Final To Be Loan Process Document

Development Bank of Ethiopia
Re-Engineered Loan Process
March 2008
Table of Contents
Title
I.
Pages
Introduction.
II.
1.1
Background
1.2
Statement of the Problem..
1.3
Objectives of the Study.
1.4
Scope of the Study..
1.5
Methodology Employed..
1.6
The BPR Team .
1.7
Expected Results/ Deliverables
The Existing (As Is) Situation of the Loan Process.. 6
2.1As Is Documentation Result
2.2Existing Functional Loan Processing System of DBE
2.3 Experience Sharing and Benchmarking Results.
2.4 Problems of the Existing Process, underlying

Rules and Assumptions
11
2.5 Input output and outcome of the process..
13
2.6 Stretched Objectives of the Redesigned Loan Process.
15
III.
The Redesigned Loan Process of DBE
16
3.1 Definition of the process
16
3.2 Basic Assumptions for All Scenarios..
16
3.3 The Loan Process Workflow
17
3.4 The Core Credit Process
19
3.5 The Sub-Processes of the Loan Process
25
IV.
V.
VI.
1
Work Organization of the Loan Process.
29
4.1 Work Flow Matrix for Loan Process of the Bank..
30
4.2 Job & responsibility Matrix of the Loan Process..
79
Structure of the Redesigned Loan Process ..
132
5.1 Organizational structure of the Loan Process
133
5.2 Organization & Composition of Case teams.
134
5.3 The Human Resource Requirement for the Loan Process..
135
Management and Measurement System ..
136
I. INTRODUCTION
1.1
Background
In the contemporary organizational theory, three major issues are identified as driving
forces behind any endeavor for organizational transformation. These three forces
often called as the three Cs, (i.e. Customer, competition and change) influence the
existence and success of organizations directly or indirectly. The issue of satisfying the
needs of customers is determinant to an organizations success. The current business
environment is also characterized by immense competition.
Virtually every
organization has a competitor in one way or another and has to excel its competitors
to ensure its continued existence. All these changes impose the need for organizational
transformation and only those organizations that change themselves can adapt to and
benefit from change.
Cognizant of these drives of change, Development Bank of Ethiopia has been in the
process of transformation over the past four years. The Bank conducted a Business
Process Reengineering program, which it began to implement in November 2005 but
the reform did not bring about the expected result to transform the Bank to new state
where its customers expect it to be. The failure of the reengineering could, by and
large, be attributed to the functional organizational structure recommendation which
emphasized control and cross functional activities performance rather than processbased, customer focus and team oriented way of doing business as required by modern
competitive business environment. As the preceding change endeavor could not bring
about the desired transformation, the Bank was convinced to continue the change
process and therefore established a new BPR Team in August 2006 that is mandated
to redesign the loan process in a way that enables the Bank to do its business in a
transparent and accountable manner to realize the expected dramatic transformation.
The BPR Team, after assessing the current business situation of the Bank and
reviewing documents of the earlier BPR Team, undertook rigorous studies and
2
realized that drastic change cannot be achieved unless the process is re-designed. To
this effect, various brainstorming sessions were organized to create common

understanding on the continued problem of the Bank and the needed subsequent
effort to transform the Bank.
Accordingly, the first draft BPR study document has been presented to higher level
stakeholders. This document therefore has been revised inline with the decision of the
ministerial team assigned by the stakeholders.
1.2.
Statement of the Problem
The business mission of DBE is supporting the countrys development through

providing investment loans to viable projects while maintaining its sustainability. The
performance of the Bank over the years however, has been rated unsatisfactory with
respect to fulfillment of customers expectation and fulfilling its missions.
In assessing its problems, the Bank has recognized weaknesses mainly in the areas of:
service delivery lead-time, service quality, governance, loan collection. These problems
emanate mainly from its functional and hierarchical decision making structure; weak
credit risk assessment and lack of transparency, accountability, staff commitment,
teamwork and team spirit for customer satisfaction.
The Bank, therefore, decided that there must be institutional transformation to
alleviate the problems and develop its competencies so as to grasp the opportunities.
One component of this institutional transformation is the Business Process
Reengineering (BPR) conducted to re-invent the business practice of the Bank in a way
that ensures customer satisfaction through effective and efficient operations.
1.3.
Objectives of the Study
The basic objective of the BPR study is to propose new ways of Loan Processing in the
Bank. The study is aimed at transforming the Bank into an efficient and modern
organization capable of satisfying a good share of its customers and fulfilling its
development and sustainability objectives.
1.4. Scope of the Study
The BPR study is mainly focused on redesigning the Loan Process of the Bank, which
runs from customer sourcing to the final loan collection. The redesigning task will
include designing new loan process and establishing the necessary jobs and structure,
Management and Measurement systems and values and beliefs needed for the new
world of thought and action.
This study also concentrates on the loan process at the Head office of the Bank, and
the loan processes of branch offices could be emulated from the Head Office or treated
separately afterwards.
1.5. Methodology Employed
In conducting the core process re-designing, the Team first compiled and reviewed the
existing (As Is) loan process including the workflow, policies, and procedures. By
doing so, the team identified the major problems in the existing loan process with the
rules and assumptions underlying those problems.
After making those old
assumptions and rules visible, the objectivity of those assumptions and rules were
evaluated. Those old assumptions and rules proved un-reasonable were broken and
replaced by new ones. The newly re-designed loan processes are, therefore, developed
based on the new set of assumptions.
To get ideas for designing new processes, BPR manuals, internet-surfed documents as
well as local and international best practices were used to get alternative paradigms of
process designing.
Analysis of the business environment of the Bank from the
Strategic Plan documents was also used.

4
1.6. The BPR Team

The BPR Team consisting of ten members pooled from different functional units with
different professional background has been established in August 2006 to reengineer
the Loan Process of the Bank. After the Reengineering team completed its task and
submitted its deliverables to the steering committee, the Process Integration Team
was formed for process review and interfacing. The Integration Team has begun its
assignment by developing Term of Reference that shows its deliverables, timetable
and accountability. The process Integration team was formed from most of the
reengineering team members and senior management staff of the Bank who served as
Czar, Team Chair Person and Process owner. This document is therefore amended and
presented by the Integration Team.
1.7. Expected Results/ Deliverables
The following are the summary of the deliverables which will be realized at different
stages of the process.
Redesigned Loan Process, which is believed to bring about dramatic and radical
change to service delivery, especially in credit delivery cycle time, quality of service,
and transaction cost of lending.
Newly organization structure, human resource, jobs, management and

measurement systems of the loan process.
Issues for values and beliefs that have to be adhered to throughout the Bank, as
the newly redesigned Loan Process has to create its own people, values and beliefs.
II.
THE EXISTING (AS IS) SITUATION OF THE LOAN PROCESS

The Team documented the existing system of the Loan Process in AS IS
documentation stage, understood and shelved it. The existing system was analyzed in
workflow chart, cycle-time, and organizational structure. The existing business
process is characterized by many handoffs, very long process lead-time, hierarchical
decision making structure and poor performance in quantity and quality of output.
The current (As Is) documentation results and benchmarking outcomes are presented
in the upcoming sections.
2.1.
As Is Documentation Result
In the Loan Process Reengineering endeavor the Reengineering Team first popped up
on documenting and understanding the existing process. On the existing process
documentation stage, areas of bottleneck that incapacitated the process were
pinpointed and analyzed. The major bottleneck areas identified were:
Many Handoffs: - Due to the functional work organization, the existing process
involves many unjustified handoffs in which loan documents have to be moved
cross-boarders for every single and small contribution in the process. Because of
the rigidity of the system, each case has to formally go around the hard-walls
thereby escalating the process lead-team and the associated cost.
Hierarchical Decision Making: - In the existing process, workers are not
empowered and decisions are made by people who do not actually do the works.
This condition has created delay in decision-making and contributed to the long
process lead-time.
Poor Performance: - Due to the incorrect attitudinal orientation prevailed over
decades, the existing Loan Process of the Bank is characterized by poor
performance in terms of quantity and quality of output.
Long Process Lead-Time:- The existing Loan Process of the Bank has one of the
longest process lead time as compared to similar financial institutions in the
country. In the As Is process documentation, it was found out that a loan
application takes, in average, 185 working days and the amount of loan collected is
only at 15% recovery rate due to ineffective project follow-up.
2.2.
6
EXISTING FUNCTIONAL LOAN PROCESSING SYSTEM OF DBE
The workflow of the existing Loan Process is described as shown below.
Total No of Steps------562
Units involved-----------16
Collateral
Registration
Finance
Stump Duty
Disbursement
Steps84
Units Involved--2
HR&GS
Steps9
Units Involved -1
Rehabilitation Adhoc Committee

2 Steps
M. L C.
Approval
Steps78
Unit Involved -1
Project
Appraisal
Client Relation
Receive Application
KYC Check
Document Evaluation, Prepare
Insurance and RFD and project
follow-up
Steps241. Units Involved-4
President Office
2 Steps
Board of
Management
2 steps
Legal Dept
Doc. Evaluation
Loan Contract prep
Foreclosure
Steps58
Units Involved-2
Engineering Dept
Doc. Evaluation
Progress Report
Steps55
Units Involved-2
Acquired Property
Administration
Steps46
Units Involved
2.3. Experience Sharing and Benchmarking Results

The Team has conducted experience-sharing visits to some local and international
institutions operating in the banking industry. The local banks selected for
experience sharing were Commercial Bank of Ethiopia, the Construction and
Business Bank and Awash International Bank. From these institutions, Loan
Processing and management practices were shared and their performances were also
observed.
International benchmarking study tours were also made for best practice searches in
five different African and Asian Countries. The countries were: South Africa &
Botswana, Malaysia & Singapore, and India. The Industrial Development
Corporation of South Africa and the Development Bank of Botswana were the
benchmarking partners in Africa. The Small and Medium Enterprises Bank of
Malaysia and the Agricultural Development Bank Malaysia were the major
benchmarking partners in Malaysia, although the Team members have checked a
number of other banks' experiences. Information and briefings on the working
practices of the Singapore banks were availed to the benchmarking Team by the
Bankers Association of Malaysia. The National Agricultural and Rural Development
Bank of India and the Industrial Development Bank of India Ltd were the
benchmarking partners in India.
The Team used the performances and practices of the benchmarking partners as an
input in setting the stretched objectives of the redesign Loan Process.
Table 1.1
Ser.
No.
Africa
IDC S.A
NDB BW
Institutions visited
India
Malaysia
IDBI
NABARD
SMEB
PUNB
Comparison
factors
Loan delivery
lead-time
3wks - 6
m's
2 days - 3
months
Customer
complaint level
Not
available
Not
available
IT (Automation )
Semi Automated Automated Automated Automated Automated Automated Automated
some performances of external benchmarking partners in comparison with that of DBE.
DBE
15 days - 3
months
1wk to 2
months
30 - 60
days
45 days
185 days
13%
Not
available
Not
available
Not
available
40 %
Table 1.2 Best practices of the external institutions used for redesigning the
process
Description of Practices
Three tiers Loan Approval
Source
IDCSA,IDBI, NDBBotswana SME-Bank
Team based end-to-end

loan delivers operation
except Loan approval
Independent risk
assessment report by Risk
Management unit
Negotiation with customer
on loan terms and
conditions
One stage Loan approval
IDC South Africa IDBI
Preparing and Maintaining

pre-approved prototype
projects(Model bankable
projects)
Intensive ICT Support
Continuous staff
development
India and South Africa

Banks
Formatted Documents
All the visited Banks
10
Attractive office layout and

reception
Syndicate room for Loan
delivery team
Commercial Transport for
field work
S.A, Malaysia and

Singapore Banks
India and Africa Banks
S. No.
1
2
3
4
5
6
7
8
11
12
10
NABARD, IDBI, SME

Bank
Banks in India,
Malaysia and
Singapore

NABARD, IDBI
Use of best Practices

Two Loan approval team tiers
in the resigned loan approval
process
Loan process is organized from
end to end
Risk assessment to be applied
outside the Loan delivery
Process
Applied in the re-designed
Loan delivery Process
One stage loan approval is
applied in the Loan delivery
Process
Prototype projects (Model
bankable projects) are taken as
option in the re-designed
process
Information on line is assumed
Intensive training and
development for the process
team is planned
Use of formatted documents to
shorten the cycle time
Attractive Office layout is
planned
Syndicate room are planned in
the office layout study
Use of Commercial transport is
taken as an option when there
is shortage
2.4
Problems of the Existing Process, underlying rules and Assumptions

The major problems in the existing process and underlying rules and assumptions
are presented in the following table.
Table 1.3 Summary of existing problems, Assumptions and Rules
N
o
1
5
6
Problem
Costly accessibility of
information for Loan delivery
Rule
Information should
only be availed by
Client Guidance &
Advisory Desk.
Functional
organization of Loan
delivery process
Two level appraisal
and approval
Assumption (old)
Centralized information
dissemination results in fast and
consistent information
Submission of three Performa

invoice has been creating
dissatisfaction and
inconvenience to Customer
Customers should
submit three Performa
Invoices
Installation of numerous check &

balance mitigates fraud/ resources
miss use.
multiple checks and controls
ensures the fulfillment of all
required obligations
Customers do cheat on money
borrowed from the Bank by overinvoicing purchases.
Decisions were not made at

places where activities are
done
Centralized and
functional decision
making
Workers do not have the necessary

skills and experiences to make
decisions.
Neglecting project follow up
Make project follow up

when there problems
arise
projects would go as planed and

customers would pay loan by
themselves
Many/all projects financed by the
Bank generate revenue semiannually
Longer process time
Sticking to semi-annual
payment schedule for all
project types
Inadequate number of
applicants for loan
Loans repayment must

be semi-annually
Entertain customers
(walk-in) when they
come by them selves
DBE is the only development bank,

which extends long-term loans, and
searching for customer is not
necessary.
The old assumptions stated in the above table are found to be impractical in the new
paradigm of thought and have been replaced by new assumptions that collocate the
world of thought and work.
11
Table 1.4 current problems, broken old assumptions and new assumptions that replaced them
No.
1
2
4
5
6
7
12
Problems
Costly accessibility of
information for Loan
delivery
Longer process time
Submission of three
Performa invoice has been
creating dissatisfaction and
inconvenience to customer
Decisions were not made at
places where activities are
done
Neglecting project follow
up
Sticking to semi-annual
payment schedule for all
project types
Inadequate number of
applicants for loan
Old (broken) Assumptions

Centralized information dissemination
results in fast and consistent information
New Assumptions
Automation of information system can
ensure fast and consistent information.
Installation of numerous check &

Minimum check and balance and inbuilt
balance mitigates fraud/ resources miss
responsibility and accountability can
use.
mitigate fraud risks
multiple checks and controls ensures
Use of requirement checklists at one point
the fulfillment of all required obligations
can exhaust fulfillment checks
Customers do cheat on money borrowed
Customers are genuine do not normally
from the Bank by over-invoicing purchases.
intend to misappropriate borrowed
money by over invoicing purchases.
Workers do not have the necessary skills
and experiences to make decisions.
projects would go as planed and customers
would pay loan by themselves
Many/all projects financed by the Bank
generate revenue semi-annually
DBE is the only development bank, which
extends long-term loans, and searching for
customer is not necessary.
Workers have full knowledge about their dayto-day activities and can make
decisions.
Continuous project follow-up is necessary, as
project might not go as planned.
Customers need technical assistance and
reminding to serve their debt obligations.
Projects generate cash flows can pay loans
based on their respective conditions
than the 6 months timetable.
DBE not the only development financing
institution in the country and hast source
customers.
2.5 Input-Output, and Outcome, and Impact of the Process

Input-Output
The input of the Loan Process is complete application from both recruited and walkin customers. The outputs of the process are successfully implemented project and
collected loans. The synchronized, coherent and efficient team coordination in the
input- output relationship of the process is believed to enable the Bank to fulfill major
stakeholders (customers and the owner) expectations. Customers require efficient
service and the Government requires the Bank to play important role towards
achievement of the envisaged economic development.
Desired Outcome of the Process
The major outcome of the process is a sustainably operating project that has settled
its loans and generates income to the promoter.
Impact of the Process
In the national vision of Putting Ethiopia among the middle-income countries in 20
years, the impact of the development endeavor of the Bank is; the increase in income
of the society, number of new jobs created and the prevalence of better goods and
services to the society as a result of the development projects financed by the Bank.
Consistent with meeting the above objectives, three alternative Loan Processes were
designed with their respective assumptions. The redesigned processes were, then,
evaluated using fitness assessment criteria and the alternative that achieved best
performance on the evaluation was selected.
Performance Gap of the Bank
The performance of the Bank, from many perspectives, is below expectation and it
requires a lot of work to fill the performance gaps. One of the major jobs is redesigning
the way it conducts its business. The various areas of performance gaps are given in
the following table.
13
Table 1.5 DBE Performance gap analysis

Domestic
Foreign bench
expectation
Benchmark
mark(average)
No.
Performance factor
Average Loan
185
As short as
delivery time
days
40%
possible
Customer satisfaction
level
14
DBE
Customers
AS high as
possible
(Av)
22 days
NA
21- 88 days
DBE performance Gap from:

Customers DBM*
FBM*
Big
163
100-164
Difference
days
days
85%
Very Big
NA
15%
(NABARD-India)
Difference
2.6
Stretched Objectives of the Redesigned Loan Process
In redesigning the core process, the Team has developed stretched objectives in line
with the Banks Strategic Plan, benchmarking result and customers and owners needs
and expectations. The stretched objectives are believed to advance customers
satisfaction and meet Governments expectation by strongly contributing to the
national development endeavor. The stretched objectives of the redesigning process
are:
Shorten the credit delivery time from 185 working days (average cycle time of
projects financed at one stage approval) to 20 working days.
Reduce Credit delivery process cost by an average of 50%.

