EE-'

ZJE',J

''2,

'

BCC:BR:l0B/SBT

dm tfign

dfldr

Eankof Elaroda
05th Decrember, 20.|6

q&
Sub Fife: ADV - 2

Deor

Sir,

Re: Revision in Powers for

concession
porometers of Retqil loon products.

/ Deviotion

in vorious Finonciql/ Non-finonciol

with on obiective to build o custonter ceniric ond competiiive

presence under
Retoil Lending, Bonk hos recreoied its Retoil Loon produrcts
with superior product
feoiures ond competitive pricing which will help ihe
Bonk to be The preferred bonk
for quolity customers, while monoging the risk on the
book ond ultimotely driving
profitobility for the Bonk.

our offerings under Rertoil Lending qre strLrctured os

toiror mode products which suit
mojority of cusiomers. However, on vqrious occosions,
since retoil lending morket is
very competitive ond depending on existing
business rerotionship / potentior for
new lorge business, operoting units opprooch for
deviotions on vorious porome,ters
of the scheme such os, oge of ihe borrower
/guorontor, eligibiliiy criterio,
repoyment copocity, morgin, concession in interesi
rote, woiver of processing
chorges etc' Due io sliff competition in the
mqrket, the requesis for deviotions ore
being considered on cose to cose bosis.
Existing guiderines on Deviqtions in Retoir
Loons:

o)

presenfly, certoin powers

hove been deregoted to IRMCc/zocc ond to
the
committee of Generol Monogers on Retoil Bonking
&
MSME Bonking
(coGM) for considering deviotions in finqnciol
ond non-finonciol porometers
of Retoil Loon products. The lssues beyond the powers
of (coGM) <rre being
referred to the corporoie Level credit committee
of ED (cocc-ED) for its
consideroiion.

b)

Finonciol Deviolions: Presently, powers for considering

finonciol devioiions
like concession in Roie of Interest, Processing
chorges etc., hoving direct
impoct on Bonk's Profit & Loss Account ore vested
with corporote office
level by cocc-ED, except for AAA Loon where
in Zocc is empoivered to
consider conces:;ion in ROI upto {iObos.

c)

Non-Finqnciol Deviqiions: In cose of non-finonciol

deviotions, hcrving no
direct impoct on Bonk's Profit & Loss Accouni, Zocc
& RMCC hove been
presently outhorized io consider the
non-finoncior deviotions on specified
porometers uptQ the specified powers.
for the Retoil Loon F,roducis,
Deviolions in ony other non-finonciol porometers, powers
4'
of which ore nor
'\,'E--$qT6Tdtd*w,dt-zo,qd+,,sr=rF-diFl*a*r,argr(5,),itr{_.4000s1,qrqil.

N l3aroda corporate centre, (l-26, G-Block, Bandra Ku,.la comptex, Bandra (E), Mumbai- 400
rf'dc
051, India.
/ Phone : 9i 22 6698 500'c, ' #w'/ rax :91 zl2 zeib2
Jg14,.tq / weu www.bankofbaroda.corn
:

Uj?

sin.:#,
t6
tfiW yilW

Eankof Etaroda

specificolly defined or not rnentioned in lrre

f,6ror*rurs of the specific
scneme, ore being considered of Zonol office Level except
for Borooo
Troders Loon & Borodo Mortgoge Loon.

d)

In cose of Borodo Morigoge Loon, very limiied powers for <Jeviotion

in

to

produci specif ic porometers (ie. only for mcrrgin, oge & income
nruliiplier
certoin extent) ore given to Zonol Office.

e)

In cose of Trcrders Loon & Morlgoge Loons, deviotions in

ony oiher nonfinonciol poromoters, powers of which ore not specificolly
defined or nor
mentioned in the porometers of the specific scheme, ore being
referreo ro
Reioil Bonking Deportment, BCC for considering ihe
some by coc:c (ED).

Loiest revision

on Powers for deviotion in finonciol ond non-finonciol porometers

were done on 29.01.2016 ond conveyed vide Circulor
No.BCC:BR:lOi3/53 doied
29.01 .2016.

