Professional Documents
Culture Documents
March 2008
0
Table of Contents
Title Pages
I. Introduction. 2
1.1 Background 2
1.2 Statement of the Problem.. 3
1.3 Objectives of the Study. 4
1.4 Scope of the Study.. 4
1.5 Methodology Employed.. 4
1.6 The BPR Team . 5
1.7 Expected Results/ Deliverables 5
II. The Existing (As Is) Situation of the Loan Process.. 6
2.1As Is Documentation Result 6
2.2Existing Functional Loan Processing System of DBE 7
2.3 Experience Sharing and Benchmarking Results. 8
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
1
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 process-
based, 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
realized that drastic change cannot be achieved unless the process is re-designed. To
2
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.
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.
3
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.
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.
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.
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.
5
II. THE EXISTING (AS IS) SITUATION OF THE LOAN PROCESS
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. EXISTING FUNCTIONAL LOAN PROCESSING SYSTEM OF DBE
6
The workflow of the existing Loan Process is described as shown below.
Total No of Steps------562
Units involved-----------16
Collateral
Registration Finance HR&GS
Stump Duty
Disbursement Steps9
Steps84 Units Involved -1
Units Involved--2
Rehabilitation Ad-
hoc Committee Project
2 Steps Appraisal
Client Relation
Steps46
Receive Application
Units Involved
M. L C. KYC Check
Approval Document Evaluation, Prepare
Steps78 Insurance and RFD and project
Unit Involved -1 follow-up
Steps241. Units Involved-4
President Office
Engineering Dept
2 Steps Legal Dept Doc. Evaluation
Doc. Evaluation Progress Report
Loan Contract prep Steps55
Foreclosure Units Involved-2
Steps58
Board of Units Involved-2
Acquired Property
Management
Administration
2 steps
7
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.
8
Table 1.1 some performances of external benchmarking partners in comparison with that of DBE.
Institutions visited
Ser. Africa India Malaysia
No. Comparison IDC S.A NDB BW IDBI NABARD SMEB PUNB DBE
factors
1 Loan delivery 3wks - 6 2 days - 3 15 days - 3 1wk to 2 30 - 60 45 days 185 days
lead-time m's months months months days
Semi -
3 IT (Automation ) Automated Automated Automated Automated Automated Automated Automated
9
Table 1.2 Best practices of the external institutions used for redesigning the
process
10
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
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
12
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 walk-
in 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.
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.
13
Table 1.5 DBE Performance gap analysis
14
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.
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
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.
16
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
Documentation and
Disbursement
Loan Collection
18
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 Notify the customer and
return the document No
1 5
Loan application 2 Document 3 Undertake 4
Customer
sourcing receiving, screening Due Diligence Is the
assessment due
diligenc
e
accepted
No No
Notify customer to Notify customer to ?
comply comply Yes
12 1 9 7 6
1 0 Loan and Yes Forward loan
Second and Compliance Is the
First 1 Yes mortgage contract proposal by
subsequent checking loan
disbursement /or signing and incorporating
compliance Are approve
equity release conditions documentation d? the due
check
fulfilled? diligence to
conditions No
fulfilled?
approval team
END
Continue follow-up
20
Return collateral
document
Return the document
Scenario II of the Credit Process to the applicant No
1 3 5
Recruitin Undertake 4 IS the
Loan application 2
g Document screening Due Diligence due-
receiving diligenc
Customer assessment
e
acceptab
le?
Notify customer to
comply
Yes
No Return the document
to the applicant
1 No 7
1 8 Follow-up Foreword due- 6
1 9 Receive and
Condition 0 Loan and Mortgage Yes
appraisal process diligence report and
Loan own appraisal
compliance agreement signing report and
and negotiate other documents for
approval
checking are with customer appraisal
and documentation Is the dispatch to
conditions
loan Approval Team
fulfilled?
approved
?
Yes 1
4
1 Yes
Second and 1 1 1
First disbursement 2 subsequent Second or
5 Prepare project 6 7
Project follow-up
/or equity release compliance subsequent
check Are disbursement completion report
conditions
fulfilled?
No
Notify customer to
comply
21
2
2 0 1 1
Release collateral 1 Yes 9
Continue follow-up
Yes
Is the
8
Is the
END document and project
loan
report settlement healthy
settle
d? ?
No
No
Send to PRLR
Continue follow-up Process
22
Return the document
Scenario III of the Credit Process No to the applicant
5 6
1 Loan application 2 3 4 Yes
Foreword due-
Recruitin Undertake IS the
g receiving Document Due Diligence due- diligence report
Customer screening assessment diligence and other
acceptabl documents for
e? appraisal
Notify customer to
comply
Return the document
No to the applicant No
1 8 7
1 1 9 Receive and own Follow-up appraisal
Condition Loan and Mortgage 0 Yes Loan
Appraisal report and process and negotiate
compliance agreement signing approval
checking dispatch to Approval with customer
and documentation Is the
Are Team
loan
conditions approved
fulfilled?
?
Yes
1
1 3 Yes
Second and 1 1 1
First disbursement 2 subsequent Second or
4 Prepare project 5 Project follow-up 6
/or equity release compliance subsequent
check Are disbursement completion report
conditions
fulfilled?
No
Notify customer to
comply
23
1 1 1
2 9 8 7
0
Release collateral Yes Yes
Is the Continue follow-up Is the
END document and project
loan
report settlement healthy
settle
d? ?
No No
Send to the
Continue follow-up 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 sub-
process 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
1
Receiving Document
(Request for Appraisal)
26
Project Rehabilitation and Loan Recovery Sub-Process
1
Receive sick project
Document
2
Review and investigate the file
and Follow-up Reports
Approval of the No
Proposal
Is the proposal
approved? Return to step 2
Yes
8
Begin foreclosure 8
Send approved
Action (for foreclosure)
rehabilitation to
Credit Process
27
Settle the loan arrears and 1
9 return to Credit process 0
Write final repayment
warning letter 1
1 1
1 Auction Processed Auction conducted
Take over and valuation of 2
the property 0
1 2 2
Search for additional9 0 2 2
Has 2 Is the
property Yes
additional Collection 3
Take the case to 1 court
property decision
court
been favorable
found? to the
Bank?
No
2
1
Prepare write-off
proposal
28
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
responsibilities in the process and the number of required workforce for the process
29
4.1. WORK FLOW MATRIX FOR LOAN PROCESS OF THE BANK
A. WORKFLOW MATRIX FOR CORE CREDIT PROCESS AND APPRAISAL SUB PROCESS
30
To create awareness on
the service of the Bank, After the location
Attracting and By Using the
offer options of model potential customer is With in 1 day
persuading potential selected media
1.5 bankable project and identified and means the Credit
applicants (means of
encourage potential of communication process
communication)
investors to apply for selected
credit (Project loan)
To further explain the
After the customer is By filling loan
Receiving expression of requirement of the bank With in day
communicated application
1.6 interest and follow-up to informed and the Credit
through appropriate formats of the
contacted potential process
means Bank
customer
Loan application
2 receiving
day
To create awareness on
the banks requirement,
General briefing on
right and obligation of
customer charter, Banks
the applicant and With in By holding
requirement, credit Up on the applicants 30
2.1 alternatives model the credit personal
facilities and assigning arrival minutes
bankable project process discussion
tasks to a specific
available in the Bank
performers and register
and ensure customer
satisfaction
Using banks
Detail technical
requirement list
discussion on customer
To enable customer to customer
charter, Banks with in the
decide on the offers Up on the applicant charter, model
2.2 requirement, credit Credit 1 hour
provided and ensure arrival bankable
facilities and alternative process
customer satisfaction project and
options offered by the
personal
Bank, register and assign
discussions
the job
31
Receiving and registering When the client
with in the
application with To ensure fulfillment of appeared with By comparing
2.3 Credit 1 hour
supporting document and requirements application and with checklist
process
verify its completeness required documents
To make ready the loan with in the By filling format
Application and After the client 30
2.4 application for further Credit and putting
disclaimer signing appeared in the bank minutes
processing process signature
Registering the
application in a database To create awareness for with in the By recording in
After application 30
2.5 and disseminate the all actors and store the Credit a database and
received minutes
information the information process creating file
concerned parties
3 Application document
Screening 1 day
To ascertain the quality Using
Checking the After application with in the
and relevance of the application
appropriateness of received and Credit 4 hours
document as per the screening
submitted documents: registered process
standard checklist
To ascertain the quality After application with in the Using
3.1.1 Construction and
and relevance of the received and Credit application Undertake
civil work 4 hours
document as per the registered process screening Simultane
documents
standard checklist ously
3.1.2 Performa of To ascertain the quality After application with in the Using
3.1 Machinery and and relevance of the received and Credit application Undertake
4 hours
equipment and document as per the registered process screening Simultane
catalogue standard checklist ously
3.1.3 Raw material and To ascertain the quality After application with in the Using
chemicals and relevance of the received and Credit application 4 hours Undertake
document as per the registered process screening Simultane
standard checklist ously
32
To ascertain the quality After application with in the Using
and relevance of the received and Credit application 4 hours
3.1.5 Legal documents
document as per the registered process screening Undertake