In most cases, process cost reduces in line with time reduction. More over cost of
customer is assumed to reduce significantly, as the transaction cost is directly
proportional to the Loan delivery cycle time.
Increase customer satisfaction from the current 40 % to 80%.

The current customer dissatisfaction is significant. Yet with the proposed process
redesign it will be difficult to assume dissatisfaction will totally be eliminated.
Hence, it is assumed that at least 20% customer dissatisfaction levels will prevail in
the few plan years although gradual and continuous improvements are desired.
Increase loan collection from the current 15% (considering loan recovery rate as a
base) to 85%.
Reduce cycle time of Project follow-up in Credit Process from the current 33 days
to 10 days.
Increasing the effective project follow-ups coverage from the current 25% to 100%
when the new process is implemented.
To meet the above mentioned stretched objectives and solve the existing bottlenecks of
loan processing, the team developed and presented three new alternative process
designs. Following a series of evaluation and fitness assessments test, an alternative
with maximum presumed performance was selected and presented below.
15
III. The Redesigned Loan Process of DBE

3.1 Definition of the Process
The Loan Process is the process that handles all the tasks of sourcing customers,
appraising projects, extending loans and managing loans. The Loan process is the
core process of the Bank and is organized into three components namely the core
credit process, Project appraisal sub process, and Project Rehabilitation and Loan
Recovery sub process for including check and balance purposes. The New Loan
Process is designed pertinent to the following set of new assumptions.
3.2
Basic Assumptions of the selected process
Banks requirements and loan information shall be disclosed through

appropriate media and advertisements and customers shall be aware of it.
Customers are genuine and do not normally approach the Bank with the motive
to misuse the borrowed money.
There shall be recruited as well as walk-in customers to the Bank.
Application and disclaimer agreement are combined.
The Loan Process Team shall be empowered, transparent and accountable to

carry out the Loan process end-to-end and act accordingly.
There will only be one stage appraisal and approval
The Bank will have IT supported data bank in areas of machinery and
equipment, market price, so that one Performa Invoice will be sufficient.
The Bank will have model bankable projects in various sectors and regions
consisting of breakeven capacity, selected machinery, agreed upon building
design, and related revenue and costs information.
All core process enablers will undertake BPR study and provide fast and high
quality services.
16
Transport service will be outsourced when the need arises.
3.3
The Loan Process Workflow
Inline with the above assumptions, a high-level process map of the Loan Process is
prepared, which shows the Credit Process, the Appraisal Sub-Process and the Project
Rehabilitation and Loan Recovery (PRLR) Sub-Process. The Credit Process steps are
shown in white (unfilled) boxes whereas the Appraisal and PRLR sub Process are
shown in dark (filled) boxes.
17
High Level Loan Process of the Bank

Customer
Sourcing
(Recruiting
Customer)
Application
Receiving and
screening
Due Diligence
check
Appraisal progress
Monitoring
Project Appraisal
Approval progress
Monitoring
Loan Approval
Documentation and
Disbursement
Project Follow-Up
/or Rehabilitation
progress monitoring
Loan Collection
18
Project
Rehabilitation and
Loan Recovery
3.4.
The Core Credit Process
The Credit Process is the core process of the Bank and has three versions to provide
customers with choices according to their needs. Specific characteristics of each of the
scenarios are described as follows.
The first scenario is the option used for entertaining those customers who accept the
pre-studied model bankable project.
The second scenario is the case where the customer does not opt for the Banks option
and stick to his/her own feasibility study.
The third scenario of this alternative design is prepared for the customer who comes
with a new type of project for which the Bank might not have complete data in the
database, and rigorous appraisal is required for each particular project by collecting data
from else where.
19
Scenario I of the Credit Process
1
Loan application
receiving,
Customer
sourcing
No
Notify customer to
comply
Document
screening
1
1
First
disbursement /or
equity release
1
3
Second or
subsequent
disbursement
1
4
Project
completio
n report
15
Project
follow-up
4
Undertake
Due Diligence
assessment
Is the
due
diligenc
e
accepted
?
Yes
1
0
Loan and
mortgage contract
signing and
documentation
Compliance
checking
Are
conditions
fulfilled?
Yes
No
Yes
No
No
Notify customer to
comply
12
Second and
subsequent
compliance
check
conditions
fulfilled?
Notify the customer and

return the document
Yes
Is the
loan
approve
d?
No
Notify the customer and

return the document
Send to PRLR
Process
16
Is the
project
healthy
?
6
Forward loan
proposal by
incorporating
the due
diligence to
approval team
18
17
Yes
Continue
follow-up
Is the
loan
settle
d?
Yes
Release collateral
document and
report settlement
No
Continue follow-up
END
20
Return collateral
document
19
Return the document

to the applicant
Scenario II of the Credit Process

1
Recruitin
g
Customer
Loan application 2
receiving
Undertake
Due Diligence
assessment
Document screening
Notify customer to
comply
Condition
compliance
checking are
conditions
fulfilled?
5
IS the
duediligenc
e
acceptab
le?
Yes
No
1
1
No
Return the document

to the applicant
1
0 Loan and Mortgage
agreement signing
and documentation
Yes
1
First disbursement 2
/or equity release
No
9
Yes
Receive and
own appraisal
report and
dispatch to
Approval Team
Loan
approval
Is the
loan
approved
?
7
Follow-up
appraisal process
and negotiate
with customer
Foreword due- 6
diligence report and
other documents for
appraisal
1
4
Second and
subsequent
compliance
check Are
conditions
fulfilled?
No
Yes
1
Second or
5
subsequent
disbursement
1
Prepare project 6
completion report
1
7
Project follow-up
Notify customer to
comply
21
END
2
Release collateral 1
document and
report settlement
Yes
2
0
Is the
loan
settle
d?
No
Continue follow-up
1
9
Continue follow-up
Yes
1
8
Is the
project
healthy
?
No
Send to PRLR
Process
22
Scenario III of the Credit Process
Recruitin
g
Customer
Loan application
receiving
Notify customer to
comply
1
1
1
2
Undertake
Due Diligence
assessment
Document
screening
1
Loan and Mortgage 0 Yes
agreement signing
and documentation
Yes
First disbursement
/or equity release
Return the document

to the applicant
No
Condition
compliance
checking
Are
conditions
fulfilled?
1
3
Second and
subsequent
compliance
check Are
conditions
fulfilled?
No
Return the document

to the applicant
No
5
IS the
duediligence
acceptabl
e?
Yes
6
Foreword duediligence report
and other
documents for
appraisal
No
Loan
approval
Is the
loan
approved
?
Yes
8
Receive and own
Appraisal report and
dispatch to Approval
Team
1
Second or
4
subsequent
disbursement
1
Prepare project 5
completion report
7
Follow-up appraisal
process and negotiate
with customer
1
Project follow-up 6
Notify customer to
comply
23
END
Release collateral
document and
report settlement
2
0
1
9
Yes
Is the
loan
settle
d?
No
Continue follow-up
1
8
Continue follow-up
1
7
Yes
Is the
project
healthy
?
No
Send to the
PRLR process
24
3.5
The Sub-Processes of the Loan Process

Beside the Core Credit Process/CCP/, which has been discussed in the foregoing
paragraph, The Loan Process of the Bank has got two other sub processes namely,
Project Appraisal Sub-Process/PAsP/ and Project Rehabilitation and
Loan Recovery (PRLR) Sub-Process. The Credit Process is a major process of
the Loan Process to which the later two are interfaced to form the whole Loan
Process. Project Appraisal and the PRLR processes are sub-processes of the Loan
Process. The Credit Process handles healthy loans from application to final loan
collection whereas the Appraisal Sub-Process undertakes the technical appraisal
(evaluation) of Projects. The Project Rehabilitation and Loan Recovery Process
handles and treats sick projects and send them back to the credit process for
implementation of the proposed treatment and follow-up. If a sick project is not
promising for rehabilitation, the Project Rehabilitation and Loan Recovery subprocess undertakes foreclosure action to recover the loan.
Workflows of the Appraisal Sub-Process and the Project Rehabilitation and Loan
Recovery Sub-Process are presented as follows:
25
PROJECT APPRAISAL SUB-PROCESS OF THE BANK
Receiving Document
(Request for Appraisal)
Data collection and

Document Evaluation
Send discussion
points to Credit
Process for
discussion with
customer
Draft report preparation 3

and discussion with
team members
Final appraisal report

preparation and release
Send the report to

the credit process
26
Project Rehabilitation and Loan Recovery Sub-Process

Receive sick project
Document
2
Review and investigate the file
and Follow-up Reports
Arrange for project site visit and 3

collect data
Prepare proposal report with

recommendation
Discuss with the customer on the

findings and recommendation.
Send the report to approval body 6

/or Executive Management team
7
Approval of the
Proposal
Is the proposal
approved?
No
Return to step 2
Yes
Begin foreclosure
Action (for foreclosure)
8
Send approved
rehabilitation to
Credit Process
27
Settle the loan arrears and

return to Credit process
1
0
Write final repayment

warning letter
Pay the balance to

the customer
19
Auction Processed
1
0
Take over and valuation of

the property
1
1
1
2
Auction conducted
1
9
Yes
Is the
differenc
e
positive?
1
8
Deduct value of
the asset from the
loan and transfer
asset to property
admin. unit
1
7
2nd Auction
conducted
proper
ty
sold?
No
1
Search for additional9
property
1
5
1
Is the 6
Has
additional
property
been
found?
No
Prepare write-off
proposal
Yes
2 Auction
1
Is the 3
propert
y sold?
Yes
Loan collection
effected
2
0
1
Advertisement for 4 No
nd
1
7
2
Take the case to 1
court
Loan collection
effected
2
2
Is the
court
decision
favorable
to the
Bank?
2
Collection 3
2
1
28
1
4
IV.
Work Organization of the Loan Process
The Loan process, which includes Core Credit Process, Appraisal Sub-Process and
Project Rehabilitation and Loan Recovery sub process of the Bank, which are
seamlessly interfaced, are organized in a matrix form clearly indicating major and
detail activities in their natural flow. In the work organization matrix, the detailed
activities are organized in to jobs (roles). Moreover, it shows individual
responsibilities in the process and the number of required workforce for the process
with required competence.
29
4.1.
A.
Step
1.1
1.2
1.3
1.4
WORK FLOW MATRIX FOR LOAN PROCESS OF THE BANK
WORKFLOW MATRIX FOR CORE CREDIT PROCESS AND APPRAISAL SUB PROCESS
Major and detail

activities in their
natural flow
Customer Sourcing
(Recruiting
Customer)
Understanding the
strategic and operational
plan of the Bank and
share among team
members
Why is it done
When is it done
Where is
it done
Cycle
time
Remark
5 days
To know the quarterly,

semiannually and yearly
areas emphasis of the
Banks loans
At the beginning of
each budget year
Identifying the source of

potential customer
To get potential
Customers
Throughout the year,

after understanding
the focus of strategic
and operational plan
within the
Credit
process
Collecting Data on
potential investors
To initiate
communication
After the source is

identified
Within the
Credit
process
After the source

identified
With in
the credit
process
Selecting appropriate
means of communication
How is it
done
To attract potential
customer
within the
Credit
process
By reading the
strategic and
1 day
operational plan
of the Bank and
discussing with
team members
By collecting
information on
the source of
potential
investors
By investigating
and listing
individuals
address
By identifying
the different
means of
communication
day
1 day
day
30
1.5
1.6
2.1
2.2
Attracting and
persuading potential
applicants
Receiving expression of
interest and follow-up
To create awareness on
the service of the Bank,
offer options of model
bankable project and
encourage potential
investors to apply for
credit (Project loan)
To further explain the
requirement of the bank
to informed and
contacted potential
customer
After the location

potential customer is
identified and means
of communication
selected
With in
the Credit
process
By Using the
1 day
selected media
(means of
communication)
After the customer is

communicated
through appropriate
means
With in
the Credit
process
By filling loan
application
formats of the
Bank
Loan application
receiving
General briefing on
customer charter, Banks
requirement, credit
facilities and assigning
tasks to a specific
performers and register
Detail technical
discussion on customer
charter, Banks
requirement, credit
facilities and alternative
options offered by the
Bank, register and assign
the job
day
day
the banks requirement,
right and obligation of
the applicant and
alternatives model
bankable project
available in the Bank
and ensure customer
satisfaction
To enable customer to
decide on the offers
provided and ensure
customer satisfaction
Up on the applicants
arrival
Up on the applicant
arrival
With in
the credit
process
By holding
personal
discussion
with in the
Credit
process
Using banks
requirement list
customer
charter, model
bankable
project and
personal
discussions
30
minutes
1 hour
31
2.3
Receiving and registering

application with
To ensure fulfillment of
supporting document and requirements
verify its completeness
2.4
Application and
disclaimer signing
To make ready the loan

application for further
processing
After the client

appeared in the bank
with in the
Credit
process
By filling format
and putting
signature
30
minutes
2.5
Registering the
application in a database
and disseminate the
information the
concerned parties
To create awareness for

all actors and store the
information
After application
received
with in the
Credit
process
By recording in
a database and
creating file
30
minutes
with in the
Credit
process
By comparing
with checklist
Application document
Screening
Checking the
appropriateness of
submitted documents:
3.1.1 Construction and
civil work
documents
3.1
When the client

appeared with
application and
required documents
3.1.2 Performa of
Machinery and
equipment and
catalogue
3.1.3 Raw material and
chemicals
1 hour
1 day
To ascertain the quality
and relevance of the
document as per the
standard
document as per the
standard
document as per the
standard
document as per the
standard
After application
received and
registered
with in the
Credit
process
After application
received and
registered
with in the
Credit
process
After application
received and
registered
with in the
Credit
process
After application
received and
registered
with in the
Credit
process
Using
application
screening
checklist
Using
application
screening
checklist
Using
application
screening
checklist
Using
application
screening
checklist
4 hours
4 hours
4 hours
4 hours
Undertake
Simultane
ously
Undertake
Simultane
ously
Undertake
Simultane
ously
32

document as per the
standard
After application
received and
registered
with in the
Credit
process
Using
application
screening
checklist

document as per the
standard
After application
received and
registered
within the
Credit
process
Using
application
screening
checklist
Communicating the
client for any
inappropriate document
To fulfill missed
information
After all documents

reviewed
within the
credit
process
By holding
discussion with
the client
1 hour
Compiling results of
document screening
To summarize the
finding of the analysis
After document
evaluation and
Within the
credit
process
Filing format or
letter
preparation
1 hour
3.1.5 Legal documents
3.1.6 The general

contents of the
feasibility study (if
Applicable)
3.2
3.3
4
4.1
Undertaking Due
Diligence Assessment
Gathering KYC
information of the
applicant
4.1.1 Collect data on
Character
4 hours
4 hours
Undertake
Simultane
ously
Undertake
Simultane
ously
5 days
To undertake due
diligence assessment
After the application

is accepted
Within the
Credit
process
By interviewing
and other
means of
collecting
information
2 days
4.1.2 Credit information

