In case repayment started, the amount due to be mentioned.

5. Financial Position of the Company
(Rs. in Crore)

31.3. 31.3. 31.3. Latest up to__
Audited Audited Audited Audited/Unaudited
I. Gross Sales
II. % growth
III. Other Income
IV. Profit before tax
V. Profit after tax
VI. Tangible Net Worth
VII. Net Working Capital
VIII. Current Ratio
IX. Debt Equity Ratio
X. TOL/TNW

6. SECURITY

A. Primary

B. Collateral

1) Exclusive charge by way of EM of ___ IPs with market value of
Rs._________as on ________ and realizable value of Rs. _____.

2) I/II (pari-passu) charge over block assets of the company with residual
value of Rs.__________ .

3) Personal Guarantees of __ guarantors with combined Net Means of
Rs.___________ including IPs worth Rs. _________.

4) Corporate Guarantee of M/s._____________ with TNW of Rs. as on
______.

C. Value of Our Share in Primary Security for Term Loan (in case of
consortium Finance):

D. Collateral Coverage (our share): Amount:Rs._______________; __________%

7. Conduct of the Account: Satisfactory/ Unsatisfactory

8. Whether terms & conditions of previous sanction complied with:
Yes/No
(Details of un-complied Terms to be furnished)



9. Rate of Interest

Facility Existing Applicable
CC
TL


10. For Amendments in Term and Conditions / Confirmation of action/
Adhoc Sanction

A. For amendment in Terms and Conditions

Existing stipulation Proposed amendment Justification


B. Particulars of action to be Confirmed

Date of
overdrawing
Nature of
limit
Amount of
sanctioned
limit
Excess given Date of
regularization


(Whether matter discussed with CO/FGMO/HO for
concurrence/permission)

Justification

C. Sanction of Adhoc facilities

Accepted
Level of
Sale as per
last
assessment
200_ - 200_
Actual
level of
Sales
%age
achievement
Sales
upto
last
month
of
current
year
Sanctioned
FBWC
limits
Adhoc
limit
proposed


Justification
D. For relaxation in ROI/ Service charges

Nature Facility Existing Proposed Applicable
Rate of
interest

Service
charges


Justification



(Rs. In crore)
Income value of borrowal
Sr.
No.
Interest/discount income
from:
Actual
income
during
current FY
Budgeted
income for
the
next FY
Remarks
1
Total Income from FB Credit
Facilities (Interest - CC, OD,
PC, TL, Bills - Inland &
Foreign, Commitment
Charges, TL Review Charges
A
2
Total Income from NFB
credit Facilities
B
3
Total Other Income
(Processing Fee, Upfront Fee,
Documentation Charges,
Mi I )
C
Net Interest Income on balance
lying in Current Account @
9.00% p.a. on average
balance (including Allied /
G C )

4
Net Interest Income on
balance lying in Saving
Accounts @ 4.00% p.a. on
average balance (Promoters
/ F il A t )
D

Grand Total (A+B+C+D)

11. Recommendations



MANAGER/SR MANAGER CHIEF
MANAGER/AGM
CIRCLE HEAD

FIELD GENERAL MANAGER