Loan Policy Latest

Annexure II
ORIENTAL BANK OF COMMERCE

CORPORATE OFFICE, GURGAON
DELEGATED POWERS FOR

LOANS & ADVANCES
RISK MANAGEMENT DEPARTMENT
(FOR INTERNAL CIRCULATION ONLY)
DELEGATED POWERS FOR LOANS & ADVANCES-INDEX

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1.1
1.2
1.3
CONTENTS
CHAPTER 1
GENERAL GUIDELINES FOR EXERCISE OF DELEGATED POWERS
Judicious Exercise of Delegated Powers
Compliance of Loan Policy Guidelines, Instructions in the Advances Manual & Loan
Circulars Issued by Head Office from time to time
Infrastructure for proper appraisal of Loan Proposals, disbursement, postdisbursement Supervision & Control over Advances
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CHAPTER 2
DEFINITIONS
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
3.1
3.2
3.3
3.4
3.5
3.6
3.7
Exposure
Fund Based Secured Limits
Fund Based Unsecured Limits
Powers that can be exercised over and above the Delegated Powers for Single
Borrower
Group Concern
Corporates and Non-Corporates
Real Estate
Third Party Collateral
Definition of Close Relative
CHAPTER 3
CREDIT COMMITTEES AT VARIOUS LEVELS & RESPECTIVE DELEGATED POWERS
Constitution of Credit Committees
Credit Committees at various levels
Sanctioning Authorities and their Delegated Powers for Loans & Advances
Credit Approval Committee (CAC) & Functioning
Head Office Level Credit Committee(HLCC) & Functioning
Regional Office Level Credit Committee(RLCC) & Functioning
Terms & Conditions for exercising Delegated Powers by HLCC-ED & RLCC-RH
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5
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CHAPTER 4
CLEARANCE BY NEW BUSINESS GROUP
4.1
4.2
Background
Constitution of New Business Group
19
19
4.3
Categories of Advances Exempted from NBG
20
4.4
Functioning of NBG
21
4.5
Cut-Off Limit and Coverage of Proposals for Fresh / Additional Credit Facilities for
Expression of Interest from New Business Group (NBG) at Head Office
22
5.A.
5.B.
5.C.
CHAPTER 5
EXERCISE OF DELEGATED POWERS
Delegated Powers related to Sanctions
Delegated Powers related to Group Borrowers
Delegated Powers related to Margin
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5.D.
5.E.
5.F.
5.G.
6.1
6.2
7.1
7.2
7.3
7.4
7.5
7.6
7.7
7.8
7.9
7.10
7.11
7.12
CONTENTS
Delegated Powers under Thrust, General AND Restricted Industries/Sectors
Delegated Powers related to Security
Delegated Powers related to Operational Aspects
Delegated Powers related to SMA and NPA
CHAPTER 6
DELEGATED POWERS FOR VARIOUS TYPES OF CONSTITUENT BORROWERS
Exposure Limits to Various Types of Constituent Borrowers
Advances to Trust
CHAPTER 7
DELEGATED POWERS FOR SPECIFIC INDUSTRIES / SEGMENTS / CATEGORY
Infrastructure Finance
Financing of Software /IT Enterprises/Call Centres
Finance to Gems, Diamonds and Jewellery Sector
Delegated Powers under Commercial Real Estate
Finance to Ship Breaking Industry
Finance to Non-Banking Finance Companies & Residuary Non-Banking Companies
(RNBC)
Finance to Capital Market
Financing Film Industry
Financing to Non-Conventional Energy Sector
Financing PSU Disinvestments
Financing Under Schematic Lending
Delegated Powers for Granting Finance for Acquisition of Equity in Overseas
Companies
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CHAPTER 8
GUIDELINES FOR EXERCISE OF DELEGATED POWERS FOR VARIOUS TYPES OF FACILITIES
55
8.1
Delegated Powers for Term Loans
56
8.2
Delegated Powers for Unsecured Short Term Loan
56
8.3
Delegated Powers for Corporate Loan Scheme
57
8.4
Delegated Powers for Open Term Loan
57
8.5
Delegated Powers For Composition Of CC(H) And WCDL
57
8.6
Delegated Powers for Pledge
57
8.7
Advance against Supply Bills
57
8.8
Delegated Powers for Booking of Foreign Exchange Forward Contracts
58
8.9
Delegated Powers for Clean Overdrafts Facility
58
8.10 Number of Permitted Clean Overdraft Accounts per Branch
59
8.11 Delegated Powers for Purchase of Third Party Cheques
Occasional Cheque Purchase and Withdrawal against Uncleared Instruments /
60
8.12
Cheques in Case of Non Borrowal Accounts
Delegated Powers for Advances against Pay Orders, Bank Drafts, Govt Cheques
61
8.13
(Except Pay Orders or Drafts of Cooperative Banks)
62
8.14 Delegated Powers for Opening Standby LC (SBLC)
62
8.15 Delegated Powers for Line of Credit
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8.16
8.17
8.18
CONTENTS
8.28
Delegated Powers for Purchase/Discounting of Bills under Letter of Credit

Delegated Powers for Discounting Bills Drawn on Associate Concerns
Delegated Powers to Extend Due Date in Case of Export Bills/ Packing Credit
Exposure to Indian Joint Ventures / Wholly-Owned Subsidiaries Abroad and Overseas
Step-Down Subsidiaries of Indian Corporates
Pooled Municipal Debt Obligation Facility (PMDO)
Structured Mezannine Credit Facility (SMCF)
Loans against NRE and FCNR (B) Deposits
Delegated Powers for Allowing Advances against Term Deposits by the Incumbents of
Extension Counters
Loans against CA / SB Accounts
Loans against Non-Current Assets
Issue of Bank Guarantees in Foreign Currency / Import LC
Guidelines to be adhered to in case of Import LCs/Foreign Bank Guarantee with 100%
cash margin
Delegated Power for Advances against Warehouse Receipts
8.20
Delegated Power for Letter of Credit (Purchase of Capital Goods / Machinery)
8.19
8.20
8.21
8.22
8.23
8.24
8.25
8.26
8.27
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CHAPTER 9
GRANTING OF ADHOC, OVER LIMIT, OCCASIONAL CHEQUE PURCHASE & WITHDRAWAL
AGAINST UNCLEARED INSTRUMENTS / CHEQUES IN BORROWAL ACCOUNTS
Delegated Powers for granting of Adhoc Limits, Over Limit, Occasional Cheque
68
9.1
Purchase & Withdrawal Against Uncleared Instruments / Cheques
General Guidelines for granting of Adhoc Limits, Over Limit, Occasional Cheque
69
9.2
Purchase & Withdrawal Against Uncleared Instruments / Cheques
71
9.3
Adhoc Limits to Exporters
CHAPTER 10
DELEGATED POWERS FOR CONCESSIONS IN RATE OF INTEREST
10.1
Delegated Powers for allowing Concession in Rate of Interest
72
10.2
Delegated Powers for Permitting Concession in Rate of Interest In Case Of Accounts

Having Internal Credit Risk Rating OBC 7 & Below
73
10.3
10.4
10.5
10.6
Delegated Powers for Permitting Concession in Rate of Interest in Accounts

Sanctioned Under The Delegated Powers of MCB
Revision in Delegated Powers for Permitting Concession in Rate of Interest On
FITL/WCTL In Restructured Cases
Concession in the Rate of Interest in Case of Sick Viable Units
Delegated Powers for Permitting Concession in Rate of Interest on Rupee Loan/
Advances against Term Deposit (Domestic/NRE/FCNR)
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73
74
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CHAPTER 11
DELEGATED POWERS FOR OTHER CONCESSIONS
11.1
11.2
Details of Service Charges Wherein Concession Can Be Permitted

Delegated Powers of Functionaries at Head office to allow Concession in Service
Charges
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11.3
11.4
11.5
11.6
11.7
11.8
11.9
11.10
11.11
11.12
CONTENTS
Delegated Powers of Functionaries at Regional office to allow Concession in Service
Charges
General Guidelines for Permitting Concessions
Monitoring
Reporting System
Prepayment Penalty in Case of Term Loans / Demand Loans
Waiver of Insurance
Refund (In Part/Full) of Excess Interest/Penal Interest/Service Charges
Delegated Powers for Permitting Recovery of Commission on Guarantees on Annual
Basis
Delegated Powers for Relaxation / Waiver of ECGC Premium To Be Borne By The
Borrower For The Whole Turnover Packing Credit Guarantee (WTPCG)
Waiver of Registration Clause In Case Of Advance against Supply Bills
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CHAPTER 12
DELEGATED POWERS FOR SHORT/LIMITED REVIEW
81
CHAPTER 13
DELEGATED POWERS IN CASE OF MULTIPLE / CONSORTIUM ARRANGEMENT
13.1
Consortium Financing/ Syndication
82
13.2
Multiple Banking Arrangement
84
13.3
Delegated Powers to Allow amendment in HO sanctions for limits under

Consortium/Multiple Banking Arrangement
85
CHAPTER 14
DELEGATED POWERS FOR ISSUANCE OF NO OBJECTION CERTIFICATES
15.1
15.2
15.3
15.4
15.5
15.6
15.7
15.8
15.9
15.10
15.11
15.12
15.13
15.14
CHAPTER 15
DELEGATED POWERS IN CASE OF TAKEOVER OF ACCOUNTS
Nature of Borrowal Account to Be Transferred From Other Bank to Our Bank
General Guidelines
Credit Report of Borrowal Accounts to be transferred from Other Banks
Minimum Entry Level Internal Credit Rating of the Borrowal Accounts to Be
Transferred From Other Banks to Our Bank
Delegated Authority for Takeover of Borrowal Accounts
Authority to Permit Deviation for Takeover Of Borrowal Accounts
Authority for Enhancement in Credit Limits For Takeover of Borrowal Accounts
Delegated Authority for Relaxation in Benchmark Financial Ratio For Takeover
Accounts
Reporting of Takeover Borrowal Accounts
Periodic Review/ Monitoring Of Takeover Borrowal Accounts
Loan Review of Takeover Borrowal Accounts under Loan Review Mechanism
Other Due Diligence To Be Undertaken For Takeover Accounts
Other Operative Guidelines
Transfer of Borrowal Accounts from our Bank to other Bank/FIs
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CONTENTS
16.1
16.2
16.3
16.4
16.5
16.6
16.7
16.8
16.9
CHAPTER 16
REHABILITATION / RESTRUCTURING OF ACCOUNT
Delegated Powers for Restructuring (At Existing Level of Sanctioned Exposure or
Restructuring with Additional Exposure) of the Borrowal Accounts
Monitoring Period
Delegated Powers for granting of Enhancement/ Additional /Adhoc facilities in
Restructured Accounts-within the Monitoring Period
\Delegated Powers for Granting of Enhancement/ Additional /Adhoc facilities in
Restructured Accounts-after the Monitoring Period
Sanction of Credit Facilities to the Borrowers whose Group Accounts have been
Restructured by Our Bank
Delegated Powers for Permitting Revision in DCCO (Not Amounting to Restructuring)
Extending Banks Commitment to Rehabilitation Package by the Lead Bank or by the
Financial Institutions
Corporate Debt Restructuring (CDR)
Sanction / Takeover of Rescheduled / Restructured Accounts Involving Restructuring
of Dues by State Electricity Boards/Banks/FIs
CHAPTER 17
DELEGATED POWERS FOR PERMITTING HOLDING ON OPERATIONS
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CHAPTER 18
LOANS & ADVANCES TO STAFF/ RELATIVES (INCLUDING CLOSE RELATIVES) OF STAFF
MEMBERS
100
18.1 Delegated Powers For Considering Credit Facilities To Relatives Of Staff Members
100
18.2 Granting Loans And Advances To Directors Or Relatives Of Directors
102
18.3
Loans To Relatives Of Staff Members
103
18.6 Loans to Staff Members
CHAPTER 19
LARGE CORPORATE BRANCHES (LCBS): DELEGATION OF POWERS
105
CHAPTER 20
CONVERSION FROM PRE-SHIPMENT FACILITY TO POST-SHIPMENT FACILITY
105
CHAPTER 21
APPROVAL OF NEW SCHEMES / FORMATS / DELEGATION RELATED ISSUES
105
CHAPTER 22
DELEGATED POWER FOR PERMITTING SWITCHOVER FROM PLR TO BASE RATE
105
CHAPTER 23
COMPLIANCE / FLEXIBILITY / DEVIATIONS / EXEMPTIONS FROM THE LAID DOWN POLICY
GUIDELINES
106
23.1 Monitoring of Deviations
107
23.2 Relaxation In Benchmark Ratios (Other Than Takeover Accounts)
CHAPTER 1
GENERAL GUIDELINES FOR EXERCISE OF DELEGATED POWERS
1.1.
JUDICIOUS EXERCISE OF DELEGATED POWERS
The Delegated Powers of the various functionaries are to be exercised judiciously so as to

ensure:
Quality of Loan Assets and Conservation of Capital
To have a well-balanced and diversified loan portfolio covering various sectors of the
economy and different industries / sectors.
Achievement of targets given by the Government of India / Reserve Bank of India / Head
Office for Priority Sector and Sub Sectors with special emphasis on flow of credit towards
various segments i.e. Agriculture, Small and Micro Enterprises, Weaker section, Retail
Credit Schemes and Housing Finance to Individuals.
To increase non-interest / non-fund based income.
To enlarge client base of Corporate, Mid-Corporate and SME Segments through marketing
of quality loan assets.
To meet varied needs of customers through cross-selling of products.
To ensure timely and adequate flow of credit to meet the genuine needs of existing and
prospective borrowers, by ensuring quick and prompt credit decision making by reducing
response time.
1.2.
COMPLIANCE OF LOAN POLICY GUIDELINES, INSTRUCTIONS IN THE

ADVANCES MANUAL & LOAN CIRCULARS ISSUED BY HO FROM TIME TO TIME
Sanction of credit limits shall be strictly governed by the Banks existing Loan Policy,
standardized terms & conditions, guidelines laid down in the Advances Manual, circulars
issued by the Head Office and any other conditions as are necessary for sanction of a
particular limit. Proper documentation is to be completed and all Terms & Conditions of
sanction should be complied with before disbursement of any advance.
Delegated powers will be exercised by the delegatees judiciously, with due care and in
good faith, having regard to the duties entrusted to him/ her or to the responsibilities
devolving on him/her. The guiding rule should be that Delegated Powers would be
exercised not merely in letter but also in spirit. In exercising the authority, the delegatee will
comply with the general/ specific instructions and guidelines prescribed by the Head Office
/ RBI / other controlling authority from time to time.
In the exercise of Delegated powers it should be ensured that the credit requirements of the
borrower are assessed in relation to the borrowers business-needs and no attempt should
be made to reduce or underplay the credit requirement or increase the Rate of Interest or
margin solely to bring the proposed limits within ones Delegated Powers. Similarly,
attempts to deliberately add some clause or conditions or waivers or increase the amount
of proposed credit limit solely with the purpose of referring the proposal to higher authorities
should be avoided.
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Accordingly, the Field Functionaries and/or Credit Committees would take the credit
decision at their level and only the deviation be referred to the competent authority for
necessary approval with proper justification.
Wherever Specific Guidelines have been provided, the same shall supersede the General
Guidelines. In case of any doubt, clarifications from the next higher authority (ies) should be
sought rather than making own interpretations.
Sanctioning authority will exercise his / her Delegated powers only after regular loan
proposals are compiled, limits properly assessed and duly recommended atleast by one
officer of the bank other than the sanctioning authority. However, in case of one - man
(Officer) branch, this stipulation would not be applicable.
Proposals which prima facie do not fall within ones Delegated powers should not be
entertained in part. While considering sanction of term loan, the proposed term loan limit
along with the future working capital requirements should be considered in totality by Field
Functionaries while determining the exposure for the purpose of Delegated Powers. This
shall be the case even if working capital limits are not envisaged to be released
immediately but on completion of project.(Detailed guidelines in Chapter-8)
Submitting proposals to higher authorities and simultaneously releasing part limits within
ones own Delegated powers should not be done. The loan proposals should be considered
in totality.
As a matter of policy, the sanction of adhoc limit / temporary enhancement shall be kept to
the bare minimum, to be allowed only where circumstances / business considerations
warrant. Adhoc facility / temporary enhancement must be allowed strictly within the
Delegated powers vested with the concerned functionary. The Adhoc facility should be
allowed selectively and not as a matter of routine / throughout the year. The policy
guidelines with respect to exercise of Delegated powers for sanction of adhoc limits are
detailed in Chapter 9 of this booklet and shall be strictly adhered to while considering/
sanctioning any adhoc facility.
Management appraisal of the borrower should be done and updated every year.
While renewing the credit facilities, although the past track record of the borrower or the
length of his association should be one of the considerations, the status of the customer
should be more critically analyzed.
Due to old relationships with the borrower, alert supervision of the accounts should not be
given a go-by. In other words, long relationship with a borrower should not be given undue
weightage. No laxity be observed in obtaining monitoring statements like stock statements,
stock verification, stock audit, QIS, Monitoring Officers report even in case of borrower
having satisfactory dealings with the bank for a long time. Supervision and follow-up in
such accounts should be rather more than required to avoid sudden slippages.
A clause should be incorporated in the sanction to the effect that the borrower would
require NOC from the Bank for opening of current account or availing credit facilities from
other banks/Financial institutions for further expansion, taking up new activities, setting up
or investing in a subsidiary (whether in the same business line or unrelated business) .
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Assessment of credit requirements be worked out as detailed in Loan Policy and suitable
sub limits e.g. against UBD, FUDBP, LC on DA basis, LC for capital goods etc. be fixed,
wherever required, keeping in view the genuineness of credit requirements of the
constituents.
While exercising powers, it may be ensured that proper mix of pre and post sales limits are
considered.
If a higher authority has declined a proposal, the lower delegatee cannot exercise his
Delegated powers in that particular case without the permission of the higher authority in
writing. Proposals rejected/declined by higher authorities should not be entertained at lower
levels even if such sanctions fall within lower level functionarys Delegated powers.
1.3.
INFRASTRUCTURE FOR PROPER APPRAISAL OF LOAN PROPOSALS,

DISBURSEMENT, POST-DISBURSEMENT SUPERVISION & CONTROL OVER
ADVANCES
It shall be ensured by the Regional Heads that adequate infrastructure exists for proper
appraisal of loan proposals, disbursement, post-disbursement supervision and control over
advances both at Branches and Regional Offices.
Branch Incumbents and Regional Heads shall make available copies of the Loan Policy as
well as Delegation of Powers Chart along-with detailed guidelines to all concerned persons
handling credit proposals in branches and Regional Offices for prudent exercise of
Delegated powers. The Advances Manuals, Policies and Circulars issued by various
departments are uploaded on OBCWEB and references be made to these for an informed
processing and decision making.
It is incumbent on the Branch Incumbents as well as Regional Heads to ensure effective

supervision and follow up of advances. Regional Heads are advised to strengthen their
Credit Department and Loan Audit Cell. Besides, training of Credit Officers at all levels be
undertaken as an ongoing exercise. Similarly, Branch Incumbents shall strengthen their
credit cells for proper appraisal, monitoring and follow-up of advances besides having
proper control over revenue leakage.
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CHAPTER 2
DEFINITIONS
Unless there is anything repugnant in context or otherwise, the terms referred in this circular
for the purpose of exercising Delegated Powers, would mean as under:
2.1.
EXPOSURE
Exposure shall include Credit exposure (Funded and Non-Funded Credit Limits), credit
equivalent of Forward Contract Limit to the extent of 5% of the Forward Contract Limit and
investment exposure (including underwriting and similar commitments). The sanctioned limits
or outstanding, whichever are higher, shall be reckoned for arriving at the exposure
limits in case of Working Capital Limits. However, in case of fully drawn term loans, where
there is no scope for re-drawal of any portion of the sanctioned limit, outstanding shall
be reckoned as the Credit Exposure. In case of partly drawn term loans, the exposure shall be
taken as outstanding + undrawn portion.
(This definition of Exposure is applicable only for the purpose of exercise of Delegated
Powers. For the purpose of classification of assets in the Banks Balance sheet /
Exposure Norms, the definition of Exposure shall be as per RBI Guidelines.)
2.2.
FUND BASED SECURED LIMITS
The following facilities shall be considered as Fund Based Secured Limits for the purpose of
exercise of Delegated Powers (for all Delegatees):
Hypothecation of Stock and/ or Book Debts, Plant & Machinery, Movable Assets
Loans secured by Mortgage of Land & Building, Immovable Assets
Pledge of stocks
Pledge/Assignment of Banks own Deposit, NSC, LIP, Warehousing Receipts, Relief
Bonds, Shares, Units of Mutual Funds
Demand documentary bills accompanied with RRs / TRs of the approved transport
operators
Packing credit for Export secured by stock
FDBP/FUDBP against orders/Letter of Credit
UBD/UDBP /Documentary Usance Bills backed by Inland Letter of Credit/Accepted
Hundies arising out of genuine trade transactions
Pledge of Hire purchase/ leasing documents
Advance against bills for collection / supply bills
Advance against duty drawback/ Undrawn Balances /Cash incentives (to be allowed at
branches authorized for foreign exchange business)
Purchase of cheques drawn by Govt. Departments.
Hypothecation of Trust Receipts
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Advance against bills in the course of collection ( Post shipment Loan)- To be allowed at
branches authorized for Foreign Exchange Business)
(This definition of Unsecured Limits is applicable only for the purpose of exercise of
Delegated Powers. For the purpose of classification of assets in the Banks Balance
sheet / Exposure Norms, the definition of Unsecured Exposure shall be as per RBI
Guidelines.)
2.3.
FUND BASED UNSECURED LIMITS
The following facilities shall be considered as Fund Based Unsecured Limits for the purpose of
exercise of Delegated Powers:
Third Party Cheque Purchase except purchase of cheques drawn by Govt. Departments
which shall be considered as secured.
Withdrawal against Uncleared Effects
Clean Overdraft
In case of credit facilities (Fund Based and/or Non Fund Based), where no charge is
available on tangible security (movable or immovable), the facility shall be treated as
unsecured and shall be sanctioned at Head Office by HLCC-ED/CAC /MCB within their
respective Delegated Powers.
Notwithstanding any facility being defined as Secured / Unsecured, Restricted Powers
shall be exercised in respect of:
Clean Overdraft Facility
Bank Guarantee to Stock Brokers
Advance against Shares
Commercial Real Estate
Retail Credit(As per Scheme)
Agriculture & Priority Sector Advances
2.4.
POWERS THAT CAN BE EXERCISED OVER AND ABOVE THE DELEGATED

POWERS FOR SINGLE BORROWER
The powers in respect of the following credit facilities can be exercised over and above the
Delegated Powers as per the Appendix-A.
Advance to self / third parties against Banks own Deposits, NRE/ FCNR(B)/ NRNR
deposits , RFC deposits
Purchase of Govt. cheques, Pay Orders, bank draft issued by Scheduled Commercial
Banks (except pay orders or drafts of Cooperative banks)
Advances against Government Securities like NSC, LIP (Except those covered under
retail schemes)
Bills co-accepted by other banks under IDBI/ICICI schemes for sale of self-manufactured
goods
Advance against Relief Bonds (all series) issued by GOI
Page 5 of 108
Opening of LCs and issue of Bank Guarantee covered by 100% up-front cash margin
Ad-hoc Limits in case of own sanction and limits sanctioned by lower/higher authority for
all categories of borrowers.
Over Limits in case of own sanction and limits sanctioned by lower/higher authority for all
categories of borrowers.
Occasional Cheque Purchase and Withdrawal against Uncleared Instruments / Cheques
Retail personal loans viz Housing loans, Vehicle loan, Education loan and Personal loan
(Non Commercial purpose)
2.5.
GROUP CONCERN
2.5.1. The following shall be the criteria for determining the existence of a group:
a)
The group to which a particular borrowing unit belongs, shall, be decided by the
Sanctioning Authority on the basis of the relevant information available, the guiding
principle being commonality of management and effective control.
b) In the case of a split in the group, if the split is formalized, the splinter groups will be
regarded as separate groups.
c) If bank has doubt about the bona fides of the split, a reference may be made to RBI for its
final view in the matter to preclude the possibility of a split being engineered in order to
prevent coverage under the Group Approach.
d) If Field Functionary finds that two firms/ companies/ entities are suspected to be
connected but are not covered under the definition, specific instructions be invariably
obtained from General Manager (Risk Management), before making any interpretation.
2.5.2. The Group/Allied/Sister Concern shall include the following:
a) Two concerns having one or more common proprietors/partner(s); or
b) The proprietor/partner of a firm being director in a Private / Public Ltd. Company and viceversa; or
c) Any of the directors of the Private Limited Company is the director of another private
limited company; or
d) A Limited Company is subsidiary of another Limited Company within the meaning of The
Companies Act , 1956; or
e) A Limited Company is closely held Company with substantial interest i.e. more than 20%
of the equity share capital of the company is owned by the other concern(s); or
f) The member of an HUF is a proprietor/partner of a concern or director of a private limited
company.
Note1: Professional directors on the Board shall be excluded for the purpose of the
concept of the Group.
Note2: In so far as public sector undertakings are concerned, only single borrower
exposure limit would be applicable.
a) The facilities sanctioned to the guarantor(s) shall be taken into account for the purpose of
exposure per group. However, the two concerns shall not be termed as
Page 6 of 108
allied/associate/sister concerns merely because of having a common guarantor if the

guarantor is not enjoying any credit facilities as individual or as a
proprietor/partners/directors of a firm/company. It shall, however, be ensured by the field
functionaries that this clause is not misused by such guarantors.
b) In case the Managing Member of a Samiti / Society or Trustee of a Trust or Managing
person of a Club is a proprietor/ partner/ director / Karta of HUF/ Managing Member or
Managing Person in any other constituent body of similar nature or in the firm/ company /
Society/ Trust .
However, the above list is not exhaustive and enumerative only. In case of any doubt, criteria
defined in para 2.5.1(a) above shall be applied.
2.6.
REAL ESTATE
Real Estate is defined as an immovable asset - land (earth space) and the permanently
attached improvements to it.
Commercial Real Estate (CRE)/ Income-Producing Real Estate (IPRE)
Commercial Real Estate refers to a method of providing funding to Real Estate (such as, office
buildings to let, retail space, multifamily residential buildings, industrial or warehouse space,
and hotels) where the prospects for repayment and recovery on the exposure depend primarily
on the cash flows generated by the asset. The primary source of these cash flows would
generally be the lease or rental payments or the sale of the asset. The borrower may be, but
is not required to be, an SPE (Special Purpose Entity), an operating company focused on real
estate construction or holdings, or an operating company with sources of revenue other than
real estate.
The distinguishing characteristic of CRE versus other corporate exposures that are
collateralized by real estate is the strong positive correlation between the prospects for
repayment of the exposure and the prospects for recovery in the event of default, with both
depending primarily on the cash flows generated by a property.
From the definition of CRE given above, it may be seen that for an exposure to be classified as
IPRE/CRE, the essential feature would be that:
the funding will result in the creation / acquisition of real estate (such as, office buildings to
let, retail space, multifamily residential buildings, industrial or warehouse space, and hotels)
where the prospects for repayment would depend primarily on the cash flows generated by
the asset. The primary source of cash flow (i.e. more than 50% of cash flows) for
repayment would generally be lease or rental payments or the sale of the assets as also for
recovery in the event of default where such asset is taken as security.
The prospect of recovery in the event of default would also depend primarily on the cash
flows generated from such funded asset which is taken as security, as would generally be
the case.
These guidelines will also be applicable to certain cases where the exposure may not be
directly linked to the creation or acquisition of CRE but the repayment would come from the
cash flows generated by CRE. For example,
Page 7 of 108
exposures taken against existing commercial real estate whose prospects of repayments
primarily depend on rental/ sale proceeds of the real estate should be classified as CRE.
other such cases may include: extension of guarantees on behalf of companies engaged
in commercial real estate activities,
exposures on account of derivative transactions undertaken with real estate companies,
corporate loans extended to real estate companies and investment made in the equity
and debt instruments of real estate companies,
if the repayment primarily depends on other factors such as operating profit from
business operations, quality of goods and services, tourist arrivals, the exposure would
not be counted as Commercial Real Estate.
For further clarification on classification of account as CRE, reference may be made to RBI
circular RBI Circular DBOD.BP.BC.No. 42 / 08.12.015/ 2009-10 dated September 9, 2009 and
guidelines issued by HO/ RBI from time to time.
2.7.
THIRD PARTY COLLATERAL
The obtention of Immovable Collateral security belonging to the following shall not be treated
as Third party collateral:
Credit facilities sanctioned to
Proprietorship concern
Partnership Concern
Private Limited Company
Limited Company
2.8.
Property belonging to the following can be taken as