4.1.3 Capital/Equity
sources
33
4.1.4 Business track

record
4.2
4.1.5 Managerial
competency
Undertake KYC
assessment
4.2.1 Assessing the Credit
history of the
promoters/
shareholders
4.2.2 Identifying the
source of Capital
and its adequacy
for the project
2 days
By evaluating
collected
information
from different
banks
By gathering
information
about the source
of money
To check the debt

servicing character of
the promoter

is received and
information gathered
Within the
Credit
process
To ensure adequacy and

legitimacy of the capital

is received and
Within the
Credit
process
4.2.3 Checking the

business track
record of the
promoter
To know the past

business performance of
the promoter

is received and
Within the
Credit
process
By assessing
past business
experience of
the promoter
4.3
Understanding the
feasibility study
To identify and advice

the customer on risks,
pitfalls and potential of
the project
After application
received and
within the
Credit
process
Through
thorough
reading of the
project study
2 hours
4.4
Assessing and
Commenting on the
management capacity
and market strategy of
the promoter
To understand the skill

and knowledge of the
project promoter

is received and
within the
Credit
process
By investigating
educational and
work experience
of the promoter
1 hour
To ensure the collectability of the loan
After application
received
within the
Credit
process
By conducting
personal
interview
4.5
Discussing with customer

on the collateral to be
2 days
Undertake
Simultane
ously
2 days
Undertake
Simultane
ously
2 days
Undertake
Simultane
ously
1 hour
Undertake
Simultane
ously
Undertake
Simultane
ously
Undertake
Simultane
34
ously
offered for the loan
4.6
Writing a consolidated
due diligence report
To decide on the
acceptance or rejection
of the loan application
and provide necessary
and supporting
information for
appraisal when the due
diligence is accepted
After application
received and due
diligence conducted
within the
credit
process
By rearranging
the assessment
result and
writing
3 hours
4.7
Reviewing the due

diligence report and sign
To improve the quality

of the report
After the
within the
consolidated report is credit
prepared
process
By revising and
adjusting the
report
30
minutes
4.8
Transferring the due

diligence report and all
relevant document for
appraisal and
disseminate the
information to concerned
parties
To undertake detailed
appraisal of the project
After the due

diligence report
prepared
Within the
credit
process
By filling format
(Preparing
letter)
20
minutes
4.9
Follow up the progress of

project appraisal
To facilitate the progress

of the loan delivery
After the file is

transferred to
appraisal
Within the
credit
process
By contacting
the appraisal
team
5.1
13
days
Project Appraisal
Receiving, checking and
registering all documents
from Credit process
1 days
To appraise the project
Up on the arrival of
the document
Under
Appraisal
sub
process
By comparing
with checklist
1 hour
35
To facilitate the
analysis/appraisal of the
project
After the due

diligence assessment
Under
Appraisal
sub
process
By using
research and
risk outputs

and cost structure are as
per the standard
After complete
application received
and due diligence
conducted
Under
Appraisal
sub
process
Using standards
and cost
parameters
5.4
Reviewing specification
of machinery and
equipments, prepare
report and sign
To check appropriates of
technology and
machinery prices
After complete
and due diligence
conducted
Under
Appraisal
sub
process
Using catalogs
and price data
5.5
Reviewing specification
of raw material and
chemical, prepare report
and sign
To know availability and

quality of raw materials
After complete
and due diligence
conducted
Under
Appraisal
sub
process
Using catalogs
and price data
5.6
Undertaking technical
appraisal including
implementation schedule
Under
Appraisal
sub
process
Under
Appraisal
sub
process
By summarizing
the evaluation
result of
engineers
By analyzing
data and using
policies and
guidelines
5.2
5.3
5.7
Gathering and compiling

relevant research, risk
assessment data and
Background information
Reviewing the project
plan, bill of quantity and
other construction
documents, prepare
report and sign
Undertaking Market
study
To check the technical

feasibility of the project
After the technical

evaluation conducted
To check the viability of

the project
After complete
and due diligence
conducted
2 days
5 days
Undertake
Simultane
ously
5 days
Undertake
Simultane
ously
5 days
Undertake
Simultane
ously
1 day
3 days
Undertake
Simultane
ously
Undertake
Simultane
ously
36
Undertaking
organizational and
management study
Undertaking Financial
study
5.8
Analyzing Socioeconomic aspects of the

project

the project

the project

the project
After complete
and due diligence
conducted
After market,
organizational and
management study
and due diligence
assessment
conducted
After market,
organizational and
management,
Financial study and
due diligence
assessment
conducted
Under
Appraisal
sub
process
By analyzing
data and using
policies and
guidelines
Under
Appraisal
sub
process
By analyzing
data and using
policies and
guidelines
Under
Appraisal
sub
process
By analyzing
data and using
policies and
guidelines
1 day
1 days
3 days
5.9
Undertaking
environmental impact
To check the variability
assessment of the project, of the project
prepare report
After complete
and due diligence
conducted
Under
Appraisal
sub
process
By analyzing
data and using
policies and
guidelines
day
5.10
Undertaking appraisal of
the project, incorporate
KYC assessment and
prepare the draft
appraisal report
After complete
and due diligence
conducted
Under
Appraisal
sub
process
By consolidating
the findings and
using policies
and guidelines
2 days
To organize the above

findings for decision
making
Undertake
Simultane
ously
Undertake
Simultane
ously
Undertake
Simultane
ously
Undertake
Simultane
ously
37
5.11
6
6.1
6.2
6.3
6.4
6.5
6.6
6.7
Registering and
Transferring draft report
to the Credit Process
To get feedback from the

client or advice the
customer
Discussion on the
selected critical
points with customer
Receiving and registering To discuss the outcome
findings of appraisal from of the report with the
appraisal process
promoter
Contacting the applicant
and arrange for
discussion
Sharing and discussion
on the outcome of the
loan appraisal
Preparing of discussion
outcome report
Reviewing the discussion

report
Registering and
Transferring the
discussion outcome to
appraisal
Follow up the progress
After the draft report

prepared
Under
Appraisal
sub
process
By preparing
memo and
attaching
discussion
points
day
day
After the draft
appraisal report is
prepared
Within the
Credit
Process
By accepting the
reports of
appraisal
20
minutes
To negotiate on loan
proposal
After the draft

appraisal report
prepared
within the
credit
process
Using telephone
30
minutes
To reach consensus on
the findings and terms
and conditions of the
loan
At appearance of
client
within the
credit
process
By arranging
discussion
2 hours
To facilitate the loan

processing
After discussion
conducted
within the
credit
process
By filling
discussion
format
30
minutes
To standardize the
report
After the discussion

report prepared
within the
credit
process
By revising the
report
30
minutes

processing
After the discussion

report prepared
within the
credit
process

processing
After the document

transferred to
Within the
credit
By preparing
memo and
sending the
report
By contacting
the appraisal
20
minutes
20
hours
38
appraisal
7
process
process
Finalizing the
appraisal report
day
To incorporate
discussion and agreed
points
After discussion
conducted with the
customer
Under
Appraisal
sub
process
By comparing
30
against checklist minutes
7.2
Incorporating points of
discussion (if necessary)
and finalize the appraisal
report
To prepare final
appraisal report
After receiving the

discussion outcome
report
Under
Appraisal
sub
process
By reading
discussion
outputs
7.3
Reviewing the final

appraisal report
To standardize the
report
After the final

appraisal report is
prepared
Registering and Sending

the final appraisal report
to credit process
To be presented for loan

approval body
After the final report

prepared
7.1
7.4
8.1
Receiving, registering
and checking discussion
outcome report
Under
Appraisal
sub
process
Under
Appraisal
sub
process
By revising the
report
30
minutes
By transferring
file personally
30
minutes
Receive and own the

final appraisal report
file with the appraisal
report
2 hour
day
To understand the final
report and present to
loan approval team
After the draft

appraisal report is
prepared
Within the
credit
process
By checking and
registering
30
minutes
39
8.2
Understanding and own

the appraisal report
To analyze and accept

the result and dispatch
to approval
After the appraisal

report is received
8.3
Register and send the

final report to approval
To get the loan approved
After reading and

understanding the
project
8.4

Follow up the progress of
processing activity of the
approval
project
After the proposal

report is send to
approval
Loan proposal review

and approval
9.1

the loan proposal and
distribute to Loan
approval team members
9.2
9.3
Reading the proposal by

individual team members
Deliberate on the
appraisal report and
independent risk
assessment reports
Within the
credit
process
Within the
credit
process
Within the
credit
process
Through
thorough
reading of the
report
3 hours
By forwarding
through
messenger
30
minutes
By contacting
the approval
team
20
minutes
3 days
To distribute to approval
team members
Upon approval of the

proposal
To understand and
analyze the report
Upon the receipt of

the loan proposal
To approve/reject the
loan
24 hours after receipt
Under
Loan
Approval
team
Under
Loan
Approval
team
Under
Loan
Approval
team
Using register
book
20
minutes
By reading and
reviewing
1 days
By conducting a
meeting and
insuring
compliance with
the banks
policies,
procedures and
guideline
day
40
9.4
Drafting and finalizing

loan approval team
minute
To record findings,
discussion and final
decision of the loan
approval team
During and after the

time of the meeting
9.5
Endorsing the loan

approval team minute
To ascertain decision of
the approval team
After final minute is

prepared
9.6
Registering and sending

the minute to Credit
Process
To prepare loan contract
After the minute is

signed
10
Loan and Mortgage

Agreement signing,
documentation and
Equity release
the decision minute from
the approval team and
dispatch to the executing
team
Under
Loan
Approval
team
Under
Loan
Approval
team
Under
Loan
Approval
team
By filling
minute format
day
By putting
signature
day
By using
formatted
memo
30
minutes
2 days
To notify the customer

the decision of the loan
committee
After receipt of the

minute
within the
credit
process
By using a
format
30
minutes
10.2
Preparing the loan

approval/rejection
notification letter and
signing
To communicate the
decision of the approval
team

minute and
preparation of the
letter
within the
credit
process
By using format
and putting
signature
30
minutes
10.3
Delivering the
arrange for signing
To facilitate the loaning

process
After notification
letter prepared
Using different
means of
communication
30
minutes
10.1
within the
credit
process
41
10.4
Filling the loan contract

and sign as witness
To be signed by the
concerned party
After notification
letter is sent
within the
credit
process
Using standard
format and
signed minutes
1 hour
By checking the
filled contract
against signed
minute
30
minutes
By reading the
contract and
putting
signature
30
minutes
By sending the
document
30
minutes
By contacting
payment
process and
collecting the
receipt
30
minutes
Using format
1 hour
10.5
Reviewing the loan

contract and sign
To check the contract

against the minute
After contract
prepared
within the
credit
process
10.6
Signing of loan contract

by both parties
To make the agreement

legally binding
After the contract

prepared and read by
both parties
within the
credit
process
10.7
Collecting Stamp duty

payment
To legalize the contract
After the contract

registered and
checked
10.8
10.9
10.10
10.11
To assure the payment

ordered to pay the
payment

process
After the contract is

signed
Signing letter for loan

contract registration
To register collateral
After letter prepared
Checking registered loan

contract
To conform the
registration
After the contract

registered
Follow up of stamp duty

payment
Preparing letter of loan

Under
payment
process
within the
credit
process
within the
credit
process
within the
credit
process
within the
credit
By putting
signature
30
minutes
By reading the
contract
30
minutes
42
process
Disseminating
10.12 information to the
concerned parties
10.13
Fill form to purchase

insurance policy
Recording the loan

agreement and put
10.14
collateral under custody
10.15
Record the loan detail in

customer account
Opening current account

and inform the customer
10.16 to block equity
contribution
10.17
Authorize opening of
current account
By posting on
online services
and sending
hard copy
20
minutes
Using format
30
minutes

future action
After the contract

registered
within the
credit
process
To get insurance
coverage for collateral

signed
within the
credit
process
To insure safety of the

collateral document
After all loan

requirement
completed
within the
credit
process
By recording in
a database and
storing in a file
cabinet
1 hour
To capture detailed data

of the
After the loan

contract is signed
Within the
credit
process
By recording in
computer
system
1 hour
To facilitate the release

disbursement and insure
proper equity utilization
After all loan

requirement
completed
Using format of
computer
system
20
minutes

disbursement and insure
proper equity utilization
After the current

account is opened
By the detailed
filled on the
system
20
minutes
within the
credit
process
within the
credit
process
43
10.18
Blocking of equity
contribution
To facilitate
disbursement
After receiving the

relevant documents
Under
payment
process
Using formats
30
minutes
1o.19
Follow up the blocking of

equity contribution
To ensure the client

raised equity as agreed
After opening of
current account and
blocking of equity
within the
credit
process
By contacting
the payment
Process
30
minutes
Receive application for

equity release
To insure readiness of
promoter to implement
and release equity
When the customer

comes up with the
request
within the
credit
process
Using the filled

format
20
minutes
10.20
By checking
contract
document and
using format
By reading and
putting
signature
To facilitate equity
release
After equity blocked
Checking and signing

10.22
equity release
To order the release of

equity
within the
After memo prepared credit
process
10.23 Effect payment
To facilitate the
implementation of the
project
After equity form

filled and signed
Under
payment
process
Through
different means
of payment
To ascertain payment
After payment is
effected
within the
credit
process
By contacting
the payment
process
10.21
Prepare memo to release

equity
within the
credit
process
Monitor and follow-up

10.24
the progress of payment
11
Condition compliance
checking for equity
release/disbursement
30
minutes
1 hour
1 hour
30
minutes
5 days
44
11.1

equity release
/disbursement
application
To release equity/loan
disbursement
Up on arrival of the
within the
customer with proper Credit
application and
process
By collecting,
acknowledging
and registering
the application
30
minutes
11.2
Request vehicle and

travel advance
To visit project site and

collect data
After arranging site

visit program with
customer
within the
Credit
process
By filling
formats
20
minutes
11.3
Authorize vehicle and

travel advance request
To authorize payment
request
After request is filled
within the
Credit
process
By putting
signature
10
minutes
11.4
Assigning Vehicle
To travel to project site
After the request is

approved
Under
transport
process
By assigning
vehicle and
driver
30
minutes
Effect travel advance
To cover the cost of filed

trip

approved
Under
payment
process
By paying cash
30
minutes
To check progress of
civil work of the project
During and after site

visit
within the
Credit
process
To check the project

implementation

visit
within the
Credit
process
To ensure raw materials

and other inputs are

visit
11.5
11.6
Conducting Site visit,

Project physical and
Financial Progress
check
11.6.1 Collecting data on
total project
implementation
11.6.2 Evaluation of
progress of civil
work, prepare
report and sign
11.6.3 Check raw material
and other inputs
within the
By filling format
3 days
By filling format
3 days
By using
specification
3 days
Undertake
Simultane
ously
Undertake
45
11.7
11.8
11.9
11.10
Credit
process
check, prepare
report and sign
11.6.4 Evaluating
machinery and
equipment prepare
report and sign
purchased as per
specification
To ensure machinery
and equipment are
purchased as per
specification
11.6.5 Providing technical

advice to project
management group
To facilitate project
implementation
During site visit
11.6.6 Preparing inspection

or follow-up report
To check fulfillment of
pre-conditions for
equity/disbursement
After site visit
To approve/reject equity
release /disbursement
request
After follow-up
report prepared

process
After the letter

signed
To ensure terms and

conditions stipulated in
the loan contract
After decision made

processing
After the letter

prepared
Undertaking discussion
on the follow-up report
and signing
for equity release/
disbursement if
preconditions are fulfilled
or issue letter of
deviation other-wise
Communicating the
applicant if he/she is not
fulfilled the
preconditions
Signing the letter of
deviation and file

visit
Simultane
ously
within the
Credit
process
By using
specification
3 days
within the
Credit
process
Through
discussion
day
By using format
day
within the
Credit
process
By holding a
meeting
1 hour
within the
Credit
process
By using
telephone
20
minutes
within the
Credit
process
Using different
communication
means
30
minutes
within the
Credit
process
By putting
signature
20
minutes
within the
Credit
process
Undertake
Simultane
ously
Undertake
Simultane
ously
46
12
Equity Release / Loan

Disbursement
12.1
Preparing memo of
advice for the release of
equity/preparing RFD

of equity/disbursement
After equity approval

made
within the
Credit
process
12.2

equity release/RFD

equity/disbursement
After equity form

filled
within the
Credit
process
12.3
12.4
12.5
12.6
Opening Current account

and recording the
disbursement balance
Approving the
disbursement
Effecting payment
Follow-up the progress of

payment
Total cycle time from
application to first
disbursement
day
To facilitate the
disbursement/Equity
release
To authorize the
recorded fund
To facilitate the
project
To facilitate the payment
process
After RFD prepared