Becouse of fierce competition in

retoil loon segment, ony deloy in decision mqy

result in loss of business opportunity. li hos olso
been felt thoi Zonol / Regionol Heods
ore in better position to toke decision in such coses
os ihey ore fully owor) of existrng
business relotionship ond volue of the occount
to the bonk ond finonciol strength of
the proposol' In view of obove ond with on oim to
expediie disposol of reioil loon
proposols promplly ond speedy,
hos been decided by the crr:dit policy
committee in its meeting on 02.12,2016 to revise the
deviotion powers of vorious
levers to consider deviotions in poromeiers
of Retoir Loons.

it

Modificolions in lhe guidelines for Deviolions in Reloil

Loons ore qs under:
woiver of processing chorges eic) ore deregoted to

zocc.

specificolly delegoted to Regionol office level ore

to be considered by ZoCC,
Loon, in view of receni revision in ihe moximum
lir.nit under lnese producls.

deviotions in porclmeters of BorocJo Mortgoge Loon

to be considered of por
with deviotion powers for other netoil Loons. Activily
cleqrqnce for Mortgoge
loons is discontinued henceforth.

{n
-

which ore to be considered of vorious levels (i.e.

one of RMCC ond/or qnoiher
oi Zocc), oll the clevioiions
rJ
.vvvrrrqr
rrr uu
be urJtlslOefeo
considered OT
"v' together to
of the higher level (ie ot
ZOCC.)
1

srstff

ffi*"#{,

S-26, S_a#o, qr=i g-df Firyftffi, sr=ir (T.),

lff _ 400 os1,qnn.
corporate centre, c-26, G-Block,
Bandra xuna ilmptex, Baindra (E),
\$roda
Mumbai- 400 0s1, Inrdia.
"oI1/ Phone : 91 22 6698 5000, ' *R I Fax : s, zz t:iai,,3ir+,.
te I lveb ; www.bankofbaroda,com

h-

u--

,--- ,tt

'n4,
.

fu tilw d,sydr Bankof Baroda

The deioils of poromeiers ond revisecJ deviotion powers clre given in Annexure.

As such, henceforth, cerfoin level of powers for finqnciol deviotions (concession in

Rote of interest, woiver of processing chorges etc) ore delegqied to ZOCC. Further,

deviotions

in ony other non-finonciot

porometers, powers of which ore nof

specificolly defined or not mentioned in the poromefers of the specific scheme, qre
to be considered of Zonol Office Level for oll Retqil loqns. However, in cose of Loon
ogoinst Future Rent Receivobles (both CRE & Non-CRE), lhe guidelines rnentioned in
fhe Reql Estqte Exposure Policy issued by Lorge Corporote Bonking Deportmenf ond
furlher guidelines issued by them from time fo time will be opplicoble.
The modified guidelines will be opplicobre wifh immediole effect.
CX

nR
Reqionol Office levelto next hiqher outhority.

With ihese revisions, the Zonol / Regionol Authorities woulo get further empowered
to ioke expeditious decision ond withstond the competition in reioil loon segment.

Pleose toke o coreful note of obove guidelines to exercise the powers for
concessions ond deviotions (porticulorly for ROI ond woiver of processing chorges)
very judiciously for the purpose of mobilizing quolity Retoil Loqn business, especiollv
foke over.

Yours foithfully,

GenerqlMonoger
- Mortsoses)

*q,t"od

S-26, 'ff-6f6., qrqrg-eieil.rdffi, qrgr (X.),ge{ _ +oo os1,qnd.

-qstsMrcf*cdrn,
8ai'oda corporate centre, c-26,

qi{/

Phone : 91 22 6698 5000,

'

G-Block, Banclra nurta compiex, Bandra (E), Mumbai- 400 051, India.
Fax: 91 2226s23s14,. iq / weo : www.bankofbaroda.<;om

#w I

ANNEXURE A
POWERS for FINANCIAL DEVIATIONS / CONCESSIONS (For All Retail Loan Products):
Existing guidelines
Modified guidelines
1.
Powers for Concession in Rate of Interest:
Powers for Concession in Rate of Interest (On Card Rates):
All Retail Loans (except for AAA Loan):
All Retail Loans (except for AAA Loan):
No Powers up to ZOCC
ZOCC: Upto 25 bps
COGM : No Powers
COGM : Upto 50bps
COCCED: Full Powers
COCCED: Full Powers

2.