standard checklist Simultane
ously
To ascertain the quality After application within the Using
3.1.6 The general and relevance of the received and Credit application 4 hours Undertake
contents of the document as per the registered process screening Simultane
feasibility study (if standard checklist ously
Applicable)
Communicating the
within the By holding
client for any To fulfill missed After all documents
3.2 credit discussion with 1 hour
inappropriate document information reviewed
process the client
Undertaking Due
4 5 days
Diligence Assessment
4.1 Gathering KYC
information of the To undertake due After the application Within the By interviewing 2 days
applicant diligence assessment is accepted Credit and other
process means of
4.1.1 Collect data on collecting
Character information
4.1.3 Capital/Equity
sources
33
4.1.4 Business track
record
4.1.5 Managerial
competency
Undertake KYC
4.2 2 days
assessment
By evaluating
4.2.1 Assessing the Credit To check the debt After the application Within the collected
history of the servicing character of is received and Credit information 2 days Undertake
promoters/ the promoter information gathered process from different Simultane
shareholders banks ously
4.2.2 Identifying the By gathering
After the application Within the
source of Capital To ensure adequacy and information 2 days Undertake
is received and Credit
and its adequacy legitimacy of the capital about the source Simultane
information gathered process
for the project of money ously
4.2.3 Checking the By assessing
To know the past After the application Within the 2 days
business track past business
business performance of is received and Credit Undertake
record of the experience of
the promoter information gathered process Simultane
promoter the promoter
ously
To identify and advice Through
After application within the
Understanding the the customer on risks, thorough Undertake
4.3 received and Credit 2 hours
feasibility study pitfalls and potential of reading of the Simultane
information gathered process
the project project study ously
Assessing and
By investigating
Commenting on the To understand the skill After the application within the Undertake
educational and
4.4 management capacity and knowledge of the is received and Credit 1 hour Simultane
work experience
and market strategy of project promoter information gathered process ously
of the promoter
the promoter
4.5 To ensure the collect- After application within the By conducting 1 hour
Discussing with customer ability of the loan received Credit personal Undertake
on the collateral to be process interview Simultane
34
offered for the loan ously
To decide on the
acceptance or rejection
of the loan application By rearranging
Writing a consolidated After application within the
and provide necessary the assessment
4.6 due diligence report received and due credit 3 hours
and supporting result and
diligence conducted process
information for writing
appraisal when the due
diligence is accepted
After the within the By revising and
Reviewing the due To improve the quality 30
4.7 consolidated report is credit adjusting the
diligence report and sign of the report minutes
prepared process report
Transferring the due
diligence report and all
relevant document for After the due Within the By filling format
To undertake detailed 20
4.8 appraisal and diligence report credit (Preparing
appraisal of the project minutes
disseminate the prepared process letter)
information to concerned
parties
After the file is Within the By contacting
Follow up the progress of To facilitate the progress
4.9 transferred to credit the appraisal 1 days
project appraisal of the loan delivery
appraisal process team
13
5 Project Appraisal days
35
Gathering and compiling Under
To facilitate the By using
relevant research, risk After the due Appraisal
5.2 analysis/appraisal of the research and 2 days
assessment data and diligence assessment sub
project risk outputs
Background information process
Under By summarizing
Undertaking technical
To check the technical After the technical Appraisal the evaluation Undertake
5.6 appraisal including 1 day
feasibility of the project evaluation conducted sub result of Simultane
implementation schedule
process engineers ously
5.7 To check the viability of After complete Under By analyzing 3 days
Undertaking Market the project application received Appraisal data and using Undertake
study and due diligence sub policies and Simultane
conducted process guidelines ously
36
Undertaking After complete Under By analyzing
organizational and To check the viability of application received Appraisal data and using Undertake
1 days
management study the project and due diligence sub policies and Simultane
conducted process guidelines ously
After market,
organizational and Under By analyzing Undertake
Undertaking Financial
To check the viability of management study Appraisal data and using Simultane
study 3 days
the project and due diligence sub policies and ously
assessment process guidelines
conducted
After market,
organizational and
Analyzing Socio- Under By analyzing
management, Undertake
economic aspects of the To check the viability of Appraisal data and using
5.8 Financial study and 1 day Simultane
project the project sub policies and
due diligence ously
process guidelines
assessment
conducted
Undertaking After complete Under By analyzing
environmental impact To check the variability application received Appraisal data and using Undertake
5.9 day
assessment of the project, of the project and due diligence sub policies and Simultane
prepare report conducted process guidelines ously
Undertaking appraisal of
After complete Under By consolidating
the project, incorporate To organize the above
application received Appraisal the findings and
5.10 KYC assessment and findings for decision 2 days
and due diligence sub using policies
prepare the draft making
conducted process and guidelines
appraisal report
37
By preparing
Registering and Under
To get feedback from the memo and
Transferring draft report After the draft report Appraisal
5.11 client or advice the attaching day
to the Credit Process prepared sub
customer discussion
process
points
Discussion on the
6 selected critical day
points with customer
Receiving and registering To discuss the outcome After the draft Within the By accepting the
20
6.1 findings of appraisal from of the report with the appraisal report is Credit reports of
minutes
appraisal process promoter prepared Process appraisal
After the draft within the
Contacting the applicant To negotiate on loan 30
6.2 appraisal report credit Using telephone
and arrange for proposal minutes
prepared process
discussion
To reach consensus on
Sharing and discussion within the
the findings and terms At appearance of By arranging
6.3 on the outcome of the credit 2 hours
and conditions of the client discussion
loan appraisal process
loan
within the
Reviewing the discussion To standardize the After the discussion By revising the 30
6.5 credit
report report report prepared report minutes
process
Registering and By preparing
within the
Transferring the To facilitate the loan After the discussion memo and 20
6.6 credit
discussion outcome to processing report prepared sending the minutes
process
appraisal report
6.7 Follow up the progress To facilitate the loan After the document Within the By contacting 20
processing transferred to credit the appraisal hours
38
appraisal process process
Under
After the final
Reviewing the final To standardize the Appraisal By revising the 30
7.3 appraisal report is
appraisal report report sub report minutes
prepared
process
Registering and Sending Under
the final appraisal report To be presented for loan After the final report Appraisal By transferring 30
7.4
to credit process approval body prepared sub file personally minutes
process
39
Through
Understanding and own To analyze and accept
After the appraisal Within the thorough
8.2 the appraisal report the result and dispatch 3 hours
report is received credit reading of the
to approval
process report
After reading and By forwarding
Register and send the Within the 30
8.3 To get the loan approved understanding the through
final report to approval credit minutes
project messenger
process
To facilitate the loan After the proposal By contacting
Follow up the progress of Within the 20
8.4 processing activity of the report is send to the approval
approval credit minutes
project approval team
process
Loan proposal review
9 3 days
and approval
Receiving and registering Under
the loan proposal and To distribute to approval Upon approval of the Loan Using register 20
9.1
distribute to Loan team members proposal Approval book minutes
approval team members team
Under
To understand and Upon the receipt of By reading and
9.2 Reading the proposal by Loan 1 days
analyze the report the loan proposal reviewing
individual team members Approval
team
By conducting a
meeting and
Deliberate on the insuring
appraisal report and To approve/reject the Under compliance with
9.3 24 hours after receipt day
independent risk loan Loan the banks
assessment reports Approval policies,
team procedures and
guideline
40
To record findings,
Drafting and finalizing Under
discussion and final During and after the By filling
9.4 loan approval team Loan day
decision of the loan time of the meeting minute format
minute Approval
approval team
team
Under
Endorsing the loan To ascertain decision of After final minute is By putting
9.5 Loan day
approval team minute the approval team prepared signature
Approval
team
Under
Registering and sending By using
After the minute is Loan 30
9.6 the minute to Credit To prepare loan contract formatted
signed Approval minutes
Process memo
team
Loan and Mortgage
Agreement signing,
10 2 days
documentation and
Equity release
Receiving and registering
the decision minute from To notify the customer within the
After receipt of the By using a 30
10.1 the approval team and the decision of the loan credit
minute format minutes
dispatch to the executing committee process
team
Preparing the loan After receipt of the
To communicate the within the By using format
approval/rejection minute and 30
10.2 decision of the approval credit and putting
notification letter and preparation of the minutes
team process signature
signing letter
41
within the Using standard
Filling the loan contract To be signed by the After notification
10.4 credit format and 1 hour
and sign as witness concerned party letter is sent
process signed minutes
By checking the
Reviewing the loan To check the contract After contract within the filled contract 30
10.5 credit
contract and sign against the minute prepared against signed minutes