After the
disbursement is
recorded in to the
account
After equity form
filled/RFD prepared
and signed, current
account opened and
disbursement
balance recorded
After payment
instruction is sent to
payment process
By checking
contract
document and
filling format
1 hour
By reading and
putting
signature
1 hour
within the
Credit
process
By assigning
Account
number and
record the
balance
30
minutes
Within the
Credit
process
By putting
signature
20
minutes
Under
Payment
process
Through
different means
of payment
Within the
Credit
process
By contacting
the payment
process
1 hour
30
minutes
32
days
37 (32)
47
13
Subsequent
conditions
compliance checking
and equity
release/loan
disbursement
5 days
To effect the second

disbursement
After the first

disbursement is
utilized
13.1
Same as no. 11 and 12
14
Project Completion
report
14.1
Request vehicle and

travel advance

collect data

visit program with
customer
14.2
Signing vehicle and travel

advance request
request
14.3
Assigning Vehicle

approved
Effecting travel advance

trip

approved
To verify the completion

of civil work of the
project

visit
To verify the project is

ready for operation

visit
14.4
14.5
14.6
Checking whether the

project civil work is
completed as per the
plan, prepare report and
sign
Evaluating whether the
project is implemented as
within the
Credit
process
By undertaking
compliance
check
5 days
5 days
within the
Credit
process
within the
Credit
process
Under
transport
process
Under
payment
process
within the
Credit
process
within the
By filling
formats
30
minutes
By putting
signature
10
minutes
By assigning
vehicle and
driver
10
minutes
By paying cash
30
minutes
By filling format
3 day
By filling format
3 day
Undertake
Simultane
ously
Undertake
48
14.7
14.8
per the plan, take

photograph and prepare
report
Verifying whether raw
materials and other
inputs are purchased as
per the plan, prepare
report and sign
Checking whether
machinery and
equipment are in place
as per the plan, prepare
report and sign
Credit
process
To verify all inputs of the
project are purchased
visit
and ready for production
within the
Credit
process
To verify all machinery

and equipments are in
place and ready for
production
within the
Credit
process

visit
Preparing project
completion report, sign
and share to different
actors
To justify completion of
implementation and
commissioning as per
the plan
After site visit

completion report sign
14.10
actors
To revise and adjust the

project completion
report to the standard
After the completion

report is prepared
14.9
15
15.1
15.2
Simultane
ously
By filling format
3 day
By filling format
3 day
within the
Credit
process
By writing and
filling format
1 day
within the
Credit
process
By reading and
revising the
report
1 hour
Undertake
Simultane
ously
Undertake
Simultane
ously
5 days
Project Follow-up
Preparing Plan for

project follow-up
To determine the
schedule and required
resources for follow up
After project
commissioning and
understanding is
created
Communicating the plan

to concerned parties
To create awareness of
the plan
After the plan is

prepared
within the
Credit
process
within the
By continues
project status
review and team
discussion
By contacting
the individuals
day
30
49
15.3
Request vehicle and

travel advance

collect data

visit program with
customer
15.4

advance request
request
15.5
Assigning Vehicle

approved

trip

approved
15.6
15.7
Credit
process
through
different means
minutes
within the
Credit
process
By filling
formats
20
minutes
By putting
signature
10
minutes
By assigning
vehicle and
driver
30
minutes
By paying cash
30
minutes
within the
Credit
process
Under
transport
process
Under
payment
process
Conducting Project
site visit and project
status evaluated
technical,
management and
financial status of
the project
15.7.2 Evaluating the
technical and
management
capacity of the
project
4 days
To know the actual

project status
After arriving on the

project site

and management
situation of the project
During site visit
within the
Credit
process
Within the
credit
process
By being
present in the
project premises
By checking the
financial and
management
report
day
3 days
Undertake
Simultane
ously
50
15.7.3 Reviewing the

financial and
operational
efficiency of the
project
15.8
15.9
15.10
15.11

and management
situation of the project
During site visit

advice to the
customer
To support the
preparation follow up
report
During the project

site visit
15.7.5 Preparing Project

follow-up report
To take the necessary

action on the project
After data has been

compiled and
interpreted
To remind the customer

to make timely
repayment
After follow up
findings
and report
To renew the loan

contract of the project
after 10 years
Preparing loan
settlement and collateral
release report
Reviewing and signing
the loan settlement and
collateral release report
Reminder letter prepared

and served for normally
operating project
Prepare renewal
notification letter to
extend period of contract
(YIRGA)
Within the
credit
process
within the
Credit
process
By checking the
financial and
management
report
3 days
By undertaking
discussion with
customer
3 day
within the
Credit
process
Using follow up
report format
3 days
within the
Credit
process
Using reminder
format
1 hours
When the period of

contract became 10
years
Within the
credit
process
By writing letter
to concerned
legal authority
2 hours
To communicate the full

settlement of the debt
After all debt

repayment is made
by the client
within the
Credit
process
By checking the
loan balance of
the client
2 hours
To adjust and
standardize the loan
settlement report
After the report is

prepared
within the
Credit
process
By revising the
report
30
minutes
Undertake
Simultane
ously
Undertake
Simultane
ously
51
Within the
credit
process
By writing a
memo using the
set criteria
defined for
sickness
2 hours
15.12
Prepare status report if

the project is sick
To transfer the project to

recovery and get
appropriate solution for
the sickness
15.13
Reviewing the status

report
To adjust and
standardize the report
After the status

report is prepared
Within the
credit
process
By revising the
status report
30
minutes
15.14
Registering and
Transferring the project
document to recovery
To get the project

rehabilitated and
recovered from its
problem
After the status

report is prepared
Within the
credit
process
By forwarding
the project
document
20
minutes
15.15

To check the status of
the loan process when it
the loan
is under recovery process
After the status

report is transferred
to recovery
Within the
credit
process
By contacting
the recovery
process
30
minutes
After the project is

defined as sick
52
B.
SR. No
1.1
1.2
WORKFOLW MATRIX FOR PROJECT REHABILITATION AND LOAN RECOVERY SUB PROCESS
Major and detailed

activities in their
natural flow
Why is it done
When is it done
Where is
it done
How is it
done
Receiving sick project

Follow-up report and
investigate the status
Receive and register sick
loan follow-up status
report with complete file
from credit process, check
and assign
Examine the project file
(Technical,
Market,
Financial
and
Managerial)
Cycle
time Remar
k
2
days
To review and check the
If the project is
document concurrence
defined sick as per
with t he and identify the
the criteria set
problem of sickness
Under
recovery
process
By accepting
and Registering
the report
1 hour
To get a complete
understand of the
project status
After receiving the

project follow up
status report
Under
recovery
process
By reading and
analyzing
1 day
1.3
Request vehicle and travel

advance
To visit the project site

and collect data

visit program with
customer
Under
recovery
process
By filling
formats
30
minut
es
1.4

advance request
request
Under
recovery
process
By putting
signature
10
minut
es
53
1.5
1.6
1.7
Assigning Vehicle

approved
Under
transport
process
By assigning
vehicle and
driver
30
minut
es

trip

approved
Under
payment
process
By paying cash
30
minut
es
Conducting site visit,

assessing the project
physical and financial
status of the project
1.7.1 Observing the
physical status of
the project
the operational,
technical and
financial status of
the project
5
days
After follow-up
To understand the actual
reports of sick loan is
received
To further analyze the
problem of project
1.7.3 Thoroughly discuss To share ideas and reach

the problem with the consensus on the
project management observed problems
1.7.4 Preparing proposal
with
recommendation
and submit to
Process Owner
To summarize the
finding of the
assessment for decision
During project site

visit
After physical
observation of the
project conducted
After understanding
the actual problem
Under
recovery
process
Under
recovery
process
Under
recovery
process
Under
recovery
process
By visiting the
project
day
By recording the
2 days
observation
By conducting
meeting with
management
2
hour
By writing
follow-up report
2
hours
54
1.7.5
1.8
1.9
1.10
1.11
Discuss on the
outcome of the
report
Call the customer and

appoint for discussion
To have a common
understanding on the
finding of the
investigation
To discuss with the
customer on the
proposal
To create clear
Convene with customer
understanding
and hold discussion on the and avoid information
findings and proposal
asymmetry and to make
adjustment if necessary
Inform the process owner,
Revise the report and
adjust it as per the
discussion (If there is
deviation) and
Prepare a final
recommendation report
and submit the report to
Process Owner
Send the recommendation
report to the approval
team or Executive
management
To incorporate useful
ideas of the customer
and to suggest the
appropriate solution and
get the approval of the
team
To get discussion on the

recommendation of the
team
After the site visit

report prepared
When the project

follow up report and
proposal is ready
When the customer

appears for
discussion
Under
recovery
process
Under
recovery
process
Under
recovery
process
Under
recovery
When the negotiation
process
is over
After the final

recommendation
report is prepared
Under
recovery
process
By preparing a
meeting section
Using
appropriate
communication
s media and
invitation
format
Using
negotiation
guideline and at
the presence of
case manager
By amending
the proposal
and
recommendatio
n using the
follow up report
and proposal
format attached
to internal
memo
By reading
understanding,
and
correcting( if
any)
1 hour
30
minut
es
day
day
30
minut
es
55
2.1
2.2
Proposal and
Recommendation
report approval
Receiving, registering and
dispatching the recovery
proposal to Loan approval
team members
Reading proposal by
3
days
To distribute the
proposal to approval
team members
Upon arrival of the

proposal
To understand and
analyze the proposal
Upon the receipt of

the proposal
2.3
Deliberate and deciding

on the proposal and
To approve/reject the
recommendation
24 hours after receipt

of the proposal
2.4

loan approval team
minute
To record discussion
points and final decision
of the loan approval
team
During and after the

time of the meeting
2.5
Endorsing the loan

To ascertain decision of
the approval team
After final minute is

prepared

the decision of the
approval team to the
the decision of the
approval team and take
After the minute is

signed
2.6
Under
Loan
Approval
team
Under
Loan
Approval
team
Under
Loan
Approval
team
Under
Loan
Approval
team
Under
Loan
Approval
team
Under
Loan
Using register
book
30
minut
es
By reading and
reviewing
1 day
By conducting a
meeting and
insuring
compliance with
the banks
policies,
procedures and
guideline
day
By filling
minute format
day
By putting
signature
day
By using
formatted
memo
30
minut
es
56
2.7
3
to
5
recovery process and

filing a copy of the
decision
Receiving, registering,
checking and
understanding the
decision and taking
appropriate action
Executing the
Approval Teams
Decision and
recommendation
If the decision is
Rehabilitating the
project, either
activities of 3 to 5 will
be carried out
Approval
team
appropriate action
To understand the
team and act inline with
the decision
After the decision

minute is prepared
and forwarded to
recovery
Under the
recovery
process
By using
formatted
memo
1 hour
3.1
Additional loan
provision
3.1.1
Receive and register the

approval minute from the
credit process

the decision of the loan
committee

minute
within the
credit
process
By using a
format
20
minut
es
3.1.2
Prepare loan
approval/rejection
signing
To communicate the
team

minute and
preparation of the
letter
within the
credit
process
By using format
and putting
signature
30
minut
es
3.1.3
Deliver notification letter

and arrange contract
signing

process
After notification
letter prepared
within the
credit
process
Using different
means of
communication
20
minut
es
2
days
57
3.1.4
Fill in loan contract and

sign
To be signed by the
concerned party
After notification
letter is sent
within the
credit
process
Using standard
format and
signed minutes
1 hour
3.1.5
Review loan contract and

sign
To check the contract

against the minute
After contract
prepared
within the
credit
process
By checking the
filled contract
against signed
minute
30
minut
es
3.1.6
Signing of loan contract by To make the agreement

both parties
legally binding
After the contract

prepared and read by
both parties
within the
credit
process
By reading the
contract and
putting
signature
30
minut
es
3.1.7
Prepare letter of loan


process

signed
within the
credit
process
Using format
20
minut
es
3.1.8

To register collateral
After letter prepared
within the
credit
process
By putting
signature
20
minut
es
3.1.9

contract
To conform the
registration
After the contract

registered
within the
credit
process
By reading the
contract
20
minut
es
3.1.10
Disseminate information
to the concerned parties

future action
After the contract

registered
within the
credit
process
By posting on
online services
and sending
hard copy
30
minut
es
58
3.1.11
Stamp duty payment

collection
To legalize the contract
After the contract

registered and
checked
Under
payment
process
By sending the
document
30
minut
es
30
minut
es
3.1.12
Follow up of the stamp

duty payment
To assure the payment

ordered to pay the
payment
within the
credit
process
By contacting
payment
process and
collecting the
receipt
3.1.13
Fill form to purchase

insurance policy
To get insurance
coverage for collateral

signed
within the
credit
process
Using format
20
minut
es
To insure safety of the

agreement and collateral
document
After all loan

requirement
completed
within the
credit
process
By recording in
a database and
storing in a file
cabinet
1 hour

equity contribution
To insure the client

raised equity as agreed
After opening of
current account and
blocking of equity
within the
credit
process
By contacting
the payment
Process
30
minut
es
Receive application for

equity release
To insure readiness of
promoter to implement
and release equity
When the customer

comes up with the
request
within the
credit
process
Using the filled

format
20
minut
es
By checking
contract
document and
using format
30
minut
es
3.1.14
3.1.15
3.1.16
3.1.16
Record the loan

agreement and put
Prepare memo to release

equity
To facilitate equity
release
After equity blocked
within the
credit
process
59
within the
credit
process
By reading and
putting
signature
1 hour
Under
payment
process
Through
different means
of payment
1 hour
within the
credit
process
By contacting
the payment
process
30
minut
es
3.1.17

equity release

equity
After memo prepared
3.1.17
Effect payment
To facilitate the
project
After equity form

filled and signed
3.1.18
Monitor and follow-up the

progress of payment
To ascertain payment
After payment is
effected
3.2
Undertaking
condition Compliance
check
3.2.1
Receiving equity
application
To release equity/loan
disbursement
Up on arrival of the
within the
customer with proper Credit
application and
process
By collecting,
acknowledging
and registering
the application
10
minut
es
3.2.2

advance

collect data

visit program with
customer
within the
Credit
process
By filling
formats
10
minut
es
within the
Credit
process
By putting
signature
5
minut
es
Under
transport
process
By assigning
vehicle and
driver
10
minut
es
5
days
3.2.3

advance request
request
3.2.4
Assigning Vehicle

approved
60
3.2.5
3.2.6

trip

approved
Under
payment
process
By paying cash
3.2.6.1 Collect data on

total project
implementation
To check progress of
civil work of the project

visit
within the
Credit
process
By filling format
3.2.6.2 Evaluation of
progress of civil
work, prepare
report and sign
To check the project

implementation

visit
within the
Credit
process
By filling format
3.2.6.3 Check raw

material and other
inputs check,
prepare report and
sign
To ensure raw materials

and other inputs are
purchased as per
specification

visit
within the
Credit
process
By using
specification
3.2.6.4 Evaluate
machinery and
equipment prepare
report and sign
To ensure machinery
and equipment are
purchased as per
specification

visit
within the
Credit
process
By using
specification
3.2.6.5 Provide technical

advice to project
management
group
To facilitate project
implementation
During site visit
within the
Credit
process
Through
discussion
30
minut
es

Financial Progress
check
day
Undert
3 days ake
simulta
neously
Undert
3 days ake
simulta
neously
Undert
3 days ake
simulta
neously
day
Undert
ake
simulta
neously
61
3.2.6.6 Prepare inspection

or follow-up report
To check fulfillment of
pre-conditions for
equity/disbursement
After site visit
within the
Credit
process
By using format
day
3.2.7
Undertake discussion on
the follow-up report and
signing
To approve/reject equity
request
After follow-up
report prepared
within the
Credit
process
By holding a
meeting
1 hour
3.2.8
Contact the applicant for

equity release/
disbursement if
or issue letter of deviation
other-wise

process
After the letter

signed
within the
Credit
process
By using
telephone
10
minut
es
3.2.9
Communicate the
fulfilled the preconditions
To ensure terms and

conditions stipulated in
the loan contract
After decision made
within the
Credit
process
Using different
communication
means
30
minut
es
3.2.10

deviation and file

processing
After the letter

prepared
within the
Credit
process
By putting
signature
10
minut
es
3.3
3.3.1
Additional loan
disbursement
Prepare memo of advice
for the release of equity
day
of equity
After equity approval

made
within the
Credit
process
By checking
contract
document and
filling format
30
minut
es
62
3.3.2
3.3.3
3.3.4
3.3.5
3.3.6
3.3.7
3.3.8

equity release

equity
After equity form

filled
within the
Credit
process
By reading and
putting
signature
10
minut
es
Prepare RFD
To facilitate
disbursement
After disbursement
approval made
within the
Credit
process
By checking
contract
document and
filling RFD
30
minut
es
Checking and signing RFD

disbursement
After RFD prepared
within the
Credit
process
To facilitate the
disbursement/Equity
release
After RFD prepared
within the
Credit
process
Open Current account and