Collateral Security
Proprietor / Close relative of Proprietor of the Firm
Partners / Close relative of the Partners of the firm
Directors / Close relative of the directors of the Company
DEFINITION OF CLOSE RELATIVE
CLOSE RELATIVE means

a) Spouse
b) Father
c) Mother (including Step Mother)
d) Son (including Step Son)
e) Sons wife
f) Daughter (including Step Daughter)
g) Daughters husband
h) Brother (including Step Brother)
i) Brothers wife
j) Sister (including Step Sister)
k) Sisters husband
l) Brother (including step-brother) of the Spouse
m) Sister (including step sister) of the Spouse
n) Father/Mother of the Spouse
Page 8 of 108
CHAPTER 3
CREDIT COMMITTEES AT VARIOUS LEVELS & RESPECTIVE DELEGATED POWERS
3.1.
CONSTITUTION OF CREDIT COMMITTEES
In terms of guidelines issued by RBI on the Risk Management Systems in October 1999 as
also in its guidance note on Credit Risk Management, issued in March, 2002 enumerating
essential dimensions for effective Credit Risk Management, the Board of Directors vide
item C-1 dated 21.10.2005, had approved the constitution of Credit Grids at Regional
Offices and Head Office.
Credit Grids are in the nature of a Committee constituted for screening all proposals falling
within the Delegated powers of Credit Committees, which are to be mandatorily routed
through the Credit Grids. Responsibilities and Tasks of Credit Grids include:
Evaluation of credit proposals from all perspectives.
Evaluation of revenue potential of the account vis--vis risks involved.
Giving suggestions as to Risk mitigating measures, if any.
Recommending the proposal to the sanctioning authority.
The Credit Grid should evaluate all the proposals in line with the Banks Loan and Risk
Management Policy guidelines issued from time to time and should submit their
observations/ recommendations to the sanctioning authority.
Government of India, Ministry of Finance, Dept. of Financial Services vide letter dated
3rd April 2012 has advised all Nationalised Banks for setting up of Credit Committees at the
Corporate, Regional and Zonal level in Nationalised Banks.
In view of the foregoing, the constitution of Credit Committees at Head Office Level and
Regional Office Level was approved by Board of Directors in the meeting held on
30.04.2012 vide agenda item No. 71.
As the Credit Committee at Regional Office Level (RLCC) has been constituted, and the
same factors in the spirit behind RBI guidelines for establishing a Credit Grid, such Grid is
not to be formed at Regional Office level.
3.2.
CREDIT COMMITTEES AT VARIOUS LEVELS
The various Credit Committees at Head Office and Regional Office Level are as under:
i. Head Office Level Credit Committees
Management Committee of Board (MCB) headed by Chairman & Managing Director.
Credit Approval Committee (CAC) headed by Chairman & Managing Director.
Head Office Level Credit Committee (HLCC) headed by Executive Director.
ii. Regional Office Level Credit Committees
Regional Office Level Credit Committee (RLCC) headed by Regional Head
Page 9 of 108
3.3.
SANCTIONING AUTHORITIES AND THEIR DELEGATED POWERS FOR LOANS &

ADVANCES
The Sanctioning Authority and their respective delegated powers for sanctioning of credit
proposals are as follows:
(Amount in ` Crore)
Delegated
powers
Sanctioning
SN
Single Borrower
Authority
Group
1.
2.
3.
4.
4.1
4.2
4.3
5.
5.1
5.2
5.3
5.4
5.5
5.6
5.7
MCB
CAC
HLCC-ED
RLCC-RH
RLCC-RH-GM
RLCC-RH-DGM
RLCC-RH-AGM
Branch
Incumbent (BI)
BI-GM
BI-DGM
BI-AGM
BI-CM
BI-Scale-III
BI-Scale-II
BI-Scale-I
Full Power#
250*
75
Full Power#
Full Power#
150
35
20
10
50
30
15
25
15
7.5
2.5
1
0.25
0.15
40
25
10
2.5
1
0.25
0.15
# Within the RBI prescribed Regulatory Limit

* ` 250 Crore per Borrower
The Delegated Powers of the functionaries have been defined based on the following:
Fund Based Secured and Unsecured Nature of advances
Non Fund Based facilities
Sector/industries specific restrictions
Branch Incumbents and RLCC-RH can consider sanction of the credit proposals (New,
enhancement, additional, adhoc facilities) of the borrowers having Internal Credit Risk
Rating upto OBC 6 (i.e., OBC 1 to OBC 6). The credit proposals of the borrowers having
Internal Credit Risk Rating below OBC 6(i.e., OBC 7, 8, 9 and 10) shall be considered by
next sanctioning authority. In cases where External Credit Rating of the borrower is C and
D, the powers for sanction of fresh and additional facility shall be vested with next
sanctioning authority.
However, HLCC-ED/CAC/MCB can consider the credit proposals irrespective of the

Internal/External Credit Risk Rating of the Borrower.
As it is Renewal (without enhancement and additional facilities) of the credit facilities shall
be undertaken by the respective sanctioning authority within their delegated powers
irrespective of Internal and External Credit Risk Rating of the borrower.
Page 10 of 108
The Delegated Powers of the sanctioning authorities for Schematic / Retail loan shall be as
per the respective scheme.
3.4. CREDIT APPROVAL COMMITTEE (CAC) & FUNCTIONING
Credit Approval Committee (CAC) headed by CMD has been constituted along with its
functioning & reporting etc. as follows:
SN
1
2
Particulars
Committee Details
Name of the
Credit Approval Committee (CAC) headed by Chairman and Managing
Committee
Director.
Composition of
Chairman and Managing Director
the Committee
Executive Director-1
Executive Director-2
General Manager in-charge of the Large Corporate Credit
General Manager in-charge of the Mid Corporate Credit
General Manager in-charge of the Priority Sector Credit
General Manager in-charge of Accounts/CFO
General Manager in-charge of Risk Management
General Manager in-charge of Credit Monitoring
General Manager in-charge of Recovery & Law
General Manager in-charge of Inspection & Control
Mandatory
Members

One Executive Director
General Manager (Respective Credit Verticals) for Credit Proposal
Quorum
Delegation of
Power
Note: In case, any GM mentioned as mandatory member is not

present in the office, then the Alternate GM acts as mandatory
member.
The quorum of the Committee is six members including mandatory
members.
The Committee has been delegated the powers in respect of the
following items:
a) Sanctioning of credit proposals (funded and non-funded);
b) Loan compromise / write off proposals.
The powers delegated to CAC for sanctioning of credit proposals are
subject to the following:
Particulars
Delegated Powers
Maximum exposure to one group
Full Powers#
Maximum exposure to single borrower
`250 Crore*
# Within the RBI prescribed Regulatory Limit

* ` 250 Crore per Borrower
Page 11 of 108
SN
Particulars
Arranging
Meetings,
Recording of
Minutes
Prior screening
by independent
Credit Grid
Committee Details
The powers delegated to CAC for Loan Compromise / Writeoff proposals are subject to the following:
Particulars
Delegated Powers
Loan Compromise / Write-off Proposal
`4 Crores
Sacrifice Amount*
*Sacrifice Amount shall be calculated as per modular approach of
the Recovery Policy of the Bank. Sacrifice Amount includes both
Principal as well as recorded Interest.
The Board Secretariat has to organize all necessary functions such as
arranging meeting of CAC, recording minutes of the meeting, placing
the minutes before the Board etc. as applicable to MCB.
An independent Credit Grid for CAC has to first screen and
recommend all credit proposals to be considered by the Credit
Approval Committee.
The Credit Grid shall consist of following members:
Deputy General Manager (Large Corporate Credit) Convenor &
Member Secretary for Large Corporate Credit proposals.
Deputy General Manager (Mid Corporate Credit) Convenor &
Member Secretary for Mid Corporate Credit proposals.
Deputy General Manager / Asstt. General Manager (Priority
Sector) Convenor & Member Secretary for Priority Sector Credit
proposals.
Deputy General Manager / Asstt. General Manager (Risk
Management)
Deputy General Manager / Asstt. General Manager (Credit
Monitoring)
Deputy General Manager / Asstt. General Manager (Recovery)
Deputy General Manager / Asstt. General Manager (Inspection &
Control)
Deputy General Manager / Asstt. General Manager (Retail Credit)
Mandatory Members: The mandatory members of the Grid shall be
Convenor & Member Secretary for respective Credit Proposals
Deputy General Manager / Asstt. General Manager (Risk
Management)
Monitoring) or in their absence DGM / AGM (Recovery)
Note: In the absence of any of the DGMs of any of the function, the
AGM shall be the member of the Grid.
Quorum of the Grid: The quorum of the Grid shall be four members
Page 12 of 108
SN
7
8
9
Particulars
Committee Details
including mandatory members.
Placing,
The presentation of credit proposals to CAC for consideration and
Appraising
& approval shall be undertaken by the respective Convenor and Member
Recommending Secretary of the Credit Grid.
of
the
Proposals
to
the Committee
Reporting
of The minutes of the CAC are to be placed before the Board in the next
Minutes
meeting.
Reconstitution
The CMD has been empowered to constitute and reconstitute the
of Credit Grid
Credit Grid from time to time.
10 Other
Conditions
The Credit proposal declined by Management Committee of Board

cannot be considered by Credit Approval Committee unless
specifically directed to do so by MCB.
The Credit Approval Committee may consider the amendments /
modifications/ renewal /review/ enhancements of sanctions in respect
of all the existing cases with credit facilities upto the limit of `250.00
Crore. However, all such amendments etc. approved by the CAC shall
be reported in the subsequent meeting of the Board of Directors along
with the minutes of the respective CAC meeting.
For approval of any credit proposal with deviations in policy, the matter
shall be referred for approval to MCB.
3.5.
HEAD OFFICE LEVEL CREDIT COMMITTEE (HLCC) & FUNCTIONING
In addition to the MCB and CAC, Head Office Level Credit Committee (HLCC) headed by
Executive Director as per MOF guidelines has been constituted with Composition,
Delegated Powers, functioning & reporting etc. as follows:
SN
1
2
Particulars
Committee Details
Name of the Head Office Level Credit Committee headed by Executive Director
Committee
(HLCC ED)
Composition of
Executive Directors
the Committee
General Manager (Respective Credit Verticals)
General Manager (Recovery)
General Manager (Accounts)
General Manager (Credit Monitoring)
General Manager (Risk Management)
General Manager (Inspection & Control)
Mandatory
Members
One Executive Director

General Manager (Respective Credit Verticals) for Credit Proposal
General Manager (Recovery) for Loan Compromise / Write-Off
Proposal
Page 13 of 108
SN
Particulars
Committee Details
4
5
Note: In case any General Manager mentioned as mandatory

members is not present in the office then the Alternate General
Manager acts as mandatory member.
Quorum
The quorum of the Committee is five members including mandatory
members.
Delegation of The committee has been delegated the powers in respect of the
Powers
for following items:
sanctioning
a) Sanctioning of credit proposals (funded and non-funded);
Credit
b) Loan compromise / write off proposals.
Proposals
The powers delegated to HLCC ED for sanctioning of credit
proposals are subject to the following:
Particulars
Delegated Power
`150 Crore
Maximum exposure to single borrower
`75 Crore
The powers delegated to HLCC ED for Loan Compromise / Writeoff proposals are subject to the following:
Particulars
Delegated Power
Loan Compromise / Write-off Proposal
`1.00 Crores
Sacrifice Amt*
*Sacrifice Amount shall be calculated as per module approach of the
Recovery Policy of the Bank. Sacrifice Amount includes both
Principal as well as recorded Interest.
6
7
Periodicity
of
the Meeting
Arranging
Meetings,
Recording
of
Minutes
Prior screening
by independent
Credit Grid
Weekly or More Often

The respective departments have to organise all necessary functions
such as arranging meeting of HLCC ED and recording minutes of
the meeting.
An independent Credit Grid consisting of following members has to
first screen and recommend all credit proposals to be considered by
the HLCC ED.
Deputy General Manager (Large Corporate Credit) Convenor &
Member Secretary for Large Corporate Credit Proposals
Deputy General Manager (Mid-Corporate Credit) Convenor &
Member Secretary for Mid Corporate Credit Proposals
Deputy General Manager /Asstt. General Manager (Priority
Sector) Convenor & Member Secretary for Priority Sector Credit
Proposals
Deputy General Manager / Asstt. General Manager (Recovery)
Convenor & Member Secretary for Loan Compromise & Write-Off
Proposals
Deputy General Manager / Asstt. General Manager
(Risk
Page 14 of 108
SN
Particulars
Committee Details
Management)
Monitoring)
Deputy General Manager / Asstt. General Manager (Inspection &
Control)
Asstt. General Manager/ Chief Manager (Retail Credit)
Mandatory Members: The mandatory members of the Grid are:
Convenor & Member Secretary for respective Credit Proposals /
Loan Compromise & Write-Off Proposals
Deputy General Manager / Asstt. General Manager
(Risk
Management)
Quorum of the Grid: The quorum of the Grid is five members
including mandatory members.
10
11
12
Placing,
Appraising
&
Recommending
of the Proposals
to
the
Committee
Reporting
of
Minutes
Reporting
of
Sanctions
Reconstitution
of HLCC ED
The presentation of credit proposals / Loan Compromise & Write-Off

Proposals to HLCC ED for approval shall be undertaken by
respective Convenor & Member Secretary of Credit Grid.
Board of Directors
Board of Directors
The CMD shall be empowered to constitute and reconstitute the
HLCC ED/Credit Grid.
3.6. REGIONAL OFFICE LEVEL CREDIT COMMITTEE (RLCC) & FUNCTIONING

At present, Regional Offices are headed by General Managers, Dy. General Managers and
Asst. General Managers.
In view of the same, Regional Office Level Credit Committee (RLCC) headed by Regional
Head be constituted as per MOF guidelines with Composition, Delegated Powers,
functioning & reporting etc. as follows:
SN
Particulars
Committee Details
1 Name of the Regional Office Level Credit Committee headed by Regional Head
Committee
(RLCC RH)
2 Composition of Regional Head - Head of Committee
the Committee
Second Man at RO
In-Charge of Credit Deptt. at RO
In-Charge of Risk Deptt. at RO*
In-Charge of Credit Monitoring Dept. / Planning Deptt. at RO
In-Charge of Recovery Deptt. at RO
* The alternate member for Officer in-charge of Risk Deptt. shall be
Page 15 of 108
SN
3
Particulars
Committee Details
Officer in-charge of Credit Monitoring at RO.
Regional Head - Head of Committee
For Credit Proposals:
In-Charge of Credit Dept. at RO
In-Charge of Risk Dept. at RO*
Mandatory
Members
For Loan compromise / Write Off proposals:

In-Charge of Recovery Deptt. at RO
* The alternate member for Officer in-charge of Risk Deptt. shall be
Officer in-charge of Credit Monitoring at RO.
4
Quorum
Delegation
Powers
sanctioning
Credit
Proposals
The quorum of the Committee is three members including mandatory

members.
of The Committee has been delegated the powers in respect of the
for following items:
a)
b)
Sanctioning of credit proposals (funded and non-funded);

Loan compromise / write off proposals.
The powers delegated to RLCC RH for sanctioning of credit

proposals shall be subject to the following:
(Fig. in `Crore)
Delegated Power to RLCC
RH headed by
Particulars
GM
DGM
AGM
50
30
15
Maximum exposure to single
35
20
10
borrower
The powers delegated to RLCC RH for Loan Compromise / Writeoff proposals is subject to the following:
(Fig. in `Crore)
Delegated Power to RLCC
RH headed by
Particulars
GM
DGM
Loan Compromise / Write-off
0.75
0.35
Proposal - Sacrifice Amt*
*Sacrifice Amount shall be calculated as per module
approach of the Recovery Policy of the Bank.
Sacrifice Amount includes both Principal as well as
recorded interest.
6
7
Periodicity
the Meeting
Arranging
Meetings,
Recording
Minutes
of
AGM
0.25
Weekly or More Often
The respective departments i.e. Credit & Recovery Department at RO

have to organise all necessary functions such as arranging meeting
of of RLCC RH, recording minutes of the meeting, placing the minutes
before HLCC ED by sending the minutes to H.O.
Page 16 of 108
SN
Particulars
Committee Details
8 Prior screening As the Credit Committee at Regional Office Level (RLCC) has been
by independent constituted, and the same factors in the spirit behind RBI guidelines
Credit Grid
for establishing a Credit Grid, such Grid is not to be formed at RO
level.
9 Placing,
The presentation of credit proposals / Loan Compromise & Write-Off
Appraising
& Proposals to RLCC RH for approval shall be undertaken by
Recommending respective Officer of Credit Deptt. / Officer of Recovery Deptt.
of the Proposals
to
the
Committee
10 Reporting
of The minutes of the meetings of the RLCC RH shall be sent by
Minutes to
Regional Office to respective departments at HO i.e. Credit or
Recovery Department and these respective departments shall place
these minutes before HLCC ED of respective Credit verticals for
reporting in the next meeting.
11 Reporting
of The proposals sanctioned by RLCC RH shall be placed to the
Sanctions to
authority as per the chart below:
Proposals sanctioned by RLCC RH headed
Particulars
GM
DGM
AGM
GM (Credit
GM (Credit
Reporting of HLCC ED
Monitoring)
at
Monitoring)
Sanctions to
of respective
HO
at HO
Credit
verticals*
* Reporting by Credit Monitoring Deptt.
12 Reconstitution
The CMD is empowered to constitute and reconstitute from time to
of RLCC RH
time the RLCC RH including induction of Branch Head of
Specialized branches.
3.7.
TERMS & CONDITIONS FOR EXERCISING DELEGATED POWERS BY CAC,

HLCCED and RLCCRH
a) All the Delegated Powers for various purposes related to Loans and Advances which were
hitherto delegated by the Board of Directors to the respective functionaries viz. CMD, ED /
CGM/GM (Large Corporate Credit), other General Managers at HO and Regional Head
shall now vest with CAC, HLCC ED and RLCC RH respectively.
b) The existing powers vested in Branch Incumbents shall continue as before.
c) The proposals beyond the powers delegated to HLCC ED shall be placed before the
Credit Approval Committee or MCB as per Delegated Power guidelines.
d) Credit proposals which are not disposed off within the prescribed time limit by Branch
Incumbents shall be reported to Regional Level Credit Committee (RLCC-RH).
e) These Committees shall also review the pending proposals and expedite actions.
f) The decision of these Committees shall be unanimous. In case unanimous decision cannot
be arrived at, reasons of disagreement and the basis of the decision shall be specifically
mentioned in the minutes.
Page 17 of 108
g) In respect of Loan compromise/ Write off proposals, the terms and conditions mentioned in
Recovery policy shall be applicable while exercising powers delegated to these
Committees.
h) The RLCC-RH is delegated authority only for sanction of Credit proposals/ Loan
Compromise & Write off Proposals falling under the powers of RLCC-RH. The following
matters need not be routed through RLCC-RH:
Recommendations of Regional Office in respect of Credit proposals/ Loan
compromise & Write-Off proposals under the powers of Head Office.
New Business Group (NBG) proposals for Expression of Interest approval.
Other proposals such as concession in Rate of Interest / Margin/ Service Charges
and other amendments / routine matters falling under the powers of Head Office.
and the above are to be recommended by the Regional Heads.
i) It should be ensured that the Turn Around Time (TAT) for sanction and disbursement of
credit proposals is brought down to the minimum while ensuring compliances of Systems/
Procedures as per laid down policy guidelines of the Bank.
Page 18 of 108
CHAPTER 4
CLEARANCE BY NEW BUSINESS GROUP
4.1.
BACKGROUND
The basic objective of NBG is to expeditiously convey Expression of Interest (EOI) in case of
New Corporate Connections.
4.2.
CONSTITUTION OF NEW BUSINESS GROUP
The constitution of New Business Group at Head Office Level and Regional Office Level shall
be as follows:
NBG AT HEAD OFFICE HEADED BY CMD
The constitution of the New Business Group (NBG) at Head Office headed by CMD shall be
as under:
i.
ii.
Executive Director-I
iii.
Executive Director-II
iv.
General Manager/Functional Head in charge of:

Accounts and CFO
Large Corporate Credit - LCBs
Mid Corporate & SME
Treasury and MBD
International Banking Division
Risk Management
Credit Monitoring
Inspection & Control
Recovery & Law
Mandatory Members of NBG

The mandatory members of the NBG at Head Office shall be as under:
Any two amongst Chairman and Managing Director, Executive Director I and Executive
Director II.
General Manager (Large Corporate Credit-LCBs)
General Manager (Mid Corporate & SME)
General Manager (Credit Monitoring )
Quorum for the NBG
The Quorum of NBG shall be seven members including the mandatory members.
Chairman & Managing Director shall have the powers to re-constitute the committee from
time to time.
Page 19 of 108
Chief General Manager/ General Manager (Large Corporate Credit) will be the convener of
the NBG.
Dy. General Manager (Large Corporate Credit) or in his absence Asst. General Manager
(Large Corporate Credit) shall pilot the eligible Large Corporate proposals in NBG.
Dy. General Manager (Mid Corporate & SME) or in his absence Asst. General Manager (Mid
Corporate & SME) shall pilot the eligible Mid Corporate proposals in NBG.
In respect of Retail Credit proposals, it will be mandatory for General Manager (Retail Credit)
to participate in the NBG. In his absence, Dy. General Manager/Asst. General Manager
(Retail Credit) shall be mandatory member for Retail Credit proposals.
Dy. General Manager (Retail Credit) or in his absence Asst. General Manager (Retail Credit)
shall pilot the eligible Retail Credit proposals in NBG.
In respect of Priority Sector credit proposals, it will be mandatory for General Manager (Rural
Dev. & Priority Sector) to participate in the NBG. In his absence, Dy. General Manager/Asst.
General Manager (Rural Dev. & Priority Sector) shall be the mandatory member for the
Priority Sector credit proposals.
Dy. General Manager (Rural Dev. & Priority Sector) or in his absence Asst. General Manager
(Rural Dev. & Priority Sector) shall pilot the eligible Priority Sector proposals in NBG.
In the absence of any General Manager, the alternate General Manager at the Head Office
along with the next officer in-charge of the respective Portfolio shall be co-opted as NBG
member of the meeting of the NBG.
NBG AT REGIONAL OFFICE HEADED BY REGIONAL HEAD
The constitution of the NBG headed by Regional Head at RO level:
i.
Regional Head
ii.
2nd Man at Regional Office
iii.
In-charge of Loans Department of the concerned Regional Office
iv.
In-charge of Planning Department of the concerned Regional Office
v.
In-charge of Recovery Department of the concerned Regional Office
vi.
Risk Manager of the respective Regional Office
Quorum of NBG at RO level: Any three with mandatory presence of Regional Head & Incharge of Loans Department of the concerned Regional Office.
4.3.
CATEGORIES OF ADVANCES EXEMPTED FROM NBG
The following categories of advances are exempted from New Business Group (NBG) approval:
Exposures secured by 100% cash margin.
All existing Borrowers seeking additional facilities.