process minute
By reading the
After the contract within the
Signing of loan contract To make the agreement contract and 30
10.6 prepared and read by credit
by both parties legally binding putting minutes
both parties process signature
42
process
By posting on
Disseminating within the
To create awareness for After the contract online services 20
10.12 information to the credit
future action registered and sending minutes
concerned parties process hard copy
Fill form to purchase To get insurance After the contract is within the 30
10.13 Using format
insurance policy coverage for collateral signed credit minutes
process
Recording the loan By recording in
After all loan within the
agreement and put To insure safety of the a database and
10.14 requirement credit 1 hour
collateral under custody collateral document storing in a file
completed process cabinet
43
Under
Blocking of equity To facilitate After receiving the 30
10.18 payment Using formats
contribution disbursement relevant documents minutes
process
Condition compliance
11 checking for equity 5 days
release/disbursement
44
Receiving and registering By collecting,
Up on arrival of the within the
equity release To release equity/loan acknowledging 30
11.1 customer with proper Credit
/disbursement disbursement and registering minutes
application and process
application the application
Under By assigning
After the request is 30
11.4 Assigning Vehicle To travel to project site transport vehicle and -
approved minutes
process driver
45
11.6.3 Check raw material To ensure raw materials
and other inputs and other inputs are During and after site within the By using Undertake
3 days
check, prepare purchased as per visit Credit specification Simultane
report and sign specification process ously
11.6.4 Evaluating To ensure machinery
machinery and and equipment are During and after site within the By using Undertake
3 days
equipment prepare purchased as per visit Credit specification Simultane
report and sign specification process ously
11.6.5 Providing technical
To facilitate project within the Through Undertake
advice to project During site visit day
implementation Credit discussion Simultane
management group
process ously
To check fulfillment of
11.6.6 Preparing inspection within the
pre-conditions for After site visit By using format day
or follow-up report Credit
equity/disbursement
process
Undertaking discussion To approve/reject equity
After follow-up within the By holding a
11.7 on the follow-up report release /disbursement 1 hour
report prepared Credit meeting
and signing request
process
Contacting the applicant
for equity release/
disbursement if To facilitate the loan After the letter within the By using 20
11.8
preconditions are fulfilled process signed Credit telephone minutes
or issue letter of process
deviation other-wise
Communicating the
To ensure terms and within the Using different
applicant if he/she is not 30
11.9 conditions stipulated in After decision made Credit communication
fulfilled the minutes
the loan contract process means
preconditions
Signing the letter of To facilitate the loan After the letter within the By putting 20
11.10
deviation and file processing prepared Credit signature minutes
process
46
Equity Release / Loan
12
Disbursement day
By checking
Preparing memo of
To facilitate the release After equity approval within the contract
12.1 advice for the release of 1 hour
of equity/disbursement made Credit document and
equity/preparing RFD
process filling format
By reading and
Checking and signing To order the release of After equity form within the
12.2 putting 1 hour
equity release/RFD equity/disbursement filled Credit
signature
process
By assigning
Opening Current account
To facilitate the within the Account
and recording the 30
12.3 disbursement/Equity After RFD prepared Credit number and
disbursement balance minutes
release process record the
balance
After the
Within the
Approving the To authorize the disbursement is By putting 20
12.4 Credit
disbursement recorded fund recorded in to the signature minutes
process
account
After equity form
filled/RFD prepared
To facilitate the Under Through
Effecting payment and signed, current
12.5 implementation of the Payment different means 1 hour
account opened and -
project process of payment
disbursement
balance recorded
After payment Within the By contacting
Follow-up the progress of To facilitate the payment 30
12.6 instruction is sent to Credit the payment
payment process minutes
payment process process process
Total cycle time from
32
application to first
days
disbursement 37 (32)
47
Subsequent
conditions
compliance checking
13 5 days
and equity
release/loan
disbursement
After the first within the By undertaking
To effect the second
13.1 Same as no. 11 and 12 disbursement is Credit compliance 5 days
disbursement
utilized process check
Project Completion
14 5 days
report
By assigning
After the request is Under 10
14.3 Assigning Vehicle To travel to project site vehicle and
approved transport minutes -
driver
process
Under
To cover the cost of filed After the request is 30
14.4 payment By paying cash
Effecting travel advance trip approved minutes
process -
Checking whether the
project civil work is To verify the completion within the Undertake
During and after site
14.5 completed as per the of civil work of the Credit By filling format 3 day Simultane
visit
plan, prepare report and project process ously
sign
14.6 Evaluating whether the To verify the project is During and after site By filling format 3 day
project is implemented as ready for operation visit within the Undertake
48
per the plan, take Credit Simultane
photograph and prepare process ously
report
Verifying whether raw
materials and other To verify all inputs of the within the
During and after site
14.7 inputs are purchased as project are purchased Credit By filling format 3 day Undertake
visit
per the plan, prepare and ready for production process Simultane
report and sign ously
Checking whether
To verify all machinery
machinery and within the Undertake
and equipments are in During and after site
14.8 equipment are in place Credit By filling format 3 day Simultane
place and ready for visit
as per the plan, prepare process ously
production
report and sign
49
Credit through minutes
process different means
After arranging site within the
Request vehicle and To visit project site and By filling 20
15.3 visit program with Credit
travel advance collect data formats minutes
customer process
within the
Signing vehicle and travel To authorize payment Credit By putting 10
15.4 After request is filled
advance request request process signature minutes
By assigning
After the request is Under 30
15.5 Assigning Vehicle To travel to project site vehicle and
approved transport minutes -
driver
process
Under
To cover the cost of filed After the request is payment 30
15.6 By paying cash
Effecting travel advance trip approved process minutes -
Conducting Project
4 days
15.7 site visit and project
status evaluated
15.7.1 Collecting data on
technical, By being
To know the actual After arriving on the
management and within the present in the day
project status project site
financial status of Credit project premises
the project process
15.7.2 Evaluating the To check the technical During site visit By checking the 3 days
technical and and management financial and Undertake
management situation of the project Within the management Simultane
capacity of the credit report ously
project process
50
15.7.3 Reviewing the
financial and Within the By checking the Undertake
To check the technical
operational credit financial and Simultane
and management During site visit 3 days
efficiency of the process management ously
situation of the project
project report
51
By writing a
To transfer the project to
Within the memo using the
Prepare status report if recovery and get After the project is
15.12 credit set criteria 2 hours
the project is sick appropriate solution for defined as sick
process defined for
the sickness
sickness
Reviewing the status To adjust and After the status Within the By revising the 30
15.13 credit
report standardize the report report is prepared status report minutes
process
52
B. WORKFOLW MATRIX FOR PROJECT REHABILITATION AND LOAN RECOVERY SUB PROCESS
Under 10
Signing vehicle and travel To authorize payment By putting
1.4 After request is filled recovery minut
advance request request signature
process es
53
Under By assigning 30
After the request is
1.5 Assigning Vehicle To travel to project site transport vehicle and minut -
approved
process driver es
Under 30
To cover the cost of filed After the request is
1.6 payment By paying cash minut -
Effecting travel advance trip approved
process es
1.7.3 Thoroughly discuss To share ideas and reach After physical By conducting
the problem with the consensus on the observation of the Under meeting with 2
project management observed problems project conducted recovery management hour
process
1.7.4 Preparing proposal
with
To summarize the
recommendation After understanding Under By writing 2
finding of the
and submit to the actual problem recovery follow-up report hours
assessment for decision
Process Owner process
54
To have a common
1.7.5 Discuss on the
understanding on the After the site visit Under By preparing a
outcome of the
finding of the report prepared recovery meeting section 1 hour
report
investigation process
Using
appropriate
To discuss with the When the project Under
communication 30
Call the customer and customer on the follow up report and recovery
1.8 s media and minut
appoint for discussion proposal proposal is ready process
invitation es
format
To create clear
Under Using
Convene with customer understanding
When the customer recovery negotiation
and hold discussion on the and avoid information
1.9 appears for process guideline and at day
findings and proposal asymmetry and to make
discussion the presence of
adjustment if necessary
case manager
By amending
Inform the process owner,
the proposal
Revise the report and
and
adjust it as per the To incorporate useful
Under recommendatio
discussion (If there is ideas of the customer
1.10 recovery n using the
deviation) and and to suggest the When the negotiation
process follow up report
Prepare a final appropriate solution and is over
and proposal day
recommendation report get the approval of the
format attached
and submit the report to team
to internal
Process Owner
memo
By reading
Send the recommendation
To get discussion on the After the final Under understanding, 30
report to the approval
1.11 recommendation of the recommendation recovery and minut
team or Executive
team report is prepared process correcting( if es