Record disbursement
balance
Approve the disbursement
Effect payment

payment and receive
payment message for LC
To authorize the
recorded fund
To facilitate the
project
To facilitate the payment

process
After the
disbursement is
recorded in to the
account
After equity form
filled/RFD prepared
and signed, current
account opened and
disbursement
balance recorded
After payment
instruction is sent to
payment process
By proof
reading and
putting
signature
By assigning
Account
number and
record the
balance
30
minut
es
30
minut
es
Within the
Credit
process
By putting
signature
20
minut
es
Under
Payment
process
Through
different means
of payment
1 hour
Within the
Credit
process
By contacting
the payment
process
10
minut
es
63
4.1
Loan Rescheduling
2
days
Using the
rescheduling
loan contract
form
by reading the
contract in the
presence of all
concerned
parties
4.1.1
Rescheduling loan
contract preparation
To document the
rescheduling
agreement

informed
within the
process
4.1.2
Rescheduling loan
contract signed
To legalize the loan

contract
After understanding
is created
within the
process
4.1.3
Stamp duty paid
To comply with
government directives

signed
Under
Payment
process
By using stamp
duty
collection form
4.1.4
Rescheduling loan
To legalize the signed

contract
After collecting
stamp duty
within the
process
By taking to
registration
notaries
To ensure contract
and /or collateral
registration
After contract
and/collateral
is registered
4.1.5
Registered loan contract

received and verified
4.1.6
Copy of rescheduling
contract distributed to
concerned units
To inform the concerned

units
Document updated and

filled
To properly maintain the

After verification for
contract for future
registration
reference
4.1.7
After verification
2
hours
30
minut
es
30
minut
es
1 hour
within the
process
By checking the
registration
slip/or stamp
within the
process
By preparing a
memo and
attaching the
contract
30
minut
es
within the
process
By coding and
placing the
contract in the
project's folder
2
hours
1 hour
64
4.1.8
Rescheduling data
compilation and reporting
5.1
Management
Intervention
/participation
in decision making,
financial control or
other technical
assistance/
5.1.1
Receiving decision of
management intervention
5.1.2
Call and Informing the

client about Management
intervention
To inform the various

internal stakeholders
and to update file
After loan
rescheduling is
effected
within the
process
By using
rescheduled
loan reporting
format
2
hours
4
days
To take further action of

management
intervention
After the decision is

made by approval
team
Within the
credit
process
By accepting the
decision point
To facilitate the
management
intervention process
After the decision

minute is collected
Within the
credit
process
By dialing to the
customer
When the customer

comes up with the
letter
Within the
credit
process
5.1.2
Acceptance letter received

from customer
To facilitate the
management
intervention process
5.1.3
Preparation of
Management Intervention
Agreement
To formalize the
management
intervention agreement
After the
management
within the
intervention proposal process
is accepted
5.1.4
Signing of Management
intervention Agreement
To legalize the
agreement
After understanding
is created
within the
process
By formal
acceptance
letter written by
the customer
Using a format
prepared for
each type of
intervention
by reading the
contract in the
presence of all
concerned
parties
20
minut
es
2 days
day
1 hour
1 hour
65
5.1.5
5.1.6
Institute the proposed

management intervention
scheme
To rehabilitate the
project and induce loan
repayment
Management intervention
data compilation and
reporting

stakeholders external
and within the Bank and
to update data
After signing the

management
intervention
agreement
After management
intervention
action is taken
within the
process
within the
process
Using the
management
intervention
guideline
using
management
intervention
reporting
format
Foreclosure
1 hour
day
1 day
After rehabilitation
means are tried and
failed
within the
recovery
process
Using the legal

notice format
and foreclosure
guideline
Signing the legal notice
To authorize the letter
After the legal notice

prepared
Within the
recovery
process
By putting
signature
20
minut
es
6.3
Delivering 30 Days legal

notice to customer
To warn the customer to

effect payment of
overdue loans
After the document

has been prepared
within the
recovery
process
As per the
foreclosure
guideline
day
6.3
If arrears settled by
customer
6.1
Preparing 30 days legal

notice
6.2
6.3.1
Receive copy of payment

receipt
1 hour
day
To ensure the payment
of arrear
When the customer

presents copy of the
payment receipt
within the
process
By personal
delivering of the
receipt
30
mints
66
6.3.2
Stop foreclosure process
To proceed with the loan

as a normally paying
project
6.3.3
Compile collection and

return file to credit
process

stakeholders external
to update data
6.4
If arrears is not settled
After receiving copy

of payment receipt
within the
process
By not
proceeding with
the foreclosure
action
After the foreclosure

process has been
stopped
within the
process
Using reporting
formats
6.4.1
Property take over
6.4.1.1
Prepare letter for

administration bodies and
follow up the progress to
takeover the asset
To facilitate the
foreclosure process
Within the
Before the property is
recovery
taken over
process
6.4.1.2
Authorize the letter and

send to administrative
bodies for cooperation
To facilitate the
foreclosure process
After the letter is

prepared
Within the
recovery
process
By putting sign
on the letter
At the presence of all

concerned bodies
Within the
recovery
process
As per the
foreclosure
guideline
Within the
recovery
process
Using the
available image
capturing device
6.4.1.3
6.4.1.4
1 hr
1 hr
6
days
To check the existence

and estimate the value of
Take inventory of the asset the asset at the time of
takeover
Take snapshot (Video or
To make additional
Photo as appropriate) of
evidence on the status
project physical facilities
of assets taken over
At the time of
property takeover
As per the
foreclosure
guideline
2 days
1 day
2 days
30
minut
67
6.4.1.5
Taking over of property
6.4.2
Assignment of guard
To proceed with the

foreclosure
After listing of all

assets and
preparation of
formalizing
document
Within the
recovery
process
Using
foreclosure
guideline and by
putting
day
signature
1 day
6.4.2.1
Recruiting guards for the

property in consultation
with human resource
To safeguard the
property
After the property is

taken over
Outside the By selecting

process
from applicants
6.4.2.1
Follow up the assignment

of guards to the property
To guard the property
Before property is
taken over
Within the
recovery
process
6.4.3
Asset valuation
6.4.3.1
Valuing Building and civil

works
Using formal
correspondence
letter
day
1/2
day
5
days
To determine sales value
After property take

over
Within the
process
Using the
banks
parameters
5 days
68
6.4.3.2
Valuing Machinery and

Equipment
After property take

over
Within the
process
Using the
banks
parameters
5 days
6.4.3.3
Valuing Raw material,

stoke and others
After property take

over
Within the
process
Using the
banks
parameters
5 days
6.4.4
Auction
Announcement
6.4.4.1
Auction document
preparation and
announcement facilitation
To proceed with the

auction
After asset evaluation

within the
is completed and
process
price is determined
As per the
banks standard
day
6.4.4.2
writing Announcement
script
To get it announced
through
media
After auction
document is
prepared
within the
process
Using auction
document
format
1 hr
6.4.4.3
Preparing Asset
audiovisual presentation
To mix the captured

image with sound
After the script has

been written
Out of the
process
By out sourcing
2 days
6.4.4.4
Audiovisual or written
announcements
submitted to electronic or
printing media
To get the auction

announced
or published
After receiving from

the
advertising agency
within the
process
As per the
foreclosure
guideline
2 hrs
6
days
69
To invite potential
participants to the
auction
Within 5 days after

submitting the
submitting to
electronic or printing
media
Out of the
process
By printing or
audio visual
announcement
3 days
6.4.4.5
publishing or announcing
Auction notice
6.4.5
Auction process
6.4.5.1
Communicating with all

collaborators and
concerned government
bodies
To proceed with the

auction
on the auction date
within the
recovery
process
As per the
foreclosure
guideline
6.4.5.2
Collecting bid bond
To fulfill precondition of
full participation in the
auction
Before the official

opening of the
auction
within the
recovery
process
By collecting
and registering
30
minut
es
6.4.5.3
Recording the auction

event
To insure concurrence
with auction results
between the bank and
the winner
Immediately after the within the

announcement of the recovery
decision
process
By signing on
the prepared
minute
2
hours
6.4.5.4
Notifying the winner
To confirm who has won

and facilitate cash
collection
After declaration of
the winner
By writing
official letter
20
minut
es
6.4.6
If property sold
1 day
within the
recovery
process
day
2
days
70
6.4.6.1
Winner pays the amount

s/he pledged
To ensure ownership on
the property
within 15 days after

auction
Under
payment
Process
By delivering
the notification
letter to the
payment unit
1 hour
6.4.6.2
Handover property and

documents to the buyer
and facilitate property
ownership
To legalize transfer of
ownership
After the buyer has

paid the pledged
amount
within the
recovery
process
As per the
foreclosure
guideline
1 day
On the date of
collection
within the
recovery
process
Using reporting
formats
After the buyer has

paid the pledged
amount
within the
recovery
process
By contacting
the payment
unit
6.4.6.3
6.4.6.4
6.4.7

Report sale of the property stakeholders external
and collection
to update data
To reimburse positive
Follow-up the deduction
balance to the defaulted
of the asset value from the customer or to search for
loan
additional property for
uncovered balance
If auction proceed is
less than loan
outstanding
30
mints
30
mints
2
days
6.4.7.1
Search for additional

property
To recover the
remaining loan
balance
6.4.7.2
Communicate to
concerned authorities
To facilitate the search

for additional property
After the asset value

is deducted from the
loan balance
within the
recovery
process

loan balance
within the
recovery
process
By writing
letters to
concerned
administrative
bodies
By writing
letters to
concerned
administrative
bodies
1 day
1 day
71
6.4.8
If additional property
is found,
6.4.8.1
Prepare legal charge
To take the case to court
When additional
property is
found
within the
recovery
process
Based on the
relevant law of
the country
day
6.4.8.2
Open file at court
To sue the defaulted

customer
After the has been

prepared
within the
process
By submitting
the court charge
to the registrar
day
6.4.8.3
Follow-up the case and

undertake the necessary
litigation
To have the court decide

the case in the Bank's
favor
After opening the file
within the
process
Using the
relevant legal
codes
6.4.9
is not found
6.4.9.1
Report absence of
additional property

stakeholders within the
Bank and to update data
After all searching

means are
exhausted
within the
process
Using reporting
formats
6.4.9.2
Prepare and submit writeoff proposal and follow-up

the case
To clear uncollectible
from
bank's portfolio
After absence of
additional
property has been
reported
within the
process
As per the writeoff guideline

3 days
and format
When the selected

media has
releases the
announcement
Through the
Out of the
appropriate
process
media
6.5
2nd
1 day
4
days
To invite potential
auction announced participants to the
auction
1 hour
7
days
72
Plan and Arrange to

conduct second auction
To facilitate the sale
Before the auction

date
6.5.2
Auction document
amended and
To proceed with the

auction
After asset evaluation within the

is completed and
recover
price is determined
process
As per the
banks standard
day
6.5.3
writing an amended
announcement script
To get it announced
through
media
After auction
document is
prepared
within the
recover
process
Using auction
document
format
1 hr
6.5.4
announcements
printing media
To get the auction

announced
or published
After receiving from

the advertising
agency
within the
recover
process
As per the
foreclosure
guideline
2 hrs
To invite potential
participants to the
auction
Within 5 days after

submitting the
submitting to
electronic or printing
media
Out of the
process
By printing or
audio visual
announcement
5 days
To proceed with the

auction
on the auction date
within the
recover
process
As per the
foreclosure
guideline
To sell the property
After 15 and /or 30

days of
announcement
within the
recover
process
As per the
foreclosure
guideline
6.5.5
6.5.6
6.5.7
Publishing or announcing
Auction notice
Facilitation for auction
Conducting second
auction
within the
process
By preparing
auction plan
2
hours
6.5.1
2
hour
day
73
6.5.4
If property sold on the

second auction
6.5.4.1

s/he pledged
6.5.4.2
Facilitates transfers
To legalize the transfer
property ownership title to
of ownership
the buyer
2
days
To ensure ownership on
the property
within 15 days after

auction
Under
payment
process
By delivering
the amount to
the payment
unit
After the buyer has

paid the pledged
amount
within the
process
As per the
foreclosure
guideline
day
within the
process
As per the
foreclosure
guideline
day
To reimburse positive
balance to the defaulted After the second
customer or to search for auction has been
additional property for
conducted
uncovered balance
6.5.4.3
If Property not sold, value

of the asset deducted from
the loan.
6.5.5
If the deduction result

is positive (excess of
the loan balance)
6.5.5.1
Write payment
To reimburse the
authorization of the
customer with the excess
balance (in favor of the
balance
customer) to payment unit
6.5.6

is negative (less than
the loan balance)
property
1 hour
1
hour
loan balance
within the
process
Using internal
memo
requesting the
payment
1 hour
day
74

loan balance
within the
process
day
6.5.6.1
Communicate with
6.5.7
is found
6.5.7.1
Prepare legal charge
To take the case to court
When additional
property is
found
within the
process
Based on the
relevant law of
the country
day
6.5.7.2
Open file at court
To sue the defaulted

customer
After the has been

prepared
within the
process
By submitting
the court charge
to the registrar
day
6.5.7.3

litigation
To have the court decide

the case in the Bank's
favor
After opening the file
within the
process
Using the
relevant legal
codes
6.5.8
is not found
6.5.8.1
Report the absence of

additional property to
concerned body

stakeholders within the
Bank and to update data
After all searching

means are
exhausted
within the
process
Using reporting
formats
Prepare and submit writeoff proposal
To clear uncollectible
from
bank's portfolio
After absence of
additional
property has been
reported
within the
process
As per the writeoff guideline

3 days
and format
6.5.9.2
To facilitate the search

for additional property
By writing
letters to
concerned
administrative
bodies
1 day
3
years
4
days
30
mints
75
C.
1.1
Other Duties
Prepare plan and
periodic reports on
the overall
performance and
achievement of the
team
1.1.1
1.1.2
1.1.3
1.1.4
Plan and budget

preparation
Preparing Loan
provisioning
report
(to internal audit)
WORK FLOW MARTIX FOR OTHER DUTIES
Why is it done
Where is it
done
How is it done
To facilitate informed
decision
Monthly, quarterly
and annually
within the
process
Using formats
To facilitate resource
allocation and to crate
awareness of future
direction
Annually
within the
process
By collecting data
and filling formats
To check financial
performance of the Bank
Annually
within the
process
By collecting data
and filling formats
Cycle
Time
5 days
3 days
Preparing Various
To check financial
credit operation
performance and
activities report to
associated risk of the Bank
corporate planning
Preparing monthly
and semiannual,
risk and risk
classification
report
When is it done
To check financial
performance and
associated risk of the Bank
Biweekly, Monthly,
quarterly and
annually
Monthly, quarterly
and annually
within the
process
within the
process
By collecting data
and filling formats
By collecting data
and filling formats
3 days
2 days
76
1.1.5
1.2
Preparing report
for external users
(PEAF)
Review periodic reports

and submit to concerned
body
To communicate the
performance and status of
the Bank
Monthly, quarterly
and annually
To evaluate achievement of
the team
After the periodic

reports prepared
Within the
process
By collecting data
and filling formats
1 day
with in the
process
By reading
1 day
1.3
1.4
1.5
Preparing the resource

requirement plan and
budget of the team
To facilitate the accessibility

of resources to the team
At the beginning of
each year and
quarter
Within the
process
By conducting need
assessment
2 days
Review the resource

budget of the team
To evaluate the correctness

of the plan and adjust
accordingly
After the plan and

budget report
prepared
Within the
process
Rate performance of
teams and members and
nominate for reward
To encourage and monitor

team members performance
quarterly,
semiannually and
annually
with in the
process
By filling
performance
evaluation form
By revising the plan

and budget report
day
1.6
Design and install a new

way of working systems
that fits to the external
demand

processing system and
improve performance
whenever the need

arises
with in the
process
By evaluating the
existing working
condition of the
Bank and
identifying its
bottleneck
1.7
Attend and resolve

customers compliments
To facilitate the smooth

functioning of the process
whenever the
problem happens
with in the
process
By arranging
discussion
2 days
Activity
carried
out
simulta
neously
A
continu
ous
activity
77
1.8
Liaison the Bank with

external bodies regarding
loan related matters
To smoothening the loan

operation of the Bank
Whenever required
with in the
process
By representing the
Bank
1.9
Hold in-depth discussion

forum with customers

processing
Whenever required
and as per schedule
with in the
process
By arranging
discussion forum
1.10
Distribute work
assignments properly
among case teams/Case
managers
To facilitate and
smoothening the loan
processing
When work
assignment is
required
with in the
process
By maintaining a
record and revising
the workload of
teams
1.11
Monitor results of the

process and ensure high
performance through
process improvement

processing
After work
assignment is
distributed
with in the
process
By inspecting work
progress
Perform advocacy role

both to performers and
the Bank

processing
Whenever required
with in the
process
By representing the
Bank
Identify skill and

knowledge gaps and
propose skill
development program
To improve and facilitate

the loan processing
After evaluation of
the teams
performance
with in the
process
By inspecting work
progress
Hold regular meeting

with process workers to
evaluate performances
To facilitate and improve

the loan processing
Whenever required
and as per schedule
with in the
process
By calling a team
members meeting
within the
Credit
process
Using provisioning
guideline,
directives and
format
1.12
1.13
1.14
1.15
Project Provisioning
prepared by estimating
the value of the project
To classify the loan and to

estimate the provisioning
during follow up
report preparation
A
continu
ous
activity
A
continu
ous
activity
A
continu
ous
activity
A
continu
ous
activity
A
continu
ous
activity
A
continu
ous
activity
A
continu
ous
activity
2 days
78
4.2.
JOB AND RESPONSIBILITY MATRIX OF THE LOAN PROCESS
A. MAJOR AND DETAILED ACTIVITIES, PINPOINT RESPONSIBILITIES AND REQUIRED COMPETENCE