In case of the existing borrower falling under restricted industries/activities for NBG
approval mentioned at Point No.4.5 (B) only Administrative Clearance from NBG at Head
Office headed by CMD/ED shall be obtained prior to sanction additional facility. The Field
Functionaries shall send process note complete in all respects to Head Office for obtaining
Administrative Clearance.
Page 20 of 108
Exposures to Public Sector Undertakings both Central and State Government.
New borrower whose group concern(s) is dealing with the Bank for last three years with
satisfactory performance of all the group concerns and atleast one such group concern
(existing) enjoying minimum exposure of `10.00 Crore & above.
In case of existing borrower falling under restricted industries/activity for NBG approval
mentioned at Point No.4.5 (B) where additional exposure proposed to be taken by the Bank
as a part of JLF Corrective Action Plan package, Administrative approval shall not be
required to be obtained from NBG at Head Office.
4.4.
FUNCTIONING OF NEW BUSINESS GROUP (NBG)
The Expression of Interest approval by New Business Group (NBG) is required for all
fresh credit proposals of more than `5 Crore. In case of the existing borrower falling under
restricted industries/activities, only Administrative Clearance from NBG at Head Office
headed by CMD/ED shall be obtained prior to sanction additional facility.
All fresh credit proposals envisaging exposure (Both FundBased and Non-Fund Based)
exceeding the cut-off limit shall be referred to the Head Office/ Regional Office for placing
the same before the respective New Business Group (NBG) authority.
NBG will discuss and reach a consensus about the proposal being support worthy or not,
based on the Preliminary Information Memorandum (PIM) put up by the respective Credit
verticals.
Consensus will only be in the nature of Expression of Interest and not a commitment of
the Bank. The final sanction shall be accorded by the respective sanctioning authority after
a detailed scrutiny of all aspects of the proposal and after obtaining the recommendations
of the appropriate functionary as per prescribed system and procedure.
Validity of Expression of Interest approval granted by NBG
The validity of the Expression of Interest approval granted by NBG shall be three months
from the date of approval.
The validity of Expression of Interest approval implies that the full-fledged credit proposal
(including all the relevant papers for regular sanction) for sanction of credit facilities shall
be received at the branch within three months.
In case the full-fledged credit proposal is not received at the branch within a period of three
months, the Expression of Interest approval granted by NBG shall lapse and would
require revalidation by the NBG. The same is illustrated below with an example:
Date of Expression of Interest approval by
01.01.2014
NBG
Validity of Expression of Interest approval by
31.03.2014
NBG
In case full-fledged proposal is not received at The
Expression
of
Interest
the branch by 31.03.2014(including this date) approval granted NBG shall lapse
and require revalidation
Page 21 of 108
As soon as NBG approval is received, all the relevant papers required for regular sanction
of credit facilities must be compiled after due discussion with the borrower on Terms &
Conditions of NBG approval.
Branches and Regional Offices should endeavour to submit the credit proposal to the
respective sanctioning authority within one month of the NBG approval, thereby providing
sufficient time for sanctioning authority to process and sanction the regular limits and/or
convey the credit decision of the Bank expeditiously.
The references received directly from the Corporates will also be placed before the NBG by
the respective Credit Verticals before referring the same to Regional Office.
Regional Heads shall make reference to Head Office about the fresh business proposals
(beyond their powers) received both at the branches as well as at RO before undertaking
full-scale appraisal to cut short the delay in decision making.
Any proposal which is rejected under NBG shall be displayed in the OBC-e-circular portal.
All the field functionaries shall refer to the portal before recommending/conveying approval
of NBG proposals to ensure that such proposals were not rejected earlier by the Bank.
Decision on the proposal submitted for NBG approval at HO will be taken after receipt of
recommendation of concerned Regional Office except in the cases received directly from
syndicating banks/institutions and Large Corporate Branches.
Holding of the NBG meeting regularly and recording deliberations & minutes
Normally NBG would meet every week or as and when there is urgency, even at shorter
intervals.
The deliberations shall be duly recorded in the minutes, record of which should be properly
maintained.
Chairman & Managing Director may induct any other General Manager at his discretion to
be involved in the group discussion on exigencies.
4.5. CUT-OFF LIMIT FOR FRESH / ADDITIONAL CREDIT FACILITIES FOR

EXPRESSION OF INTEREST BY NEW BUSINESS GROUP (NBG)
The cut-off limit and coverage of proposals for fresh /additional credit facilities for
Expression of Interest by New Business Group (NBG) at various levels are as under:
SN
A.
Type of Borrower
New Borrowers
Cut-off Limit
NBG Authority
Above `5 Crore to `10.00

Crore
NBG at RO
headed by DGM
Above `5 Crore to `20.00

Crore
NBG at RO
headed by GM
Above `10.00 Crore

for Regional Offices
headed by DGM
Above `20 Crore for
Regional Offices headed
by GM
Page 22 of 108
NBG at HO
headed by CMD/ ED
SN
B.
Type of Borrower
Cut-off Limit
NBG Authority
Loan Proposals falling under the following industries (New /Existing borrower)
Loan proposals falling under:
Above `5 Crore
NBG at HO
headed by CMD/ED
Comm. Real Estate
IT / Software
In case of the existing
Microfinance
borrower falling under
Ship-breaking industry
restricted
Capital Market
industries/activities, only
NBFC(Other than SI-NBFC)
Administrative Clearance
Entertainment / Film Industry
from NBG at Head Office
including dubbing
headed by CMD/ED shall
Tea/Coffee
be obtained prior to
Jute
sanction additional facility.
Asbestos sheet
manufacturing
Rubber Plantations
Gems and Jewellery
Educational Institutions
Chemical
BPO/ Call Centre
NBG approval in case of sanction of Fresh credit facilities to the Borrowers whose
sister/allied concerns are Ex-Clients of our Bank/Clients of other banks who had adjusted
their accounts under Compromise/Settlement
The sanctioning authorities can consider sanction of Fresh credit facilities to the
Borrowers whose sister/allied concerns are Ex-Clients of our Bank/Clients of other banks
who had adjusted their accounts under Compromise/Settlement within their respective
Delegated Powers. For Field Functionaries, prior approval of NBG at Head Office is
required irrespective of the amount of exposure.
The NBG at Regional Office shall have NO powers to approve Expression of Interest in
respect of all the cases where the regular sanction falls under the powers of Head Office
(HLCC-ED/CAC/MCB) irrespective of the amount of exposure of the borrower.
The Branches / Regional Offices should submit all credit proposals involving fresh
exposure (FB + NFB) as per the cut-off limit to the designated authority in the Preliminary
Information Memorandum (PIM) as per the format circulated vide Circular No. HO/
RMD/55/2014-15/645dated 10.11.2014 for approval of Expression of Interest by New
Business Group (NBG).
In case of the existing borrower falling under restricted industries/activities, only

Administrative Clearance from NBG at Head Office headed by CMD/ED shall be obtained
prior to sanction additional facility.
The information provided in the Preliminary Information Memorandum (PIM) should be

concise and relevant for decision making by NBG and no column of Preliminary
Information Memorandum (PIM) should be left blank. If information sought in any column
Page 23 of 108
is not applicable in a particular case then it should be specifically mentioned as Not

applicable.
The Branches are also required to submit a Due Diligence Report as per the format
circulated vide Circular No. HO/ RMD/55/2014-15/645dated 10.11.2014. The same should
be incorporated in and shall form a part of NBG proposal submitted by Branches / Regional
Offices.
Page 24 of 108
CHAPTER 5
EXERCISE OF DELEGATED POWERS
5A. DELEGATED POWERS RELATED TO SANCTIONS
5.A.1 BASIS OF DETERMINATION OF DELEGATED POWERS OF VARIOUS
FUNCTIONARIES
The Delegated powers for loans and advances would be exercised based on the scale of the
delegates follows:
Delegated power of
Branch Incumbent
Regional Head
Basis of determination
Based on the scale of the Branch Incumbent i.e. whether
the incumbent is in Scale I, II, III, IV, V, VI and VII
Based on the scale of the Delegatee i.e. whether the
Delegatee is in Scale V, VI and VII
5.A.2 SANCTION OF IMPORT/EXPORT/FOREIGN EXCHANGE BASED LIMITS

The Delegated powers in respect of import/export based credit limits(both Fund and
NonFund based) shall be exercised by Branch Incumbents and other delegates only at branches
authorized to deal in foreign exchange. However, the branches which are not authorized to
deal in foreign exchange can sanction the import /export based credit limits (both fund and
non-fund based) within their respective discretionary powers.
However, for operational aspects like opening of import LC, discounting of foreign bill etc. the
same shall be done at authorized branches with prior intimation to Regional Office. The
Regional Head shall instruct the authorized branch to undertake such transactions provided by
non-authorized branches.
In view of the exchange rate fluctuations, the export limits shall be expressed in Dollar terms in
both the proposal and sanction letter.
However, for the purpose of determining the amount of delegation of powers, the Rupee
equivalent shall be taken into account.
Foreign Bills shall be negotiated/ purchased under Letter of Credit issued by top 1000
Commercial Banks as per ALMANAC and top 10 banks each of Bangladesh, Pakistan, Nepal
and Sri Lanka and other Banks as approved by GM(IBD) and GM(RMD) jointly from time to
time.
5.A.3 TELEPHONIC/VERBAL
PROCEDURE
SANCTION
ALLOWED
IN
EMERGENT
CASES:
No telephonic/verbal sanction will be given by any delegatee except in very exceptional cases
for which the following procedure will be strictly adhered to:
a) Confirmation is to be sought by the branch or Regional Office as the case may be,
immediately by return post/fax/e-mail, from concerned delegatee who has conveyed the
telephonic sanction.
b) Sanctioning authority will also simultaneously issue a confirmatory letter on the same
date.
Page 25 of 108
c) In case of violation of these provisions, the limits so sanctioned will be considered

unauthorized.
d) All telephonic / verbal sanctions shall be entered in the adhoc sanction register in the
Regional Office/Head Office.
5.A.4 SANCTION OF CREDIT FACILITIES IN ANTICIPATION OF SANCTION BY
MANAGEMENT COMMITTEE OF THE BOARD (MCB)
The Credit Approval Committee (CAC) headed by Chairman & Managing Director shall have
authority to sanction credit facilities/approve in-principle limits falling under the powers of
Management Committee of the Board in anticipation of Confirmation by MCB. Such cases
shall be placed before MCB in its next meeting for ratification of action.
5.A.5 VALIDITY OF CREDIT LIMITS SANCTIONED BUT NOT DISBURSED (FRESH
CASES AS WELL AS ENHANCEMENT PROPOSALS)
The facilities sanctioned to a borrower should be availed within a period mentioned in the table
below from the date of sanction failing which the sanction shall lapse and will need revalidation.
Credit Facility
Standalone Term Loan
Term Loan + working capital
Only working capital
Validity of sanction
6 months from date of sanction
This condition should also be incorporated as one of the conditions of sanction. If the
sanctioned limits are not availed of within these aforesaid periods from the date of sanction,
detailed reasons should be sought from the borrower and sanction should be got revalidated from the sanctioning authority provided no unfavourable change has come to the
notice of the Bank in any form (including those pertaining to the means and net worth of the
borrower/guarantor/collateral security) during the intervening period.
Rate of interest to be charged shall be renegotiated with the borrower at the time of
revalidation of the sanction.
However, in case of MCB sanctions, CAC shall have powers to revalidate the lapsed
sanction provided there is no change in the Basic project parameters.
In case the borrower is not interested in availing the facility, the matter shall be referred to
the sanctioning authority and limit shall be got cancelled. Similarly, where the validity of
unavailed limits has expired, the same shall be cancelled.
In case of term loans, fresh schedule of drawal should be obtained and necessary
recommendations for extension in gestation period shall be sent to the sanctioning
authority with justifications.
5.A.6 AUTHORITY TO DECLINE/REJECT LOAN PROPOSALS
The loan applications pertaining to SC/ST, MSME borrowers and Exports cannot be
rejected by the sanctioning authority under whose powers the same falls. Only the next
higher sanctioning authority can reject the same.
Branch Managers may reject applications (except in case of SC/ST) provided the cases of
rejection are verified subsequently by the RLCC-RH.
Page 26 of 108
5.A.7 SANCTION OF LOAN PROPOSALS DECLINED BY HIGHER AUTHORITIES

If some higher authority has declined a proposal, the lower sanctioning authority cannot
exercise his Delegated powers in that particular case without the permission of higher
authority in writing. Rejected/declined proposals by higher authorities should not be
entertained at lower levels even if such sanctions fall within lower level functionarys
Delegated powers
5.A.8 WITHDRAWAL OF LENDING POWERS OF ERRING OFFICIALS AUTHORITY &
REPORTING
Officers of the rank of Regional Head and above are authorized to withdraw the lending
powers of erring officials. However, the matter shall be reported to the General Manager
(Large Corporate/Mid Corporate Credit)and General Manager (I&C) at the Head Office
citing reasons for the same.
5.A.9 EXERCISE OF DELEGATED POWERS OF THE LOWER FUNCTIONARIES BY
THE HIGHER FUNCTIONARIES
Higher functionaries can exercise the Delegated powers of the lower functionaries.
5.A.10 DELEGATED POWERS OF FUNCTIONARIES THREE MONTHS PRIOR TO
RETIREMENT
Regional Heads should not post/continue any officer as Branch Manager of the Branch
three months prior to his/her retirement.
In case such officer is continuing as Branch Manager during three months period prior to
his/her retirement, the officer shall not exercise the lending powers. The credit proposals of
such Branch shall be sanctioned by the next higher sanctioning authority.
However, RLCC-RH/HLCC-ED/CAC/MCB shall continue to consider credit proposals within
their respective Delegated Powers.
5.A.11 REPORTING CASES OF OVER ACCOMMODATION ALLOWED BEYOND THE
SANCTIONED LIMITS
All cases of over accommodation allowed beyond the sanctioned limits shall be reported in
the STM-41 statement. Where excess accommodation allowed falls under the powers of
the Head Office, the same shall be reported to RLCC-RH which shall consider confirmation
of action of the branch Manager on merits and recommend to the Head Office for
confirmation of action accordingly. Besides reporting such over-accommodation in the
STM-41 statement, a separate letter shall also be written to the Regional Head/Head Office
in this regard.
The Regional Office/Head Office must confirm action of the Branch within two weeks from
the date of reporting failing which the action shall be deemed confirmed.
5.A.12 SANCTION OF CREDIT FACILITIES
RENDERING SERVICES TO THE BANK
TO
INDIVIDUAL/FIRM/COMPANY
Any individual/firm/company rendering services to the Bank as Consultant, Valuer, Lawyer,

Appraiser, Concurrent Auditor, Revenue Auditor or Statutory Auditor should not be
Page 27 of 108
sanctioned any credit facility without prior permission /approval from the next higher
authority.
5.A.13 ENHANCEMENT IN CREDIT LIMITS WITHIN 6 MONTHS OF FRESH SANCTION
TO BE PERMITTED ONLY BY THE NEXT HIGHER AUTHORITY
The Branches/Regional Offices shall obtain prior permission from next higher authority
before considering enhancement of credit limits in case of request for enhancement within
six months of fresh sanction.
However, for cases falling under the Delegated powers of HLCC-ED, CAC and MCB, the
respective sanctioning authority can consider such requests within their respective
delegated powers.
5.A.14 OTHER CATEGORIES OF BORROWERS NOT PERMITTED FOR FINANCE BY
THE BANK UNLESS OTHERWISE SPECIFIED
a) Loan Proposals belonging, in any way, to the willful defaulters (as defined by RBI vide
its Circular No. DBOD.NO.DL (W).BC.110/20.16.003 (1)/2001-02 dated 30.05.2002 &
DBOD.NO.DL (W).BC.87/20.16.003/2007-08 dated 28.05.2008) of banks/ financial
institutions shall not be considered.
b) In addition, the entrepreneurs/promoters of companies where Bank has identified siphoning
off /diversion of funds, misrepresentation, falsification of accounts and fraudulent
transactions shall be debarred from institutional finance from the Bank for floating new
ventures for a period of 5 years from the date the name of the willful defaulter is published
in the list of willful defaulters by RBI.
c) An undertaking shall be obtained from all fresh borrowers to the effect that none of their
associate/ group concerns are classified as willful defaulters by other banks/ financial
Institutions. Suitable affidavit should be obtained at the time of accepting loan application
wherever the namesake of the promoters/partners/directors is included in any of the
defaulter lists. The deponent should categorically affirm that he/she is not the same person
which is appearing in the defaulter lists.
d) Branches/Regional Offices shall invariably obtain list of group concerns from all fresh
borrowers along with the names of their banks / financial institutions besides classification
of accounts.
e) The Bank should not deny credit facilities to constituents merely on the ground that any of
their directors happens to be the professional director on the board of a defaulting
company.
f) Credit facilities for units/product group under the banned list / negative list of All India
Financial Institutions, Government of India, RBI, IBA, other authorities.
g) Fresh borrowers who are incurring losses (operating loss or cash loss) for the past two
years unless otherwise justified with valid reasons for such loss. (Cases of such borrowal
accounts shall be disposed of by the respective sanctioning authority). However, the
branches shall obtain in-principle approval from Regional Office for financing fresh cases
where the unit has incurred cash losses.
Page 28 of 108
h) Borrowers/Guarantors who have defrauded our bank / other banks / Institutions.

i) Borrowers against whom suit(s) have been filed by the Bank.
j) Guarantors who have not fulfilled their commitments to the Bank.
k) Any type of facility prohibited by RBI guidelines issued from time to time.
5.A.15 SANCTION OF CREDIT FACILITIES WHERE BORROWERS ACCOUNT IS
CLASSIFIED AS STANDARD AND RESTRUCTURED WITH OTHER BANK
The Delegated Powers for sanction of credit facilities to a borrower whose account is
Restructured and Standard with other bank are as under:
SN
Types of Exposure
Delegated Authority
NEW BORROWERS
1.
Fresh Exposure
Next higher authority in respect of proposals

falling upto the powers of RLCC-RH.
HLCC-ED/CAC/MCB may consider within
their Delegated Powers.
EXISTING BORROWERS
2.
Renewal / Review of accounts which are Respective sanctioning authorities within

standard and restructured with other their normal delegated powers
Bank
3.
Granting of fresh/ enhancement /

additional / adhoc facilities in accounts
which are standard and restructured with
other Bank
Next higher authority in respect of proposals

falling upto the powers of RLCC-RH.
HLCC-ED/CAC/MCB may consider within
5.A.16 SANCTION OF CREDIT FACILITIES WHERE BORROWERS GROUP ACCOUNT IS

CLASSIFIED AS STANDARD AND RESTRUCTURED WITH OTHER BANK
The Delegated Powers for sanction of credit facilities to a borrower whose group account is
Restructured and Standard with other bank are as follows:
SN
1.
Types of Exposure
Delegated Authority
Sanction related to accounts which have Within the normal Delegated Powers
not been restructured but whose Group
Account is Restructured and Standard
with other bank/Financial Institution.

CLASSIFIED AS NPA WITH OTHER BANKS/FINANCIAL INSTITUTIONS
The Delegated Powers for sanction of credit facilities, where the Borrowers account is
classified as NPA with other banks/Financial Institutions are as follows:
Page 29 of 108
SN
Types of Exposure
NEW BORROWERS
1.
Delegated Authority
Fresh Exposure
HLCC-ED/CAC/MCB
EXISTING BORROWERS
2.
Renewal / Review of limits
Respective sanctioning authorities within

their normal Delegated Powers.
3.
Granting of additional/ enhancement /

adhoc facilities
Restructuring of limits (Restructuring at
existing level of sanctioned exposure or
restructuring with additional fresh exposure)
HLCC-ED/CAC/MCB
4.
Next higher authority in case of BI/RLCCRH irrespective of the Internal Credit Risk
Rating grade of the borrower.
Respective sanctioning authority in case of
HLCC-ED/ CAC/ MCB.
5.A.18 CREDIT FACILITIES TO THE BORROWERS WHOSE GROUP ACCOUNTS HAVE

BEEN CLASSIFIED AS NPA WITH OTHER BANKS/FIs
The Delegated Powers for the credit facilities to the Borrower whose group concerns are
classified as NPA with other Banks/Financial Institutions are as follows:
SN
Types of Exposure
Delegated Authority
NEW BORROWERS
1. Fresh Exposure
HLCC-ED/CAC/MCB
EXISTING BORROWERS
2. Renewal / Review of limits
Respective sanctioning authorities within their

normal delegated powers.
3.
Granting
of
additional/ HLCC-ED/CAC/MCB
enhancement / adhoc facilities
4.
Restructuring of limits (Restructuring

at existing level of sanctioned
exposure
or
restructuring
with
additional fresh exposure)
Next higher authority in case of BI/RLCC-RH

irrespective of the Internal Credit Risk Rating
grade of the borrower.
HLCC-ED/CAC/ MCB.

CLASSIFIED AS NPA WITH OUR BANK
The Delegated Powers for the credit facilities, where the existing Borrowers account is
classified as NPA with our Bank are as follows:
Page 30 of 108
SN
Types of Exposure
Delegated Authority
1. Granting of additional/ enhancement / Next higher authority in case of BI/RLCCadhoc facilities
RH. Respective sanctioning authority in
case of HLCC-ED/CAC/MCB.
Sanctioning Authority shall examine the
viability aspect.
2.
Restructuring of limits (Restructuring at Next higher authority in case of BI/RLCCexisting level of sanctioned exposure or RH irrespective of the Internal Credit Risk
restructuring with additional fresh exposure) Rating grade of the borrower.
HLCC-ED/CAC/MCB.
5.A.20 CREDIT FACILITIES TO THE BORROWERS WHOSE GROUP ACCOUNTS HAVE

BEEN CLASSIFIED AS NPA WITH OUR BANK
The Delegated Powers for the credit facilities to the Borrower whose group concerns are
classified as NPA with our Bank are as follows:
SN
Types of Exposure
Delegated Authority
NEW BORROWERS
1.
Fresh Exposure
Next higher authority in case of BI/RLCCRH.

HLCC-ED/CAC/MCB.
EXISTING BORROWERS
2.
Renewal / Review of limits

their normal Delegated Powers.
3.
Granting of additional/ enhancement / Next higher authority in case of BI/RLCCadhoc facilities

RH.
HLCC-ED/CMD/CAC/MCB.
4.
Restructuring of limits (Restructuring at Next higher authority in case of BI/RLCCexisting level of sanctioned exposure or RH irrespective of the Internal Credit Risk
restructuring
with
additional
fresh Rating grade of the borrower.
exposure)
HLCC-ED/CAC/MCB.
5.A.21 SANCTION OF CREDIT FACILITIES WHERE BORROWERS

ASSOCIATES APPEAR IN DEFAULTER LIST/CAUTION LIST
OR
THEIR
The Delegated Powers for sanction of credit facilities to the borrowers or their associates
appearing in the defaulters list / caution list circulated from time to time by RBI, IBA, CIBIL,
ECGC, other banks /Financial Institutions, Government of India etc. are as follows:
Page 31 of 108
SN
TYPES OF EXPOSURE
NEW BORROWERS
1. Fresh Exposure
DELEGATED AUTHORITY
HLCC-ED/CAC/MCB
EXISTING BORROWER
Next higher authority in respect of proposals falling

upto the powers of RLCC-RH.
HLCC-ED/CAC/MCB may consider within their
delegated powers.
3.
Granting
of
additional/ HLCC-ED/CAC/MCB
4.
Restructuring
of
limits
(Restructuring at existing level of
sanctioned
exposure
or
restructuring with additional fresh
exposure)
Next higher authority in case of BI/RLCC-RH

irrespective of the Internal Credit Risk Rating
grade of the borrower.
Respective sanctioning authority in case of HLCCED/CAC/MCB
5.A.22 SANCTION OF CREDIT FACILITIES WHERE CIBIL REPORTS REFLECT

DEFAULTS ON ACCOUNT OF CREDIT CARD TRANSACTIONS ONLY
The Delegated Powers for sanction of credit facilities where CIBIL reports reflect defaults on
account of credit card transactions* only are as follows:
SN
TYPES OF EXPOSURE
DELEGATED AUTHORITY
NEW BORROWERS
1. Fresh Exposure
By the respective sanctioning authorities

within their Delegated Powers.
EXISTING BORROWER
2. Renewal

3.
Granting of additional/ enhancement / By the respective sanctioning authorities

adhoc facilities
4.

restructuring
with
additional
fresh
exposure)
Rating grade of the borrower.

HLCC-ED/CAC/MCB.
*In case CIBIL reports reflect defaults on account of credit card transactions only, the
sanctioning authority shall take their credit decisions within their Delegated powers after due
diligence and on merits of the case after verifying the reasons for default and subject to
compliance of the other policy guidelines of the Bank. Process notes should also mention the
justifications for approval of such proposals.
Page 32 of 108
5.A.23 DELEGATED POWERS FOR SANCTION OF CREDIT FACILITIES IN TERMS OF

CONSUMER CIBIL SCORE
The Delegated Powers for sanction of credit facilities in terms of Consumer CIBIL Score are
as under:
SN
1.
2.
PARTICULARS
DELEGATED POWERS
Delegated Powers for sanction of The respective sanctioning authority can consider
credit facilities to Borrowers
the credit proposals within their Delegated Powers
whose Consumer Score (both TU
to the borrowers having acceptable CIBIL Score.
and PL) is equal to or above the
acceptable Consumer Score
Delegated Powers for sanction of The respective sanctioning authority can consider
credit facilities to Borrowers
the credit proposals within their Delegated Powers
whose Consumer Score
is
in case of borrower/ Sole Proprietor/
below
the
acceptable
Partner/Promoter
Director
/Directors/
Consumer Score on account of
Guarantors having acceptable TransUnion
other than the credit card
Score (TU) even if Personal Loan (PL) Score is
defaults
below the acceptable Score.
The Branch Incumbent and RLCC-RH shall
consider the proposal after obtaining prior
permission (by sending Process Note) from the
next higher sanctioning authority in case the
TransUnion (TU) Score of a borrower/ Sole
Proprietor/
Partner/Promoter
Director
/Directors/ Guarantors is below the acceptable
Consumer Score. RLCC-RH and HLCC-ED shall
examine such cases on merits before giving their
permission to the branches and RLCC-RH
respectively for taking credit exposure.
However, HLCC-ED /CAC / MCB, can consider
the proposal within their respective Delegated
Powers irrespective of the Consumer Score.
Renewal/Review(without enhancement)
3.
At the time of renewal / review of the

account(without enhancement), if CIBIL Score of
the consumer / borrower is close to / less than the
score being treated as safe / less risk prone,
respective sanctioning authority can renew /
review (without enhancement) the account.
Delegated Powers for sanction of The respective sanctioning authority can consider the
credit facilities to Borrowers credit proposals within their Delegated Powers based
whose Consumer Score (either on the merits of the proposal and after undertaking
TU or PL) is -1(minus 1)
proper due diligence.
The Delegated Powers for sanction of credit facilities to borrowers where borrowers account is
Standard Restructured/ Non Performing Asset (NPA) /adjusted under Compromise/ Settlement
Page 33 of 108
with our Bank/other banks/Financial Institutions shall be as per the guidelines for Standard
Restructured/ Non Performing Asset (NPA) /adjusted under Compromise/ Settlement with our
Bank/other banks/Financial Institutions.
5.A.24 SANCTION OF FRESH CREDIT FACILITIES TO EX-CLIENTS OF OUR
BANK/CLIENTS OF OTHER BANKS WHO HAD ADJUSTED THEIR ACCOUNTS
UNDER COMPROMISE/ SETTLEMENT NEGOTIATED
The Board of Directors vide BR No. F-7 dated 18.8.2001 approved that the request for fresh
credit facilities by previous borrower(s) of our Bank and borrowers of other banks who have
adjusted their accounts through settlement/compromise can be considered by the Bank on the
following terms and conditions:
The Board has directed that whenever a proposal for fresh approval in a compromise
account is put up, the same be clearly indicated on the first page of the note.
Besides, copy of the last settlement proposition must be enclosed.
The aforesaid directions of the Board shall be meticulously followed while considering
fresh proposal for approval in a compromise account.
The Delegated powers for sanction of credit facilities to the borrowers who are
Ex-Clients of our Bank/Clients of other Banks who had adjusted their accounts under
compromise/settlement are as follows:
SN
Types of Exposure
NEW BORROWERS
1. Fresh Exposure
EXISTING BORROWERS
3.
Delegated Authority
CAC/MCB
Granting of additional/ enhancement / By the respective sanctioning authorities

adhoc facilities
EX-CLIENTS OF OUR BANK

The request of former clients of the Bank for sanction of fresh credit facilities, who are willing
to make good the relief suffered/ granted by the Bank while settling their previous account(s),
may be considered on merits on the following terms and conditions :
The applicant(s) had not been a willful defaulter.
The account became bad in normal course for the reasons which were beyond their
control.
Intention of the borrower is good.
Rebate was in respect of interest portion only.
The applicants agree to make good the sacrifice (on account of settlement/
compromise ) made by the Bank along with interest at agreed rate of interest (on
simple basis) as a pre-condition.
Page 34 of 108
CLIENTS OF OTHER BANKS