management
any)
55
Proposal and 3
2 Recommendation days
report approval
Under
Endorsing the loan To ascertain decision of After final minute is By putting
2.5 Loan
approval team minute the approval team prepared signature day
Approval
team
2.6 Registering and sending To create awareness on After the minute is By using 30
the decision of the the decision of the signed Under formatted minut
approval team to the approval team and take Loan memo es
56
recovery process and Approval
filing a copy of the appropriate action team
decision
Receiving, registering,
To understand the After the decision
checking and Under the By using
decision of the approval minute is prepared
2.7 understanding the recovery formatted 1 hour
team and act inline with and forwarded to
decision and taking process memo
the decision recovery
appropriate action
Executing the
Approval Teams
Decision and
recommendation
3 If the decision is
Rehabilitating the
to project, either
activities of 3 to 5 will
5 be carried out
Additional loan
3.1 2
provision
days
Receive and register the To notify the customer within the 20
After receipt of the By using a
3.1.1 approval minute from the the decision of the loan credit minut
minute format
credit process committee process es
57
within the Using standard
Fill in loan contract and To be signed by the After notification
3.1.4 credit format and 1 hour
sign concerned party letter is sent
process signed minutes
By checking the
within the 30
Review loan contract and To check the contract After contract filled contract
3.1.5 credit minut
sign against the minute prepared against signed
process es
minute
By reading the
After the contract within the 30
Signing of loan contract by To make the agreement contract and
3.1.6 prepared and read by credit minut
both parties legally binding putting
both parties process es
signature
within the 20
Prepare letter of loan To facilitate the loaning After the contract is
3.1.7 credit Using format minut
contract registration process signed
process es
within the 20
Signing letter for loan By putting
3.1.8 To register collateral After letter prepared credit minut
contract registration signature
process es
within the 20
Checking registered loan To conform the After the contract By reading the
3.1.9 credit minut
contract registration registered contract
process es
By posting on
within the 30
Disseminate information To create awareness for After the contract online services
3.1.10 credit minut
to the concerned parties future action registered and sending
process es
hard copy
58
After the contract Under 30
Stamp duty payment By sending the
3.1.11 To legalize the contract registered and payment minut
collection document
checked process es
By contacting
After the customer is within the payment 30
Follow up of the stamp
3.1.12 To assure the payment ordered to pay the credit process and minut
duty payment
payment process collecting the es
receipt
within the 20
Fill form to purchase To get insurance After the contract is
3.1.13 credit Using format minut
insurance policy coverage for collateral signed
process es
59
within the
credit By reading and
Checking and signing To order the release of
3.1.17 After memo prepared process putting 1 hour
equity release equity
signature
Undertaking
3.2 condition Compliance 5
check days
By collecting,
Receiving equity Up on arrival of the within the 10
To release equity/loan acknowledging
3.2.1 release /disbursement customer with proper Credit minut
disbursement and registering
application application and process es
the application
Under By assigning 10
After the request is
3.2.4 Assigning Vehicle To travel to project site transport vehicle and minut -
approved
process driver es
60
Under 30
To cover the cost of filed After the request is
3.2.5 payment By paying cash minut -
Effect travel advance trip approved
process es
3.2.6.2 Evaluation of
within the Undert
progress of civil To check the project During and after site
Credit By filling format 3 days ake
work, prepare implementation visit
process simulta
report and sign
neously
3.2.6.3 Check raw
To ensure raw materials
material and other within the Undert
and other inputs are During and after site By using
inputs check, Credit 3 days ake
purchased as per visit specification
prepare report and process simulta
specification
sign neously
3.2.6.4 Evaluate To ensure machinery
within the Undert
machinery and and equipment are During and after site By using
Credit 3 days ake
equipment prepare purchased as per visit specification
process simulta
report and sign specification
neously
3.2.6.5 Provide technical
within the Undert
advice to project To facilitate project Through
During site visit Credit ake
management implementation discussion day
process simulta
group
neously
61
To check fulfillment of within the
3.2.6.6 Prepare inspection
pre-conditions for After site visit Credit By using format
or follow-up report day
equity/disbursement process
within the 10
Signing the letter of To facilitate the loan After the letter By putting
3.2.10 Credit minut
deviation and file processing prepared signature
process es
Additional loan
3.3
disbursement
day
By checking
within the 30
Prepare memo of advice To facilitate the release After equity approval contract
3.3.1 Credit minut
for the release of equity of equity made document and
process es
filling format
62
within the By reading and 10
Checking and signing To order the release of After equity form
3.3.2 Credit putting minut
equity release equity filled
process signature es
By checking
within the 30
To facilitate After disbursement contract
3.3.3 Prepare RFD Credit minut
disbursement approval made document and
process es
filling RFD
By proof
within the 30
To order the release of reading and
3.3.4 Checking and signing RFD After RFD prepared Credit minut
disbursement putting
process es
signature
By assigning
Open Current account and
To facilitate the within the Account 30
Record disbursement
3.3.5 disbursement/Equity After RFD prepared Credit number and minut
balance
release process record the es
balance
After the
Within the 20
To authorize the disbursement is By putting
3.3.6 Approve the disbursement Credit minut
recorded fund recorded in to the signature
process es
account
After equity form
filled/RFD prepared
To facilitate the Under Through
Effect payment and signed, current
3.3.7 implementation of the Payment different means 1 hour
account opened and -
project process of payment
disbursement
balance recorded
Follow-up the progress of After payment Within the By contacting 10
To facilitate the payment
3.3.8 payment and receive instruction is sent to Credit the payment minut
process
payment message for LC payment process process process es
63
4.1 Loan Rescheduling 2
days
Using the
To document the
Rescheduling loan After the customer is within the rescheduling
4.1.1 rescheduling
contract preparation informed process loan contract 2
agreement
form hours
by reading the
contract in the
Rescheduling loan To legalize the loan After understanding within the
4.1.2 presence of all 30
contract signed contract is created process
concerned minut
parties es
Under By using stamp
To comply with After the contract is 30
4.1.3 Stamp duty paid Payment duty
government directives signed minut
process collection form
es
By taking to
Rescheduling loan To legalize the signed After collecting within the
4.1.4 registration
contract registration contract stamp duty process
notaries
1 hour
To ensure contract After contract By checking the 1 hour
Registered loan contract within the
4.1.5 and /or collateral and/collateral registration
received and verified process
registration is registered slip/or stamp
By preparing a
Copy of rescheduling 30
To inform the concerned within the memo and
4.1.6 contract distributed to After verification minut
units process attaching the
concerned units es
contract
By coding and
To properly maintain the
Document updated and After verification for within the placing the
4.1.7 contract for future 2
filled registration process contract in the
reference hours
project's folder
64
By using
To inform the various After loan
Rescheduling data within the rescheduled 2
4.1.8 internal stakeholders rescheduling is
compilation and reporting process loan reporting hours
and to update file effected
format
Management
Intervention
/participation
5.1 in decision making, 4
financial control or days
other technical
assistance/
65
After signing the Using the
Institute the proposed To rehabilitate the
management within the management
5.1.5 management intervention project and induce loan 1 hour
intervention process intervention
scheme repayment
agreement guideline
using
To inform the various
management
Management intervention stakeholders external After management within the
5.1.6 intervention day
data compilation and and within the Bank and intervention process
reporting
reporting to update data action is taken
format
6 Foreclosure
1 day
Using the legal
Preparing 30 days legal After rehabilitation within the 1 hour
notice format
6.1 notice To notify the customer means are tried and recovery
and foreclosure
failed process
guideline
Within the 20
After the legal notice By putting
6.2 Signing the legal notice To authorize the letter recovery minut
prepared signature
process es
If arrears settled by
6.3
customer
day
When the customer By personal 30
Receive copy of payment To ensure the payment within the
6.3.1 presents copy of the delivering of the mints
receipt of arrear process
payment receipt receipt
66
By not
To proceed with the loan 1 hr
After receiving copy within the proceeding with
6.3.2 Stop foreclosure process as a normally paying
of payment receipt process the foreclosure
project
action
To inform the various
Compile collection and After the foreclosure 1 hr
stakeholders external within the Using reporting
6.3.3 return file to credit process has been
and within the Bank and process formats
process stopped
to update data
67
e
68
Using the
Valuing Machinery and After property take Within the
6.4.3.2 To determine sales value banks 5 days
Equipment over process
parameters
Using the
Valuing Raw material, After property take Within the
6.4.3.3 To determine sales value banks 5 days
stoke and others over process
parameters
Auction
6.4.4
Announcement 6
days
Auction document After asset evaluation
To proceed with the within the As per the
6.4.4.1 preparation and is completed and day
auction process banks standard
announcement facilitation price is determined
Preparing Asset To mix the captured After the script has Out of the
6.4.4.3 By out sourcing 2 days
audiovisual presentation image with sound been written process
Audiovisual or written
To get the auction After receiving from As per the 2 hrs