FOR CORE CREDIT PROCESS
Step
1.1
1.2
Major and detail

activities in their
natural flow
Customer Sourcing
(Recruiting
Customer)
Understanding the
strategic and operational
plan of the Bank and
share among team
members
Identifying the source of
potential customer
Knowledge, Education,
Pinpoint Responsibility
Job Title
Behavioral Requirement
No of
perfo
rmer
1.1, 1.2, 1.3, 1.4, 1.5, 1.6, 2.1, 4.7, 6.1,

6.6, 8.1, 8.3, 10.1, 10.6, 10.9, 10.14,
10.21, 12.4, 12.6, 15.11, 15.14, 5.1.1,
5.1.2, 5.1.4
Understand the strategic and
Excellent ability to work
operational plan of the Bank and share
individually and as part of
among team members (1 day)
a team
Identify the source of potential customer
1.3
Collecting data on
potential investors
1.4
Select appropriate means

of communication
Data collection on potential investors
Attracting and
persuading potential
applicants
Select appropriate means of
1.5
Experience and
(1/2 day)
(1 day)
communication (1/2 day)
Excellent analytical skills
Very good interpersonal

and presentational skills
Very
good
ability
to
communicate the case and

build
consensus
Process
owner
for
79
1.6
Receiving expression of
interest and follow-up
Attracting and persuading potential

applicants (1 day)
changes
Receiving expression of interest and

follow-up (1/2 day)
on her/his own initiative
General briefing on customer charter,

Banks requirement, credit facilities and
Loan application
receiving
Good ability to plan and

deliver on deadlines
Excellent
influencing,
assigning tasks to a specific performers
networking
and
and register (15 minutes)
functional working skills
Transferring the due diligence report
Self starter; able to work
cross
Fluent on building and
and all relevant document for appraisal
sustaining
(20 minutes)
relationship internally and
strong
team
80
2.1
2.2
2.3
2.4
General briefing on
requirement, credit
facilities and assigning
tasks to a specific
performers and register
2.2, 2.5, 4.7, 6.3, 6.5, 8.2, 10.2, 10.5,

10.10, 10.17, 10.21, 11.3, 11.10, 12.2,
12.4, 12.5, 14.2, 14.10, 15.1, 15.2, 15.4,
15.10, 15.12, 5.1.2, 5.1.4, 1.1.1

Detail discussion on
Detail technical discussion on customer
requirement, credit
facilities and alternative
charter, Banks requirement, credit
options offered by the
Bank and assign the job
facilities and alternative options offered
Receive application with
by the Bank (1 hour)
supporting document and
Register the application in a database
verify its completeness
Application and
disclaimer signing
and disseminate the information

(30 minutes)

a team

2.5
3.1
3.2
Application document
Screening
report and sign (1 hour)

Sharing and discussion on the outcome
of the loan appraisal (3 hours)
Reviewing the discussion outcome
report (1 hour)
Check appropriateness of
submitted documents:
Read and own the appraisal report
3.1.1 Construction
documents
Prepare loan approval/rejection
Very
good
ability
to
communicate with team
Review the consolidated due diligence

Register the application
in a database and
disseminate the
information
members


(3 hour)
Excellent
influencing,
networking
and
cross
Competency on building
81
3.1.2 Performa of
Machinery and
equipment and
catalogue
3.1.3 Raw material and
chemicals
3.1.5 Legal documents
3.1.6 The general
contents of the feasibility
study (if Applicable)
Communicating the
client for any
inappropriate document
3.3
Report compilation
Undertaking Due
Diligence Assessment
notification letter and signing
and sustaining strong team
(30 minutes)
Review loan contract and sign (30

minutes)
Gathering KYC
information of the
applicant
Collect data on
4.1.1 Character
4.1.2 Credit information
4.1.3 Capital/Equity
sources
4.1.4 Business track
Checking registered loan contract (20

minutes)
/Accounting/Management
Checking and signing equity release (30
Signing the letter of deviation and file.

(10 minutes)
Checking and signing equity release (20
Principal
Officer
/Agriculture and 6 years

experience in a bank
minutes)
request (10 minutes)
M.A/M.Sc in
Economics
(20 minutes)
Authorize vehicle and travel advance
Clear ability to coordinate

and motivate staff
Authorize Opening of current account
minutes)
4.1
externally
B.A. in Economics /
Accounting/
Management / Agriculture
8 years of experience
required out of which 2
years as a senior officer
Checking and signing RFD (30

minutes)
Open current account and record
disbursement (30 minutes)
Signing vehicle and travel advance
82
4.2
record
4.1.5 Managerial
competency
Undertake KYC
assessment
4.2.1 Assess the Credit
history of the
promoters/
shareholders
4.2.2 Identify the source
of Capital and its
adequacy for the
project
4.2.3 Check the business
track record of the
promoter
Reviewing Compiled project completion

report, sign and share to different actors
(1 hour)
Preparing plan for project follow-up
( day)
Communicate the plan to concerned
4.3
Understanding the
feasibility study
parties (30 minutes)

Prepare loan settlement and collateral
release report (2 hours)
4.4
Assessing and
Commenting on the
management capacity of
the promoter
4.5
Discuss with customer on
Review the status report if the project is

3.1, 3.3, 4.2, 4.3, 4.4, 4.6, 6.3, 6.4,
10.15, 11.2, 11.6, 11.9, 14.1, 14.6, 14.9,
15.3, 15.7, 5.1.6, 5.1.7 , 1.1.3, 1.1.4
83
4.6
4.7
4.8
6
6.1
6.2
6.3
6.4
6.5
the collateral to be
offered for the loan
Write a consolidated due
diligence report and sign
Transfer due diligence
report and all relevant
document for appraisal
Follow up progress
Discussion on the
selected critical
points with customer
Call the applicant and
arrange for discussion
Sharing and discussion
on the outcome of the
loan appraisal
Preparing of discussion
outcome report
Transferring the
discussion outcome to
appraisal
8
Receive and own the
final appraisal report
Check legality of documents and the
general contents of the feasibility study
(4 hours)
a team
Compiling report of document (credit

history, source of capital, business track
record) screening (1 hour)

Undertake KYC assessment ((credit
Very
good
ability
to
history, source of capital, business track
record) (2 days)
members
Understanding the feasibility study
(2 hours)
Assessing and commenting on the
management capacity of the promoter
(1 hour)
Write a consolidated due diligence
of the loan appraisal (3 hours)
Excellent
influencing,
networking
and
cross
Competence on building
Preparing discussion outcome report (1
hour)
Record the loan detail in customer

report and sign (3 hours)

Sharing and discussion on the outcome
externally
M.A/M.Sc in Economics/
84
account (1 hour)
8.1
Receive file with the

appraisal report
Accounting/Management/
Request vehicle and travel advance (20
Agriculture and 2 years
8.3
8.3
8.4
10
10.1
10.2
Read and own the

appraisal report
Send the final report to
approval
Conducting site visit and project
B.A. in Economics/
progress check and prepare inspection
report (3 days)
Agriculture-with 5 years
Undertake discussion on the follow-up
14
experience in bank
minutes)
8.2
Senior
Officer
experience in bank
report (1 hour)
Check whether the project is
implemented as per the plan, take
Loan and Mortgage

Agreement signing
and documentation
Receive the minute from
the approval team
Prepare loan
approval/rejection
signing
photograph and prepare report (3 days)

Prepare project completion report
(1 day)
Prepare status report if the project is
sick (2 hours)
Rescheduling loan contract preparation
(1 hour)
Rescheduling loan contract registration
(20 minutes)
Rescheduling data compilation and
reporting (2 hours)
Institute the proposed management
intervention scheme (1 hour)
85
Management intervention data

compilation and reporting (1/2 day)
Prepare various credit operation
activities and report to corporate
planning (1 day)
Preparing annual reports (2 days)
10.4
10.5
10.5
10.6
Delivering notification
letter and arrange
contract signing
Filling loan contract and
sign
Reviewing loan contract
and sign
Signing of loan contract
by both parties
Preparing semi-annual risk classification

4.1, 10.4, 10.8, 10.11, 10.13, 10.21, 11.6,
12.1, 12.3, 15.7, 4.1.1, 4.1.7, 1.1.2, 1.1.4
Gather KYC information of the
86
10.7
10.8
10.9
10.10
10.11
10.12
applicant, collecting data on credit
Preparing letter of loan

information, source of capital, business
a team
track record, managerial competence of

contract
Disseminating
information to the
concerned parties
the promoter (2 days)
Stamp duty payment

collection
Follow up of stamp duty
payment
Fill-in loan contract and sign as witness

(1 hour)
10.13
10.14
10.14
Filling form to purchase

insurance policy
Recording the loan
agreement and put
Recording the loan detail
in customer account
Opening current account
and informing the
customer to block equity
contribution
Prepare letter of loan contract

Disseminate information to concerned
(1/2 day)
Provide advice on the financial and

Excellent
influencing,
networking
and
cross
Loan
Officer
16
(RFD) (30 minutes)

financial status of the project (1/2 day)
Prepare Request For Disbursement

Collecting data on management and
to
Provide advice to project management

group on the progress of the project
ability
(30 minutes)
implementation (3 days)
good
members
parties (20 minutes)

Prepare memo to release equity
Very
registration (30 minutes)
Collecting data on the total project

10.12
externally
Agriculture and no
87
10.15
Blocking of equity
contribution
1o.15

equity contribution
10.15
Receiving application for

equity release
10.15
10.16
Preparing memo to
release equity
equity release
management performance of the project

(1/2 day)
Rescheduling loan contract preparation
(1 hour)
experience required
B.A. in
Economics/Accounting/M
anagement/Agriculture-
Document updated and filled (1 hour)
with 2 years experience in
Analyzing and preparing monthly loan
bank
provisioning report (to internal auditor)

Analyzing and preparing quarterly loan
10.17
Effect payment
10.18
Monitoring progress of
payment
Analyzing and preparing annually loan
4.1, 10.13, 4.1.6, 1.1.1, 1.1.2, 1.1.3, 1.1.4
Junior
Officer
88
11
Condition compliance
checking for equity
release/disbursement
Gather KYC information of the applicant
i.e. collecting data on credit information,
source of capital, business track record,
a team
managerial competence of the promoter
(2 days)
Fill form to purchase insurance policy

(20 minutes)
Copy of rescheduling contract
Disseminate information to the

concerned parties (30 minutes)
Prepare periodic reports on the overall
performance and achievement of the
team
the team (2 days)

Excellent
influencing,
networking
and
cross

to
Collecting data to prepare monthly loan

Collecting data to prepare quarterly loan
ability
members
Collecting data for the Preparation the

resource requirement plan and budget of
good
distributed to concerned units

(30 minutes)
Very
externally
B.A. in Economics/
89
Agriculture and n0
experience required
Collecting data to prepare annually loan

Monthly and semiannual risk and risk
classification of listing customer
(1 + 1 + 2 + 3 = 7 days)
Collecting data for Preparing quarterly
credit operation activities report to the
11.1
Receiving equity
application
11.2
Request vehicle and

travel advance
11.3

advance request
corporate planning (2 days)
3.1, 11.6.2, 11.6.5, 11.7, 14.5, 15.7.1
Check the appropriateness of
90
11.4
Assigning Vehicle
construction and other civil work
documents (1/2 day)
a team
Evaluating the progress of civil work,

prepare report and sign (3*3=9 days)
11.5
Providing technical advice to the

promoter on the plan and civil work

11.6
Financial Progress
check
total project
implementation
progress of civil
work, prepare
report and sign
11.6.3 Checking raw
material and other
inputs check,
prepare report and
sign
11.6.4 Evaluating
machinery and
equipment prepare
report and sign
progress (1/2 day)
work of the project (1/2 day)
(1/2 day)
Total Time Required = 65 + 24 h
Sr. Civil
Engineers
3+3
=6
and
Civil
Engineers

Excellent networking and

cross functional working
Provide technical advice on the

operation performance of the project
to
report and sign (3 days)

Collect data on the technical and civil
ability
members
Check whether the project civil work is

completed as per the plan and prepare
good

report of the project progress (1 hour)
Very
skills
Competence in working as
team
member
sustaining
strong
and
team
91

externally
M.Sc in Civil Engineering no experience required for

Engineers and 2 years of
experience is required for

advice to project
management group
Sr. Engineers
(8+3=11 days)
B.Sc.
Degree
in
Civil
Engineering - 2 years of
relevant
experience
is
required for Engineers and

5 years of experience is
required for Sr. Engineers
11.6.6 Preparing inspection

or follow-up report
11.7
11.8
Undertaking discussion
on the follow-up report
and signing
3.1.2, 11.6.4, 11.6.5, 11.7, 14.8, 15.7.1,

15.7.4

for equity release/
disbursement if
Check the appropriateness of Performa
or issue letter of
92
deviation other-wise
11.9
11.10
Communicate the
fulfilled the
preconditions
deviation and file
of machinery and equipment and
catalogue (1/2 day)
a team
Evaluate the machinery and equipment

while conducting site visit and prepare
report (3 days)
Provide technical advice on the progress
of the project implementation
12.1
Equity Release / Loan

Disbursement
Preparing memo of
advice for the release of
equity
12.3
12.4
12.5

equity release
Preparing RFD
RFD
Opening of current
account and Record
disbursement balance
equipment are in place as per the plan

and prepare report (3 days)
Collect data on the technical status of the
12.2
report of the project (1 hour)

Check whether machinery and
project (1/2 day)

Provide advice on the operation
performance of the project (1/2 day)
good
ability
to
Sr.
Mechanic
members
al /
Industrial
Self starter; able to work Engineer
and
Mechanic
al /
Excellent networking and Industrial
cross functional working Engineer
(1/2 day)
12
Very
1+1 =
2
skills
team
member
sustaining
Total time required = 50 h (6 days)
strong
and
team

externally
M.Sc
in
93
12.6
Approving the
disbursement
12.6
Effecting payment
12.7

payment and receive
payment message for LC
Total cycle time from
application to first
disbursement
13
13.1
Subsequent
conditions
compliance checking
and equity
release/loan
disbursement
Mechanical/Industrial
Engineering
experience
required
no
for

Sr. Engineers
B.Sc.
Degree
in
Mechanical/Industrial
relevant
experience
is

Same as no. 11 and 12
14
Project Completion
report
14.1
Request vehicle and

travel advance
14.2

advance request
14.3
Assigning Vehicle
14.4
94
14.5
14.6
14.7
14.8
14.9
15
Check whether the

project civil work is
completed as per the
plan, prepare report and
sign
Check whether the
project is implemented as
per the plan, take
photograph and prepare
report
Check whether raw
materials and other
inputs are purchased as
per the plan, prepare
report and sign
Check whether
machinery and
equipment are in place
as per the plan, prepare
report and sign
Prepare project
completion report, sign
actors
Project Follow-up
15.1
Plan for project follow-up
15.2
Communicate the plan to

concerned parties
3.1.3, 11.6.3, 11.6.5, 11.7, 14.7, 15.7.1,

15.7.4
Check the appropriateness of raw
material and chemicals (1/2 day)

Check raw material and other inputs
a team
while conducting site visit and prepare
report (3 day)
Provide technical advice on the progress

of the project (1/2 day)
Collecting and analyze data on the

technical matter of the project (1/2 day)
Provide technical advice to the customer
on the operation of the project
(1/2 day)
ability
to
members
inputs are purchased as per the plan and

prepare report (3 day)
good
report of the visit (1 hour)

Check whether raw materials and other
Very

Chemical
Engineer
Excellent networking and

cross functional working
skills
95
15.3
Request vehicle and

travel advance
15.4

advance request
sustaining
15.5
Assigning Vehicle
externally
team
strong
and
team

Conducting Project
15.7 site visit and project
status evaluated
technical,
management and
financial status of
the project
technical and
management
capacity of the
project
15.7.3 Review the financial
and operational
efficiency of the
project
advice to the
customer
15.7.5 Project follow-up
report prepared
member
15.6
M.Sc
in
Chemical
Engineering
experience
required
no
for

Sr. Engineers
Total time Required = 35 h (4 days)
B.Sc. Degree in Chemical

relevant
experience
is
Total effective working time per
project is 3 days
96
15.8
15.9
15.10
Reminder letter prepared

and served for normally
operating project
Prepare renewal
notification letter to
extend period of contract
(YIRGA)
Collection completion
report prepared and
collateral document
released
2.3, 2.4, 3.2, 4.1, 4.5, 4.8, 6.1, 6.5, 8.4,