Clients of other Banks who had adjusted their accounts with their previous bankers
under a Compromise/Settlement may also apply for sanction of credit facilities.
Their request may also be considered on merits provided that they had liquidated their
dues in those banks.
The applicant(s) had not been a willful defaulter.
The account became bad in normal course for the reasons which were beyond their
control.
The above provision now enables the Bank to sanction credit facilities in genuine
cases, to all types of borrowers, including Non Industrial Units, on merits, after
critical examination of their financial papers, who have adjusted their previous
account(s) through settlement by availing certain concessions.
5.A.25 SANCTION OF FRESH CREDIT FACILITIES TO THE BORROWERS WHOSE
SISTER/ALLIED CONCERNS ARE EX-CLIENTS OF OUR BANK/CLIENTS OF
OTHER BANKS WHO HAD ADJUSTED THEIR ACCOUNTS UNDER
COMPROMISE/ SETTLEMENT
The Delegated powers for sanction of credit facilities to the borrowers whose sister/allied
concerns are Ex-Clients of our Bank/Clients of other Banks who had adjusted their accounts
under compromise/settlement are as follows:
SN
Types of Exposure
NEW BORROWERS
1. Fresh Exposure
EXISTING BORROWERS
Delegated Authority
Respective sanctioning authorities within their
delegated powers. For Field Functionaries, prior
approval of NBG at Head Office is required
irrespective of the amount of exposure.
By the respective sanctioning authorities within
3.
Granting of additional/
By the respective sanctioning authorities within
5B. DELEGATED POWERS RELATED TO GROUP BORROWERS
5.B.1 DELEGATED POWERS OF CAC FOR GROUP ACCOUNTS HAVING LIMITS

UNDER MCB POWERS
In case of fresh/review/renewal/enhancement of limits in group/allied/sister concerns of
borrowers enjoying credit limits sanctioned by the Management Committee of the Board,
the Delegated powers of CAC in such cases to expedite the sanctioning of relatively lower
credit facilities to group / allied / sister concern borrowers is as under:
(Amount in ` Crore)
PARTICULARS
CAC
Limit to group concern of borrower enjoying facility
250
under MCB powers
(`250 Crore per Borrower subject to
group exposure within RBI prescribed
Ceiling limit for a Single Group)
Page 35 of 108
Such fresh/review/renewal/enhancement of limits sanctioned by CAC shall be reported to

the Management Committee of the Board in the next meeting.
5.B.2 DELEGATED POWERS OF HLCC-ED FOR GROUP ACCOUNTS HAVING LIMITS

UNDER CAC POWERS
In case of fresh/review/renewal/enhancement of limits in group/allied/sister concerns of
borrowers enjoying credit limits sanctioned by the Credit Approval Committee (CAC), the
Delegated powers of HLCC-ED in such cases to expedite the sanctioning of relatively lower
credit facilities to group / allied / sister concern borrowers is as under:
(Amount in ` Crore)
Particulars
HLCC-ED
Limit to group concern of borrower enjoying facility
75
under CAC powers
(Subject to group exposure
exceeding `150 Crore)
not
Such fresh/review/renewal/enhancement of limits sanctioned by HLCC-ED shall be reported to

CAC in the next meeting.
5.B.3 DELEGATED POWERS OF RLCC-RH FOR SANCTION OF CREDIT
FACILITIES TO GROUP ACCOUNTS HAVING LIMITS UNDER HO POWERS
The Delegated powers for sanction of credit facilities to different borrowal accounts belonging
to one group are to be exercised by one single authority under whose Delegated powers the
same falls. Hence, the Delegated powers of RLCC-RH for sanction of credit facilities to group
concerns having sanctioned facilities under HO powers have been withdrawn.
However, limitation on sanction of credit facilities to group concerns shall not be applicable for
those facilities (such as loan against Banks own Deposit, Retail Loans viz. Housing Loan,
Vehicle Loan, and Education Loan, Personal Loan) for which Delegated powers have been
stipulated over and above the maximum exposure ceiling fixed.
5.B.4 DELEGATED POWERS OF BRANCH INCUMBENTS FOR LENDING TO
MORE THAN ONE ACCOUNT OF THE SAME GROUP
The Delegated Powers of Branch Incumbents for lending to more than one account of the
same group are as under.
The Branch Incumbents can consider maximum of three (3) loan proposals of the same
group for fresh / enhancement / adhoc sanction / review within their Delegated powers. The
above said ceiling shall not be applicable to credit proposals sanctioned under Retail Credit
Schemes that are over & above the normal Delegated Powers.
The aggregate of these three accounts shall not exceed the overall Delegated Powers for
Branch Incumbents.
The loan proposals having more than three loan accounts of the same group shall be sent
to next higher authority for fresh / enhancement / adhoc sanction / review proposal.
However, limitation on sanction of credit facilities to group concerns shall not be applicable
for those facilities for which Delegated powers have been stipulated over and above the
maximum exposure ceiling fixed. However, updated circulars issued by HO for granting
such facilities shall be referred to before exercising Delegated power.
Page 36 of 108
5.B.5 TWO OR MORE GROUP FIRMS AVAILING CREDIT FACILITIES FROM TWO
OR MORE DIFFERENT REGIONS
If two group concerns seek credit facilities from branches falling under different Regions,
the sanctioning authority at respective Regions may sanction credit limits in the individual
accounts of the group within the Delegated powers vested with the respective sanctioning
authority after confirming that aggregate group exposure of all the individual accounts in all
the Regions taken together shall not exceed the Delegated powers for group exposure as
applicable to the RLCC-RH in the highest scale from amongst the Regional Heads.
In such cases, Branch Incumbents shall not exercise their Delegated powers except for
permissible Adhoc facilities.
The Regions concerned shall exchange all information on the status of the Group accounts
at quarterly intervals and early if any account turns irregular.
5.B.6 TWO OR MORE GROUP FIRMS AVAILING CREDIT FACILITIES AT TWO OR
MORE BRANCHES IN THE SAME REGION
Under normal circumstances, all accounts of Group shall be sanctioned credit facilities from
one Branch only for effective control and monitoring. However, Regional Head may permit
operations at a branch other than the parent branch, if there are justified reasons for the
same.
Page 37 of 108
5C. DELEGATED POWERS RELATED TO MARGIN

5.C.1. PRESCRIBED MINIMUM MARGINS TO BE MAINTAINED ON DIFFERENT
TYPES OF SECURITIES AND DELEGATED POWERS FOR REDUCTION IN
MARGIN
TYPE OF SECURITY
Plant & Machinery (New)
Hypothecation / pledge of stocks (Marketable) / Packing Credit / New
Furniture & Fixtures
Land and for the construction of building :
PRESCRIBED
MARGIN
25%
a) Purchase of land for industrial use (Industrial Borrower)

b) Purchase of land for Non-industrial use (Non-Industrial Borrower)
c) For construction of building (Industrial Borrower/ Non-Industrial
Borrower)
Equity shares, Preference shares/bonds/debentures, Units of UTI, Units of
Mutual Fund
(Margin to be maintained on the latest prevailing market value in case of
shares and on NAV or MV whichever is lower in case of mutual fund units
as per latest RBI guidelines issued from time to time)
NSCs, KVPs, Government Securities, Bonds issued by Public Sector
Undertakings, (on the face value)
Relief Bonds issued by the Government of India
Life Insurance Policies issued by LIC (Surrender Value)
Bima Nivesh Policy issued by LIC(On face value of the Policy)
Advance against Banks own deposit:
Advance to self
Advance to third party

Resident Foreign Currency Deposit (RFC) accounts
In case of Vehicles (tractors & trucks) advances covered under Priority
Sector(Chassis in case of trucks, bus)
Advances for vehicles including car(other than Priority Sector)
Chassis Body(Commercial Vehicles if applicable)
Book debts
Hire purchase documents (on the amount advanced or the cost of asset,
whichever is lower)
Second hand vehicles, car, plant & machinery(On the market value as
estimated and certified by Government approved Valuer / Architect)*
Advance to builders(Real Estate Development Projects)
Note: Margins for other facilities not covered here in above shall be governed by
policies / guidelines / schemes.
25%
25%
50%
25%
50%
30%
15%
10%
25%
5-10%
15%
10%
15%
25%
40%
25%
25%
40%
40%
respective
* Residual life of such item shall also be certified by the government approved valuer /
architect.
Page 38 of 108
5.C.2. DELEGATED POWERS FOR REDUCTION IN MARGIN

A. Cases falling under the Delegated powers of the MCB (Management Committee of
the Board)
Amendments in terms and conditions including reduction in margin in the credit facilities
approved by the MCB shall be permitted by the MCB only except:
In case of accounts under Consortium Banking arrangement(where our Bank is not a
Lead Bank) where specific powers have been given to RLCC-RH for amendments in
Head Office sanctioned terms
Specific powers given to CAC to allow concession in Rate of Interest
Specific powers given to CAC to allow concession in Service Charges
Specific powers given to RLCC-RH to refund excess Interest /Commission /Discount
/Penal Interest in case of mistake/computer error pertaining to current Financial Year
B. Non MCB Cases falling under the Delegated powers of CAC/HLCC-ED
The respective sanctioning authority at Head Office (other than those under the powers of
MCB) shall be the competent authority for permitting reduction in margin for all other
cases falling under the powers of CAC/HLCC-ED.
C. Cases falling under the Delegated powers of RLCC-RH /Branches
The RLCC-RH shall be authorized to reduce margins in cases falling under their powers
as well as under powers of Branch Incumbents on a case-to-case basis based on the
value of the account as per the discretion below. The reasons for permitting reduction in
margin, if any, shall be duly documented in the process note. However, in cases where
RBI issues guidelines for maintaining minimum margin on specified securities /
commodities, the minimum margin as stipulated by RBI should always be maintained
Normal
margin
prescribed
TYPE OF SECURITY FOR THE CREDIT FACILITIES
Lower Margin
upto which
reduction may
be permitted by
RLCC-RH
Plant & Machinery (New)/Stock/Book Debts

(in case of existing borrowers with rating OBC 1,2,3 only)
25%
20%
NSCs/KVPs/ Government Securities/ BONDs issued

Public Sector Undertakings, (on the face value)
30%
10%
15%
10%
Relief Bonds issued by the Government of India
by
For any further reduction not covered above, the case shall be referred to the HLCC-ED for
approval.
Page 39 of 108
D. Term Loans against Second Hand Vehicles, Second Hand Car, Second Hand Plant
& Machinery.
The Branches shall have no power to reduce margin in such cases.
The RLCC-RH shall have authority to reduce the margin upto 25% on case to case
basis for cases falling under delegated powers of ROs / Branches.
For any further reduction, the case shall be referred to the HLCC-EDfor approval.
For proposals under Head Office powers, respective sanctioning authority at HO
shall have delegated powers for reduction in margin on case to case basis upto 25%.
E. Margin In Case of Specific Borrowal / Retail Schemes
In case of specific borrowal / retail schemes approved by Head Office, margin
stipulated as per the scheme shall be obtained. The Delegated Powers to reduce
margin in case of schematic lending shall be as per the respective scheme.
F. Margin on Advance Against Banks Own Deposit
The Delegated Powers to reduce margin in case of advances against Banks own
Deposit are as under:
SN
LOAN AGAINST
PRESCRIBED
MARGIN
1.
Self-Deposit
with
residual
maturity of less than 6 months
5%
2.
10%
Self-Deposits with residual

maturity of 6 months & Above
3.
15%
Third Party Deposit
DELEGATED AUTHORITY FOR

PERMITTING RELAXATION IN
MARGIN
RLCC-RH
HLCC-ED
No
Powers
to
reduce margin
From Prescribed From
Margin of 10% to Prescribed
5%
Margin to NIL
From Prescribed Margin
Margin of 15% to
5%
G. Margin on Advance Against Mutual Funds

The margins in case of advance against Mutual Funds are as under:
Equity oriented mutual funds -50%
Debt oriented mutual funds - 30%*
* HLCC-ED has been empowered to relax the margin upto 25% based on merits of the case.
(As per RBI guidelines, Advances against units of mutual funds (except units of exclusively
debt oriented mutual funds) would attract the quantum and margin requirements as are
applicable to advances against shares and debentures. However, the quantum and margin
requirement for loans/ advances to individuals against units of exclusively debt-oriented mutual
funds may be decided by individual banks themselves in accordance with their loan policy.)
Page 40 of 108
5.D.
DELEGATED POWERS
INDUSTRIES/SECTORS
UNDER
THRUST
GENERAL
AND
RESTRICTED
5.D.1. THRESHOLD INTERNAL CREDIT RISK RATING FOR NEW BORROWERS

AND ADDITIONAL EXPOSURE TO EXISTING BORROWERS
The threshold internal Credit Risk Rating for New Borrowers and additional Exposure to
Existing Borrowers is as under:
Particular
Thrust/General/Restricted areas of Lending
Threshold Rating
OBC 1 to 6
Education Loan (upto `7.50 Lacs)
OBC 1 to OBC 10
Take over accounts (General & Thrust)
OBC 1 to OBC 5
Take over accounts (Restricted)
OBC 1 to OBC 3
Bridge Loan to companies (other than NBFC)
OBC 1 to OBC 3
Against Public Issue of Equity as also against the expected

proceeds of Non-Convertible Debentures, External Commercial
Borrowings, Global Depository Receipts and/or funds in the nature
of Foreign Direct Investments.
Line of Credit
External Credit Rating

The facility shall be permitted only to PSUs and blue chip AAA/AA/A or equivalent
companies falling under the powers of HLCC-ED / CAC / MCB. short term rating or
However, CAC / MCB shall be authorized to permit relaxation in internal rating OBC 1
and OBC 2
credit rating on case to case basis.
Branch Incumbents and RLCC-RH can consider the credit proposals of the borrowers
having Internal Credit Risk Rating upto OBC 6 (i.e., OBC 1 to OBC 6).
The credit proposals of the borrowers having Internal Credit Risk Rating below OBC
6(i.e., OBC 7, 8, 9 and 10) shall be considered by next sanctioning authority. In cases
where external rating of the borrower is C & D, the powers for sanction of fresh and
additional facility will vest with next higher authority.
However, HLCC-ED/CAC/MCB can consider the credit proposals irrespective of the

Internal/External Credit Risk Rating of the Borrower.
In case of takeover of accounts, guidelines stipulated as per takeover policy shall be

complied with.
5.D.2. AUTHORITY TO PERMIT

DIFFERENT INDUSTRIES
DEVIATIONS
IN
EXPOSURE
CAP
FOR
Any deviation to the stipulated cap for industries/sectors as per Loan policy may be permitted
by Board of Directors.
5.D.3. CREDIT FACILITIES APPROVED BY MANAGEMENT COMMITTEE
AUTHORITY TO PERMIT AMENDMENTS
Amendments in terms and conditions including reduction in margin in the credit facilities
approved by the MCB shall be permitted by the MCB only except:
Page 41 of 108

/Penal Interest in case of mistake/computer error pertaining to current Financial Year
5.D.4. CHANGE IN COLLATERAL SECURITY
Change in collateral security in cases approved by MCB shall be done by the Management
Committee of Board and for other cases; the matter shall be referred to the respective
sanctioning authorities.
Page 42 of 108
5.E. DELEGATED POWERS RELATED TO SECURITY

5.E.1. CREDIT FACILITIES TO BORROWERS SECURED BY IMMOVABLE
PROPERTY AS COLLATERAL SECURITY OWNED BY THIRD PARTY
No such credit facility shall be sanctioned by Branch Incumbent under his or her
Delegated powers without obtaining such prior approval from the RLCC-RH. In such
cases, Branch Incumbent shall obtain prior approval of the RLCC-RH before accepting
Immovable collateral securities belonging to third parties (other than close relatives
of borrower) for fresh sanction / enhancement of credit facilities.
The obtention of Immovable Collateral belonging to the following shall not be treated as
Third party collateral:
Credit facilities sanctioned to
Close Relative* belonging to the following can be

taken as Collateral Security
Proprietorship Concern
Proprietor / Close relative* of Proprietor of the Firm
Partnership Concern
Partners / Close relative* of the Partners of the Firm
Private Limited Company

Directors / Close relative* of the directors of the company
Limited Company
* Close Relative means
1. Spouse
2. Father
3. Mother (including Step Mother)
4. Son (including Step Son)
5. Sons wife
6. Daughter (including Step Daughter)
7. Daughters husband
8. Brother (including Step Brother)
9. Brothers wife
10. Sister (including Step Sister)
11. Sisters husband
12. Brother (including Step-Brother) of the spouse
13. Sister (including Step Sister) of the spouse
14. Father/Mother of the Spouse
In existing cases sanctioned by Branch Incumbents where third party collaterals have
been obtained, the properties should be visited and it shall be ensured that the mortgage
of property and intent given by the owner to mortgage his/her property is genuine. Visit
Report to be kept on record at the time of renewal / review of such cases, Branch
Incumbents shall obtain prior approval of RH.
Page 43 of 108
5.E.2. LOAN AGAINST NEGATIVE LIEN OVER PROPERTY

In case of immovable property obtained as collateral security by the Bank for securing credit
facilities, where the mortgage cannot be created, the Bank may consider charge on such
security by way of negative lien. However, the value of such securities shall not be reckoned
for arriving at credit decisions or for taking into account secured / unsecured categorization for
the purpose of Delegated Powers.
Page 44 of 108
5.F. DELEGATED POWERS RELATED TO OPERATIONAL ASPECTS

5.F.1. MAINTENANCE OF BORROWAL ACCOUNT IN MORE THAN ONE BRANCH
AND
ALLOCATION /FIXING
OF
SUB-LIMITS
OF BORROWERS
MAINTAINING ACCOUNTS AT MORE THAN ONE BRANCH
In order to ensure proper follow up and monitoring, the credit facility accounts of a
particular borrower should be maintained in a single branch at a particular station/city and
they should not be allowed to be operated from different branches simultaneously.
The only exception to be allowed is in cases where the borrower is having its units/offices
in more than one city/center and has made a justifiable request for sub-limit at a center
other than the main center. This aspect should be examined by the Regional Office from
case to case basis and the sub-limit should be approved in the following manner.
a) In case of credit limits sanctioned by RLCC-RH/Branch, allocation of the sub-limit may be
done by the respective RLCC-RH sanctioning the limit/under whose Region the Branch
(where the principal limit is sanctioned) falls.
b) In case of credit limits sanctioned by Head Office, allocation of the sub-limit shall be done
by the Regional Head of the Branch where the principal facilities are being availed. This
will also apply in cases where the sub-limits have to be allocated at a branch of a different
Region.
c) In no circumstances, the branch level functionaries will allow availment of sub-limit at any
different branch.
In addition to the above guidelines, the Branches/Regional Offices should ensure that:
a) The statement of accounts of the borrower for the allotted sub-limit is sent periodically to
the main Branch Office where the principal account is maintained on monthly basis.
b) DP is regularly intimated by the parent branch to the branch where sub-limit is to be
availed.
c) All terms and conditions pertaining to the operation of the account as stipulated by the
sanctioning authority/applicable as per general guidelines of the bank should be complied
with by the branch where the sub-limit is allocated.
d) Any adverse or special feature of the borrowers account at the branch where the sublimit
is allocated is intimated promptly to the parent branch from where the main facility has
been obtained.
e) In case principal limits are availed at a Large Corporate Branch (LCB), the allocation of
sub-limit shall be done by General Manager (Large Corporate) at HO.
5.F.2. TRANSFER OF CREDIT FACILITIES (OTHER THAN LOANS TO STAFF
MEMBERS) FROM ONE BRANCH TO OTHER BRANCH
1. Within Region- Regional Head
2. Outside the Region: General Manager of respective credit verticals.
In cases of group/allied accounts, it is required that all the firms/concerns/units of a
particular group/allied concern should maintain their borrowal accounts in one branch
Page 45 of 108
only to ensure proper follow up/scrutiny of the various accounts of the group as a whole.
The Regional Heads should periodically review the position of all borrowal accounts at
their end falling under their respective jurisdiction and ensure compliance.
5.F.3. APPROVAL FOR ALLOWING THE BORROWER TO OPEN / CONTINUE A
CURRENT ACCOUNT WITH OTHER BRANCHES OF THE BANK OR OTHER
BANKS
This facility, for the purpose of collection of cheques, taxes / customs duty / excise duty
payments, remittances (other than consortium / multiple financing), can be accorded by the
Regional Heads and wherever the limits are sanctioned by Head Office, such approval can
also be given by Regional Heads subject to the said account being a Standard Asset and
submission / scrutiny of the statement of account on quarterly basis.
5.F.4. PERMITTING THE BORROWER TO
FUNDS OF BORROWER
INVEST SHORT-TERM SURPLUS
The Delegated Power has been vested with RLCC-RH (in cases falling under RO/ Branch
powers) and the respective sanctioning authority at HO (in cases falling under HO powers) to
permit the borrower to invest their short-term/temporary surplus in short-term money market
instruments like Commercial Paper (CP), Certificates of Deposit (CD) and in Term Deposit with
other banks.
5.F.5. FIXATION OF SINGLE PARTY LIABILITY FOR BILLS DISCOUNTING
FACILITY SANCTIONED
While fixing the single party liability, care shall be taken to ensure that the bills are drawn as far
as possible on more drawees and concentration on a few drawees is minimised. The single
party liability shall be fixed taking into account the distribution pattern of the borrower between
its customers.
A. CASES SANCTIONED BY HEAD OFFICE
The Regional Heads shall be authorized to fix the single party liability for the Bills Discounting
facility sanctioned by Head Office. The single party liability shall be fixed by the Regional Head
in consultation with the branches.
B. CASES SANCTIONED BY REGIONAL OFFICE AND BRANCHES
The Regional Heads shall be authorized to fix the single party liability for the Bills Discounting
facility sanctioned by Regional Office/Branches.
5.F.6. DELEGATED
POWERS
INTERCHANGEABILITY
FOR
PERMITTING
SUB-LIMITS/
The respective sanctioning authority can permit the following interchangeability/sub-limits:

Approving sublimit of LC facility by earmarking sanctioned Term Loan for purchase / import
of capital equipment.
Conversion of CC Limits to LC, if LC is sanctioned for purchase of raw material/
consumables/ spares but not vice versa.
Page 46 of 108
Permitting conversion of CC Limits to BG limits to the extent of 15% of the sanctioned CC

limits but not vice versa, if BG facility is for procurement of raw material consumables/
spares.
Permitting interchangeability between CC / PC limits and CC / WCDL limits.
In case credit proposals sanctioned by Head Office, RLCC-RH can allow the above said
interchangeability/sub-limits.
5.F.7. RLCC-RH EMPOWERED TO OPEN FRESH LC FOR THE EQUIVALENT AMOUNT
DEPOSITED BY THE BORROWER FOR DEVOLVED LC AMOUNT IN CASES
FALLING UNDER DELEGATED POWERS OF HEAD OFFICE POWER
With a view to have operational convenience and to enable holding on operations, the
following authorities are empowered to allow fresh opening of LCs for cases sanctioned by
the Head Office:
RLCC-RH is empowered to permit opening of Fresh LC (for working capital purpose)
equivalent to the amount deposited by the Borrower.
HLCC-ED is empowered to permit such facility in case of Large Corporate Branches
(LCBs).
The Delegated authority exercising the above powers shall report the same to the Head
Office for information.
Issuance of further Bank Guarantees, for the equivalent amount deposited by the Borrower
for invoked Bank Guarantee shall be permitted only as per the following delegated powers:
RLCC-RH for all cases falling under branch/Regional Office powers
HLCC-ED for cases under HO powers
Page 47 of 108
5. G. DELEGATED POWERS RELATED TO SMA and NPA

5.G.1. ENHANCEMENT IN EAS / SMA ACCOUNTS
No additional facility shall be allowed by Branch Incumbent /RLCC-RH for accounts falling
under their respective powers so long as any account continues to be irregular i.e. under
EAS/SMA and such powers shall be vested with the next higher sanctioning authority. The
Delegated Powers of the Functionaries at Head Office shall continue as hitherto.
5.G.2. GUIDELINES REGARDING SANCTION TO SMA 2 BORROWER UNDER
MULTIPLE BANKING ARRANGEMENT / CONSORTIUM ARRANGEMENT / JLA
No Field Functionaries shall have the power to sanction exposure to a new borrower who is
classified as SMA-2 by any Banks / NBFCs / other Institutions. However, HLCCED/CAC/MCB can sanction to such borrower within their respective delegated power.
In case of existing borrower who is classified as SMA 2 by our Bank / any other Banks /
NBFCs / other Institutions, additional exposure can be sanctioned by respective
sanctioning authority as per Corrective Action Plan.
In case of existing borrower who is classified as SMA 2 by our Bank / any other Banks /
NBFCs / other Institutions and does not fall under Corrective Action Plan, additional
exposure can be sanctioned by next higher sanctioning authority for Branch Incumbent &
RLCC-RH. However, HLCC-ED/CAC/MCB can sanction to such borrower within their
respective delegated power.
5.H.OTHER GENERAL GUIDELINES
1. Co-acceptance of Bills limit / clean LC limit can be permitted only by RLCC-RH and Head
Office functionaries.
2. Book debt facilities are to be allowed only against those book debts for which borrowers
have not availed bills purchased / discounted limits and as far as possible, book debts
should be spread over a reasonably good number of parties.
3. The Delegated authority for considering advance by way of purchase of Bankers cheque /
pay order / draft issued by Co-operative banks including State Co-Operative Bank shall be
minimum HLCC-ED. The Delegated Powers of the various authorities are as under:
Amount(` in Crore)
Delegated Powers
HLCC-ED
CAC
MCB
75
250
Full Powers
4. Branch Incumbents in Scale I and Scale II shall not exercise powers for allowing Overdraft
against duty drawback and cash incentives.
Page 48 of 108
CHAPTER 6
DELEGATED POWERS FOR VARIOUS TYPES OF CONSTITUENT BORROWERS
6.1. EXPOSURE LIMITS TO VARIOUS TYPES OF CONSTITUENT BORROWERS
(Amount in ` Crore)
Maximum credit Maximum credit
exposure limit
exposure limit
Type of Constitution of the Borrower
to borrowers
to Real Estate
other than Real
Borrowers
Estate
Individual borrowers for personal loans for Non-business
5
5
purpose (Other than schematic loans) on secured basis
only
Sole proprietary concerns, HUF*
50
30
Partnership firms/ Trusts/ Regd. Societies / Associations/
100
50
Limited Liability Partnership (LLP)
Private Ltd. Co. (which is not a subsidiary or holding
company of a Public Ltd. Co.)/ Closely held Public
400
200
Ltd. Co.
Closely Held Public Limited Company owned by
1000
250
Central / State Govt.
Widely held Public Ltd Company / Statutory Bodies 15% of Capital
400
/Private Ltd. Company (which is a subsidiary or holding Funds of the
company of a widely held Public Ltd. Company)
Bank as on the
date
of
last
Audited Balance
sheet
*No fresh exposure shall be extended by the Bank to HUF entities or Partnership entities
where HUF is a partner. As regards Banks existing exposure, the Bank shall endeavour to
progressively exit from such exposures or alternatively get the partnership reconstituted for
ensuring that HUF is not a partner.
CAC/ MCB shall be competent authority to relax the above norms on case to case basis
No loans to be granted to partnership / proprietorship concerns against the primary
security of shares and debentures
6.2. ADVANCES TO TRUST
Branch Incumbents shall have no Delegated powers for advances to Trust.
RLCC-RH shall have authority to permit advances to Trusts for cases falling under
Regional Office/ Branch powers.
For proposals under Head Office powers, the respective sanctioning authority shall
exercise their Delegated powers for advances to trusts.
However, permission shall be obtained from Commissioner of Charity (in states where
this office exists) for sanction of facilities / charging or alienation of property of the Trust.
Page 49 of 108
Keeping in view, the risks associated with lending to trusts on account of legal implications
involved in mortgaging the property of the Trust and limitation in realisability of the property,
comfort should not be derived from the securities offered while sanctioning credit facilities
to Trusts. The viability of the project and cash flows of the Trust are to be relied upon while
considering any advance to a Trust.
Trust Constitution and restrictions placed in the Trust Deed should be perused carefully
before taking a credit decision.
Credit facilities to a partnership firm, where a Trust is a partner, should normally not be
considered to avoid inherent risk of being a party, knowingly or unknowingly, to a breach of
Trust by the Trustees. The authorised persons of the Trust need to sign the documents on
behalf of the Trust as a partner. The constitutional documents of a Trust should be checked
to verify if the Trust can become a partner of a partnership firm and certified true copy of
requisite resolutions should be procured in relation to execution of documents, charging of
properties, etc. by the Trust as a partner.
Page 50 of 108
CHAPTER 7
DELEGATED POWERS FOR SPECIFIC INDUSTRIES / SEGMENTS / CATEGORY
7.1. INFRASTRUCTURE FINANCE
All proposals of infrastructure finance (including renewal/additional/enhancement proposals

in existing cases) shall be sanctioned at Head Office only.
However
Branch
Incumbents/RLCC-RH
may
consider
sanction
(including
renewal/additional/enhancement proposals in existing cases) of proposals falling under the
following category of infrastructure finance on merits, within their Delegated powers:
Construction relating to projects involving agro processing & supply of inputs to
agriculture, and
Construction for preservation and storage of processed agro products, perishable goods
such as fruits, flowers, vegetables including testing facility for quality.
RLCC-RH may consider sanction of proposal for Construction of educational institutions

and hospitals on merits within their Delegated powers. Branches will have no powers to
sanction such cases.
The respective sanctioning authorities can consider credit proposals under PMDO facility
(including infrastructure projects) within their respective Delegated Powers.
7.2. FINANCING OF SOFTWARE /IT ENTERPRISES/CALL CENTRES
All fresh/additional/ enhancement proposals for finance to Software /IT companies and call
centers shall be considered at Head Office. Such proposals shall normally be backed
by minimum of 100% collateral security; however MCB/CAC/HLCC-ED can permit
relaxation in collateral security for cases falling under their respective powers.
Renewal/review of existing credit limits can be done by the respective sanctioning

authority at Regional Office/Head Office under existing terms and conditions without
increasing the exposure.
The respective sanctioning authorities can consider Finance to Software / IT