AAA Loan: Upto 50bps- ZOCC

COGM: Upto 100 bps
COCCED: Full Powers
Powers for Concession in Processing Charges
(including commitment charges for Traders
Loan, Mortgage creation charges &
Deviation Charges):
No Powers upto ZOCC
COGM : No Powers
COCCED: Full Powers
(Deviation charges are not applicable to
proposals for concessions in Rate of Interest)

AAA Loan: upto 50bps ZOCC

COCCED: Full Powers
Powers for Concession in Processing Charges (including commitment charges
applicable for Traders Loan above Rs.5 Crores, Mortgage creation charges):
RMCC: No Powers
ZOCC : Upto 25%
COGM : Full Powers
Waiver of deviation charges: Full powers to the Authority who is considering
the deviation. (Deviation charges are not applicable for concession in Rate of
Interest & other financial deviations)
Powers to consider concession in Rate of interest will be subject to the
condition that the effective rate after concession should not go below the
1 year MCLR in case of Home Loans & Home Improvement Loans and 1
year MCLR + Strategic Premium in case of other Retail Loans.
In case of reduction of ROI by BCC under any Campaign, only one
concession of higher value would be available - 0.25%/0.50% by ZOCC or
reduction allowed in Campaign.
The concessions will be allowed for the entire tenure in case of Term
Loans/Demand Loans. In case of overdraft accounts, the concessions will
be allowed for a period of -12- months or next review of the account
whichever is earlier
No Powers for ROCC (RM)/(DRM) for financial concessions.
ZOCC can exercise powers as mentioned above in respect of proposals
falling upto the DLP of ZOCC.

Annexure to Circular BCC:BR:108/587 dated 05.12.2016

Page 1

ANNEXURE B: POWERS for NON-FINANCIAL DEVIATIONS (For all Retail Loan Products):
1.

Existing Powers of Deviations

Modified guidelines in Deviation Powers

Maximum Amount of Loan:

Home Loan:
RMCC: Upto 4.50 Cr (Metro/Urban Branches)
Upto 1.50 Cr (Rural& S/U Branches)
ZOCC: Upto 10 Cr (Metro)
Upto 6 Cr (Urban)
Upto 2 Cr (Rural/SU)
COGM: Upto 15 Cr (Metro
Upto 10 Cr (Urban)
Upto 3 Cr (R& S/U)
COCCED- Full Powers

Maximum Amount of Loan:

Home Loans:

Traders Loan:
RMCC: Upto 50% maximum 5 Cr
ZOCC: Upto 75% maximum 5 Cr
COGM : No Powers
COCCED: Full Powers
Mortgage Loan:
RMCC/ZOCC: No Powers
COGM: Upto 20 Lacs ( Rural Branches)
Upto 5 Cr (Other Branches)
Personal Loan:
RMCC/ZOCC/COGM: No Powers
COCCED: Full Powers

Traders Loan & Mortgage Loan:

RMCC : 10 Crores
ZOCC
: 20 Crores
COGM : 30 Crores
COCCED: Full Powers

Other Retail Loans:

RMCC: Upto 50% increase
ZOCC: Upto 100% increase
COGM: Upto 200% increase
COCCED: Full Powers

All Other Retail Loans (Including Personal Loans)

RMCC: Upto 50% increase
ZOCC: Upto 100% increase
COGM: Upto 200% increase
COCCED: Full Powers

RMCC : 15 Crores
ZOCC : 30 Crores
COGM : 30 Crores
COCCED: Full Powers

The respective Deviation authorities - ZMCC/ZOCC has to exercise

the above powers subject to the maximum of their Discretionary
Lending Powers as per the rank of Regional Head/ Zonal Head.

Annexure to Circular BCC:BR:108/587 dated 05.12.2016

Page 2

2.