announcements within the
6.4.4.4 announced the foreclosure
submitted to electronic or process
or published advertising agency guideline
printing media
69
Within 5 days after
To invite potential submitting the By printing or 3 days -
publishing or announcing Out of the
6.4.4.5 participants to the submitting to audio visual
Auction notice process
auction electronic or printing announcement
media
2
6.4.6 If property sold days
70
By delivering
Under
Winner pays the amount To ensure ownership on within 15 days after the notification
6.4.6.1 payment 1 hour -
s/he pledged the property auction letter to the
Process
payment unit
Handover property and
After the buyer has within the As per the
documents to the buyer To legalize transfer of
6.4.6.2 paid the pledged recovery foreclosure 1 day
and facilitate property ownership
amount process guideline
ownership
To inform the various
within the
Report sale of the property stakeholders external On the date of Using reporting
6.4.6.3 recovery 30
and collection and within the Bank and collection formats
process mints
to update data
To reimburse positive
Follow-up the deduction balance to the defaulted After the buyer has within the By contacting
6.4.6.4 of the asset value from the customer or to search for paid the pledged recovery the payment 30
loan additional property for amount process unit mints
uncovered balance
If auction proceed is 2
6.4.7 less than loan days
outstanding
By writing
To recover the After the asset value within the letters to
Search for additional
6.4.7.1 remaining loan is deducted from the recovery concerned 1 day
property
balance loan balance process administrative
bodies
By writing
After the asset value within the letters to
Communicate to To facilitate the search
6.4.7.2 is deducted from the recovery concerned 1 day
concerned authorities for additional property
loan balance process administrative
bodies
71
If additional property
6.4.8 1 day
is found,
By submitting
To sue the defaulted After the has been within the
6.4.8.2 Open file at court the court charge day
customer prepared process
to the registrar
Follow-up the case and To have the court decide Using the
within the
6.4.8.3 undertake the necessary the case in the Bank's After opening the file relevant legal -
process
litigation favor codes
If additional property 4
6.4.9
is not found days
After absence of
Prepare and submit write- To clear uncollectible As per the write-
additional within the
6.4.9.2 off proposal and follow-up from off guideline 3 days
property has been process
the case bank's portfolio and format
reported
When the selected
To invite potential Through the 7
media has Out of the
6.5 2nd auction announced participants to the appropriate days
releases the process
auction media
announcement
72
Plan and Arrange to Before the auction within the By preparing 2
6.5.1 To facilitate the sale hours
conduct second auction date process auction plan
Audiovisual or written
To get the auction After receiving from within the As per the 2 hrs
announcements
6.5.4 announced the advertising recover foreclosure
submitted to electronic or
or published agency process guideline
printing media
Within 5 days after
To invite potential submitting the By printing or 5 days -
Publishing or announcing Out of the
6.5.5 participants to the submitting to audio visual
Auction notice process
auction electronic or printing announcement
media
within the As per the 2
To proceed with the
6.5.6 on the auction date recover foreclosure hour
Facilitation for auction auction
process guideline
73
If property sold on the
6.5.4 2
second auction
days
By delivering
Under
Winner pays the amount To ensure ownership on within 15 days after the amount to
6.5.4.1 payment 1 hour -
s/he pledged the property auction the payment
process
unit
74
By writing
After the asset value letters to
Communicate with To facilitate the search within the
6.5.6.1 is deducted from the concerned day
concerned authorities for additional property process
loan balance administrative
bodies
If additional property
6.5.7 1 day
is found
By submitting
To sue the defaulted After the has been within the
6.5.7.2 Open file at court the court charge day
customer prepared process
to the registrar
Follow-up the case and To have the court decide Using the 3
within the
6.5.7.3 undertake the necessary the case in the Bank's After opening the file relevant legal years
process
litigation favor codes
If additional property
6.5.8 4
is not found
days
Report the absence of To inform the various After all searching 30
within the Using reporting
6.5.8.1 additional property to stakeholders within the means are mints
process formats
concerned body Bank and to update data exhausted
After absence of
To clear uncollectible As per the write-
Prepare and submit write- additional within the
6.5.9.2 from off guideline 3 days
off proposal property has been process
bank's portfolio and format
reported
75
C. WORK FLOW MARTIX FOR OTHER DUTIES
Where is it Cycle
Other Duties Why is it done When is it done done How is it done Time
1.1 Prepare plan and
periodic reports on
the overall
To facilitate informed Monthly, quarterly within the
performance and Using formats
decision and annually process
achievement of the
team
To facilitate resource
1.1.1 Plan and budget
allocation and to crate within the By collecting data
preparation Annually
awareness of future process and filling formats
direction 5 days
1.1.2 Preparing Loan
provisioning To check financial within the By collecting data
Annually
report performance of the Bank process and filling formats
(to internal audit) 3 days
76
1.1.5 Preparing report To communicate the
Monthly, quarterly Within the By collecting data
for external users performance and status of
and annually process and filling formats
(PEAF) the Bank
1 day
Review periodic reports
and submit to concerned To evaluate achievement of After the periodic with in the
1.2 By reading
body the team reports prepared process
1 day
Preparing the resource
At the beginning of
requirement plan and To facilitate the accessibility Within the By conducting need
1.3 each year and
budget of the team of resources to the team process assessment
quarter
2 days
Review the resource To evaluate the correctness After the plan and
Within the By revising the plan
1.4 requirement plan and of the plan and adjust budget report
process and budget report
budget of the team accordingly prepared
day
Rate performance of quarterly, By filling
To encourage and monitor with in the
1.5 teams and members and semiannually and performance
team members performance process
nominate for reward annually evaluation form 2 days
By evaluating the
Design and install a new existing working
To facilitate the loan Activity
way of working systems whenever the need with in the condition of the
1.6 processing system and carried
that fits to the external arises process Bank and
improve performance out
demand identifying its
bottleneck simulta
neously
A
Attend and resolve To facilitate the smooth whenever the with in the By arranging continu
1.7
customers compliments functioning of the process problem happens process discussion ous
activity
77
A
Liaison the Bank with
To smoothening the loan with in the By representing the continu
1.8 external bodies regarding Whenever required
operation of the Bank process Bank ous
loan related matters
activity
A
Hold in-depth discussion To facilitate the loan Whenever required with in the By arranging continu
1.9
forum with customers processing and as per schedule process discussion forum ous
activity
78
4.2. JOB AND RESPONSIBILITY MATRIX OF THE LOAN PROCESS
Knowledge, Education,
Major and detail No of
Step activities in their Pinpoint Responsibility Experience and Job Title perfo
natural flow rmer
Behavioral Requirement
Customer Sourcing
1 (Recruiting
1.1, 1.2, 1.3, 1.4, 1.5, 1.6, 2.1, 4.7, 6.1,
Customer)
6.6, 8.1, 8.3, 10.1, 10.6, 10.9, 10.14,
Understanding the
10.21, 12.4, 12.6, 15.11, 15.14, 5.1.1,
strategic and operational
1.1 plan of the Bank and 5.1.2, 5.1.4
share among team
members
Understand the strategic and Excellent ability to work
operational plan of the Bank and share individually and as part of
1.2 Identifying the source of
potential customer among team members (1 day) a team
Identify the source of potential customer Excellent analytical skills
Collecting data on
1.3 (1/2 day)
potential investors Very good interpersonal
1.4 Select appropriate means Data collection on potential investors and presentational skills
of communication
(1 day)
79
Attracting and
persuading potential
1.5
applicants
80
General briefing on
customer charter, Banks
2.2, 2.5, 4.7, 6.3, 6.5, 8.2, 10.2, 10.5,
requirement, credit
2.1
facilities and assigning 10.10, 10.17, 10.21, 11.3, 11.10, 12.2,
tasks to a specific
12.4, 12.5, 14.2, 14.10, 15.1, 15.2, 15.4,
performers and register
15.10, 15.12, 5.1.2, 5.1.4, 1.1.1
Detail discussion on
Excellent ability to work
customer charter, Banks
2.2 requirement, credit Detail technical discussion on customer individually and as part of
facilities and alternative
charter, Banks requirement, credit a team
options offered by the
Bank and assign the job facilities and alternative options offered Excellent analytical skills
Receive application with by the Bank (1 hour) Very good interpersonal
2.3 supporting document and
verify its completeness Register the application in a database and presentational skills
and disseminate the information Very good ability to
Application and (30 minutes)
2.4 communicate with team
disclaimer signing
Review the consolidated due diligence members
Register the application report and sign (1 hour) Self starter; able to work
in a database and
2.5 Sharing and discussion on the outcome
disseminate the on her/his own initiative
information of the loan appraisal (3 hours)
Good ability to plan and
Reviewing the discussion outcome
3 Application document deliver on deadlines
Screening report (1 hour)
Excellent influencing,
Read and own the appraisal report
Check appropriateness of networking and cross
3.1 (3 hour)
submitted documents: functional working skills
3.1.1 Construction
3.2 documents
81
3.1.2 Performa of Prepare loan approval/rejection Competency on building
Machinery and
notification letter and signing and sustaining strong team
equipment and
catalogue (30 minutes) relationship internally and
3.1.3 Raw material and Review loan contract and sign (30 externally
chemicals minutes) Clear ability to coordinate
3.1.5 Legal documents Checking registered loan contract (20 and motivate staff
minutes) M.A/M.Sc in
3.1.6 The general Principal 4
contents of the feasibility Authorize Opening of current account Economics Officer