Enterprises / Call Centres under OBLS Scheme.
7.3. FINANCE TO GEMS, DIAMONDS AND JEWELLERY SECTOR
In view of the current slowdown in the gems and Jewellery sector, all fresh/additional/
enhancement proposals for finance to gems and Jewellery sector shall be considered at
Head Office.
However, renewal of credit limits at existing level may be considered by the respective
The authority to permit facility of direct dispatch of shipping documents to importers shall be
with RLCC-RH in case of proposals falling within the powers of Regional Office and
Branches and with respective sanctioning authorities in case of proposals falling under
Head Office Powers. Branch Incumbents shall have no powers except as stated when
Page 51 of 108
Bank does not have any credit exposure as detailed in Circular No. IBD/63/2013-14/420
dated 27.07.2013 and IBD/32/14-15/211 dated 17.06.2014.
The respective sanctioning authorities can consider Finance to Gems, Diamond and
Jewellery Sector under OBLS Scheme.
7.4. DELEGATED POWERS UNDER COMMERCIAL REAL ESTATE

Lending to Commercial Real Estate shall be on very selective basis.
Branches shall have no powers to consider proposals under Commercial Real Estate.
Delegated powers for considering Commercial Real Estate proposal shall be vested with
RLCC-RH/ HLCC-ED/CAC/ MCB as per Appendix-A.
In case of Commercial Real Estate, for credit proposals above `5 Crore, prior NBG
approval from HO shall be obtained.
7.5. Finance TO SHIP BREAKING INDUSTRY
The Delegated Powers with respect to Ship Breaking industry are as follows:
DELEGATED AUTHORITY
PARTICULARS
Delegated Authority for Approval of limits RLCC-RH at Ahmedabad and Mumbai and
HLCC- ED/CAC/MCB within their respective
on yearly basis to Ship breakers
Delegated Powers.
Delegated Authority for Approval of limits RLCC-RH
on ship to ship basis within the yearly
limits set by Head Office / RLCC-RH at
Mumbai & Ahmedabad
7.6.
FINANCE TO NON BANKING FINANCE COMPANIES & RESIDUARY NON

BANKING COMPANIES (RNBC)
Branches and Regional Offices shall have no powers to consider proposals related to all
categories of NBFCs.
The Delegated powers for sanctioning of credit proposals related to all categories of
NBFCs shall be at Head Office only.
The credit proposals from NBFCs falling under the Delegated powers of HLCC-ED/CAC
/MCB can be considered by the respective authority under its delegated powers.
NBFCs having assets size of less than `50Crore can be sanctioned only by HLCC-ED/
CAC/MCB under their delegated authority.
7.7.
FINANCE TO CAPITAL MARKET
A. Advances against shares, bonds, mutual fund units to individuals, broking

entities promoted by Banks/ FIs as well as other broking entities
The delegated powers for advance against shares, bonds, mutual fund units to individuals,
broking entities promoted by Banks/ FIs as well as other broking entities shall be as per
Appendix-A.
Page 52 of 108
Branch Incumbents in Scale I, Scale II and Scale III shall have no Delegated Powers
under such category of financing.
Stock Broker includes any single stock Broking entity including its associates / inter
connected companies
No loans to be granted to partnership / proprietorship concerns against the primary security

of shares and debentures.
B. Delegated Powers For Bank Guarantees On Behalf Of Share Brokers / Commodity
Brokers.
The delegated powers for issuing of Bank Guarantees

brokers/commodity brokers shall be as per Appendix-A.
on
behalf
of
share
7.8. FINANCING FILM INDUSTRY
Sanctioning authority for financing Film Industry rests with MCB/CAC/HLCC-ED within their
Delegated powers.
7.9. FINANCING TO NON-CONVENTIONAL ENERGY SECTOR
All the proposals shall be sanctioned at Head Office within the Delegated powers of HLCCED/CAC/ MCB as applicable.
7.10. FINANCING PSU DISINVESTMENTS
Maximum Exposure for the Bank for any single disinvestment is `200 Crore subject to a
consolidated ceiling of `1000 Crore;
The tenor, margin, interest, security, repayment-schedule, shall be decided based on casespecific merits by MCB/ CAC/HLCC-ED for accounts falling upto their respective Delegated
powers.
No other official in the Bank would have such powers.
7.11. FINANCING UNDER SCHEMATIC LENDING
Branch Incumbents shall exercise Delegated powers within the Structured Schemes only
for the Category/Segment/Purpose of Credit for which specific Bank Schemes already
exist.
For meeting requirements of borrowers under such Category/Segment/Purpose beyond the

terms of the structured scheme (including renewal of existing accounts), the Delegated
powers shall be with RLCC-RH/ HLCC-ED/ CAC/ MCB only.
However, this restriction shall not apply to Loan to Traders (Retail Credit) and OBLS. The
Branch incumbents can consider Loans to Traders beyond these two schemes, as per
Loan policy guidelines.
Page 53 of 108
7.12. DELEGATED POWERS FOR GRANTING FINANCE FOR ACQUISITION OF

EQUITY IN OVERSEAS COMPANIES
The Delegated powers for sanction of this type of advance shall be at Head Office only as
follows:
(Amount in ` Crore)
SIZE OF LIMIT (in ` Crore)
DELEGATED AUTHORITY
HLCC-ED
Up to `75.00 Crore
CAC
Up to `250.00 Crore
Management Committee of the Board
Above `250.00 Crore
Page 54 of 108
CHAPTER 8
GUIDELINES FOR EXERCISE OF DELEGATED POWERS FOR VARIOUS TYPES OF
FACILITIES
8.1. DELEGATED POWERS FOR TERM LOANS
8.1.1. Composite / Integrated Assessment and Sanction of Credit Facilities to
Borrowers
In some of the cases, it has been observed that stand alone term loans are considered at
the field level without assessing the overall credit requirements of the borrowers covering
working capital requirements and Non Fund based credit requirements.
Composite / Integrated Assessment of credit facilities is essential to ensure continuity of

production and also assess availability of margin requirement to be brought in by the
Borrower both for Term Loan and Working Capital besides the financing arrangement
made for working capital/ Financial Closure for running the unit on viable lines.
Accordingly,
The field functionaries shall not consider Standalone Term Loans in case of finance to
manufacturing units.
The proposed term loan along with the future working capital requirements should be
considered only in totality by Field functionaries while determining the exposure for the
purpose of Delegated Powers. This shall be the case even if working capital limits are
not envisaged to be released immediately but on completion of project.
However, a stipulation shall invariably be made that working capital limits shall be
released only after / near completion of the project for procurement of raw material /
consumables on account of commencement of trial / commercial production.
8.1.2. In cases sanctioned by higher authority, proportionate change in installment

amount on account of lower availment / allocation of term loan/ demand loan with
no change in scope of project, Branch Incumbent may consider the same under
intimation to the sanctioning authority.
The term loan maturity profile (excluding Retail Schemes / Housing Loans) should not
generally exceed 7 years. However, RLCC-RH/HLCC-ED/CAC/MCB may permit term
loans having repayment period up to 10 years (including gestation period) on case to
case basis, where cash flow justifies such longer repayment period.
In the cases of financing for infrastructure, the term loan maturity period may go up to 15
years or more. But in case the repayment period is over 15 years, it may be considered
by the sanctioning authority on case to case basis.
However, the cases where repayment of Term Loan is beyond 7 years, the information of
such cases shall be submitted by respective Regional Offices to respective Credit
Verticals at HO which shall place the consolidated information (RO+HO cases) of all such
cases to ALCO for information.
In case of Housing Loans, maturity period may go up to 30 years.
Page 55 of 108
8.1.3. Reimbursement of Loan proceeds
As per system in vogue, payments under Term Loan are released directly to the suppliers
to ensure end use of funds. On a few occasions, the borrowers claim reimbursement of
funds after spending the amount on the project mobilized by them from allied/associate
concerns/other sources. In such cases the RLCC-RH shall have authority to permit such
reimbursement (on case to case basis) in cases sanctioned within the powers of the
MCB/CAC/HLCC-ED/RLCC-RH/Branches subject to obtention of certificate from a firm of
Chartered Accountants about the amount spent and source of finance. RLCC-RH should
also arrange for inspection of the unit to satisfy himself in this regard before permitting
reimbursement.
8.1.4. Review of Standalone Term Loans
In case there is no change in the terms and conditions of the sanction, the annual review
of Standalone Term Loan cases falling under the powers of HO/RO/Branch shall be
undertaken by the respective sanctioning authority based on the outstanding prevailing at
the time of review (for determining the Delegated Power).
In case there is any change in the terms and conditions of the sanction (including release
of Personal Guarantee, security, ceding of charge etc.) in the standalone Term Loan at
the time of review, the annual review shall be undertaken only by the original sanctioning
authority.
8.2. DELEGATED POWERS FOR UNSECURED SHORT TERM LOAN
The Bank policy guidelines for granting Unsecured Short Term Loan to Corporates to
meet their short term requirements was approved vide agenda item no. A-15 by the
Board of Directors in its meeting held on 24.08.2012. The same have been circulated to
the field functionaries vide Circular No. HO/ RMD/43/2012-13/404 dated 10.09.2012.
The proposals for sanction of Unsecured Short Term Loan to Corporates can be
considered by CAC/MCB only within their respective delegated powers for Loans &
Advances.
The proposals for sanction of Unsecured Short Term Loans to Corporates shall be placed
before the CAC/MCB only as a regular agenda item and not through Circular Resolution.
Further, all such sanctions (along with copy of the Resolution & Process note) shall be
placed before the Board in the next meeting for information.
Any relaxation in the said policy norms can be permitted by the CAC/MCB within their
Delegated Powers.
8.3.
DELEGATED POWERS FOR CORPORATE LOAN SCHEME
The revised guidelines of the Banks Corporate loan Scheme have been approved by the
Board of Directors vide Board Resolution No A-13 dated 22.06.2013. The same have
been circulated to the field functionaries vide Circular No. HO/ RMD/16/2013-14/194
dated 25.06.2013.
The Sanctioning Authority for Corporate Loan shall be restricted to Head Office only.
Page 56 of 108
The HLCC-ED, CAC, MCB can sanction Corporate Loan within their Delegated Lending
Powers.
8.4. DELEGATED POWERS FOR OPEN TERM LOAN
The Delegated Powers of RLCC-RH/HLCC-ED/CAC/MCB for sanction of Open Term

Loan shall be as per Appendix-A.
The Branch Incumbents shall not exercise any Delegated powers for open term loan.
8.5. DELEGATED POWERS FOR COMPOSITION OF CC(H) AND WCDL
The guidelines of pricing the WCDL component of Working Capital Finance at 0.50% p.a.
below the Rate (subject to a minimum of Base Rate) are applicable in those cases where
sanctioned Rate and normal applicable Rate are same.
In other cases, delegated authorities can consider concession in Rate of Interest within
their respective Delegated Powers for allowing concession in Rate of Interest.
8.6. DELEGATED POWERS FOR PLEDGE
Delegated Powers regarding pledge can be exercised in respect of un-perishable stocks:

Government Securities, Government Warehouse Receipts: LIPs (SV) and securities of
similar nature which can be validly charged and pledged to the Bank.
8.7. ADVANCE AGAINST SUPPLY BILLS

While sanctioning advance against supply bills, the same shall be accompanied with
invoices / receipted challans / inspection notes evidencing supply of goods. Power of
Attorney to be got registered in favour of Bank with the concerned department.
RLCC-RH may consider waiver of registration clause after satisfying itself about the
reasons thereof.
8.8. DELEGATED POWERS FOR BOOKING OF FOREIGN EXCHANGE FORWARD
CONTRACTS
As per RBI Guidelines, the risk arising out of booking of Forward Contracts is to be
properly mapped and as per the approved Policy, 5% of the limit fixed for the Forward
Contracts shall be taken as credit exposure. In other words, 5% of the limit sanctioned for
booking of Forward Contracts will be added to the other credit limits sanctioned in favour
of the borrower and overall credit exposure will be counted after adding the credit
exposure on account of Forward Contract limits
Hence, at the time of sanction of fresh limits / renewal of limits, the credit exposure on
account of Forward Contract Limit shall be calculated and shall be part of the exposure
limits.
In view of the above Policy, the Branches / Regional Offices should propose for sanction
of limits for booking of Forward Contracts along with other credit limits simultaneously
wherever necessary, in consultation with the borrower. These limits will be sanctioned by
the competent authority as per the Policy and will form a part of the overall credit
exposure to the borrower.
Page 57 of 108
We reiterate that no Forward Contracts can be booked without a proper sanction from the
competent authority and a copy of the sanction shall also be sent to IBD for their
information.
Branches shall be guided by Circular No. IBD/58/13-14/393 dated 18.07.2013 issued by

IBD on booking of Forward Contracts. The Policy regarding booking of these Contracts is
also circulated along with the above referred Circular. Branches are required to ensure
strict compliance to the Policy.
8.9. DELEGATED POWERS FOR CLEAN OVERDRAFTS FACILITY
The Delegated powers for Clean Overdraft shall be as per Appendix-A.
8.10. NUMBER OF PERMITTED CLEAN OVERDRAFT ACCOUNTS PER BRANCH
The number of clean OD accounts that can be considered by Branch Incumbents in Scale
I and Scale II shall be restricted to 5 accounts at a time within their Delegated Powers.
Branch Incumbents in Scale III and above can sanction 10 Clean OD accounts at a time
Clean OD can be permitted only in three accounts of a group at a point of time.
In case of exceptional circumstances and for bonafide exigencies wherever such number
of borrowers is exceeded, prior permission from the Regional Head is to be obtained
stating the reason and circumstances for exceeding the number of borrowers for clean
overdraft and the same shall be duly reported in STM 41.
The number of accounts shall not include those overdraft accounts which have been
classified as NPA or automatically generated by system.
8.10.1. Guidelines For Exercise Of Delegated Powers For Clean Overdraft Facility
The Clean Overdraft is to be permitted selectively only to current account holders

maintaining a satisfactory account for a minimum period of six months.
It is to be ensured that the facility is not permitted for funding speculative activities.
In case of Clean Overdraft, it cannot be allowed for more than 15 days at a stretch and
overall aggregate number of days when such clean overdraft facility is extended shall not
exceed 90 days during the Financial Year.
No temporary enhancement shall be allowed in respect of Clean Overdraft limits

sanctioned under RO/HO powers.
In case of overdraft limits sanctioned under Branch powers, the Branch Incumbents shall
not have any delegated authority for permitting temporary enhancement as permitted in
the loan policy of the bank for granting of adhoc limits/temporary enhancement for other
borrowal accounts.
The total amount of cash withdrawals in a single clean overdraft account shall not exceed
50% of the facilities sanctioned with maximum of `50000 during the entire tenure of the
facility.
Prior permission from Regional Office/Head Office shall be obtained before permitting any
facility beyond Delegated Powers of the field functionaries as mentioned above.
Page 58 of 108
Necessary documents/ Demand Promissory Note shall be obtained before allowing the
Clean Overdraft facility.
The facility be allowed occasionally and wherever the requirements are frequent in
nature, need based requirements of the borrower be assessed and regular working
capital limits be established.
Interest shall be recovered as applicable to Clean Overdraft facility.
8.10.2. Reporting and Monitoring System For Clean Overdraft Facility
Delegated Clean Overdraft Register shall be maintained date-wise at Branch level to

record the transactions permitted by the Branch. In addition to the same, exceptional
reports that are generated in the branch daily shall be verified by the Branch Incumbent
who shall also ensure that all the permitted clean overdraft transactions under
Branch/Regional Office/Head Office powers are entered in the clean overdraft register for
monitoring purposes.
The transactions permitted under the above policy shall be reported in STM-41/STRO-16
statements as per the system in vogue. The statement submitted by the branches shall
be scrutinized at Regional Office level and the outstanding is to be monitored to ensure
that no clean overdraft remains outstanding for a period of more than 15 days. The
statement of clean overdraft permitted by the Branches shall be put up to RLCC-RH for
information and confirmation of action, wherever necessary.
Wherever clean overdraft entries are not adjusted within the stipulated period (i.e.,
maximum 15 days), the same shall be classified and reported as EAS. In case the facility
remains unadjusted beyond one month of due date of adjustment, the account be
classified as SMA and the same shall be reported to Regional Office and Head Office
simultaneously along-with the steps taken for adjustment of the account.
8.11. DELEGATED POWERS FOR PURCHASE OF THIRD PARTY CHEQUES

WHERE REGULAR LIMIT IS TO BE FIXED
Third party cheques purchase facilities shall be considered as Unsecured Limit and all
functionaries are empowered to use the Delegated Powers of unsecured limit for such
cases. Further, delegated powers of the functionaries for purchase of Third Party Cheque
(Regular Limit) shall be as per Appendix-A.
8.11.1. Guidelines for Exercise of Delegated Powers In Respect of Purchase of Third
Party Cheques-Regular Limit
i.
The regular Limit of purchase of third party cheques is to be permitted selectively to those
account holders maintaining a satisfactory conducted current account for a minimum
period of six months or where the borrower has been sanctioned regular credit facilities
from the bank.
ii.
Need based requirements of the borrower be assessed and regular limits be set up after
proper risk assessment and also taking into consideration actual requirements based on
turnover of the business of the borrower and all other relevant factors.
iii.
Prescribed documentation of bank as advised from time to time to be obtained.
Page 59 of 108
8.12. OCCASIONAL CHEQUE PURCHASE AND WITHDRAWAL AGAINST UNCLEARED

INSTRUMENTS / CHEQUES IN CASE OF NON BORROWAL ACCOUNTS
i.
The Delegated Powers for Occasional Cheque Purchase and Withdrawal against
Uncleared Instruments / Cheques in case of non borrowal accounts shall be as per
Delegated Powers of the functionaries for Clean Overdraft as per Appendix-A.
ii.
The third party Occasional Cheque Purchase/ Withdrawal against uncleared effects shall
be permitted in select cases, where the current account has run satisfactorily for a
minimum period of six months. In case of non borrowal accounts, deviation can be
permitted by RLCC-RH, HLCC-ED, CAC and MCB within their respective Delegated
Powers.
iii.
In case cheques are dishonoured resulting in an overdraft in the account, the Delegated
powers for clean overdraft shall not be exercised in such an account till the devolved
amount is cleared by the client.
iv.
In case of Occasional Cheque Purchase and Withdrawal against Uncleared Instruments /

Cheques, documentation may not be done.
8.12.1. Guidelines for Purchase of Third Party Cheques
i.
While purchasing third party cheques, Branches shall ensure the genuineness of
underlying transactions and shall not purchase accommodation cheques and a proper
record thereof shall be maintained at the branches.
ii.
The total amount of cheque purchase drawn by a single party (drawer of cheque) shall not
exceed the maximum amount stipulated as above within the overall Delegated powers.
Individual liability register of the drawer of the cheque(s) should be maintained and posted
upto date and duly checked.
iii.
Branches should guard against kite flying operations of any kind. Cheques drawn by
allied/sister concerns and/or self-drawn cheques shall not be purchased.
iv.
Credit Reports of the drawers of cheques may be obtained from their respective bankers,
particularly for those who draw cheques for large amounts frequently.
v.
Purchase of postdated cheques is prohibited.
vi.
Cheques purchased and lodged for clearing/collection should be promptly sent for
clearing/collection. The branches shall not retain/detain the same under any understanding
with the customer for presenting the same to the drawee bank later. Violation in this regard
should be viewed strictly.
vii.
Branches should follow the accounting and other laid down procedures and closely watch
the conduct of the accounts of the borrower which leave no scope for any customer to
misuse the system in raising finance against accommodation cheques.
viii.
Amount of cheques purchased presented in clearing and received back unpaid should be
got reimbursed from the borrower without any delay.
ix.
Under no circumstances should a dishonored instrument (dishonoured for want of funds)

be again purchased.
Page 60 of 108
x.
The Delegated powers for allowing the facility shall be exercised judiciously taking into
account all the factors including the risk perception on the drawer of the instrument, value
of connection, financial position of the customer, volume and value of transactions. The
branch should ensure that purchase of cheques in the account of the customer is in
proportion to the business of the customer and the same is relevant to the borrowers
business.
xi.
In case cheques purchased in an account generally or those drawn by a particular drawer

are dishonoured frequently (for want of funds or other similar reason), continuance of the
facility shall be reviewed by the branch in consultation with the sanctioning authority.
xii.
Commission and other service charges as applicable for purchase of third party cheque
purchase shall be recovered separately in addition to the interest leviable.
8.12.2. Reporting and Monitoring System for Third Party Cheque Purchase Facility
i.
Proper Register is to be maintained at Branch level to record the transactions permitted

by the Branch under the facility of third party cheque purchase. The transactions
permitted under the above policy shall be reported in STM-41/STRO-16 statements as
per the system in vogue.
ii. In case the purchased cheque has been dishonoured and the amount has devolved on
the bank, the Branch shall report the matter to the respective Regional Office for the
amounts devolved on the Bank and outstanding as at the end of the month. The steps
taken for recovery should be outlined by the branch. This reporting shall be on monthly
basis and the Loan Audit Cell at Regional Office shall scrutinize this aspect and put up to
the Regional Head for necessary action.
iii. Wherever the purchased cheque devolves on the bank and is not adjusted on the same
date, the same shall be immediately classified and reported as EAS. In case the devolved
amount remains unadjusted beyond one month of date of purchase, the account be
classified as SMA and the same shall be reported to Regional Office and Head Office
simultaneously along-with the steps taken for adjustment of the account.
8.13. DELEGATED POWERS FOR ADVANCES AGAINST PAY ORDERS, BANK
DRAFTS, GOVT CHEQUES (EXCEPT PAY ORDERS OR DRAFTS OF
COOPERATIVE BANKS)
The Delegated Powers for advance against Pay orders, Bank Drafts and Government
Cheques (except Pay Orders or Drafts of Cooperative Banks) shall be as per Appendix-A.
The following shall be complied with by the branches:
Register be maintained on daily basis by Branch Heads duly authenticated.
System be put in place for generating control statement on weekly basis by RO.
Any deviation should appear in exceptional report also.
All the above aspects should be examined by Concurrent Auditors.
Page 61 of 108
8.14. DELEGATED POWERS FOR OPENING STANDBY LC (SBLC)

Branches shall have no powers.
RLCC-RH shall consider Branch/RO cases (including renewal) within normal Delegated
powers.
For proposals under HO powers- respective sanctioning authority shall examine such
cases.
8.15. DELEGATED POWERS FOR LINE OF CREDIT

The facility shall be permitted only to PSUs and blue chip companies which are enjoying
Credit Rating of AAA/AA/A or equivalent short term rating A1+, A1 by External Credit
Rating Agencies or internal rating OBC -1,2 falling under the powers of HLCCED/CAC/MCB. However, CAC/MCB shall be authorized to permit relaxation in credit rating
on case to case basis.
8.16. DELEGATED POWERS FOR PURCHASE/DISCOUNTING OF BILLS UNDER
LETTER OF CREDIT
The Delegated Powers of the functionaries for Purchase/ discounting of Inland/ Export bills
under Letter of Credit (DA/DP) shall be as per Appendix-A.
The exposure on account of Purchased/ discounting of Inland/ Export bills under

LC(DA/DP) shall not be over & above the normal Delegated Powers.
8.16.1. Negotiation of bills under LC (DA more than 120 days)