Margin/LTV Norms:
Home Loan:
RMCC/ZOCC/COGM: No powers (Scheme guidelines as
per RBI norms)

Margin/LTV Norms:
Home Loan:
RMCC/ZOCC/COGM: No powers (Scheme guidelines as per RBI
norms)- No Change

Home Improvement Loan:

RMCC: Less than 25%, min 20%
ZOCC: less than 20%, min15%
COGM: Full Powers

RMCC:

AAA Lon:
RMCC: Not less than 20% residual value of property after
deducting not less than 133.33% of outstanding amount in
existing Home Loan, provided no deviations in any other
scheme parameters except ROI.
ZOCC: Deviation exceeding RMCC

Home Improvement Loan: Less than 25%, minimum 20%

AAA Loan: Not less than 20% residual value of property after
deducting not less than 133.33% of outstanding amount in existing
Home Loan, provided no deviations in any other scheme parameters
except ROI. (No Change)
Car Loan: Not less than 10% (No change)
Traders Loan/Mortgage Loan: Not less than 35% of realizable value
All other Retail Loans: No Powers
ZOCC:

Auto Loan:
RMCC/ZOCC: Not less than 10% (Car Loan)
Two wheeler: No Powers
COCC: No powers
COCCED: Full Powers
Traders Loan:
RMCC: No Powers
ZOCC: Not less than 35% of realizable value
COGM: Not less than 30% of realizable value
COCCED: Full Powers

Deviations exceeding the powers of RMCC can be considered by

ZOCC. (No reference to BCC required)

Mortgage Loan:
RMCC: No Powers
ZOCC: Not less than 45%
COGM: Not less than 40%
COCCED: Full powers
Other Retail Loans:
RMCC/ZOCC/COGM: No Powers
COCCED: Full Powers

Annexure to Circular BCC:BR:108/587 dated 05.12.2016

Page 3

3.

Repayment Period:
For all Retail Loans except Mortgage Loans:

For all Retail Loans:

RMCC: 1 to 6 years depending upon the maximum

Repayment Period as per product profile and age
of borrower/ co-borrower.
ZOCC: 7 to 12 years depending upon the maximum
Repayment Period as per product profile and age
of borrower/ co-borrower.
COGM: No Powers
COCCED: Full Powers

RMCC: 1 to 6 years depending upon the maximum Repayment

Period as per product profile and age of borrower/ coborrower. (No change)
ZOCC: Full Powers

Mortgage Loan:
Upto COGM: No Powers
COCCED: Full powers

4.

Other Parameters:
Age Parameters
Income Criteria (Income multiplier) and related clauses
Repayment capacity
Waiver of existing account relationship
For all Retail Loans except Mortgage Loans:
RMCC: Full Powers
For Mortgage Loan:
Age parameters:
RMCC: No powers
ZOCC: Upto 75 years (age+Tenure)
COGM: No powers
Income Criteria (and related clauses)
RMCC: No powers
ZOCC: To exceed upto 25%
COGM: No powers
Repayment capacity:
Upto COGM: No powers

Annexure to Circular BCC:BR:108/587 dated 05.12.2016

Example:
Maximum Repayment period for Car Loan is 7 years
Case: Due to age criteria, repayment period in a particular case is
upto 5 years only.
Deviation:
RMCC can consider deviation in repayment period upto 7 years
(since as per the scheme maximum repayment period is 7 years)
If the deviation is considered for repayment period beyond 7
years, for any reason, same is to be considered by ZOCC.
Other Parameters:
Age Parameters
Income Criteria (Income multiplier) and related clauses
Repayment capacity(FOIR) and related clauses
Waiver of existing account relationship (scheme specific, if
any)
RMCC: Full Powers (for all Retail Loans)

Page 4

Other guidelines
5.

Extending mortgage of property:

To consider extension of property already mortgaged to
one Retail Loan to secure another Retail Loan /other Loans
against residual value of property. (For these purpose Home
Loan schemes and home loan related products- Home
Improvement, AAA, Staff HL, Home Loan Suraksha Personal
Loan together may be treated as one Retail Loan) For
considering Home Improvement, AAA etc as mentioned
above, prior approval is not required.

6.

RMCC: Not more than two Retail loans /other loans.