10.3, 10.12, 10.16, 10.18, 10.19, 10.23,
11.1, 11.8, 11.9, 12.8, 15.8, 15.9, 15.14
Receive application with supporting

document and verify its completeness
(1 hour)
Application and disclaimer signing
15.11
15.12
Prepare status report if

the project is sick
Transfer the project
document to recovery
(10 minutes)
Communicating the client for any
inappropriate document (1 hour)
Collect data on character (2 hours)
Discuss with customer on the collateral
4.1
4.1.1
Loan Rescheduling
Rescheduling loan
contract prepared
to be offered for the loan (1 hour)

Follow-up the progress of project
appraisal (2 hour)
Call the applicant and arrange for
4.1.2
4.1.3
Rescheduling loan
contract signed
Stamp duty paid
discussion (30 minutes)

appraisal (1 hour)
A contact person can be a

Senior officer or an
officer
Such assignment is given
and will be carried out
Contact
Person
simultaneously
97
4.1.4
Rescheduling contract
registered
4.1.5
Registered loan contract

received and verified
4.1.6
Copy of rescheduling
contract distributed to
concerned units
4.1.7
4.1.8
5.1
5.1.1
5.1.2
5.1.2

approval (1 hour)
Deliver notification letter and arrange
for contract signing (20 minutes)
Follow-up the stamp duty payment
(30 minutes)
Opening current account and informing
Document updated and

filled
Rescheduling data
compilation and
reporting
Management
Intervention
/participation
in decision making,
financial control or
other technical
assistance/
Receiving decision of
management
intervention
the customer to block equity

contribution (20 minutes)
Follow-up the blocking of equity
contribution (30 minutes)
Receive application for equity release
(10 minutes)
Monitor progress of payment
(10 minutes)
Receive equity release / disbursement
application (10 minutes)
Contact the applicant for equity
Call and Informing the

client about Management
intervention
Acceptance letter
received from customer
release/disbursement if preconditions
are fulfilled or issue letter of deviation
(10 minutes)
Communicate the applicant if he/she is
98
5.1.3
Preparation of
Management
Intervention Agreement
5.1.4
Signing of Management
intervention Agreement
5.1.5
Institute the proposed

management
intervention scheme
5.1.6
Management
intervention data
compilation and
reporting
not fulfilled the preconditions

(30 minutes)
Follow-up the progress of payment /
Disbursement (10 minutes)
Reminder letter prepared and served for
normally operating project (1 hour)
Prepare renewal notification letter to
extend period of contract (2 hours)
Follow-up the progress of the loan
treatment under recovery (1 hour)
Total time required = 17 h (2 days)
99
B. MAJOR AND DETAILED ACTIVITIES, PINPOINT RESPONSIBILITIES AND REQUIRED COMPETENCE

FOR LOAN APPRAISAL SUB PROCESS
Sr.
No.
5
5.1
5.2
Major and Detailed

Activities in their
Natural Order
Experience and Behavioral
Requirement
Pinpoint
Responsibility
Job Title
No. of
Performe
rs
Project Appraisal
Receiving and checking
all document from the
credit process
Gathering and compiling
relevant research, risk
assessment data and
Background information
5.3
plan, bill of quantity and
other construction
documents, prepare
report and sign
5.1, 5.11, 7.1, 7.3

Receiving and checking
all document from
Excellent
ability
to
individually and as part of a team
credit process (1
hour)
Very
Transferring draft
report to the Credit
Process (1/2 day)
report (30 minutes)
good
interpersonal
Process
Owner
and
presentational skills
Very good ability to communicate

the case and build consensus for
Receive and check

discussion outcome
work
changes
Self starter; able to work on her/his

own initiative
100
Send the final appraisal
report to credit process

(30 minutes)
Good ability to plan and deliver on

deadlines
Excellent influencing, networking

and cross functional working skills
Fluent on building and sustaining

strong team relationship internally
and externally
Clear ability to coordinate and

motivate staff
5.4
Review specification of
machinery and
equipments, prepare
report and sign
MA/M. Sc. in Economics, Business
5.10, 7.2, 1.1.1
101
5.5
5.6
raw material and
chemical, prepare report
and sign
Undertake technical
appraisal including
implementation schedule
Review and compile
appraisal findings of
Excellent
ability
to
KYC assessment and
Very
prepare the draft

appraisal report (2
days)
necessary) and finalize

the appraisal report (3
hours)
Review the resource
budget of the team
(3 days)
good
interpersonal
Principal
Officer
and

Incorporate points of
discussion (if
work
changes

own initiative

2
deadlines


and externally
Total time required =

19 + 24 hours

motivate staff
( 4 + 3 days)

Administration,
Accounting
or
Agricultural related fields and 6

102
years of experience in bank
BA/B. Sc. in Economics, Business

Administration
5.7
Accounting,
Agricultural relate fields and 8

Undertake Market study
5.7, 5.8, 5.9
Undertake organizational
management
Undertake market
Undertake Financial
study
study (5 days)
Undertake socio-
Undertaking
project and prepare the

report (2 days)
Preparing annual
to
Very
work
good
interpersonal
and

assessment of the
ability
economic aspects of the

project (2 days)
Excellent
changes

own initiative
Senior
Officer
deadlines
103
performance reports of
the process (2 days)

76 + 16 hours
and externally
(9 + 2 days)

motivate staff
5.8
Undertaking Socioeconomic aspects

analysis of the project

Administration,
Accounting
or
5.2, 5.6, 5.7, 1.1.4
Undertake technical
appraisal including
implementation
Excellent
ability
to
work

104
schedule (5 day)
Undertake
organizational
Very
good
interpersonal
and
management study
(2 day)
changes
Undertake financial
study (5 days)
Preparing the resource


96 hours + 16 hours
(12 + 2 days)
deadlines
(2 days)
own initiative

budget of the team
Loan
Officer
and externally

motivate staff

Administration,
Accounting
or
Agricultural related fields and no

experience is required

Administration
Accounting,
105
Agricultural relate fields and 2

years experience required
5.9
Undertaking
5.2, 1.1.1, 1.1.4
assessment of the project,
prepare report and sign
Gathering and
compiling relevant
research, risk
Very
good
interpersonal
and
assessment data and
Background
changes
information (4 days)
Collecting data for

preparing quarterly
own initiative
and semi-annual
performance reports
(2 days)
Collecting data for the
Preparation of
team (2 days)
Jr. Officer

deadlines

resource requirement
plan and budget of the
and externally

motivate staff

106
Administration
Accounting,
48 + 32 hours
Agricultural relate fields and no
(6 + 4 days)
experience is required
5.10
Undertaking appraisal of
KYC assessment and
prepare the draft
appraisal report
5.3
plan, bill of quantity
Excellent
ability
to
and other construction
documents, prepare
Very
report and sign
(5
days)
40 hours
(5 days)
work
good
interpersonal
and

with team members
Sr. Civil
Engineers
and
Civil
Engineers

own initiative

deadlines
Excellent networking and cross

Competence in working as team

107
member
and
sustaining
strong
team relationship internally and

externally
M.Sc in Civil Engineering - no

experience required for Engineers
and 2 years
of experience is
B.Sc. Degree in Civil Engineering 2 years of relevant experience is

required for Engineers and 5 years
of experience is required for Sr.
Engineers
5.11
Transferring draft report

to the Credit Process
5.4
machinery and
7
Finalizing the
appraisal report
Excellent
ability
to
work
equipments, prepare
report and sign
(3
days)
Mechanica
Very good interpersonal and
l/
Industrial
Engineer
108

25 hours
with team members
(3 days)
Or

own initiative

deadlines


member
and
sustaining
strong

7.1
5.5
Receive and check
discussion outcome
report
externally
109
raw material and

chemical, prepare
report and sign
(3 days)
24 hours
(3 days)
Excellent
ability
to
work
Very
good
interpersonal
and

with team members

own initiative

deadlines
Chemical
Engineer


member
and
sustaining
strong

externally
M.Sc in Chemical Engineering - no

experience required for Engineers
and 2 years
of experience is
110
B.Sc. Degree in Chemical

Engineering - 2 years of relevant
Engineers and 5 years of experience
is required for Sr. Engineers
111
C.
JOB AND RESPONSIBILITY MATRIX FOR PROJECT REHABILITATION AND LOAN RECOVERY SUB
PROCESS
Major and Detailed

Activities in their
SR. No
Natural Order
Experience and Behavioral
Requirement
Pinpoint Responsibility
Job
Title
Remar
k
1.1, 1.11, 2.7, 6.3.1, 6.3.2, 6.3.3,

6.4.1.2, 6.4.6.2
Receive sick loan follow-up status
Receiving Follow-up
report and investigate
the status of sick loan
to
work
individually and as part of a
credit process and assign to a
team
specific team (1 hour)

recommendation report to the

Very
good
ability
approval team or executive
communicate
management (30 minutes)
build consensus for changes
Receiving, registering, checking
and understanding the decision

Receive and register sick
loan follow-up status
report and complete file
from credit process and
assign to a specific team
ability
report and complete file from
Register and send the
1.1
Excellent
and taking appropriate action
case
and
Self starter; able to work on

her/his own initiative
(1 hour)
Receiving copy of payment receipt
the
to
Good ability to plan and deliver

on deadlines
Excellent
influencing,
112
(30 minutes)
1.2
Examine the project file

(Technical, Market and
Managerial)
1.3

advance
1.4

advance request
networking
Stop foreclosure process (1 hour)

Compile the collection and return
Authorize the letter and send to
Assigning Vehicle
1.6
1.7
Conducting site visit,

assessing the project
physical and financial
1.7.1 Observe the
physical status of
the project
1.7.2 Collect data on the
operational and
financial status of
the project
documents to the buyer and
Fluent
on
sustaining
strong
relationship
internally
team
and
MA/M.
Sc.
(1 day)
Accounting,
Review periodic reports and send
in
Economics,
Administration,
or
Agricultural
related fields and 8 years of

experience out of which 4 years
to the concerned body

Rate performance of teams and
at leadership level
BA/B.
Business
Sc.
in
Economics,
Administration
working systems that fits to
Accounting, Agricultural relate
external demand
fields and 10 years experience
Attend and resolve customers
motivate staff
Business
Design and install a new ways of
and
Process
Clear ability to coordinate and Owner
facilitate property ownership
members and nominate for reward
building
externally
administrative bodies to get their

1.5
cross
the file to credit process (1 hour)
cooperation (1 day)
and
of which 6 years at leadership
113
1.7.3 Thoroughly discuss

the problem with the
project management
compliant
Liaison the bank with external
bodies regarding loan related
matters
Hold in depth discussion forum
with customers
Distribute work assignments
properly among teams
1.7.4 Prepare proposal

with
recommendation
and submit copy of
the report to
Process Owner
Monitor results of the process and
1.4, 1.9, 1.10, 6.4.1.1, 6.4.2.1,

6.4.4.2, 6.4.5.1, 6.4.5.2, 6.4.9.2,
114
6.5.1, 6.5.5.1, 6.5.9.2

1.8
1.9
1.10
1.11
1.12
Contact the customer and

appoint for discussion
Signing vehicle and travel advance

Convene with customer
Convene with customer and hold
and hold discussion on the
findings and proposal
discussion on the findings and
Revise the report and
proposal (1/2 day)
adjust it as per the
Revising the report and adjust it as
discussion (If there is
deviation)
per the discussion (if there is
Prepare a final
deviation), Prepare a final
recommendation report and
and submit copy of the
report to Process Owner
submit copy of the report to
Send the recommendation
process owner (1/2 day)
report to the approval
team or Executive
Prepare letter for administration
management
bodies and follow up the progress
to takeover the asset (2 days)
Recruiting guards for the property
Communicating with all

collaborators and concerned
government bodies (1/2 day)
Collecting bid bond (30 minutes)
ability
to
work

team

Very
good
communicate
ability
with
to
Princip
al
Officer
team
members


on deadlines
Excellent
networking
in consultation with human

resource
Excellent
influencing,
and
cross
Competency on building and

sustaining strong team
externally
115
Prepare and submit write-off
proposal and follow-up the case

(3 days)
motivate staff
/Accounting/Management/Agr
second auction (2 hours)
iculture and 6 years experience
balance (in favor of the customer)

to payment unit (30 minutes)
Prepare and submit write-off
proposal (3 days)
Review periodic reports on the
Proposal and
M.A/M.Sc in Economics
Plan and Arrange to conduct

Write payment authorization of the
in a bank
B.A. in Economics /
Accounting/ Management /
Agriculture 8 years of
experience required out of
which 2 years as a senior loan
overall performance and

116
2.1
2.2
2.3
2.4
2.5
2.6
2.7
Recommendation
report approval
Receive, register and
dispatch the recovery
proposal to Loan approval
team members
1.2, 1.3, 1.7.1, 1.7.2, 1.7.3, 1.7.5,

1.8, 1.9, 6.4.1.3, 6.4.6.3, 6.5.7,
6.5.4.2, 6.5.4.3
Examine the project file from the
Excellent
ability
to
work
Reading proposal by
side of market and managerial
condition (1 day)
team
Deliberate on the proposal

and recommendation
report
Request vehicle and travel advance

loan approval team
minute
Endorsing the loan
the decision of the
approval team to the
recovery process and
filing a copy of the
decision
Receiving, registering,
checking and
understanding the
decision and taking
appropriate action
(30 minutes)
Observe the physical status of the

project (1/2 day)
Collect data on the operational,
(1 hour)
Discuss on the outcome of the
report (1 hour)
with
to
team


on deadlines
Excellent
networking
Call the customer and appoint for

discussion (30 minutes)
ability
members
Thoroughly discuss the problem

with the project management
good
communicate
technical and financial status of

the project (2 days)
Very
influencing,
and
Senior
Officer
cross
Competence on building and
117
6.1
Foreclosure
30 days legal notice
document prepared
sustaining
strong
relationship
internally
proposal (1/2 day)
externally
Take inventory of the asset
6.3
30 Days legal notice

delivered
Report sale of the property and
If arrears settled by
customer
Follow-up the deduction of the
6.3.1
Receive copy of payment

receipt
6.3.2
Stop foreclosure process
6.3.3
Compile collection and

report
and
Accounting/Management/Agri
(2 days)
6.2
team
culture and 2 experience

required
collection (30 minutes)
B.A. in Economics/
asset value from the loan
(30 minutes)
culture-with 5 years experience
Conducting second auction
required
(1/2 day)
Facilitates transfers property
ownership title to the buyer
(1/2 day)
6.4
6.4.1
6.4.1.1
6.4.1.2
6.4.1.3
If arrears is not settled
If Property not sold, value of the
Property take over
asset deducted from the loan
Coordinate with
administration bodies to
takeover
Take inventory
Take snapshot of project
physical facilities
(1/2 day)
Total time required=64 h
(8 days)
118
6.4.1.4
6.4.2
Assignment of guard
6.4.2.1
Follow up the assignment

of guards to the property
6.4.3
Asset valuation
6.4.3.1
Valuating Building and

construction
6.4.3.2
6.4.3.3
6.4.4
Valuating Machinery and

Equipment
Valuating Raw material,
stoke and others
Auction
Announcement
6.4.4.1
Auction document
preparation and
6.4.4.2
Announcement script
written
1.2, 1.7.1, 1.7.2, 1.7.3, 1.7.5, 1.9,

6.4.1.3, 6.4.1.4, 6.5.6
Examine the project file for
Asset audiovisual
presentation prepared
ability
to
work
financial and managerial aspect
(1 day)
team

project operation (1/2 day)
Collecting data on the operational

and financial status of the project
(1/2 day)
6.4.4.3
Excellent
(2 hours)
good
communicate

Very
ability
with
to
team
members

119
6.4.4.4
announcements
printing media
6.4.4.5
Auction notice published

or announced
6.4.5
Auction process
6.4.5.1
Communicate the
concerned government
bodies
Discuss on the outcome of the

6.4.5.2
Collecting bid bond
6.4.5.3
Recording the auction

event
6.4.5.4
6.4.6
If property sold
6.4.6.1

s/he pledged
report (1 hour)

on deadlines
Excellent
influencing,
networking
proposal (1/2 day)
(2 days)
facilities (30 minutes)
on
cross
sustaining
strong team work relationship
Take snapshot (Video or Photo as

appropriate) of project physical
Competence
and
internally and externally
Loan
Officer
Facilitation for auction (3 hour)
120
6.1, 6.4.1.5, 6.4.2.1, 6.4.4.1,
6.4.6.2
6.4.6.3
6.4.6.4

documents to the buyer
and facilitate property
ownership
6.4.4.4, 6.4.5.3, 6.4.5.4, 6.4.7.1,