study (if Applicable) (20 minutes) /Accounting/Management
Communicating the
client for any Checking and signing equity release (30 /Agriculture and 6 years
inappropriate document minutes) experience in a bank
Authorize vehicle and travel advance B.A. in Economics /
3.3 Report compilation
request (10 minutes) Accounting/
4 Undertaking Due Signing the letter of deviation and file.
Diligence Assessment Management / Agriculture
(10 minutes) 8 years of experience
82
Gathering KYC Checking and signing equity release (20 required out of which 2
information of the
minutes) years as a senior officer
applicant
Checking and signing RFD (30
Collect data on
minutes)
4.1.1 Character
4.1 4.1.2 Credit information Open current account and record
4.1.3 Capital/Equity
disbursement (30 minutes)
sources
4.1.4 Business track Signing vehicle and travel advance
record
request (10 minutes)
4.1.5 Managerial
competency Reviewing Compiled project completion
Undertake KYC report, sign and share to different actors
4.2
assessment
(1 hour)
4.2.1 Assess the Credit Preparing plan for project follow-up
history of the
promoters/ ( day)
shareholders Communicate the plan to concerned
4.2.2 Identify the source
of Capital and its parties (30 minutes)
adequacy for the Prepare loan settlement and collateral
project
release report (2 hours)
Review the status report if the project is
4.2.3 Check the business
sick (1 hour)
track record of the
promoter
83
Understanding the
4.3
feasibility study Registered loan contract received and
verified
Rescheduling loan contract signed
(30 minutes)
Call and Informing the client about
Management intervention (1 hour)
Preparation of Management
Assessing and
Commenting on the
4.4 3.1, 3.3, 4.2, 4.3, 4.4, 4.6, 6.3, 6.4,
management capacity of
the promoter 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
Discuss with customer on
4.5
the collateral to be
offered for the loan
Check legality of documents and the Excellent ability to work
Write a consolidated due
4.6 general contents of the feasibility study individually and as part of
diligence report and sign
Transfer due diligence (4 hours) a team
4.7 report and all relevant
document for appraisal Excellent analytical skills
4.8 Follow up progress
84
Discussion on the Compiling report of document (credit Very good interpersonal
6 selected critical
history, source of capital, business track and presentational skills
points with customer
record) screening (1 hour) Very good ability to
Call the applicant and
6.1 Undertake KYC assessment ((credit communicate with team
arrange for discussion
history, source of capital, business track members
Sharing and discussion record) (2 days)
6.2 on the outcome of the Self starter; able to work
loan appraisal Understanding the feasibility study on her/his own initiative
(2 hours) Good ability to plan and
6.3 Preparing of discussion Assessing and commenting on the deliver on deadlines
outcome report management capacity of the promoter Excellent influencing,
Transferring the (1 hour) networking and cross
6.4 discussion outcome to Write a consolidated due diligence
appraisal functional working skills
6.5 Follow up the progress report and sign (3 hours)
Competence on building
Sharing and discussion on the outcome
and sustaining strong team
Receive and own the of the loan appraisal (3 hours)
8 relationship internally and
final appraisal report
Preparing discussion outcome report (1
externally
hour) Senior
M.A/M.Sc in Economics/
8.1 Receive file with the Officer 14
Record the loan detail in customer
appraisal report Accounting/Management/
account (1 hour)
Agriculture and 2 years
8.2 Request vehicle and travel advance (20
Read and own the experience in bank
appraisal report minutes)
85
8.3
Send the final report to
approval
8.3
Follow up the progress
8.4
Loan and Mortgage
10 Agreement signing
and documentation
10.1 Receive the minute from
the approval team
86
10.4 Delivering notification
letter and arrange
contract signing 4.1, 10.4, 10.8, 10.11, 10.13, 10.21, 11.6,
Filling loan contract and 12.1, 12.3, 15.7, 4.1.1, 4.1.7, 1.1.2, 1.1.4
10.5
sign
Reviewing loan contract
10.5
and sign
Signing of loan contract Gather KYC information of the Excellent ability to work
10.6
by both parties
applicant, collecting data on credit individually and as part of
information, source of capital, business a team
Preparing letter of loan
10.7
contract registration track record, managerial competence of Excellent analytical skills
the promoter (2 days) Very good interpersonal
Signing letter for loan
10.8 Fill-in loan contract and sign as witness
contract registration and presentational skills
Checking registered loan (1 hour) Very good ability to
10.9
contract
Prepare letter of loan contract communicate with team
Disseminating
10.10 information to the registration (30 minutes) members
concerned parties Disseminate information to concerned Self starter; able to work
Stamp duty payment parties (20 minutes)
10.11 on her/his own initiative
collection
Prepare memo to release equity
Good ability to plan and
10.12 Follow up of stamp duty
(30 minutes)
payment deliver on deadlines
87
Collecting data on the total project Excellent influencing,
Filling form to purchase
10.12 implementation (3 days) networking and cross
insurance policy Loan
Provide advice to project management functional working skills Officer 16
Recording the loan group on the progress of the project
agreement and put Competence on building
10.13 (1/2 day)
collateral under custody and sustaining strong team
Prepare Request For Disbursement relationship internally and
Recording the loan detail (RFD) (30 minutes) externally
10.14
in customer account
Collecting data on management and M.A/M.Sc in Economics/
Opening current account
financial status of the project (1/2 day) Accounting/Management/
and informing the
10.14 customer to block equity Provide advice on the financial and Agriculture and no
contribution
management performance of the project experience required
(1/2 day) B.A. in
Blocking of equity
10.15 Rescheduling loan contract preparation
contribution Economics/Accounting/M
(1 hour) anagement/Agriculture-
Follow up the blocking of
1o.15 Document updated and filled (1 hour) with 2 years experience in
equity contribution
Analyzing and preparing monthly loan bank
Receiving application for provisioning report (to internal auditor)
10.15
equity release
Analyzing and preparing quarterly loan
10.15 Preparing memo to
provisioning report (to internal auditor)
release equity
88
10.16 Checking and signing
equity release
89
Excellent ability to work
individually and as part of
a team
Excellent analytical skills
Very good interpersonal
and presentational skills
Very good ability to
communicate with team
members 6
Self starter; able to work
on her/his own initiative
Good ability to plan and
deliver on deadlines
Excellent influencing,
networking and cross
functional working skills
Competence on building
Condition compliance
11 checking for equity and sustaining strong team
release/disbursement
relationship internally and
Gather KYC information of the applicant
externally
i.e. collecting data on credit information,
B.A. in Economics/
source of capital, business track record,
Accounting/Management/
managerial competence of the promoter
Agriculture and n0
90
Receiving equity
11.1 release /disbursement
application
3.1, 11.6.2, 11.6.5, 11.7, 14.5, 15.7.1
Request vehicle and
11.2
travel advance
Signing vehicle and travel Check the appropriateness of Excellent ability to work
11.3
advance request
construction and other civil work individually and as part of
documents (1/2 day) a team
11.4 Assigning Vehicle
Evaluating the progress of civil work, Excellent analytical skills
prepare report and sign (3*3=9 days) Very good interpersonal
Providing technical advice to the and presentational skills
11.5
Effecting travel advance promoter on the plan and civil work Very good ability to
Sr. Civil
progress (1/2 day) communicate with team Engineers 3+3
Conducting Site visit,
=6
Project physical and Undertake discussion on the follow-up members
11.6 and
Financial Progress report of the project progress (1 hour)
check Self starter; able to work
Civil
11.6.1 Collecting data on Check whether the project civil work is on her/his own initiative Engineers
total project completed as per the plan and prepare
implementation Good ability to plan and
11.6.2 Evaluating the report and sign (3 days)
deliver on deadlines
progress of civil Collect data on the technical and civil
work, prepare Excellent networking and
report and sign work of the project (1/2 day)
cross functional working
11.6.3 Checking raw Provide technical advice on the
material and other skills
inputs check, operation performance of the project
Competence in working as
prepare report and (1/2 day)
sign team member and
91
11.6.4 Evaluating sustaining strong team
machinery and
relationship internally and
equipment prepare
report and sign externally
M.Sc in Civil Engineering -
no experience required for
Engineers and 2 years of
experience is required for
Sr. Engineers
B.Sc. Degree in Civil
11.6.5 Providing technical
advice to project Total Time Required = 65 + 24 h Engineering - 2 years of
management group relevant experience is
(8+3=11 days)
required for Engineers and
5 years of experience is
required for Sr. Engineers
92
Contacting the applicant
for equity release/
disbursement if
11.8
preconditions are fulfilled
or issue letter of
deviation other-wise
Check the appropriateness of Performa Excellent ability to work
Communicate the of machinery and equipment and individually and as part of
applicant if he/she is not
11.9 catalogue (1/2 day) a team
fulfilled the
preconditions Evaluate the machinery and equipment Excellent analytical skills
Signing the letter of while conducting site visit and prepare Very good interpersonal
11.10
deviation and file report (3 days) and presentational skills
Provide technical advice on the progress Very good ability to
Sr.
Equity Release / Loan of the project implementation
12
Disbursement communicate with team Mechanic
al /
(1/2 day) members Industrial
Undertake discussion on the follow-up Self starter; able to work Engineer
Preparing memo of
12.1 advice for the release of report of the project (1 hour) on her/his own initiative and 1+1 =
equity Check whether machinery and 2
Good ability to plan and
Mechanic
equipment are in place as per the plan
deliver on deadlines al /
Checking and signing and prepare report (3 days) Industrial
12.2 Excellent networking and
equity release Engineer
Collect data on the technical status of the
cross functional working
project (1/2 day)
12.3 Preparing RFD skills
Provide advice on the operation
12.4 Checking and signing Competence in working as
performance of the project (1/2 day)
RFD team member and
93
Opening of current sustaining strong team
12.5 account and Record
Total time required = 50 h (6 days) relationship internally and
disbursement balance
externally
Approving the
12.6
disbursement M.Sc in
Mechanical/Industrial
12.6 Effecting payment
Engineering - no
Follow-up the progress of
12.7 payment and receive experience required for
payment message for LC Engineers and 2 years of
Total cycle time from experience is required for
application to first
disbursement Sr. Engineers
94
14.3 Assigning Vehicle
95
Provide technical advice to the customer Excellent networking and
15.1 Plan for project follow-up
on the operation of the project cross functional working
Communicate the plan to
15.2 (1/2 day) skills
concerned parties
Request vehicle and Competence in working as
15.3
travel advance Total time Required = 35 h (4 days) team member and
Signing vehicle and travel sustaining strong team