ZOCC: Not more than three Retail loans /other loans.
COGM: Not more than four Retail loans /other loans
COCCED: Full Powers
Valuation Norms:
(a) In case of Property purchased within last 3 years, the
amount of Registered Sale Deed is to be taken as value of
the Property [applicable to all mortgaged based Retail
Loans such as Baroda Home Loan including Home
Improvement Loan & AAA (except for takeover Home
Loans), Baroda Traders Loan, Baroda Mortgage Loan and
other Retail Loans where mortgage of property is accepted
as security.]

If any mortgage of property, which is already mortgaged to any

facility (Retail or other than Retail) is extended further to any facility
(Retail or other than Retail) deviation is required.
However, if property mortgaged for a Home Loan is to be
extended to cover Home Improvement Loan, AAA, Staff HL, Home
Loan Suraksha Personal Loan deviation is not required. Ie.,For this
purpose, all the Home Loan & Home Loan related products will be
treated as a part of one Home Loan.

RMCC: Not more than -3- Retail/Other Loans

(i.e 1 Loan + 2 extensions)
ZOCC: Full Powers
(a) RMCC: Full Powers (No Change)

RMCC: Full Powers

(Subject to the condition that Region to satisfy about the
fair and acceptable Valuation of the property.)
(b) If any increase in existing exposure / additional limit /
facility is considered by extending the charge over the
property, fresh valuation will be taken as hitherto, before
taking additional exposure. (Deviation Powers not defined).

(b) If any increase in existing exposure / additional limit / facility is

considered by extending the charge over the property, fresh
valuation normally would be taken, before taking additional
exposure.
However, if the date of latest valuation report obtained for the
property proposed to be mortgaged is within last 3 years and the

Annexure to Circular BCC:BR:108/587 dated 05.12.2016

Page 5

sanctioning authority is satisfied about the fair and acceptable

valuation of the property as per the valuation report, fresh valuation
may not be insisted upon by the Sanctioning authority.
7.

8.

Accepting Unregistered Agreement to Sell in case of

Home Loans in approved Housing Projects:

Accepting Unregistered Agreement to Sell in case of Home Loans in

approved Housing Projects:

RMCC: Authorised to consider deviation to accept

Unregistered Agreement to Sell in APPROVED Housing
Projects which are following construction linked payment
plan, on case to case basis, subject to compliance of
guidelines as per Master Circular on Home Loan.

In case of APPROVED projects, sanctioning authority can consider

Unregistered Agreement to Sell in APPROVED Housing Projects
which are following construction linked payment plan(where
disbursements are linked to various stages of construction of housing
project), on case to case basis, subject to compliance of guidelines
as per Master Circular on Home Loan.
(i.e, Modification: Authority from RMCC to Sanctioning authority)

Accepting Unregistered Agreement to Sell in case of

Home Loans in unapproved Housing Projects:

Accepting Unregistered Agreement to Sell in case of Home Loans in

unapproved Housing Projects:

ZOCC: Authorised to consider deviation to accept Un

registered Agreement to Sell in UNAPPROVED Housing
Projects which are following construction linked payment
plan, on case to case basis, subject to compliance of
guide-lines conveyed through Master Circular on Home
Loan.

In case of UNAPPROVED projects, RMCC is authorised to consider

deviation to accept Unregistered Agreement to Sell in
UNAPPROVED Housing Projects which are following construction
linked payment plan (where disbursements are linked to various
stages of construction of housing project), on case to case basis,
subject to compliance of guidelines as per Master Circular on Home
Loan.
(i.e, Modification: Authority from ZOCC to RMCC authority)

Upfront Disbursement:
To consider disbursement of Home Loans on the basis of
terms of agreement to sell as against to make disbursement
only on the basis of stages of completion of the property
being financed.

RMCC/ZOCC/COGM: No Powers (No Change)

(Guidelines: Do not consider/ sanction home loan

proposals of builders where disbursements are not linked to
various stages of construction of housing project - As per RBI
guidelines conveyed vide circular No.BCC:BR:105/392

Annexure to Circular BCC:BR:108/587 dated 05.12.2016

Page 6

dated 05.09.13 and as per guidelines mentioned in Master

Circular on Home Loan]
9.