RLCC-RH shall have Delegated Power for permitting discounting of bills under Inland Letter
of Credit having DA period beyond 120 days subject to a maximum DA period of 180 days.
For Cases where DA period is beyond 180 days, the Sanctioning Authority shall be HLCCED.
8.16.2. Important Conditions to be complied With for Inland/ Export Bills Purchase /
Discounting under Letter of Credit
The Delegated powers for purchase / discounting of Inland / Export bills under LC issued
by other Banks is subject to the following:
The Delegated powers for purchase / discounting of Inland / Export bills under LC
issued by other banks are not over & above normal Delegated powers for loan and
advances.
Accommodation bills should not be purchased / discounted / negotiated.
The borrower must be a constituent of the Bank and all the RBI guidelines for Bills
Purchase/ Discounting under LC shall be adhered to.
The Letter of Credit issued only by reputed banks (Public Sector banks/ New & Old
Private Sector banks/ Foreign banks as approved by the Bank from time to time)
shall be considered for Bills Purchased / Discounting facilities.
Branch shall obtain confirmation for authenticity of LC from the issuing bank.
In case of bills drawn under Inland Letter of Credit (LC), confirmation shall be
obtained prior to disbursement of funds from LC opening bank that documents
drawn conform to the terms of LC and the payment will be made on due date.
Page 62 of 108
In case of Export bills drawn under Letter of Credit, disbursement of funds shall be
made only after acceptance of the bills as per terms of LC and the due date from LC
opening bank is obtained.
Branch shall also obtain confirmation that the bills/ documents drawn under LC are
in order and payment will be made on due date, both in hard copy and also
preferably through independent email confirmation.
Only after complying with all the terms and conditions, the branch shall disburse
funds under Bills Purchase/ Discounting under LC.
A regular limit shall be got approved from the respective sanctioning authority, in
case of frequent availment of this facility by the borrower.
In case of JLA /Multiple Banking Arrangement/ Consortium, the other banks shall
suitably be informed about the exposure.
For other bills under LC not covered by above, normal Delegated powers for the
respective functionaries shall be exercised but the facility shall be availed at the
designated branches only.
The Bill discounting under LC shall be subject to Inter Bank Exposure Limit fixed by
the Bank (Since such exposure would be exposure on the LC Issuing bank).
All other existing terms and conditions for purchase/ discounting of Inland/ Export
bills under Letter of Credit will continue.
Branches should be circumspect while discounting bills drawn by front finance

companies set up by large industrial groups on other group companies.
Branches should not rediscount bills earlier discounted by non-bank financial

companies (NBFCs) except in respect of bills arising from sale of light commercial
vehicles and two / three wheelers.
8.16.3. Branches Authorized For Inland/ Export Bills Purchase / Discounting Under LC
Inland Bills Purchase/ Discounting under Letter of Credit
The Delegated powers for Inland Bills purchase/ discounting under Letter of Credit shall be
exercised at the following branches only:
All Large Corporate branches
All Mid Corporate branches
All Overseas branches
All Category B branches
Export Bills Purchase/ Discounting under Letter of Credit
The Delegated powers for Export Bills purchase/ discounting under Letter of Credit of
reputed foreign banks shall be exercised at the following branches only:
All Overseas branches
All Category B branches
Page 63 of 108
Authorization of any other Branch for Bills Purchase/ Discounting under Letter of Credit
For all other branches other than above, the Regional Head may designate branches to
undertake Inland Bills purchase/ discounting under Letter of Credit on special request
received from such branches.
While designating any other branch to undertake the said business, the following points are
required to be ensured along with other points deemed relevant by RO.
Potential for the Inland Bills Purchase/ Discounting under LC in the area where the
branch is located.
Availability of adequate skilled manpower at the branch to handle such business.
Availability of adequate infrastructure (IT/SFMS) at the branch to handle such

business.
All the Regional Offices shall send the list of branches authorized by the respective
Regional Head for Bills Purchase/ Discounting under LC to the following:
For Inland Bills: Credit Administration Department & Risk Management Department,
Corporate Office, Gurgaon
For Export Bills: International Banking Division, Corporate Office, Gurgaon.
8.17. DELEGATED POWERS FOR DISCOUNTING BILLS DRAWN ON ASSOCIATE

CONCERNS
Prior specific approval of the next higher sanctioning authority shall be obtained by a
functionary before approving any bills discounting limit in respect of bills drawn by
borrowers on Associate concerns of the borrower as defined earlier. This would be
irrespective of whether the entire bills limit or only a part of the bill limit is to be utilized for
drawing bills on Associate Concerns of the Borrower.
8.18. DELEGATED POWERS TO EXTEND DUE DATE IN CASE OF EXPORT BILLS/

PACKING CREDIT
Branch Incumbents can extend the due date of Export Bills/Packing Credit within the
sanctioned tenor.
The respective sanctioning authorities can extend the due date beyond the sanctioned
tenor of Export Bills/Packing Credit with maximum permissible period as per RBI/FEMA
guidelines in cases falling under Branch/Regional Office/Head Office powers, on specific
request from the borrower/overseas buyer justifying the reasons for such extension. The
extension shall be subject to adherence to ECGC guidelines.
8.19. EXPOSURE
TO
INDIAN
JOINT
VENTURES
/
WHOLLY-OWNED
SUBSIDIARIES ABROAD AND OVERSEAS STEP-DOWN SUBSIDIARIES OF
INDIAN CORPORATES
All such proposals shall be dealt at Head Office only.
8.20. POOLED MUNICIPAL DEBT OBLIGATION FACILITY (PMDO)
The Pooled Municipal Debt Obligation Facility (PMDO) has been allocated funds of
`272.50 Crore (5.45% of total corpus of `5000.00 Crore)vide MCR No. 11 dated
27.09.2010.
Page 64 of 108
This facility intends to create an environment where Urban Local Bodies, State
Governments and other stakeholders would embark on a series of reforms to improve
credit worthiness and bank-ability of urban infrastructure projects.
PMDO would provide funds by way of term lending to Municipal Corporations, Urban Local
Bodies, Local Authorities, etc. for developing Urban Infrastructure projects across cities in
India on an integrated basis.
PMDO Facility is administered by Credit Committee of PMDO, which comprises of 11
members.
The respective sanctioning authorities can consider credit proposals under PMDO facility
(including infrastructure projects) within their respective Delegated Powers.
8.21. STRUCTURED MEZANNINE CREDIT FACILITY (SMCF)
CAC/MCB shall have power to sanction credit proposals under Structured Mezannine
Credit Facility (SMCF).
8.22. LOANS AGAINST NRE AND FCNR (B) DEPOSITS
In terms of RBI guidelines, the ceiling on loans against NRE and FCNR(B) deposits either
to depositors or to third parties have been withdrawn vide Circular No. IBD/155/12-13/826
dated 06.03.2013.
The facility shall, however, be permitted at designated branches only.
8.23. DELEGATED POWERS FOR ALLOWING ADVANCES AGAINST TERM

DEPOSITS BY THE INCUMBENTS OF EXTENSION COUNTERS
Maximum Delegated powers of `50 Lacs is vested with the incumbents of Extension
Counters for advances against Banks own domestic deposits/NRE deposits to self/third
party. However, no advance against FCNR (B) deposits shall be sanctioned by the
incumbents of Extension counters.
8.24. LOANS AGAINST CA / SB ACCOUNTS
No advance is permitted against deposits in SB/CA balances.
8.25. LOANS AGAINST NON-CURRENT ASSETS
Competent authority to grant Finance against Non-Current Assets shall be functionaries at

Head Office as per Delegated powers vested with them as per guidelines detailed in the
Loan Policy.
8.26. ISSUE OF BANK GUARANTEES IN FOREIGN CURRENCY / IMPORT LC

(Such guarantees shall be issued at category B branches / overseas branches only)
The size of the Delegated powers limit will be equivalent Indian Rupees (at the exchange
rate prevailing at the time of issue of the Guarantee). On the issue of the Foreign Bank
Guarantee, the branch / RO shall report the same to the respective Credit Vertical as well
as IBD at Head Office along with a copy of the Guarantee.
The exercise of Delegated powers for issue of Foreign Bank Guarantees shall be subject to
the compliance of the undernoted points and other Policy Guidelines: -
Page 65 of 108
All rules and regulations laid down by Reserve Bank of India/Government of India for
issue of Foreign Bank Guarantee shall be complied with.
For any fluctuations in the value of the Foreign Currency vis--vis the Indian Rupee
beyond 5% in comparison to the rate prevailing at the time of issue of the guarantee,
the shortfall in the prescribed margin shall be recovered by the branch from the
borrower. The same shall be reviewed on quarterly basis for recovery of the shortfall, if
any, in the margin obtained from the borrower.
The Incumbent Incharge should monitor exchange fluctuations on regular basis and in
case there is adverse variation of more than 10% on account of exchange fluctuation,
the borrower be asked to top up the margin or get the forward cover booked. A suitable
undertaking from the borrower in this regard should be obtained at the time of issuance
of Bank Guarantee.
Besides monitoring by the Incumbents, concurrent /regular auditors, should also monitor
the availability of margin vis--vis the foreign currency exposure and mention the same
in the inspection report to facilitate initiation of remedial measures.
In order to have operational flexibility, powers to waive additional margin (over 100% of
Rupee value) for issuance of FLC/FLG have been vested with HLCC-ED & above on
merits of each case. ECGC Counter-Guarantee/Cover wherever available shall be
obtained.
8.27. GUIDELINES TO BE ADHERED TO IN CASE OF IMPORT LCs/FOREIGN BANK
GUARANTEES OPENED/ISSUED WITH 100% CASH MARGIN
In case of opening of Import Letter of Credit/ issuance of Foreign Bank Guarantee with
100% cash margin, it shall be ensured that the forward cover for the full foreign currency
exposure amount for which Import Letter of Credit/Foreign Bank Guarantee is to be
opened/ issued is invariably obtained at the time of opening/issuance itself.
The delegated powers to Branch Incumbents/RLCC-RH for opening of Import Letter of
Credit/issuance of Foreign Bank Guarantee are subject to the obtention of the forward
cover by the borrower.
In cases where Import Letter of Credit/Foreign Bank Guarantee has been issued with 100%
cash margin, the shortfall in the margin due to Rupee depreciation should be recovered by
the Branch from the borrower on an ongoing basis whenever the Indian Rupee depreciates
beyond 5% in comparison to the rate prevailing at the time of issue of Import Letter of
Credit/Foreign Bank Guarantee. In case forward cover is not booked by borrower,
110% upfront cash margin shall be obtained.
The Branch should monitor the exchange fluctuations on regular basis to ensure top-up of
margin in case of adverse fluctuations or alternatively obtain forward cover. A suitable
undertaking from the borrower should be obtained at the time of opening of Import Letter of
Credit/issuance of Foreign Bank Guarantee.
8.28. DELEGATED POWER FOR ADVANCES AGAINST WAREHOUSE RECEIPTS
Govt. has enacted warehouse receipts as negotiable instruments in the Warehousing

(Development & Regulation) Bill in April 2011. These receipts issued by the warehouses
registered with the Warehousing Development and Regulatory Authority (WDRA) would
become a fully negotiable instrument backed by a Central legislation. The WDRA was
Page 66 of 108
setup by the Government in October 2010 to regulate and development of warehouses in

the country.
Keeping in view feedback from field functionaries and difficulties faced in complying the
Government guidelines, Credit Risk Management Committee in its 67th meeting held on
16.03.2012 reconsidered the policy and has approved that Bank may continue to finance
against the warehouse receipts issued by the warehouses of Central / State warehouse /
Warehouses of collateral Managers and Private warehouses approved by the Bank, without
on insisting WDRA registration and obtaining negotiable warehouse receipt.
The revised scheme for financing against warehouse receipts was approved vide agenda
item no A-55 by the Board of Directors dated 23.05.2012 and the same was circulated vide
HO/RD&PS/ 9 /2011-12/155 dated 07.06.2012.
All functionaries shall exercise their normal Delegated Powers.
8.29. DELEGATED POWER FOR LETTER OF CREDIT (PURCHASE OF CAPITAL

GOODS / MACHINERY)
Letters of Credit for import/purchase of machinery or capital equipment is to be considered

only when the post import obligation to meet the liability is firmly tied up depending upon
the financials of the borrower. Letter of Credit facility (Inland/ Import), for capital goods can
be considered in either of these cases:
Earmarking Term loans sanctioned by our own Bank.
Against Term loans sanctioned by other Financial Institutions provided the
concerned FI issues Letter of Comfort in favour of our bank i.e. they undertake to
remit the amount directly to the Bank to honour the obligation on or before due date
of LC.
The RLCC-RH shall be empowered for approving sublimit for LC facility / Letter of Comfort
against Buyers Credit facility by earmarking sanctioned Term Loan for purchase / import of
capital equipment.
Letter of Credit for capital goods can be considered by the RLCC-RH/ HLCC-ED/CAC
/MCB in the absence of Term loan facilities in case the respective sanctioning authority is
satisfied with the availability of funds/accrual of funds from the borrower on due date.(No
powers at the Branch Level).
Page 67 of 108
CHAPTER 9
GRANTING OF ADHOC, OVER LIMIT, OCCASIONAL CHEQUE PURCHASE &
WITHDRAWAL AGAINST UNCLEARED INSTRUMENTS / CHEQUES IN BORROWAL
ACCOUNTS
Presently, temporary requirements of the borrowers are being addressed by way of Adhoc,
Occasional Cheque Purchase and Withdrawal against Uncleared Instruments / Cheques.
To cater to requirements of short duration, a new concept of Over limit has been
introduced, where temporary overdrawings over and above the sanctioned limits can be
extended for a period not exceeding 30 days.
The Delegated Powers for granting of Adhoc, Over Limit, Occasional Cheque
Purchase & Withdrawal against Uncleared Instruments / Cheques shall be over &
above the normal Delegated Powers subject to ceiling for Adhoc/Over Limit
mentioned in the table.
9.1. DELEGATED POWERS FOR GRANTING OF ADHOC LIMITS, OVER LIMIT,

OCCASIONAL CHEQUE PURCHASE & WITHDRAWAL AGAINST UNCLEARED
INSTRUMENTS / CHEQUES
The Delegated Powers for Adhoc, Over limit, Occasional Cheque Purchase & Withdrawal
against Uncleared Instruments / Cheques for borrowal accounts all put together are as
under:
(Amount in ` Lacs)
DELEGATED
AUTHORITY
BORROWERS
DELEGATED POWERS IN CASE OF OWN SANCTION AND
SANCTION BY HIGHER/LOWER AUTHORITY
MAXIMUM %AGE OF FB WC
& NFB LIMITS
RESPECTIVELY
Over limit
Adhoc limit
(1 - 30 days)
(1 - 90 days)
MAXIMUM AMT.
Over limit
(1 - 30 days)
Adhoc limit
(1 - 90 days)
MCB
FP
FP
CAC
3000
3000
25%
20%
20%
1500
500
250
100
1500
1000
500
200
10%
10%
10%
10%
10%
10%
10%
250
100
50
15
10
10
5
500
200
100
30
20
20
10
HLCC-ED
RLCC-GM
RLCC DGM
RLCC AGM
Branch Incumbents
BI-GM
BI DGM
BI AGM
BI CM
BI-Scale III
BI-Scale II
BI-Scale I
Page 68 of 108
In case where standalone Term Loan facility has been sanctioned, Adhoc Working Capital
Facilities can be permitted as per Loan Policy except in Real Estate accounts.
In emergent cases, the Branch Incumbents may allow temporary / adhoc limit beyond their
powers after seeking approval from the respective Regional office (but within Delegated
powers of Regional Office). In such cases, they shall seek confirmation of their action from
RLCC-RH through control returns i.e. STM-41B/ STM-41C as the case may be.
It is to be noted that the delegated powers for temporary enhancement in respect of limits
sanctioned by Head Office shall not be exercised concurrently both by the branch as well
as the RLCC-RH.
Adhoc facility / Over Limit must be allowed strictly within the Delegated powers vested with
the functionary for considering Adhoc facility / Over Limit. These should be allowed
selectively and not as a matter of routine / throughout the year.
9.2. GENERAL GUIDELINES FOR GRANTING OF ADHOC LIMITS, OVER LIMIT,

OCCASIONAL CHEQUE PURCHASE & WITHDRAWAL AGAINST UNCLEARED
INSTRUMENTS / CHEQUES
The following guidelines are to be complied with in case of adhoc / temporary enhancement
allowed in those accounts where regular credit limits have been sanctioned in favour of the
party:
SN.
1.
Particulars
Purpose
Banks Guidelines
To enable the borrower to execute orders received over and
above the normal business orders not envisaged originally.
Change in the terms of trade than what was envisaged originally
at the time of regular assessment of limits.
Essential payments such as statutory dues/ electricity payments/
payments of bills under LC / invocation of bank guarantee and
other essential payments during regular course of business.
As a matter of policy, the sanction of adhoc limit / Over Limit shall
be kept to the bare minimum and to be allowed only where
circumstances / business considerations warrant.
2.
Eligibility
Criteria
Adhoc, Over limit, Occasional Cheque Purchase & Withdrawal

against Uncleared Instruments / Cheques shall be allowed
selectively to borrowers dealing with the Bank for atleast six months
and classified as Standard.
3.
Time Period for

which the facility
can
be
sanctioned
The Over limit Facility shall be granted for a period not exceeding
30 days and Adhoc facilities shall be considered for a maximum
period of 90 days at a stretch.
Extension of Adhoc beyond 90 days upto 180 days shall be
permitted by next higher authority in case of branch and
RLCC-RH sanction. HLCC-ED, CAC and MCB can exercise their
respective Delegated Powers.
Page 69 of 108
SN.
Particulars
Banks Guidelines
In case of adhoc facility in Non-Fund based limit, it shall be
ensured that aggregate outstanding of Non-Fund based facilities
is brought within the regular sanctioned limit within 90 days.
4.
Documentation
5.
Maximum
Permitted
Frequency
In case of Over limit, Occasional Cheque Purchase & Withdrawal

against Uncleared Instruments / Cheques, documentation may not
be done. However, requisite documentation shall be done in case of
adhoc facilities.
The adhoc facilities can be considered maximum 3 times a year in
a borrowal account and Over Limit facility can be considered
maximum 6 times in a year in a borrowal account. However, total
duration of adhoc allowed and Over Limit allowed put together
shall not exceed a period of more than 180 days in a year in a
borrowal account.
However, any deviation to above mentioned maximum permitted
frequency and duration shall be considered by HLCCED/CAC/MCB within their respective Delegated Powers.
6.
7.
8.
Restrictions
Adhoc/Over Limit shall not be allowed in respect of Clean Overdraft /

Clean Demand Loan (except clean overdrafts to commission agents,
clean overdraft sanctioned as working capital limit or under any other
specific scheme approved by higher authority).
Additional
Additional interest of 1% shall be charged on adhoc limit granted
Interest rate &
(except export accounts)
Process fees
150% of normal charges on the amount of Adhoc / Over Limit are
to be charged on pro-rata basis for the period for which the Adhoc
Sanction/Over limit has been permitted to the borrowers other
than exporters.
Reporting
9.
Security
10
Other
Conditions
In case of Adhoc facilities / Over Limit to exporters, normal

process fee on the amount of Adhoc / Over Limit is to be
charged on pro-rata basis.
The Branch Incumbent shall report the adhoc / Over Limit to
Regional Offices through control returns viz. STM-41 A.
The reporting system in vogue through STM-41A, 41B, 41C must
be followed.
Adequate prime security with stipulated margins must be available to
cover the adhoc facility/Over Limit i.e., over - accommodation as
above shall be allowed against available DP in Cash Credit account
or by way of purchase of cheque / discounting of bills arising out of
genuine business transactions.
Adhoc / Over limit shall be allowed within the delegated
power to the extent of percentages in respect of total Fundbased working capital limits and Non- Fund-based limit
separately within the aggregate ceiling limits.
Page 70 of 108
SN.
11
12
Particulars
Banks Guidelines
As far as possible, unit must be visited before allowing the adhoc

facility but in any case, the last unit visit should not be more than
2 months old.
Review/
Where requirements are more than 10% of the existing limit in
Renewal
case of BM sanction, 20% in case of sanction by RLCC/enhancement
RH(AGM/DGM), 25% in case of RLCC-RH(GM)or the period for
and conversion
which the adhoc is required is more than 90 days at a stretch,
of adhoc limits
sanction of additional limits or resetting of limits, within the
into
regular
Delegated powers of the sanctioning authority, may be
limits
considered under regular limit. However, the same shall be
permitted only after proper assessment of limit, justifying reasons
and amount of sanction.
In case of sanction of adhoc limits by Branch Incumbents/
RLCC-RH, the next higher authority is empowered to review
/renew/ enhance adhoc limits and permit conversion of adhoc
limits into regular limits.
Deviation
RLCC-RH can permit deviation in eligibility criteria in cases
Authority
for sanctioned by Branch Incumbents and RLCC-RH.
eligibility criteria HLCC-ED, CAC and MCB can consider deviation in eligibility criteria
within their respective Delegated Powers.
9.3. ADHOC LIMITS TO EXPORTERS

At times, exporters require adhoc limits to take care of large export orders, which were not
foreseen earlier by them. Branches should respond to such situations promptly and allow
adhoc limit to exporters to the extent of maximum 20% of Fund based / Non-fund based
limit subject to maximum amount of adhoc permitted within his Delegated powers.
Under Gold Card scheme for exporters, a need based adhoc limit upto 20% of the
in-principle limits can be extended to meet urgent credit needs on selective occasions.
Apart from this, branches should adopt a flexible approach in respect of exporters who, for
genuine reasons, are unable to bring in corresponding additional contribution in respect of
higher credit limits sought for specific orders. In such cases reduction in margin upto 10%
may be allowed by the sanctioning authority for execution of specific orders to the exporters
with good track record and whose past payments are not held up or overdue.
No additional interest is to be charged in respect of adhoc limits granted by way of preshipment / post-shipment export credit.
Page 71 of 108
CHAPTER 10
DELEGATED POWERS FOR CONCESSIONS IN RATE OF INTEREST
The following authorities have been delegated the powers for allowing concession in Rate
of Interest.
10.1. DELEGATED POWERS FOR ALLOWING CONCESSION IN RATE OF INTEREST
SN
The Delegated Powers to allow concession in Rate of Interest in respect of cases

sanctioned under the Delegated Powers of Branch Incumbent / RLCC-RH / HLCC-ED/
CAC (other than advances against Deposits /Schematic lending) are as follows:
Competent Authority
CAC
HLCC-ED
RLCC-RH
Maximum Concession in Rate of Interest that can be

permitted(other
than
advances
against
Deposits
/Schematic Lending)
Concession not exceeding 4% less than applicable rate
subject to minimum of Base Rate.
In CDR / Restructured cases ROI lower than Base Rate may
be allowed as per approved package.
Concession not exceeding 3% less than applicable rate
In CDR / Restructured cases ROI lower than Base Rate may
be allowed as per approved package.
RLCC-RH (AGM/DGM/GM) shall have the Delegated Powers
for allowing concession in respect of the following:
For Micro & Small Enterprises having Internal Credit

Risk Rating of OBC 1, 2 and 3, concession not
exceeding 0.50% less than the applicable Rate of Interest
For Medium Enterprises (covered under Priority

Sector) having Internal Credit Risk Rating of OBC 1, 2
and 3, concession not exceeding 0.25% less than the
applicable Rate of Interest subject to minimum of Base
Rate.
RLCC-RH(GM) can allow concession in Rate of Interest not

exceeding 1% less than the applicable Rate of Interest subject
to minimum of Base Rate in case of all borrowers except Micro
& Small Enterprises and Medium Enterprises (covered under
Priority sector) subject to conditions mentioned at Point No.
10.2.
The competent authority for allowing any relaxation in the Rate of Interest in any specific
account beyond the above norms shall be Management Committee of the Board.
For Retail /Specific schemes approved by Head Office, the Delegated powers for permitting
concession in Rate of Interest shall be as per the scheme.
Page 72 of 108
Wherever specific deviation is not mentioned in the schemes, the above concessions of
Delegated Powers may be utilized by the respective authority.
10.2. DELEGATED POWERS FOR PERMITTING CONCESSION IN RATE OF INTEREST

IN CASE OF ACCOUNTS HAVING INTERNAL CREDIT RISK RATING OBC 7 &
BELOW
The Delegated Powers for permitting concession in Rate of Interest in case of accounts having
Internal Credit Risk rating OBC 7 & below are as follows:
Concession in Rate of Interest in case of accounts having Internal Credit Risk Rating OBC
7 and below (i.e. OBC 7, 8, 9 & 10) shall not be considered by RLCC-RH (GM).
Concession in Rate of Interest in case of accounts having Internal Credit Risk Rating OBC
7 and below (i.e. OBC 7, 8, 9 & 10) shall be considered selectively by the competent
authorities at the Head Office within their Delegated Powers.