15.4
advance request relationship internally and
Total effective working time per externally
15.5 Assigning Vehicle
project is 3 days M.Sc in Chemical
15.6 Effect travel advance Engineering - no
Conducting Project experience required for
15.7 site visit and project
status evaluated Engineers and 2 years of
15.7.1 Collecting data on experience is required for
technical,
management and Sr. Engineers
financial status of B.Sc. Degree in Chemical
the project
15.7.2 Evaluating the Engineering - 2 years of
technical and relevant experience is
management
capacity of the required for Engineers and
project 5 years of experience is
15.7.3 Review the financial
and operational required for Sr. Engineers
efficiency of the
project
96
15.7.4 Providing technical
advice to the
customer
15.7.5 Project follow-up
report prepared
Reminder letter prepared 2.3, 2.4, 3.2, 4.1, 4.5, 4.8, 6.1, 6.5, 8.4,
15.8
and served for normally 10.3, 10.12, 10.16, 10.18, 10.19, 10.23,
operating project
Prepare renewal 11.1, 11.8, 11.9, 12.8, 15.8, 15.9, 15.14
notification letter to
15.9
extend period of contract
(YIRGA)
Receive application with supporting
Collection completion
document and verify its completeness
15.10 report prepared and
collateral document (1 hour)
released
Application and disclaimer signing
(10 minutes)
15.11 Prepare status report if
Communicating the client for any
the project is sick
inappropriate document (1 hour)
Transfer the project Collect data on character (2 hours)
15.12
document to recovery
Discuss with customer on the collateral
to be offered for the loan (1 hour) A contact person can be a
4.1 Loan Rescheduling
Follow-up the progress of project Senior officer or an
4.1.1 Rescheduling loan appraisal (2 hour) officer
contract prepared
97
Call the applicant and arrange for Such assignment is given
Rescheduling loan Contact
4.1.2 discussion (30 minutes) and will be carried out
contract signed Person
Follow-up the progress of project simultaneously
4.1.3 Stamp duty paid appraisal (1 hour)
Follow-up the progress of project
Rescheduling contract approval (1 hour)
4.1.4
registered
Deliver notification letter and arrange
Registered loan contract for contract signing (20 minutes)
4.1.5
received and verified
Follow-up the stamp duty payment
Copy of rescheduling (30 minutes)
4.1.6 contract distributed to
concerned units Opening current account and informing
the customer to block equity
Document updated and
4.1.7 contribution (20 minutes)
filled
98
Contact the applicant for equity
Call and Informing the
5.1.2 release/disbursement if preconditions
client about Management
intervention are fulfilled or issue letter of deviation
Acceptance letter (10 minutes)
5.1.2
received from customer Communicate the applicant if he/she is
Preparation of not fulfilled the preconditions
5.1.3 Management
(30 minutes)
Intervention Agreement
Follow-up the progress of payment /
Signing of Management
5.1.4 Disbursement (10 minutes)
intervention Agreement
Reminder letter prepared and served for
Institute the proposed
5.1.5 management normally operating project (1 hour)
intervention scheme Prepare renewal notification letter to
5.1.6
Management extend period of contract (2 hours)
intervention data Follow-up the progress of the loan
compilation and
reporting treatment under recovery (1 hour)
99
Total time required = 17 h (2 days)
100
5 Project Appraisal
5.1, 5.11, 7.1, 7.3
Receiving and checking
all document from the
5.1
credit process Receiving and checking Excellent ability to work
Process
5.2 Gathering and compiling all document from individually and as part of a team Owner
relevant research, risk credit process (1 Excellent analytical skills
assessment data and
Background information hour)
101
1
102
Review specification of
machinery and 5.10, 7.2, 1.1.1
5.4
equipments, prepare
report and sign
Review and compile Excellent ability to work Principal
5.5 Review specification of
appraisal findings of individually and as part of a team Officer
raw material and
chemical, prepare report the project, incorporate Excellent analytical skills
and sign
KYC assessment and
103
2
Undertake technical
5.6 appraisal including
implementation schedule
prepare the draft Very good interpersonal and
appraisal report (2 presentational skills
days) Very good ability to communicate
Incorporate points of the case and build consensus for
discussion (if changes
necessary) and finalize Self starter; able to work on her/his
the appraisal report (3 own initiative
hours) Good ability to plan and deliver on
Review the resource deadlines
requirement plan and Excellent influencing, networking
budget of the team and cross functional working skills
(3 days)
Fluent on building and sustaining
104
5.7
Undertake Market study
105
Undertake Financial
study
Undertake market Excellent analytical skills
study (5 days) 4
Very good interpersonal and
Undertake socio- presentational skills
economic aspects of the Very good ability to communicate
project (2 days) the case and build consensus for
Undertaking changes
environmental impact Self starter; able to work on her/his
assessment of the own initiative
project and prepare the Good ability to plan and deliver on
5.8 Undertaking Socio-
economic aspects
5.2, 5.6, 5.7, 1.1.4
analysis of the project
106
implementation Excellent analytical skills
schedule (5 day) Very good interpersonal and
Undertake presentational skills
organizational Very good ability to communicate Loan
management study the case and build consensus for Officer 5
(2 day) changes
Undertake financial Self starter; able to work on her/his
study (5 days) own initiative
Preparing the resource Good ability to plan and deliver on
requirement plan and deadlines
budget of the team
Excellent influencing, networking
(2 days)
and cross functional working skills
Fluent on building and sustaining
Total time required =
strong team relationship internally
96 hours + 16 hours
and externally
(12 + 2 days)
Clear ability to coordinate and
motivate staff
MA/M. Sc. in Economics, Business
Administration, Accounting or
Agricultural related fields and no
experience is required
BA/B. Sc. in Economics, Business
Administration Accounting,
107
Agricultural relate fields and 2
years experience required
5.9 Undertaking
environmental impact
5.2, 1.1.1, 1.1.4
assessment of the project,
prepare report and sign
Gathering and Very good interpersonal and
compiling relevant presentational skills
research, risk Very good ability to communicate
assessment data and the case and build consensus for
Background changes
information (4 days) Self starter; able to work on her/his
Jr. Officer
Collecting data for own initiative
preparing quarterly Good ability to plan and deliver on
and semi-annual deadlines
performance reports Excellent influencing, networking
2
(2 days) and cross functional working skills
Collecting data for the Fluent on building and sustaining
Preparation of strong team relationship internally
resource requirement and externally
plan and budget of the Clear ability to coordinate and
team (2 days) motivate staff
BA/B. Sc. in Economics, Business
108
Total time required = Administration Accounting,
48 + 32 hours Agricultural relate fields and no
(6 + 4 days) experience is required
5.10
Undertaking appraisal of
the project, incorporate
KYC assessment and 5.3
prepare the draft
appraisal report
Reviewing the project Excellent ability to work
plan, bill of quantity individually and as part of a team
and other construction Excellent analytical skills
Sr. Civil
documents, prepare Very good interpersonal and Engineers
report and sign (5 presentational skills
and
days) Very good ability to communicate
with team members Civil 2
Engineers
Total time required = Self starter; able to work on her/his
40 hours own initiative
(5 days)
Good ability to plan and deliver on
deadlines
Excellent networking and cross
functional working skills
Competence in working as team
109
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
required for Sr. Engineers
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
5.4
110
report and sign (3 Very good interpersonal and
days) presentational skills
Very good ability to communicate
Total time required = with team members
25 hours Self starter; able to work on her/his 1
(3 days) own initiative
Good ability to plan and deliver on
deadlines
Mechanica
Excellent networking and cross l/
functional working skills Industrial
Engineer
Competence in working as team
member and sustaining strong Or
7 Finalizing the
appraisal report team relationship internally and Sr.
externally Mechanica
l/
M.Sc in Mechanical Engineering - Industrial
Engineer
no experience required for
Engineers and 2 years of experience
is required for Sr. Engineers
B.Sc. Degree in Mechanical
Engineering - 2 years of relevant
experience is required for
Engineers and 5 years of experience
is required for Sr. Engineers
111
7.1 5.5
Receive and check
discussion outcome
report Review specification of
raw material and
chemical, prepare
report and sign Excellent ability to work
(3 days) individually and as part of a team
Excellent analytical skills
Total time required = Very good interpersonal and
24 hours presentational skills
(3 days) Very good ability to communicate
with team members
Self starter; able to work on her/his
own initiative
Chemical 1
Good ability to plan and deliver on
Engineer
deadlines
Excellent networking and cross
functional working skills
Competence in working as team
member and sustaining strong
team relationship internally and
externally
M.Sc in Chemical Engineering - no
112
experience required for Engineers
and 2 years of experience is
required for Sr. Engineers
B.Sc. Degree in Chemical
Engineering - 2 years of relevant
experience is required for
Engineers and 5 years of experience
is required for Sr. Engineers
113
C. JOB AND RESPONSIBILITY MATRIX FOR PROJECT REHABILITATION AND LOAN RECOVERY SUB
PROCESS
114
Receiving copy of payment receipt Excellent influencing,
Examine the project file (30 minutes)
1.2 networking and cross
(Technical, Market and
Managerial) Stop foreclosure process (1 hour) functional working skills
Compile the collection and return Fluent on building and
Request vehicle and travel
1.3
advance the file to credit process (1 hour) sustaining strong team
Authorize the letter and send to relationship internally and Process
Signing vehicle and travel 1
1.4 administrative bodies to get their externally Owner
advance request
cooperation (1 day) Clear ability to coordinate and
1.5 Assigning Vehicle Handover property and motivate staff
documents to the buyer and MA/M. Sc. in Economics,
1.6 Effect travel advance
facilitate property ownership Business Administration,
Conducting site visit, (1 day) Accounting, or Agricultural
assessing the project Review periodic reports and send
1.7 related fields and 8 years of
physical and financial
status of the project to the concerned body experience out of which 4 years
1.7.1 Observe the Rate performance of teams and at leadership level
physical status of
members and nominate for reward
the project BA/B. Sc. in Economics,
Design and install a new ways of
Business Administration
1.7.2 Collect data on the
working systems that fits to
operational and Accounting, Agricultural relate
financial status of external demand
the project
115
1.7.3 Thoroughly discuss
the problem with the
Attend and resolve customers fields and 10 years experience
project management
compliant of which 6 years at leadership
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 Monitor results of the process and
with
recommendation
and submit copy of
the report to
Process Owner
116
1.4, 1.9, 1.10, 6.4.1.1, 6.4.2.1,
Contact the customer and 6.4.4.2, 6.4.5.1, 6.4.5.2, 6.4.9.2,