RMCC/ZOCC/COGM: No Powers
Age of Property:
Age of property should not be more than 25 Years:
Deviation:
RMCC: Full Powers

For any Retail Loans, wherever property (building/house) is

mortgaged as security, the age of property should not be more than
25 Years.
Deviation for accepting property (building/house) of age beyond 25
years:
In case, the loan is considered up to the period of the residual life
as mentioned in the valuation report by the valuer, sanctioning
authority can consider the same upto that period without any
deviation.

10

CRE Home Loans :

One Home Loan under CRE by our Bank: Sanctioning
authority
To Consider more than one CRE Home Loan (by Our Bank)
to one customer:
RMCC/ZOCC/COGM: No Powers
COCC ED: Subject maximum 3 CRE Home Loans to one
borrower (by our Bank)

11

To consider disbursement of Education Loan (including

Baroda Career Development), before the student obtains
visa, for overseas studies.
RMCC: Deviations can be allowed to students pursing
courses in Australia and New Zealand subject to existing
other guidelines in this regard.
ZOCC: Deviations can be allowed to students pursing
courses in all other countries (other than Australia and New
Zealand- since for these countries the same is being
considered at RO) subject to existing other guidelines in this
regard.

Annexure to Circular BCC:BR:108/587 dated 05.12.2016

Other cases: RMCC- Full Powers

Sanctioning of CRE Home Loans:
One Home Loan under CRE by our Bank: Sanctioning authority as per
DLP (No Change)
To Consider more than one CRE Home Loan (by Our Bank) to one
customer:
RMCC: No Powers (No change)
ZOCC: Subject maximum 2 CRE Home Loans to one borrower (by our
Bank)
COCC ED: Subject to maximum 3 CRE Home Loans to one borrower
(by our Bank)- (No change)
RMCC: Full Powers

Page 7

12

13

15

16

17

Home Loan:
Handing over all the collaterals securities to our Bank.
(All other collaterals charged to the previous institution from
whom the loan is being taken over should also be made
available as security to our Bank. However, the condition of
handing over the collateral securities may be waived
provided the borrower has made payment of above 50%
of the loan sanctioned by such other Bank / HFC.)
RMCC: Full Powers
Activity Clearance Baroda Mortgage Loan.
Activity Clearance for Sanctions under Mortgage is
required to be obtained from Regional Heads for facilities
upto Rs.3 Crores and for facilities beyond Rs.3 Crores Zonal
Heads are authorized to grant Activity Clearance.
(SMSs has been kept out of purview of Activity Clearance.)
Other parameters/ guideline:
Deviations in any other non-financial parameters, powers of
which are not specifically defined or not mentioned in the
parameters of the specific scheme, are to be considered at
Zonal Office Level except for Baroda Traders Loan & Baroda
Mortgage Loan.

In case of Traders Loan & Mortgage Loans, deviations in

any other non-financial parameters, powers of which are
not specifically defined or not mentioned in the parameters
of the specific scheme, may be referred to Retail Banking
Department, BCC for considering the same by COCC (ED).
Multiple Deviations:
In case of multiple deviations in a proposal, presently,
deviation pertain to lower level to be approved first and
the send to higher level for further approval for the
deviations, powers of which are vested at respective higher
level.
Deviations/ Concessions in Loan against Future Rent
Receivables (both CRE & non-CRE)

No Change

Activity clearance for Baroda Mortgage Loan is DISCONTINUED

hence forth.

Deviations in any other non-financial parameters, powers of which

are not specifically defined as above or not mentioned in the
parameters of the specific schemes, can be considered by ZOCC on
case to case basis on merits - for all Retail Loan products.

Multiple Deviations:
In case of multiple deviations (non-financial) in a particular Retail
Loan proposal which are to be considered at various levels (i.e. one
at RMCC and/or another at ZOCC), all the deviations together to be
considered at the higher level (ie. at ZOCC).
The guidelines mentioned in the Real Estate Exposure Policy issued by
Large Corporate Banking Department and the guidelines issued by
them from time to time will be applicable

****

Annexure to Circular BCC:BR:108/587 dated 05.12.2016

Page 8