IN ACCOUNTS SANCTIONED UNDER THE DELEGATED POWERS OF MCB
The Delegated Powers for permitting concession in Rate of Interest in accounts sanctioned
under the Delegated Powers of MCB are as follows:
SN
Competent Authority to
allow concession
Concession in ROI
1 CAC
Not exceeding 1% less than the sanctioned rate subject

to minimum of Base Rate.
2 MCB
More than 1% subjected to a minimum of Base Rate. In

CDR / Restructured cases ROI lower than Base Rate
may be allowed as per approved package.
10.4. REVISION IN DELEGATED POWERS FOR PERMITTING CONCESSION IN RATE OF

INTEREST ON FITL/WCTL IN RESTRUCTURED CASES
As per RBI Master Circular on Interest Rate on Advances dated 01.07.2014, Rate of
Interest below Base Rate may be permitted only in case of FITL/WCTL.
For restructured accounts falling under the powers of RLCC-RH, FITL/WCTL below Base
Rate may be approved by HLCC-ED.
For cases falling under the powers of HLCC-ED/CAC/MCB, the respective sanctioning
authority may approve FITL/WCTL below Base Rate as follows:
SN
Authority which has Sanctioned

FITL/WCTL
1 RLCC-RH
Competent Authority for allowing

Concession in Rate of Interest on
FITL/WCTL
HLCC-ED
2 HLCC-ED
HLCC-ED
3 CAC / MCB
CAC / MCB
Page 73 of 108
10.5. CONCESSION IN THE RATE OF INTEREST IN CASE OF SICK VIABLE UNITS

Concession in the rate of interest may be required to be allowed in certain sick viable units
under approved rehabilitation packages in fulfillment of terms of such packages provided
such package has been drawn up on the basis of RBI parameters or BIFR order or under
CDR mechanism or RBI guidelines on Base Rate.
However, the possibility of
recompensating such sacrifices by the borrower once the unit turns around may be
explored in deserving cases.
ON
RUPEE
LOAN/ADVANCES
AGAINST
TERM
DEPOSIT
(DOMESTIC/NRE/FCNR)
The Delegated authorities for permitting concession in Rate of Interest on Rupee
Loans/Advances against Banks Own Deposit are as under:
Advances against Banks own deposit standing in the name of
Delegated
Authority
Branch
Incumbent
RLCC-RH
HLCC-ED
CAC
SELF
THIRD PARTY
Nil
Nil
Upto 0.50% less than the normal

applicable rate (Deposit rate + 1.50%
at present)
Upto 1.00% less than the normal
applicable rate (Deposit Rate + 1.50%
at present)
At par with deposit rate
Nil
Upto 1.00% less than applicable

rate subject to minimum of Base
rate.
Upto Base Rate or at par with
Deposit rate whichever is higher.
The concession in rate of interest on advances against Banks own deposit may be permitted
in exceptional circumstances for valuable clients recording the complete particulars of the
value of the account and how it would compensate the Bank for lower rate of interest.
Page 74 of 108
CHAPTER 11
DELEGATED POWERS FOR OTHER CONCESSIONS
The Delegated powers for waiver / relaxation of process fee/upfront fee/commitment

charges/ inspection charges/commission etc relating to loans and advances shall be as
under:
11.1. DETAILS OF SERVICE CHARGES WHEREIN CONCESSION CAN BE PERMITTED
Up-front fee, Process fee, Lead bank Charges, Commitment* Charges for sanction of credit
facility.
Commission, other service charges on Bank Guarantee / Letter of Credit issued
Service charges on foreign exchange transactions.
Commission / Service charges for collection / purchase of cheques / drafts / bills.
Inspection Charges
11.2. DELEGATED POWERS OF FUNCTIONARIES AT HEAD OFFICE TO ALLOW

CONCESSION IN SERVICE CHARGES
The Delegated Powers of functionaries at Head Office to allow concession in Service Charges
are as under:
S.N.
1.
For cases of Loans and Functionary

Advances falling under the Authorized to
Delegated Powers of
relaxation
MCB
Maximum extent of
allow relaxation / waiver
of
the
service
charges
MCB
100%
CAC
50%
2.
CAC
CAC
100%
3.
HLCC - ED
HLCC - ED
100%
4.
RLCC RH (GM)
HLCC - ED
100%
5.
RLCC RH (DGM / AGM)
HLCC - ED
100%
6.
Branch Incumbent
HLCC - ED
100%
* However, no refund of commitment charges already levied is to be permitted.
Page 75 of 108
11.3. DELEGATED POWERS OF FUNCTIONARIES AT REGIONAL OFFICE TO ALLOW

CONCESSION IN SERVICE CHARGES
The Delegated Powers of functionaries at Regional Office to allow concession in Service
Charges are as under:
SN
1.
2.
DELEGATED AUTHORITY
RLCC-RH (AGM/DGM/GM)
RLCC-RH(GM)
DELEGATED POWERS
The Delegated Powers for relaxation/waiver in service
charges applicable to Micro & Small Enterprises and
Medium Enterprises (covered under Priority sector) are
as follows:
Maximum extent of relaxation / waiver of 25% of

the service charge on the applicable Rate can be
permitted.
For Commission on Bank Guarantee / Letter of

Credit, relaxation / waiver of 0.25% on the
applicable Rate can be permitted.
For all other borrowers not covered under Point No.1

above:
Maximum extent of relaxation / waiver of 25% of

the service charge on the applicable rate can be
permitted.
For Commission on Bank Guarantee / Letter of

Credit, relaxation / waiver of 0.25% on the
applicable Rate can be permitted.
However, RLCC-RH (AGM/DGM) shall have no

Delegated Powers for relaxation/waiver in service
charges for all other borrowers not covered under
Point No. 1 above.
The Delegated Powers of the Field Functionaries for allowing concession in Service Charges
in case of schematic lending shall be as per the scheme.
11.4. GENERAL GUIDELINES FOR PERMITTING CONCESSIONS
Branches should not extend concessions to clients in anticipation of sanction, as the

RLCC-RH has not been delegated with authority to post facto sanction the concessions.
Extending concession to any client without sanction/in anticipation of sanction/ under

lapsed sanction/beyond the maximum ceiling stipulated in the sanction/beyond the
concession permitted in the sanction will be considered as slippage of income.
The concession should be allowed selectively after examining the merits and carrying out
the Cost Benefit Analysis of each case and not in a routine manner. The concession
allowed shall be reviewed at regular intervals on the merits of each case.
The concession should be permitted where the business value of the account is high and
/ or there is ancillary / fresh business accruing to the Bank. The conduct of the
constituents account must be satisfactory in all respects.
Page 76 of 108
The Regional Office shall record a note giving the reasons for allowing the concession
and the permission granted must be conveyed in writing to the branch.
A quantitative assessment of the benefit of deposit support for the past one-year period
should be made. Notional value of deposit should be calculated as given below:
For average current account
balance
For average Savings Bank balance
9.00% (One year Fixed Deposit Rate)

(May change from time to time.)
5.00% (Differential cost) (9.00% 4.00% =5.00%)
For average Term Deposits
0.25%
In accounts where a long-standing relationship has been established, the benefit of

deposit support for the past six months may be made.
100% of notional value assessed above be fixed as the maximum ceiling per annum for
any concession and 100% of notional value be converted into nominal terms for
assessment of concessions.
The average balance in Current account/Savings Bank account should be calculated on

the basis of weekly balances and it should not be based on monthly/quarterly balances.
The data / information about average balances should be accurate and should be
supported by a system generated resume / statement of accounts in respect of TBA
branches and a certified resume / statement in respect of other branches.
All out-of-pocket expenses actually incurred should invariably be recovered.
Normally the sanctions should be valid for one year period. However, in case of clients
having past dealings with the branch for less than a year or for new prospective clients,
the validity period of the sanction should not be more than 3 months. In such cases, the
sanction should be reviewed by the appropriate Competent Authority to sanction
concessions in the light of past dealings and renewal should be done accordingly.
Branches should submit the proposal for seeking concession in Service Charges in
duplicate as per format to the Competent Authority. The Competent Authority shall
retransmit the duplicate along with the sanction details. The office note-cum-sanction
letter shall be preserved by the branch for verification by inspecting officials.
11.5. MONITORING
In case concessions are sanctioned by the RLCC-RH / Head Office on the basis of
assured business, the branches should ensure that the stipulated business is generated
from the client. The Regional Heads should call for the details of additional business
garnered by the branches in all such cases.
If the concessions are to be extended at multiple locations, the parent branch shall
allocate and monitor branch wise sub-limits of sanction and shall ensure that the total
concession extended at all branches is within the overall limit stipulated.
Concessions sanctioned to the clients are worked out on the basis of their average
demand deposits with the Bank. Branches should review the average demand deposits
of the beneficiary clients every quarter. In case the demand deposits of these clients fall
below the level mentioned in the proposal/sanction, the concerned branches should either
Page 77 of 108
ensure inflow of the required demand deposits from the client or else should seek fresh
modification in the sanction order from the Competent Authority / Regional Office.
The cost benefit analysis shall invariably be done separately for each case and shall form
part of sanction.
11.6. REPORTING SYSTEM
Details of sanctions accorded by the RLCC-RH should be recorded properly in the

register maintained for the purpose.
Branches should maintain a separate register to record the details of concessions

proposed and allowed to the customers by the Regional Office / Head Office.
Any relaxation/waiver allowed will be reported on monthly basis to the next higher
authority incorporating the following:
a) Name of the party
b) Date and Authority of sanction of Limits
c) Nature of Limits sanctioned
d) Nature of Service Charges and normal rates applicable thereof.
e) Extent of Concessions allowed
f) Sanctioning Authority for concession
11.7. PREPAYMENT PENALTY IN CASE OF TERM LOANS / DEMAND LOANS
In case a term loan is prepaid by the borrower for shifting to other Bank/FI, onetime prepayment charges of 1% of the total outstanding balance shall be levied.
For waiver of prepayment penalty in cases falling under Branch/RLCC-RH powers, the
approval shall be obtained from HLCC-ED at Head Office. In cases falling under Head
Office powers, respective sanctioning authority shall be delegated the powers for waiver
of prepayment penalty.
However, in case of accounts falling under the sanctioning powers of the MCB, the
request of the waiver for pre-payment penalty for pre-closure of term loan may be
permitted by CAC and shall be put up before MCB for information on quarterly basis.
11.8. WAIVER OF INSURANCE
All assets (stocks / fixed assets) in the name of borrower / guarantor charged to the Bank
as security for advances are to be comprehensively insured against the risk of theft /
burglary, fire & Strikes, Riots, Malicious Damages (SRMD), with an insurance company
with Bank Clause, at the borrower's expense, unless insurance is specifically waived by
the competent authority as under:
Particulars
Competent Authority to waive Insurance
Proposal falling in the powers of Branch/
RLCC-RH
RLCC-RH
Proposals falling in the powers of
a) MCB*
a) CAC
b) CAC
b) CAC
c) HLCC-ED
c) HLCC-ED
*Such cases shall be reported to MCB/CAC for reporting as per the system in vogue.
Page 78 of 108
The functionaries, while permitting waiver of insurance with justifiable reasons, shall see to it
that burglary insurance is not waived unless otherwise justified.
11.9. REFUND (IN
INTEREST
PART/FULL)
OF
EXCESS
INTEREST/COMMISSION/PENAL
RLCC-RH can refund excess Interest /Commission /Discount /Penal Interest charged due
to mistake irrespective of the sanctioning authority as per the sanctioned Terms &
Conditions.
In case, the refund does not pertain to current Financial Year, RLCC-RH shall submit the
details of refund to HLCC-ED through respective vertical Head at Head Office.
Refund of interest charged/service charges recovered for reasons other than mentioned
above, shall be permitted by respective authorities as per their Delegated Powers for
allowing Concession in Rate of Interest/Service Charges.
Branch Incumbents shall have no powers for refund of interest charged/service charges
recovered.
11.10. DELEGATED POWERS FOR PERMITTING RECOVERY OF COMMISSION ON
GUARANTEES ON ANNUAL BASIS
Some of the customers, on whose behalf the Bank has to issue guarantees for large
amounts and/or for long periods, request for recovery of commission on annual basis as
against the stipulated policy for recovery of commission for the entire tenure of the bank
guarantee + the claim period if any. This is because the amount of the guarantee
commission for the entire period works out to a large sum. In order to cater to such cases,
the RH shall be the competent authority in cases falling under Branch/RO Powers/HO
powers to permit recovery of commission on an annual basis subject to compliance of the
following conditions:
a) The recovery of bank guarantee commission on annual basis shall be permitted in
exceptional cases only where the guarantee amounts are large and/or where the
guarantee period is long. The same should not be permitted as a matter of routine.
b) The Regional Head shall satisfy himself that the borrower shall be paying, on regular
basis, the guarantee commission every year without default.
c) The branch must have a proper mechanism to track such cases and ensure recovery of
the guarantee commission every year at the beginning of the financial year itself in the
month of April every year.
Request for recovery of Guarantee commission on less than annual basis shall be
considered not below the level of HLCC-ED in Branch / RO cases. HLCC-ED, CAC and
MCB may permit the same in respect of the cases falling under their delegated powers.
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11.11. DELEGATED POWERS FOR RELAXATION / WAIVER OF ECGC PREMIUM TO

BE BORNE BY THE BORROWER FOR THE WHOLE TURNOVER PACKING
CREDIT GUARANTEE (WTPCG)
The Delegated Powers to permit Relaxation / waiver of ECGC premium to be borne by the
borrower for the Whole Turnover Packing Credit Guarantee (WTPCG) are as under:
FUNCTIONARY
DELEGATED POWERS
Branch Manager of Authorized Branches only
Nil
RLCC-RH-AGM
Relaxation up 25% for cases within Branch

and Regional Office powers.
RLCC-RH-DGM
RLCC-RH-GM
1. Relaxation up 75% for all cases under

RO/ Branch powers
2. Relaxation up 50% in HO cases
HLCC-ED
Relaxation up 75% for all cases under Head

Office/ Regional Office/ Branch Powers
CAC
Relaxation up 100% for all cases under Head

Office/ Regional Office/ Branch Powers
11.12. WAIVER OF REGISTRATION CLAUSE IN CASE OF ADVANCE AGAINST

SUPPLY BILLS
RLCC-RH may consider waiver of Registration clause after satisfying himself the reasons
for the same.
Page 80 of 108
CHAPTER-12
DELEGATED POWERS FOR SHORT/LIMITED REVIEW
The exercise of the regular renewal/full-fledged review should normally start two months
prior to the expiry of the regular sanction. However, in case of exigencies such as nonavailability of Financial Statements of the borrower or any other tangible reason, validity
extension was being undertaken by the field functionaries. However, henceforth a
limited/short review shall be undertaken and approved by the respective sanctioning
authority instead of extension of validity period of the original sanction.
The limited/short review of the borrowal accounts shall be undertaken by the respective
sanctioning authority which has sanctioned the regular limit (Branch Incumbents, RLCCRH, HLCC-ED, CAC, MCB) prior to the expiry of the regular sanction. The limited/short
review of such accounts shall be approved by the respective sanctioning authority subject
to the following conditions:
There shall be no change in the terms and conditions of the sanction as was originally
stipulated in the regular sanction.
There shall be no security dilution.
There shall be no enhancement in the level of credit facilities that were approved under
the regular sanction.
The limited/short review shall cover all the important parameters such as:
Significant developments that have taken place in the last twelve months impacting the
borrowal account
Sales/Purchase figures
Position of the capital and unsecured loans
Conduct of the account
Unit visit (not older than two months prior to the review)
Status of the unrectified inspection/audit irregularities and action taken
thereon/proposed to be taken for the rectification of the inspection/audit irregularities
The validity of the limited/short review shall be a maximum period of six months from the
date of the regular sanction.
The process fee for the extended period shall be recovered on pro rata basis at the
prescribed rates w.e.f the date of expiry of the regular sanction.
The reporting of the limited/short review shall be done by the sanctioning authority as per
the reporting system similar to the regular sanction.
The regular/full-fledged review/renewal should be done prior to the expiry of the

limited/short review.
Page 81 of 108
CHAPTER-13
DELEGATED POWERS IN CASE OF MULTIPLE / CONSORTIUM ARRANGEMENT
13.1. CONSORTIUM FINANCING / SYNDICATION
RLCC-RH shall have authority to approve amendments in borrowal accounts sanctioned by

MCB and other delegates at Head Office placed on Consortium basis as per decision of the
Lead Bank as detailed as detailed in para 13.3 below.
However where OBC is the Lead Bank prior permission from the respective sanctioning
authority is to be obtained for such amendments where our Bank is the lead bank in the
consortium, assessment of credit needs as well as on other related matters / service
charges / inspection charges etc; decisions will be taken on the basis of consensus in the
meetings. However, approval for acting as lead bank shall be permitted by the competent
authority at Head Office i.e. MCB/CAC/HLCC-ED before placing the same in the
Consortium Meeting. Detailed appraisal note with assessment of MBPF shall be sent by
Regional Office/ while seeking approval for acting as lead bank.
13.1.1 Where Our Bank Is A Lead Bank

i. Approval for acting as Lead Bank
The approval for acting as Lead Bank shall be permitted by HLCC-ED for the cases
falling under the Delegated Powers of Branch and RLCC-RH before placing the same
in the Consortium Meeting. Detailed appraisal note with assessment of MBPF shall be
sent by Regional Office while seeking approval for acting as lead bank.
Further, HLCC-ED/CAC/MCB shall approve taking up the role of Lead Bank of the
Consortium in respect of cases falling under their respective Delegated Powers.
The respective department will propose in the appraisal note for accepting the role of
Lead Bank in the consortium.
ii. Approval of MPBF where Our Bank is the Lead Bank
Wherever our Bank is Lead Bank in any consortium, MPBF in the borrowal account
shall be approved by respective sanctioning authority before placing the same in the
consortium meeting for its sharing to all other member banks.
iii. Convening of Consortium Meeting as Lead Bank
Generally, meeting should be called on quarterly basis or more frequently if needed.

The Branch Incumbent, in consultation with Regional Office/Head Office and
participating member banks of the consortium, shall convey the date, time and venue
along with agenda of meeting through fax/telephone so as to make it convenient for all
member banks to attend the consortium meeting.
iv. Authority for attending the Consortium Meeting
Depending on the Banks exposure under the consortium and internal credit risk rating
of the borrower, the designated authorities to attend the consortium meeting are as
given in the table below:
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Exposure of the
Bank
Upto
`50 Crore
Internal Credit risk

rating of borrower
OBC1 to OBC 3
OBC 4 to OBC 10
Above
`50 Crore
to
`200 Crore
OBC 1 to OBC 3
OBC 4 to OBC 10
OBC 1 to OBC 5
Above
`200 Crore
OBC 6 to OBC 10
OBC 1 to OBC 5
Above
`500 Crore
OBC 6 to OBC 10
Respective Authority to attend the Consortium

meeting
nd
2 Man at Regional Office
Credit In-charge at R.O.
Branch Incumbent.
Regional Head
Branch Incumbent.
Regional Head
Branch Incumbent
AGM (Credit)/Chief Manager (Credit) from H.O.
Regional Head
Branch Incumbent
Regional Head
Branch Incumbent
DGM (Credit) from H.O.
Regional Head
Branch Incumbent
DGM (Credit) from H.O.
Regional Head
Branch Incumbent
GM (Credit) from H.O.
Regional Head
Branch Incumbent
It shall be, however, ensured that no firm commitment shall be conveyed to the
consortium without prior approval from the competent authority.
In case of Head Office sanctions, the Branch/RO should obtain mandate from Head
Office before making financial commitments in the consortium meeting on behalf of
the Bank. The mandate required should be sent to Head Office by FAX / MAIL
sufficiently in advance.
13.1.2 Where Our Bank Is Not A Lead Bank

I. Information of Meeting
In case our bank is participating member bank, the Branch Incumbent shall convey the
date, time, and venue along with the items of agenda / purpose of the meeting to the
respective Regional Office and the Head Office.
II. Authority for attending the consortium meeting
Depending on the Banks exposure under the consortium and internal credit risk rating
of the borrower, the designated authorities to attend the consortium meeting are as
given in the table below.
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Exposure of
the Bank
Upto
`50 Crore
Internal Credit risk

rating of borrower
OBC1 to OBC 3
OBC 4 to OBC 10
Above
`50 Crore
to
`200 Crore
Above
`200 Crore to
`500 Crore
OBC 1 to OBC 3
OBC 4 to OBC 10
OBC 1 to OBC 5
OBC 6 to OBC 10
OBC 1 to OBC 5
Above
`500 Crore
OBC 6 to OBC 10
Respective Authority to attend the Consortium

meeting
nd
2 Man at Regional Office
Branch Incumbent.
Regional Head
Branch Incumbent.
Regional Head
Branch Incumbent.
Regional Head
Branch Incumbent
AGM(Credit)/Chief Manager(Credit) from H.O.
Regional Head
Branch Incumbent
DGM(Credit) from H.O.,
Regional Head
Branch Incumbent
DGM(Credit) from H.O.,
Regional Head
Branch Incumbent
GM(Credit) from H.O.,
Regional Head
Branch Incumbent
III. Other Guidelines

Where our Bank is a participating member in the consortium, the joint decisions taken
by the consortium with regard to various aspects including calculation of drawing power
/ levying of service charges / other charges shall be followed. However, if no decision is
taken in the consortium with regard to service charges / other charges they shall be
charged as per the Banks guidelines.
In cases where DP has been advised by the Lead Bank the stock statement in the
performa of the Lead Bank may be accepted without insisting on the performa of our
Bank.
In case of consortium having joint documentation, we may not insist for the obtention of
separate documents / undertaking/ affidavit for legal heirs in case of personal
guarantee.
13.2. MULTIPLE BANKING ARRANGEMENT
As a matter of policy, the Bank shall not encourage disbanding of an account under an
existing consortium arrangement and switching over to multiple banking arrangements.
However, where there are convincing reasons and business is considered remunerative
by the bank, then the bank may entertain such a request for switch over to multiple
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banking arrangements from existing consortium arrangement provided other consortium

members similarly agree to the same. However, in such cases approval in principle shall
be obtained from RLCC-RH and HLCC-ED where cases have been sanctioned by H.O.
subject to JLA guidelines.
In case of Credit Proposals sanctioned by Head Office under Multiple Banking

Arrangement, HLCC-ED/CAC/MCB are the competent authority to amend in sanction
terms and conditions within their vested Delegated Powers.
13.3. DELEGATED POWERS TO

SANCTIONS FOR LIMITS
ARRANGEMENT
ALLOW AMENDMENT IN HEAD OFFICE

UNDER CONSORTIUM/MULTIPLE BANKING
Delegated Powers to allow amendment in Head Office sanctions for limits under
Consortium Banking Arrangement where our Bank is not Lead Bank
RLCC-RH has powers to allow following amendments in accounts under Consortium
BankingArrangement sanctioned by Head Office.
a) To cede 2nd pari-passu charge on current assets to term lenders against taking 2 nd
charge on fixed asset.
b) To cede 2nd pari-passu charge on fixed assets to working capital lenders against taking
2nd charge on current assets.
c) Ceding of charge on current assets (where our bank has granted working capital
facilities against first charge on current assets) and/or fixed assets (where our bank has
granted term loan against first charge on fixed assets) to financial institutions/banks on
reciprocal basis subject to the condition that our banks security cover is not diluted.
d) Ceding of charge on current assets to new entrants into the consortium /Multiple
Banking/ Joint Lending arrangement & to cover the increase in existing limits by other
banks subject to all other members agreeing to the same.
e) To issue letters ceding charges on assets already agreed to by the bank under CDR
System.
f) To cede exclusive charge on specific assets financed by other banks.
g) To cede paripassu charge to new bank to secure the loan taken over from an existing
bank without any overall increase in the liability secured by the charge.
h) To allow substitution of machinery / equipment after satisfying on the reasons for the
change, no adverse impact on the project implementation, its revenue generation
stream, no change in repayment terms, margin, reduction in term loan component etc.
i) All such amendments to be reported to the respective sanctioning authority
immediately.
In case of Credit Proposals sanctioned by Head Office under Consortium Banking
Arrangement where our Bank is Lead Bank, HLCC-ED/CAC/MCB are the competent
authority to amend sanction terms and conditions within their vested Delegated
Powers.
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Further, In case of Credit Proposals sanctioned by Head Office under Multiple Banking
Arrangement, HLCC-ED/CAC/MCB are the competent authority to amend in sanction
terms and conditions within their vested Delegated Powers.
All other amendments shall be permitted by the respective sanctioning authority.
Page 86 of 108
CHAPTER-14
DELEGATED POWERS FOR ISSUANCE OF NO OBJECTION CERTIFICATES
RLCC-RH are authorized to permit the issuance of No Objection Certificate provided there is
no dilution in security and/or asset coverage and earning capacity in the following cases/
purposes even in cases sanctioned by HLCC-ED/CMD/CAC/MCB:
a) To raise short term/long term loan from various financial Institutions/Insurance companies/
Banks for working capital as well as for acquiring fixed assets.
b) To induct any bank under consortium and ceding pari-passu charge in favour of member
banks who are participating in the finance subject to they also agreeing to issue reciprocal
NOCs / ceding pari-passu, while issuing such NOCs, it is to be ensured that there is no
dilution of securities and / or asset coverage as stipulated in the sanction)
c) Merger/ amalgamation/ spin off/Hive off of Companies subject to no dilution of security,
earning capacity and /or change in terms of sanction covenants.
d) Additional requirement of credit facilities of the company/firm considered by other banks.
However, while issuing such NOCs Regional Head shall examine whether existing MPBF is
fully tied up and additional requirements have been approved by all the member banks.
e) To raise foreign currency loan for working capital purposes subject to observance of
guidelines on hedging Foreign Currency risks.
f) To issue Commercial Paper.
g) To open LC and execute Bank guarantee by other Bank/s by earmarking the unutilized limit
allocated to other Bank/s on risk and remuneration sharing basis
h) To open current account/s with other bank/s in case our bank is not having any branch in
that area/business center.
i) To open LC from other banks for capital project purpose provided bills are retired through
term loans/ internal accruals/ cash flows without diversifying working capital funds.
j) To issue Debentures (PCD/FCD/NCD).
(Exception: In all other cases not covered above, the sanctioning authority will take a view on
it. However, in case of MCB sanctions, the NOC will be permitted by CAC).
However, copies of NOC issued shall be reported to the sanctioning authority for information
as per system in vogue.
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CHAPTER 15
DELEGATED POWERS IN CASE OF TAKEOVER OF ACCOUNTS
The Banks policy guidelines for transfer of borrowal accounts from one bank to another bank
was reviewed vide agenda item no. A-3 by the Board of Directors in its meeting held on
24.08.2012.
The revised guidelines in this regard have been circulated to field functionaries vide Circular
No. HO/RMD/41/2012-13/399 dated 08.09.2012.
15.1. NATURE OF BORROWAL ACCOUNT TO BE TRANSFERRED FROM OTHER BANK
TO OUR BANK
All types of borrowal accounts including Retail accounts can be considered for transfer from
other banks to our Bank.
15.2. GENERAL GUIDELINES

Proper processing of the loan proposal be done and all relevant facts shall be looked into
while taking decision by the sanctioning authority.
The specific reasons for shifting the account from financial institution or other bank to our
Bank should be ascertained and recorded in the process-note.
Accounts of the associate concerns of the proposed borrower should not have any overdue
with financial institutions or other banks/ our Bank.
Audited balance sheet of the borrowal account be taken over should be as of a latest date
(For a unit whose books close on 31st March; audited balance sheet is filed with Income tax
authorities latest by 30th September, i.e. within six months of closure of books). In addition,
provisional balance sheet of a later date should also be obtained in such cases. Audited
balance sheet of the last financial year at the time of take over should not carry any cash /
non-cash accumulated losses unless otherwise justified with valid reasons.
Borrower is not incurring losses (operating loss or cash loss) for the past two years.
There should not have been any re-schedulement / restructuring in the account in the last 3
years.
The names of the Borrower/directors/guarantors should not be appearing in the caution
list/defaulters list of Reserve Bank of India/ECGC/IBA/CIBIL etc.
Prior to release of advance / takeover of the account, it shall be ensured that account to be
taken over should have been running regular without any default during the year immediately
preceding the take-over and a certificate should be obtained by the Branch from the existing
Banks/FIs to the effect that the account is standard regular
All the formalities such as fresh documentation, charging / transfer of securities, compliance
of terms & conditions of sanction should be duly completed before the release of the
facilities. Since at the time of take-over of the account, the securities are with the existing
bankers who will not part with them till they receive the payments in full, alternate securities
for the intermediate period shall be taken from the borrower. However, where the borrower is
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unable to offer any alternate property, the procedure as already in vogue shall be strictly
followed.
15.3. CREDIT REPORT OF BORROWAL ACCOUNTS TO BE TRANSFERRED FROM
OTHER BANKS TO OUR BANK
The account to be taken over should be classified as Standard Regular by the previous bank
/ financial institution and a certificate to this effect should be taken from the existing Bank that
the account is standard regular.
In case of all takeover of borrowal accounts from other banks, statement of the borrower
account for the last six months should be scrutinized as a part of the credit proposal and
comments on the same should be suitably incorporated in the process note separately.
The branch shall obtain the credit information report from existing Banks/FIs as per the
format prescribed by RBI before taking over an account and the same shall be obtained
along with loan application form.
15.4. MINIMUM ENTRY LEVEL INTERNAL CREDIT RATING OF THE BORROWAL
ACCOUNTS TO BE TRANSFERRED FROM OTHER BANKS TO OUR BANK
The minimum entry level internal credit rating of the borrowal accounts to be taken over from
other Banks is as under:
Minimum Entry Level Internal Credit Rating
of the borrowal account
Thrust & General Area of Lending
OBC 1 to OBC 5
Restricted Area of Lending
OBC 1 to OBC 3
Note: No relaxation is permitted in entry level rating for takeover of borrowal accounts
Particular
15.5. DELEGATED AUTHORITY FOR TAKEOVER OF BORROWAL ACCOUNTS