1.8 appoint for discussion
6.5.1, 6.5.5.1, 6.5.9.2 Excellent ability to work
individually and as part of a
Convene with customer Signing vehicle and travel advance team
1.9 and hold discussion on the
findings and proposal request (10 minutes) Excellent analytical skills
Revise the report and Convene with customer and hold Very good interpersonal and
adjust it as per the Princip
1.10 discussion on the findings and presentational skills
discussion (If there is al
deviation) proposal (1/2 day) Very good ability to Officer 2
1.11 Prepare a final Revising the report and adjust it as
recommendation report communicate with team
and submit copy of the per the discussion (if there is members
report to Process Owner deviation), Prepare a final
117
Send the recommendation
report to the approval
1.12
team or Executive recommendation report and Self starter; able to work on
management
submit copy of the report to her/his own initiative
process owner (1/2 day) Good ability to plan and deliver
Prepare letter for administration on deadlines
bodies and follow up the progress Excellent influencing,
to takeover the asset (2 days) networking and cross
Recruiting guards for the property functional working skills
118
Proposal and
2 Recommendation
1.2, 1.3, 1.7.1, 1.7.2, 1.7.3, 1.7.5,
report approval
Receive, register and 1.8, 1.9, 6.4.1.3, 6.4.6.3, 6.5.7,
dispatch the recovery 6.5.4.2, 6.5.4.3
2.1
proposal to Loan approval
team members
Examine the project file from the Excellent ability to work
2.2 Reading proposal by side of market and managerial individually and as part of a
individual team members
condition (1 day) team
Deliberate on the proposal
and recommendation Request vehicle and travel advance Excellent analytical skills
2.3 report (30 minutes) Very good interpersonal and
Drafting and finalizing Observe the physical status of the presentational skills
2.4 loan approval team project (1/2 day) Very good ability to
minute
Collect data on the operational, communicate with team
Endorsing the loan technical and financial status of members
2.5
approval team minute the project (2 days) Self starter; able to work on
Registering and sending Thoroughly discuss the problem her/his own initiative
the decision of the
with the project management
2.6
approval team to the Good ability to plan and deliver
recovery process and (1 hour)
filing a copy of the on deadlines
decision Discuss on the outcome of the Senior 4
Excellent influencing,
Officer
2.7 Receiving, registering, report (1 hour)
checking and networking and cross
Call the customer and appoint for
understanding the functional working skills
decision and taking discussion (30 minutes)
appropriate action
119
Convene with customer and hold Competence on building and
6 Foreclosure
discussion on the findings and sustaining strong team
proposal (1/2 day) relationship internally and
30 days legal notice
6.1 Take inventory of the asset externally
document prepared
(2 days) M.A/M.Sc in Economics/
30 Days legal notice Report sale of the property and Accounting/Management/Agri
6.2
delivered collection (30 minutes) culture and 2 experience
If arrears settled by Follow-up the deduction of the required
6.3
customer asset value from the loan B.A. in Economics/
Receive copy of payment (30 minutes) Accounting/Management/Agri
6.3.1
receipt Conducting second auction culture-with 5 years experience
(1/2 day) required
6.3.2 Stop foreclosure process
Facilitates transfers property
Compile collection and ownership title to the buyer
6.3.3
report
(1/2 day)
6.4 If arrears is not settled If Property not sold, value of the
asset deducted from the loan
6.4.1 Property take over
(1/2 day)
Coordinate with
6.4.1.1 administration bodies to
takeover Total time required=64 h
6.4.1.2 Take inventory (8 days)
6.4.1.3 Take snapshot of project
physical facilities
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6.4.1.4 Taking over of property
121
Audiovisual or written 3
announcements
6.4.4.4
submitted to electronic or
printing media
Communicate the
6.4.5.1 concerned government
bodies
Discuss on the outcome of the Good ability to plan and deliver
report (1 hour) on deadlines
6.4.5.2 Collecting bid bond
Convene with customer and hold Excellent influencing,
Recording the auction discussion on the findings and networking and cross
6.4.5.3
event
proposal (1/2 day) functional working skills
6.4.5.4 Notifying the winner Take inventory of the asset Competence on sustaining
(2 days) strong team work relationship Loan
6.4.6 If property sold Officer
Take snapshot (Video or Photo as internally and externally
Winner pays the amount appropriate) of project physical M.A/M.Sc in Economics/
6.4.6.1 s/he pledged facilities (30 minutes) Accounting/Management/Agri
Facilitation for auction (3 hour)
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6.1, 6.4.1.5, 6.4.2.1, 6.4.4.1,
6.4.4.4, 6.4.5.3, 6.4.5.4, 6.4.7.1,
Handover property and
documents to the buyer 6.4.7.2, 6.4.8.1, 6.4.8.2, 6.4.8.3,
6.4.6.2
and facilitate property 6.4.9.1, 6.5.2, 6.5.3, 6.5.4, 6.5.6.1,
ownership
6.5.8.1
123
6.4.8.1 Prepare charge Notifying the winner Excellent influencing,
(20 minutes) networking and cross
6.4.8.2 Open file at court
Search for additional property functional working skills
Follow-up the case and Sr.
(1 day) Competence on building and
6.4.8.3 undertake the necessary Legal
litigation Communicate to concerned sustaining strong team Officers 2+2=
4
authorities (1 day) relationship internally and and
If additional property Prepare legal charge (1/2 day)
6.4.9 externally
is not found Legal
Open file at court (1/2 day) LLM in Law and no experience Officers
Report absence of Follow-up the case and undertake
6.4.9.1 required for Attorney and 2
additional property
the necessary litigation years for Sr. Attorney
Prepare and submit write- Report absence of additional
6.4.9.2 LLB in Law-with 2 years
off proposal
property (30 minutes) experience is required for
6.5 2nd auction announced Auction document amended and Attorney and 5 years
announcement facilitation experience for Sr. Attorney
Plan and Arrange to (1/2 day)
6.5.1
conduct auction
writing an amended
6.5.2 Facilitation for auction
announcement script (1 hour)
6.5.3 Conduct auction Communicate with concerned
If property sold on the authorities (1/2 day)
6.5.4
second auction,
6.5.4.1 Winner pays the amount
s/he pledged
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Facilitates transfers
6.5.4.2 property ownership title to
the buyer
If Property not sold, value
6.5.4.3 of the asset deducted from
the loan.
If the deduction result Report the absence of additional
6.5.5 is positive (excess of
the loan balance) property to concerned body
(30 minutes)
Write payment
authorization of the Total time required= 59 h (8 day)
6.5.5.1
balance (in favor of the
customer) to payment unit
6.5.6 If the deduction result Collage Diploma in Law with no
is negative (less than
6.3, 6.4.4.2, 6.4.7.2 experience
the loan balance)
Search for additional
property
125
Delivering 30 Days legal notice to
customer (1/2 day)
Audiovisual or written
Law
announcements submitted to
clerk 1
electronic or printing media
Communicate to (1/2 day)
6.5.6.1
concerned authorities Communicate to concerned
authorities (1 day)
126
Civil
Enginee 2
Follow-up the case and
r
6.5.7.3 undertake the necessary
litigation
Examine the project file for its Excellent ability to work
technical situation (1 day) individually and as part of a
Observe the physical status of the team
project (1/2 day) Excellent analytical skills
Collect data on the operational and Very good interpersonal and
technical status of the project and presentational skills
prepare report (2 days) Very good ability to
Thoroughly discuss the problem communicate with team
with the project management members
(1 hour) Self starter; able to work on
127
If additional property
is not found
1.2, 1.7.1, 1.7.2, 1.7.3, 6.4.1.3,
6.4.3.2,
Excellent ability to work
Examine the project file for individually and as part of a
technical status of the project team
(1 day) Excellent analytical skills
Observe the physical status of the Very good interpersonal and
project (1/2 day) presentational skills Mechan
ical
Collect data on the operational and Very good ability to /Indust
technical status of the project and communicate with team rial
6.5.8 Enginee 1
prepare a report (2 days) members r
Thoroughly discuss the problem Self starter; able to work on
with the project management her/his own initiative
(1 hour)
Good ability to plan and deliver
Take inventory of the project asset
on deadlines
and hold a record (2 days)
Excellent networking and cross
Valuing machinery and equipment
functional working skills
and prepare a report (5 days)
Competence in working as team
Valuing raw material stock and
member and sustaining strong
other associated materials
team relationship internally
(2 days)
and externally
M.Sc in Mechanical/Industrial
128
Engineering - no experience
required for Engineers and 2
Total time required = 101 h
years of experience is required
(13 days)
for Sr. Engineers
B.Sc. Degree in Mechanical/
Industrial Engineering - 2 years
of relevant experience is
Effective working time per
required for Engineers and 5
project = 5 days
years of experience is required
for Sr. Engineers
129
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
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Evaluation of the changes achieved by the Process Reengineering
18 Absence of standard for output Set standard for output Standardized service to customers
19 No clearly defined duties and Clearly defined roles Transparency and accountability
responsibilities
20 Requirement for three Performa One Performa invoice Customer satisfaction due to cost
invoice sufficient and time minimization
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21 Absence of Rehabilitation process Rehabilitation process team Well established sick project
team organized treatment and management
22 Fragmented work of foreclosure Foreclosure process Transparency and accountability
organized under one process with proper foreclosure
management
23 Limited option for loan transfer Better option for loan Customer satisfaction due to range
transfer of loan transfer options
24 Inadequate ICT support Full-fledged ICT supported Increased process efficiency,
process reduced cycle time
25 Loan disbursement is made by Loan disbursement is made Meaningful work organization
Finance and Banking department by the credit process with clear responsibility
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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 non-
interrupting in the newly designed Loan Process. This non-stopping nature of the
works requires establishment of permanent teams. Therefore, permanent case-
teams 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.
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The structural presentation of the team organization for the loan process of the
Bank is depicted as follows:
BOM
INTERNAL AUDIT
CEO
APPROVAL TEAM
RESOURCES AND
SYSTEMS
MANAGEMENT
/SUPPORT PROCESSES/
BANKING PROCESS RISK MANAGEMENT
MIS PROCESS PROCESS
OTHER RSM
PROCESSES
RESEARCH PROCESS
PROJECT
REHABILITATION AND CORE CREDIT PROCESS PROJECT APPRAISAL
LOAN RECOVERY /CUSTOMER RELATION/ SUB PROCESS
PROCESS
134
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.
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.
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.
135
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.
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.
136
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.
6.1.1 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.
137