6.4.7.2, 6.4.8.1, 6.4.8.2, 6.4.8.3,
6.4.9.1, 6.5.2, 6.5.3, 6.5.4, 6.5.6.1,
6.5.8.1
Report sale of the property Preparing 30 days legal notice

and collection
(1 hour)
Deducting value of the
asset from the loan

(1/2 day)
Follow up the assignment of
6.4.7
6.4.7.1
6.4.7.2
6.4.8
If auction proceed is
less than loan
outstanding
property
Communicate to
is found
guards to the property (1/2 day)

Auction document preparation and
writing Announcement script

(1 hour)
Recording the auction event
(2 hours)
ability
to
work

team

Very
good
communicate
(1/2 day)
Excellent
ability
with
to
team
members


on deadlines
Excellent
influencing,
121
6.4.8.1
Prepare charge
6.4.8.2
Open file at court
6.4.8.3

litigation
(20 minutes)
networking
Search for additional property

(1 day)
6.4.9
Communicate to concerned
authorities (1 day)
6.4.9.1
Report absence of
additional property
6.4.9.2
Prepare and submit writeoff proposal
Open file at court (1/2 day)
Auction document amended and

6.5
2nd auction announced
6.5.1
Plan and Arrange to

conduct auction
6.5.2
Facilitation for auction
6.5.3
Conduct auction
6.5.4
6.5.4.1
If property sold on the

second auction,
s/he pledged
sustaining
strong
relationship
internally
team
and
LLM in Law and no experience

required for Attorney and 2
Sr.
Legal
Officers
and
2+2=
4
Legal
Officers
years for Sr. Attorney
the necessary litigation

property (30 minutes)
Competence on building and
externally
Follow-up the case and undertake

Report absence of additional
cross
Prepare legal charge (1/2 day)

is not found
and
LLB in Law-with 2 years

Attorney and 5 years
experience for Sr. Attorney
(1/2 day)
writing an amended
announcement script (1 hour)
Communicate with concerned
authorities (1/2 day)
Report the absence of additional
property to concerned body
(30 minutes)
122
6.5.4.2
Facilitates transfers
property ownership title to
the buyer
6.5.4.3
If Property not sold, value

of the asset deducted from
the loan.
6.5.5

is positive (excess of
the loan balance)
6.5.5.1
Write payment
authorization of the
balance (in favor of the
customer) to payment unit
6.5.6
6.5.6.1

is negative (less than
the loan balance)
property
Communicate to
Total time required= 59 h (8 day)
Collage Diploma in Law with no

6.3, 6.4.4.2, 6.4.7.2
experience
Delivering 30 Days legal notice to

customer (1/2 day)
announcements
submitted to
electronic or printing media
Law
clerk
(1/2 day)
Communicate to concerned
authorities (1 day)
123
6.5.7
is found
6.5.7.1
Prepare charge
6.5.7.2
Open file at court
6.5.7.3

litigation
Total time required = 16 hours
1.2, 1.7.1, 1.7.2, 1.7.3, 6.4.1.3,

6.4.3.1,
Examine the project file for its
technical situation (1 day)
Collect data on the operational and

(5 days)
good
ability
with
to
team
members

Valuing building and civil works
Very
communicate
(2 days)
work

(1 hour)
to
team
technical status of the project and

prepare report (2 days)
ability

project (1/2 day)
Excellent
Civil
Enginee
r

on deadlines

124
Total time required = 85 h
member and sustaining strong
(11 days)
team
Effective working time per
and externally
project = 7 days
relationship
internally
M.Sc in Civil Engineering - no

experience
Engineers
required
and
for
years
of
experience is required for Sr.

is not found
Engineers
1.2, 1.7.1, 1.7.2, 1.7.3, 6.4.1.3,
6.4.3.2,
Examine the project file for
ability
to
work
technical status of the project

(1 day)
Excellent
team

125
project (1/2 day)

Collect data on the operational and
technical status of the project and

6.5.8
prepare a report (2 days)


(1 hour)

on deadlines
Valuing machinery and equipment

and prepare a report (5 days)
Mechan
ical
Very
good
ability
to
/Indust
communicate
with
team
rial
Enginee
members
r
Take inventory of the project asset

and hold a record (2 days)

Valuing raw material stock and

member and sustaining strong
other associated materials
team
(2 days)
and externally
relationship
internally
M.Sc in Mechanical/Industrial
Engineering - no experience
Total time required = 101 h
required for Engineers and 2
(13 days)
years of experience is required

for Sr. Engineers
Effective working time per
B.Sc. Degree in Mechanical/

Industrial Engineering - 2 years
126
of relevant experience is
project = 5 days
required for Engineers and 5

years of experience is required
for Sr. Engineers
127
Job Structure of the Loan Process

All the jobs of the Loan Process in general require involvement of varied levels of
competence and professional background. Development Projects based lending and
project management requires skills and knowledge from multi-disciplinary professional
background. The jobs are also composed activities of various level of complexityrequiring
different analytical skills. The jobs in the credit process, appraisal sub-process and
Project Rehabilitation and Loan Collection sub-process, therefore, necessitated the
participation
128
Evaluation of the changes achieved by the Process Reengineering

No.
1
Current situation (As Is)

Service to walk-in customers
Redesigned (To Be)

Customer sourcing
Two stage screening
One stage screening
No legal and engineering advice
Engineering document evaluation

in different functional unit
Appraisal by individuals
Legal and engineering

advice
Engineering document
evaluation by engineers
within the appraisal team
Appraisal by team
Two stage appraisal/approval
Inadequate research data
Non involvement of risk

management in loan approval
process
No pre studied bankable project
Only one stage

appraisal/approval
Sufficient research data
Effect
Selection of potential customers
for loan quality
Reduced cycle time and one stop
shopping
Reduced back and forth flow of
documents
Reduced cycle time
Less cycle time and quality
appraisal
Less cycle time and redundancy
Quality appraisal and less cycle
time
Quality of loan
Loan contract preparation by other

functional unit
Functional structure base
Individual-based sequential
execution of tasks
Independent risk
management report for loan
approval
Pre-studied bankable project Reduced cycle time and capacity
building
Discussion with customer
Clear understanding the project for
common goal as well as
transparency
Two approval committees
Reduced cycle time
depending on loan size
Two times follow-up per
Enhance collection, provide timely
project per year
advice and insures projects
sustainability
Full-fledged completion
Clear knowledge of the project at
report
commencement
Engineering compliance
Reduced cycle time
report by engineers within
the credit process team
Loan contract preparation
Reduced cycle time
by the team
Process based
Efficiency, speed
Team-based simultaneous
High quality, shorter process time
execution of tasks
18
Absence of standard for output
Set standard for output
Standardized service to customers
19
No clearly defined duties and

responsibilities
Requirement for three Performa
invoice
Clearly defined roles
Transparency and accountability
One Performa invoice

sufficient
Customer satisfaction due to cost

and time minimization
9
10
No discussion on the appraisal

output with customers
11
Only one loan approval committee
12
Inadequate follow-up
13
Inadequate projects completion

report
Engineering compliance report by
other functional unit
14
15
15
17
20
129
21
22
Absence of Rehabilitation process

team
Fragmented work of foreclosure
Rehabilitation process team

organized
Foreclosure process
organized under one process
23
Limited option for loan transfer
24
Inadequate ICT support
25
Loan disbursement is made by

Finance and Banking department
Better option for loan

transfer
Full-fledged ICT supported
process
Loan disbursement is made
by the credit process
Well established sick project

treatment and management
Transparency and accountability
with proper foreclosure
management
Customer satisfaction due to range
of loan transfer options
Increased process efficiency,
reduced cycle time
Meaningful work organization
with clear responsibility
Summary of the changes

In general, the redesigned Loan Process of the Bank has potentially achieved significant
changes in the following areas:
Cycle time: - The credit delivery process lead-time will reduce from the current
185 days to 32 days
Process Cost: - DBEs loan process cost is highly correlated to process lead-time;
and will reduce in proportion to the reduction in process cycle-time.
Output quality: - The output quality of the loan process will significantly
increase since tasks are handled in teams of professionals working simultaneously
at the same place as opposed to the current individual-based linear execution.
Customer satisfaction: - Significant changes in the above point (cycle time,

cost, and quality) will be manifested in boosting customer satisfaction. It is,
therefore believed that customer satisfaction will significantly increase when the
newly designed process is implemented.
130
V.
STRUCTURE OF THE REDESIGNED LOAN PROCESS

Most of the works in the Loan Process require involvement of multiple professions
and individuals because of their essence. This essence of the work necessitated
establishment Case Teams to perform the actual works of the process rather than
Caseworkers. Accordingly, in Credit Process, Project Appraisal Sub-process, and the
Project Rehabilitation and Loan Recovery (PRLR) Sub-process, all tasks are handled
by case teams while individual team members have their own respective roles in
case teams.
The Credit Process Team: - The credit process woks are continuous and noninterrupting in the newly designed Loan Process. This non-stopping nature of the
works requires establishment of permanent teams. Therefore, permanent caseteams are established to handle the works in the credit process.
The Project Appraisal Sub-Process Team:- As per the newly designed Loan
process of the Bank, the Project Appraisal sub-process, and hence, the Team, is in
charge of evaluating projects based on the documents and information provided
from Credit Process, the Research Process and the Risk Management Process.
Once a project appraisal report is completed, the report is sent to the Credit
Process for execution and follow-up; and there is no follow up task in the Project
Appraisal sub-process. In this sub-process, there is no need to establish permanent
teams as a case team stays together for a maximum of two weeks in average.
Therefore, Virtual Teams are established for the project Appraisal Sub process.
The Project Rehabilitation and Loan Recovery (PRLR) Sub process: The works in the PRLR process are of two types, permanent and temporary tasks.
The temporary tasks are the project rehabilitation tasks such as recommending
and proposing additional loans and loan rescheduling which are sent back to the
Credit Process for execution and follow-up after they are approved. The permanent
task is the foreclosure action, which is proposed and executed by the Team after
approved by the executive management tem of t he Bank. The prevalence of both
temporary and permanent works in the process necessitates formation of
permanent team.
131
The structural presentation of the team organization for the loan process of the
Bank is depicted as follows:
5.1.
ORGANIZATIONAL STRUCTURE OF THE LOAN PROCESS

BOM
INTERNAL AUDIT
CEO
APPROVAL TEAM
RESOURCES AND
SYSTEMS
MANAGEMENT
/SUPPORT PROCESSES/
RISK MANAGEMENT
PROCESS
BANKING PROCESS
MIS PROCESS
OTHER RSM
PROCESSES
RESEARCH PROCESS
PROJECT
REHABILITATION AND
LOAN RECOVERY
PROCESS
CORE CREDIT PROCESS

/CUSTOMER RELATION/
PROJECT APPRAISAL
SUB PROCESS
132
5.2.
ORGANIZATION AND COMPOSITION OF CASE TEAMS

The Loan Process is organized as a case teams and each of the case teams in the
process are composed of the necessary professionals from various disciplines
for performing the tasks. The composition of each teams are as indicated below.
o Credit Process Team: - The Credit Process Team, in general, is composed
of 4 principal officers, 14 senior officers, 16 officers, 6 junior officers, 6 civil
engineers, 2 mechanical/industrial engineers and one chemical engineer.
The credit process team is organized in to four case teams that handle the
day-to-day tasks in the credit process. Each case team shall contain one
principal officer, 3 senior officers, 4 loan officers and one junior officer. The
6 civil engineers, 2 mechanical/industrial engineers and 1 chemical engineer
placed in the process are shared among the case teams based on volume of
work available in the case teams at a time. To this effect, the engineering
professionals are placed in any one of the case teams or distributed among
the case teams, based on the ease of administration to the process team. All
case team members have their own respective roles to play and contribute to
the common objectives as per the Team Charter.
o Project Appraisal Sub-Process Team: - The Project Appraisal Subprocess Team is composed 2 principal officer, 4 senior officers, 5 officers 2
junior officers, and 2 civil engineer and 1 mechanical/industrial engineer
and 1 chemical engineer as necessary.
The Appraisal Sub-Process team is organized under one team out of which
virtual teams are established each time appraisal requests are received by
the sub-process owner. The virtual appraisal case teams will have one
principal officer and other necessary professionals as team members based
on the volume and complexity of the particular appraisal task received.
133
o Project Rehabilitation and Loan Recovery Sub-Process Team: The PRLR Process Team shall be composed of 2 Principal Officers, 4 senior
Officers, 3 Officer, 4 legal officers, 2 civil engineers, 1 mechanical/industrial
engineer and an execution clerk.
PRLR Sub-Process team is organized in to two case teams each of which
contains 1 principal officer, 2 senior officers, 2 officers and 2 legal officers.
The engineers and an execution clerk is shared by the two case teams, but is
placed in one of the case teams for administration purposes.
5.3.
The Human Resource Requirement for the Loan Process

The Loan Process requires 86 staff in general with various professional
background and expertise level. 50 of these personnel are needed for the Credit
Process, 18 for the Project Appraisal Process and 18 for the PRLR process. The
major criteria taken into account for the determination of human resource
requirement of the Process include:
i) The five-year strategic plan and annual operational plan of the Bank
ii) The annual working days of the Bank
iii) The time required for each professionals to accomplish his/her task in the
newly designed Process.
iv) The number of projects that are found on the hands of the existing Credit
Process.
134
VI. MANAGEMENT AND MEASUREMENT SYSTEM

The management and measurement systems of the Loan process are the
management tools that are essential for the effective and efficient execution of the
process, as well as for evaluating the performance of the process and the people. The
management systems are the policies, procedures, guidelines and guidelines whereas
the measurement systems are the tools employed for following up and evaluating
performances. Management and measurement systems developed for the new Loan
Process are stated in the following sections.
6.1 Management systems
6.1.1 Policies: - The main policy necessary for the smooth execution of tasks in
the Loan Process is the Credit policy of the Bank. Administrative policies are
the same for all the units of the Bank and are subject to review at corporate
level. The Credit Policy has been revised inline with the assumptions and
process of the new Loan Process.
6.1.2 Formats and guidelines: - All formats, guidelines and manuals necessary
for implementing the new Loan Process have been prepared and by now
ready for use by operators.
6.2 Measurement Systems: - Development Bank of Ethiopia has been using
Performance Planning and Management System (PPMS) for evaluating performance
of individual staff since three years back. Since this system is not preferable for
measuring team performance, the Bank will shortly employ the Balanced Score Card
(BSC) system for the new team based work organizations in the Bank.
135

Final To Be Loan Process Document

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Final To Be Loan Process Document

Uploaded by

Copyright:

Available Formats

Development Bank of Ethiopia

Re-Engineered Loan Process

Statement of the Problem..

Objectives of the Study.

Scope of the Study..

The BPR Team .

Expected Results/ Deliverables

The Existing (As Is) Situation of the Loan Process.. 6

2.1As Is Documentation Result

2.2Existing Functional Loan Processing System of DBE

2.3 Experience Sharing and Benchmarking Results.

2.4 Problems of the Existing Process, underlying

2.5 Input output and outcome of the process..

2.6 Stretched Objectives of the Redesigned Loan Process.

The Redesigned Loan Process of DBE

3.1 Definition of the process

3.2 Basic Assumptions for All Scenarios..

3.3 The Loan Process Workflow

3.4 The Core Credit Process

3.5 The Sub-Processes of the Loan Process

Work Organization of the Loan Process.

4.1 Work Flow Matrix for Loan Process of the Bank..

4.2 Job & responsibility Matrix of the Loan Process..

Structure of the Redesigned Loan Process ..

5.1 Organizational structure of the Loan Process

5.2 Organization & Composition of Case teams.

5.3 The Human Resource Requirement for the Loan Process..

Management and Measurement System ..

this effect, various brainstorming sessions were organized to create common

Statement of the Problem

The business mission of DBE is supporting the countrys development through

Objectives of the Study

After making those old

Analysis of the business environment of the Bank from the

Strategic Plan documents was also used.

1.6. The BPR Team

Newly organization structure, human resource, jobs, management and

THE EXISTING (AS IS) SITUATION OF THE LOAN PROCESS

EXISTING FUNCTIONAL LOAN PROCESSING SYSTEM OF DBE

The workflow of the existing Loan Process is described as shown below.

Rehabilitation Adhoc Committee

2.3. Experience Sharing and Benchmarking Results

Semi Automated Automated Automated Automated Automated Automated Automated

some performances of external benchmarking partners in comparison with that of DBE.

Team based end-to-end

IDC South Africa IDBI

Preparing and Maintaining

India and South Africa

All the visited Banks

Attractive office layout and

S.A, Malaysia and

NABARD, IDBI, SME

All the visited Banks

Use of best Practices

Problems of the Existing Process, underlying rules and Assumptions

Submission of three Performa

Installation of numerous check &

Decisions were not made at

Workers do not have the necessary

Neglecting project follow up

Make project follow up

projects would go as planed and

Longer process time