In case of takeover of borrowal accounts including Retail accounts, the Branch Incumbent
will have no powers.
The RLCC-RH/ HLCC-ED/ CAC/ MCB can sanction takeover of credit proposals within their
Delegated Power for Loans and Advances.
Any concessions in rate of interest, processing fee, other service charges etc in the borrowal
accounts to be taken over from other Banks shall be permitted only in extremely deserving
cases at Head Office level by the competent authority as per Board approved Delegated
power guidelines of the Bank and specific reasons for allowing such concessions shall be
recorded in writing in the process note. However, there shall be no powers for allowing
concessions in the borrowal accounts to be taken over from other Banks at RLCC or Branch
level.
However, the transfer of borrowal accounts from other banks to our bank where project is at
implementation stage is permissible at Head Office only.
If the borrowal account to be taken over by the Bank belongs to the banks where any of our
EDs or CMD have worked earlier then such cases, irrespective of amount, shall be
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sanctioned only by the Board of Directors with specific reasons justifying the need for taking
over such accounts.
15.6. AUTHORITY
ACCOUNTS
TO
PERMIT
DEVIATION
FOR
TAKEOVER
OF
BORROWAL
In case of takeover of credit proposals where any deviation from the said policy guidelines
is required, prior approval of CAC/MCB shall be obtained by the delegated authority.
15.7. AUTHORITY FOR ENHANCEMENT IN CREDIT LIMITS FOR TAKEOVER OF
BORROWAL ACCOUNTS
The limits of the borrowal account (both Fund Based and Non-Fund Based) should be
taken over as far as possible only at the existing level as enjoyed by the borrower with the
previous Banks/Financial Institution.
However, in case of enhancement in credit limits, upto 25% from the existing level as
enjoyed by the borrower with the previous Banks/ Financial institution, wherever deemed
justified, can be considered by the sanctioning authority at the time of takeover of borrowal
accounts.
After six months from the date of takeover of borrowal accounts, the enhancement in credit
limits, wherever deemed justified, can be considered by the sanctioning authority under
their delegated powers.
However, after initial sanction and disbursement, HLCC-ED is empowered to consider
further enhancement not exceeding 25% of the taken over limits even before completion of
six months. The CAC/MCB can consider enhancement in credit limits upto 50% of the
sanctioned working capital limits within 6 months from the date of sanction of takeover
accounts.
Moreover, the enhancement in credit limits while taking over an account should be based
upon proper independent assessment of the enhanced credit requirements of the borrower
as per norms of the Bank after obtaining all the relevant operative and financial data of the
borrower and due diligence. However, the term loans should always be taken at existing
level (besides fresh term loans for expansion of projects).
15.8. BENCHMARK FINANCIAL RATIO FOR TAKEOVER ACCOUNTS
Relaxation in the benchmark financial ratios shall be permitted on case to case basis at
Head Office only.
For credit proposals falling under the powers of RLCC, the relaxation in benchmark
financial ratios shall be permitted by HLCC ED.
However, for credit proposals falling under the powers of HLCC-ED/CAC/MCB, the respective
sanctioning authority can consider the relaxation in benchmark financial ratios.
The benchmark financial ratios for takeover accounts are as under:
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Financial Ratios
Current Ratio
Benchmark for capital intensive

industries /SME/Infrastructure
Projects
1.17( Upto `5 Crore)
1.33( Above `5 Crore)
Benchmark
for all others
1.17( Upto `5 Crore)
1.33( Above `5 Crore)
Debt -Equity
3:1
2:1
TOL/TNW
6:1
4:1
1.2:1
1.3:1 (Annuity /lease rentals assured)
1.5:1
Average DSCR
15.9. REPORTING OF TAKEOVER BORROWAL ACCOUNTS

The reporting of take over borrowal accounts shall continue to be through the statement of
sanction of credit proposals approved by Branch Incumbents (STM-41)/RLCC (STRO 16)
and process note.
The sanctioning authority shall report to next higher authority the status of health of taken
over accounts at half yearly intervals for a period of two years after takeover.
15.10. PERIODIC REVIEW/ MONITORING OF TAKEOVER BORROWAL ACCOUNTS
The status review of takeover accounts shall be done at half yearly interval for one year
after takeover irrespective of internal credit risk rating of the borrower by the respective
The review of borrowal accounts (including take over borrowal accounts) availing aggregate
exposures (FB+NFB) of `5.00 Crore and above with internal credit risk rating of OBC 6 to
OBC 10 shall be undertaken on half yearly basis.
The post sanction monitoring mechanism of credit facilities extended to take over of borrowal
accounts are as follows.
Loan audit of borrowal accounts by Loan Audit Cell at HO & RO,
Branch Certificate of Compliance of Terms & Conditions of sanctions,
Post sanction Unit visit at periodic interval,
Scrutiny of Stock statement submitted by borrower,
Verification of Stocks & Receivables by independent Chartered Accountant,
Monitoring through Quarterly Information System,
Monitoring through Early Alert System and Special Mention Account mechanism.
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15.11. LOAN REVIEW OF TAKEOVER BORROWAL ACCOUNTS UNDER LOAN REVIEW

MECHANISM
Loan review of takeover accounts with exposure more than `5 Crore shall be completed
within three months from the date of release of facility as per the Loan Review Mechanism of
the Bank.
In all existing accounts which have been taken over from other banks having exposure of
`5.00 Cr & above, the Loan Review for such cases shall be conducted every year till the
currency of the loan.
In case of borrowal accounts of `10.00 Crore & above where Internal Credit Risk Rating is
OBC-7 & below, the LRM shall be conducted once in 6 months till the currency of the loan.
In SMA A/Cs of `10.00 Cr & above, the LRM shall be conducted once in 6 months.
15.12. OTHER DUE DILIGENCE TO BE UNDERTAKEN FOR TAKEOVER ACCOUNTS
In accounts where JLA guidelines are applicable and the borrower seeks to have additional
exposure from the bank after taking over the account, the Banks guidelines of Joint Lending
Arrangement shall be strictly adhered to.
The due diligence of the borrower shall be undertaken prior to transfer of borrowal accounts
from other banks to our Bank in the prescribed format and the same shall be submitted along
with the process note.
Proper processing of the loan proposal should be done and all relevant facts shall be looked
into while taking decision by the sanctioning authority.
The specific reasons for shifting the account from financial Institution or other Bank to our
Bank should be ascertained and recorded in the process-note.
Any concessions in rate of interest, processing fees, other service charges etc in the
borrowal accounts to be taken over from other banks shall be permitted only in extremely
deserving case at Head Office level by the competent authority as per Board approved
discretionary power guidelines of the Bank and specific reason for allowing such concession
shall be recorded in writing in the process note.
The account to be taken over should be classified as Standard Regular by the previous
banks / FIs and a certificate to this effect should be taken from the existing Bank.
Accounts of the associate concerns of the proposed borrower should not have any overdue
with our Bank or other Banks/FIs for the preceding one year.
In case of takeover of borrowal accounts, latest audited balance sheet of the borrowal
account should be obtained. (For a unit whose books close on 31st March; audited balance
sheet is filled with Income tax authorities latest by 30th November, i.e. within eight months of
closure of books). In addition, Provisional Balance Sheet of a later date should also be
obtained in such cases. Audited Balance Sheet of the last financial year (April to March) at
the time of take over should not carry any cash / non-cash accumulated losses.
The borrower to be taken over should have net profit for last 3 years (if in operation for 3
years).
There should not have been any re-schedulement/restructuring in the account in the last 3
yrs.
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The names of the Borrower/directors/guarantors should not be appearing in the caution

list/defaulters list of Reserve Bank of India/ECGC/IBA/CIBIL etc.
All the formalities such as fresh documentation, charging / transfer of securities, compliance
of terms & conditions of sanction should be duly completed before the release of the
facilities. At the time of take-over of the account, the securities are with the existing bankers
who will not part with them till, they receive the payments in full. In such cases, alternate
securities for the intermediate period be taken from the borrower. However, where the
borrower is unable to offer any alternate property, the procedure as already in vogue be
strictly followed.
The collateral securities charged to the existing bankers should not be diluted. However,
wherever deemed necessary the functionaries at Head Office and Regional Offices may
permit substitution of collateral security in the shape of immovable or movable property
previously charged to other Banks by the borrowers provided the tangible collateral security
(immovable or movable other than agricultural) offered now by the borrower to the Bank is at
least of the same realizable value and free from all sort of encumbrances.
However, in case of direct agriculture advances (area specific agricultural loan schemes)
mortgage of land / property (other than agriculture), including residential / commercial
property equal to the loan amount may be accepted.
Process note should in applicable cases contain a clause that takeover guidelines have been
duly complied with and due diligence shall be exercised for all takeover cases.
The respective delegated authority for takeover of borrowal accounts should take caution on
following points while considering housing loan takeover proposals:
a) Ensure meticulous compliance of existing housing loan policy.
b) While taking over the account the past repayment record be examined to ensure that the
account has been running regular till date of takeover.
c) Legal opinion on creation of valid equitable mortgage be obtained invariably from Bank's
penal advocate.
d) The value of immovable property proposed to be taken over be ascertained from approved
valuer of the bank.
e) The original repayment period shall not be extended.
f) All other terms & conditions of the takeover and home loan policy shall be complied with.
15.13. OTHER OPERATIVE GUIDELINES FOR TAKEOVER OF BORROWAL ACCOUNTS

Legal opinion on the basis of photo copy of the documents relating to securities should be
obtained from the local counsel, which shall also be scrutinized by legal retainer at Regional
Office for his opinion, who shall confirm that securities are free from encumbrances and can
be properly mortgaged.
A letter of confirmation shall be obtained from the existing Bank that they are in possession
of documents relating to securities (details to be furnished) and they shall hand over the
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same along with letter of satisfaction of charge/ no due certificate after receiving the specified
amount outstanding in the account of the party whose account is being taken over.
An undertaking shall also be obtained from the borrower for handing over the securities after
collecting the same from the existing banker.
In case of Pvt. Ltd/Ltd. Company, search report from ROC shall also be obtained to verify
charges on the assets of the Company.
After receiving the relative documents of securities, charge shall be created and got
registered (if required) with the appropriate authorities.
Payment towards adjustment / liquidation of the dues of the existing Financial
Institution/Bank shall be made directly to them.
15.14. TRANSFER OF BORROWAL ACCOUNTS FROM OUR BANK TO OTHER BANK/FIs
Endeavor be made to satisfy customers so that existing accounts of customers are not
taken over by other banks. In case of takeover by other banks, it should be ensured before
release of securities/ issuing letter of discharge of securities/ giving no dues certificate that
full payment has been received. In case of takeover of Bank Guarantee/ LC Limit, a letter
of comfort from other bank shall be taken and same shall also be cleared / vetted by the
legal retainer at RO.
In all cases where letter of comfort is obtained from other banks for takeover of accounts,
permission from RLCC-RH be obtained before release of securities.
In such cases, Bank guarantee commission for outstanding BG liability, if any be fully
recovered upto expiry period of guarantee.
In case any guarantee is outstanding and the account is taken over by some other bank,
the securities shall be released only after obtaining 100% margin or Guarantee of that
bank containing a specific clause that their liability under the said guarantee shall exist till
the original Guarantee Bond is received or a release letter from the beneficiary is received
by OBC.
Page 94 of 108
CHAPTER-16
REHABILITATION / RESTRUCTURING OF ACCOUNT
16.1. DELEGATED POWERS FOR RESTRUCTURING (AT EXISTING LEVEL OF
SANCTIONED EXPOSURE OR RESTRUCTURING WITH ADDITIONAL EXPOSURE)
OF THE BORROWAL ACCOUNTS
The Delegated Powers for Restructuring (at existing level of sanctioned exposure or
restructuring with additional exposure)are as follows:
SN
Sanctioning Authority
1.
Branch Incumbent
2.
RLCC-RH
3.
HLCC-ED/CAC/ MCB
4.
Renewal /Review
accounts
of
Delegated Authority for Restructuring
RLCC-RH irrespective of the Internal

Credit Risk Rating of the borrower.
HLCC-ED
Respective Delegated Authority within
restructured By the respective sanctioning authorities
within their normal Delegated Powers
irrespective of the restructuring authority.
16.2. MONITORING PERIOD

Monitoring Period shall refer to a period of one year from the commencement of the first
payment of interest or principal, whichever is later, on the credit facility with longest period of
moratorium under the terms of restructuring package.
16.3. DELEGATED POWERS FOR GRANTING OF ENHANCEMENT/ ADDITIONAL
/ADHOC FACILITIES IN RESTRUCTURED ACCOUNTS-WITHIN the MONITORING
PERIOD
The Delegated Powers for granting of Enhancement/ Additional /Adhoc facilities in
Restructured accounts within one year of restructuring vis--vis within the Monitoring
Period are as under:
SN
Sanctioning
Authority
Delegated Authority for

Restructuring
Granting of enhancement/ additional

/adhoc
facilities in restructured
accounts-within
the
MONITORING
PERIOD
1.
Branch
Incumbent
RLCC-RH
RLCC-RH# irrespective of the Internal

Credit Risk Rating of the borrower.
2.
RLCC-RH
HLCC-ED
HLCC-ED
3.
HLCCED/CAC/
MCB
Respective
Delegated Respective Delegated Authority within their
Authority
within
respective
Delegated
Powers.
Page 95 of 108
However, the above mentioned Delegated Powers shall be exercised by RLCC-RH subject to
fulfillment of the following conditions:
Restructured account is performing
The restructured terms and conditions have been complied with.
In case the abovementioned conditions are not fulfilled, the proposal for enhancement/
additional /adhoc facilities in restructured accounts-within MONITORING PERIOD shall
be considered by HLCC-ED/CAC/MCB within their respective Delegated Powers.
16.4. DELEGATED POWERS FOR GRANTING OF ENHANCEMENT/ ADDITIONAL
/ADHOC FACILITIES IN RESTRUCTURED ACCOUNTS-AFTER the MONITORING
PERIOD
The Delegated Powers for granting of Enhancement/ Additional /Adhoc facilities in
Restructured accounts after one year restructuring vis--vis after the Monitoring Period
are as under:
SN
Sanctioning
Authority
Granting
of
enhancement/
Delegated Authority for additional /adhoc
facilities in
Restructuring
restructured accounts-AFTER the
MONITORING PERIOD
1.
Branch Incumbent
RLCC-RH
2.
RLCC-RH
HLCC-ED
3.
HLCC-ED/CAC/
MCB
Branch Incumbent*
RLCC-RH*
Respective
Delegated Respective Delegated Authority within
Authority within their their respective Delegated Powers.
respective
Delegated
Powers.
*The
Branch Incumbent and RLCC-RH shall exercise the abovementioned Delegated

Powers provided the following conditions are fulfilled:
i. The Borrower has fulfilled the restructured terms and conditions during the Monitoring
Period.
ii. The terms and conditions as mentioned below are complied with:
Restructured account is performing
The restructured terms and conditions have been complied with.
Sales are showing satisfactory growth vis--vis estimates.
The borrower is making operating profits (The calculation of the operating profit shall be
guided by Advances Manual Volume-I)
Financials and Conduct of account are satisfactory.
In case conditions are not fulfilled next higher authority shall be the competent authority in
respect of proposals falling upto the powers of RLCC-RH. HLCC-ED/ CAC/MCB may consider
within their respective Delegated Powers.
However, a copy of the appraisal note granting the facilities shall be forwarded to
Regional Office/Head Office along with the control returns (STM41/STRO-16) for review.
Page 96 of 108
16.5. SANCTION OF CREDIT FACILITIES TO THE BORROWERS WHOSE GROUP

ACCOUNTS HAVE BEEN RESTRUCTURED BY OUR BANK
The Delegated Powers for sanction of credit facilities to the Borrower whose Group account is
Restructured with our Bank are as follows:
SN
TYPES OF EXPOSURE
DELEGATED AUTHORITY
NEW BORROWERS
1. Fresh Exposure

EXISTING BORROWERS
3.
4.

Granting of additional/ enhancement /

adhoc facilities
restructuring
with
additional
fresh
exposure)

Rating of the borrower
HLCC-ED/CAC/MCB
16.6. DELEGATED POWERS FOR PERMITTING REVISION IN DCCO (NOT AMOUNTING

TO RESTRUCTURING)
As revision in the date of commencement of commercial operations (DCCO) upto two years
and one year from the original DCCO stipulated at the time of financial closure for
infrastructure projects and non-infrastructure projects respectively and consequential shift
in repayment schedule for equal or shorter duration (including the start date and end date
of revised repayment schedule) is not treated as restructuring, the respective sanctioning
authority can revise DCCO and consequential shift in repayment schedule for equal or
shorter duration (including the start date and end date of revised repayment schedule).
Similarly, respective sanctioning authorities can consider re-schedulement / re-phasement
of the credit facilities within the ambit of RBI Master Circular on - Guidelines for Relief
Measures by Banks in areas affected by Natural Calamities after Central/State Government
has declared as Natural Calamity.
16.7. EXTENDING BANKS COMMITMENT TO REHABILITATION PACKAGE BY THE
LEAD BANK OR BY THE FINANCIAL INSTITUTIONS
MCB/CAC/HLCC-ED shall have the authority to decide participation and extending banks
commitment to rehabilitation package by the lead bank or by the FIs involved, subject to the
action so taken being intimated to the MCB for confirmation as soon as possible.
16.8. CORPORATE DEBT RESTRUCTURING (CDR)
All cases falling under CDR mechanism shall be dealt with at Head Office with restructuring
to be undertaken under powers of competent authority at Head Office.
Page 97 of 108
16.9. SANCTION / TAKEOVER OF RESCHEDULED / RESTRUCTURED ACCOUNTS

INVOLVING
RESTRUCTURING
OF
DUES
BY
STATE
ELECTRICITY
BOARDS/BANKS/FIs
In the meeting of the Management Committee of the Board held on 17 th January 2004, the
Committee made the following General observations:
On the issue of sanction of financial assistance to restructured accounts, the Committee
observed that during the last two or three years borrowers with healthy track record have got
their term loans rescheduled in view of the severe recessionary trends then prevailing in the
country. In other words the restructuring had to be resorted to for genuine reasons beyond
their control. The Committee felt that this would be the appropriate time to tap such accounts
on a selective basis. Accordingly those accounts involving restructuring of dues by State
Electricity Boards/ Banks/FIs may be considered for sanction/takeover for which
RLCC-RH/HLCC-ED/CAC/ MCB be permitted to consider such proposals on merits on a case
to case basis under their Delegated powers.
Accordingly, RLCC-RH/ HLCC-ED/ CAC/ MCB can consider sanction/ takeover of
rescheduled/ restructured accounts involving restructuring of dues by State Electricity
Boards/Banks/FIs on merits on a case-to-case basis under their respective Delegated powers.
Page 98 of 108
CHAPTER 17
DELEGATED POWERS FOR PERMITTING HOLDING ON OPERATIONS
Holding on operations may be permitted by RLCC-RH for accounts that fall under the
Delegated powers of Branches and Regional Office subject to the conditions
stipulated in Loan policy.
In case of sanctions under Head Office powers, HLCC-ED shall have the delegated
authority to permit holding on operations.
Page 99 of 108
CHAPTER 18
LOANS & ADVANCES TO STAFF/ RELATIVES (INCLUDING CLOSE RELATIVES) OF
STAFF MEMBERS
18.1. DELEGATED POWERS FOR CONSIDERING CREDIT FACILITIES TO RELATIVES
OF STAFF MEMBERS
Any officer or any Committee comprising, inter alia, an officer as member shall not sanction
credit facilities to a borrower to whom he / she is related.
There shall be no relaxation in any of the terms and conditions of credit facilities, where the
borrower is a relative of any staff member of the bank, Such borrowers would be treated as
any other borrower and banks norms applied accordingly,
All policy guidelines, relating to respective category of advances shall be strictly complied
with.
The provisions/ powers for loans to relatives (including close relatives) of staff members are as
follows:
Personal guarantee of the staff member will not be mandatory for considering credit
facilities to relatives including close relatives (as notified by Head Office from time to time)
of staff members.
Existing cases where personal guarantees have already been issued by staff members for
loans to their relatives including close relative may be reviewed by the sanctioning authority
at the time of next renewal / review and waived accordingly if the account is otherwise in
order.
18.2. GRANTING LOANS AND ADVANCES TO DIRECTORS OF OTHER BANKS AND
RELATIVES OF DIRECTORS OF OUR BANK/OTHER BANKS
In terms of RBI guidelines, Loans and Advances aggregating `25 Lacs and above is to be
sanctioned by the Board of Directors/ Management Committee of the Board in the following
cases:
Directors of Other Banks

a) directors (including the Chairman/Managing Director) of other banks *;
b) any firm in which any of the directors of other banks * is interested as a partner or
guarantor; and
c) any company in which any of the directors of other banks * holds substantial interest or is
interested as a director or as a guarantor.
Relatives of Directors of Our Bank/Other Banks
a) any relative other than spouse and minor/ dependent children of the Chairman/ Managing
Directors or other Directors of the Bank;
b) any relative other than spouse
and
minor / dependent children of the
Chairman/Managing Director or other directors of other banks *;
c) any firm in which any of the relatives other than spouse and minor / dependent children
as mentioned in (a) & (b) above is interested as a partner or guarantor; and
Page 100 of 108
d) any company in which any of the relatives other than spouse and minor / dependent
children as mentioned in (a) & (b) above hold substantial interest or is interested as a
director or as a guarantor.
a) directors (including the Chairman/Managing Director) of other banks *;
b) any firm in which any of the directors of other banks * is interested as a partner or
guarantor; and
c) any company in which any of the directors of other banks * holds substantial interest or is
interested as a director or as a guarantor.
* including directors of Scheduled Co-operative Banks, Directors of Subsidiaries/ Trustees of
Mutual Funds/Venture Capital Funds.
The proposals for credit facilities of an amount less than `25 Lacs to these borrowers may
be sanctioned by the appropriate authority under powers vested in such authority, but the
matter should be reported to the Board of Directors.
Credit Facility
The term loans and advances will not include loans or advances against:
Government securities
Life insurance policies
Fixed or other deposits
Stocks and shares
Temporary overdrafts for small amount i.e. upto `25000.
Third party cheque purchase of up to `5000 at a time.
Housing loans, car advances, etc. granted to an employee of the bank under any
scheme applicable generally to employees.
Relative
The term relative shall mean:
i.
Spouse
ii.
Father
iii.
Mother (including step mother)
iv.
Son (including step son)
v.
Sons wife
vi.
Daughter (including step daughter)
vii.
Daughters husband
viii.
Brother (including step brother)
ix.
Brothers wife
x.
Sister (including step sister)
xi.
Sisters husband
xii.
Brother (including step-brother) of the spouse
xiii.
Sister (including step sister) of the spouse
xiv.
Father/Mother of the Spouse

Page 101 of 108
18.3. LOANS TO RELATIVES OF STAFF MEMBERS

The Branch Incumbents shall not have delegated power for sanctioning credit facilities to
the following:
(i) Close relatives of staff members
(ii) Any firm/company in which any of the close relatives of staff members of the
Bank holds substantial interest, or is interested as a proprietor/partner/director or
guarantor.
However to the above category of borrowers, RLCC-RH/HLCC-ED/CAC/MCB shall have
powers for sanction of credit facilities within their respective delegated powers.
Reporting to Board of Directors
The sanction of credit facilities to relatives of Senior Officers of the Bank (Scale IV & above)
shall be reported to the Board of Directors.
Credit Facility
The term credit facility will not include the following:
Advance against term deposits, Govt. securities/Bonds/ NSC and Life Insurance
Policies
Temporary overdrafts for small amount i.e. upto `25000.
Third party cheque purchase of up to `5000 at a time.
Advance under Retail Loan Schemes which are not business related or of commercial
nature.
Close Relative
The term close relative shall mean:
i.
Spouse
ii.
Father
iii.
Mother (including step mother)
iv.
Son (including step son)
v.
Sons wife
vi.
Daughter (including step daughter)
vii.
Daughters husband
viii.
Brother (including step brother)
ix.
Brothers wife
x.
Sister (including step sister)
xi.
Sisters husband
xii.
Brother (including step-brother) of the spouse
xiii.
Sister (including step sister) of the spouse
xiv.
Father/Mother of the Spouse
Page 102 of 108
18.4. LOANS TO STAFF MEMBERS

The delegated lending authority for sanction of loans & advances in respect of staff members
under staff schemes & under Retail loan schemes as applicable to Public as under:
SN
Type of
Credit facility
Staff Posted at
All Branches / RO (other than

Regional Heads) / Service Branch /
STC (other than STC, Noida) /
Currency Chest / COPEC / Data
Centre / Stationary Godowns
Clean
(except Stationary Godown at
Overdraft
Faridabad) / Regional Inspectorates
Facility
(other than RI Heads)
All Staff posted at Head Office/
Stationary Godown at Faridabad/
STC, Noida / Regional Heads &
Regional Inspectorate Heads.
(except Stationary Godown at
Vehicle
Loan CAR Faridabad) / Regional Inspectorates
Housing
Loan under (except Stationary Godown at
Faridabad) / Regional Inspectorates
Staff
Scheme
Page 103 of 108
In RO where AGM is posted as 2nd
Man, AGM and in his absence CM at
RO.
In case AGM is not posted at RO,
CM at RO shall exercise the powers.
AGM (Retail) and in his absence /

CM(Retail) at HO.

RO.
AGM (Retail) and in his absence /

CM(Retail) at HO.
Regional Head
Vertical Head of Retail Credit and in

his absence DGM (HR).
SN
Type of
Credit facility
Vehicle
Loan Two
Wheeler
Staff Posted at
Branch
Offices(except
Branch BRANCH INCUMBENT (where the
Incumbents)/Regional
Offices salary account of the employee is
(except Regional Heads)/ Head being maintained.)
Office
/Regional
Inspectorates
(except
RI
Heads)/Service
Branches/
Currency
Chests/
Extension Counters/ Stationary
Godowns/STCs(except Principals)
Branch Incumbents
Regional
Head/
Principals of STCs
Staff
members
availing
retail loans
under
general
public
(except
advance
against term
deposits/
Govt.
securities/
Bonds
/
NSC/LIC
Policies
etc.)
Advance
against
term
deposits/
Govt.
securities/
Bonds/
NSC/
LIC
Policies etc.
RI

RO.
Heads/ AGM (Retail) and in his absence /
CM(Retail) at HO.
All Branches / RO (other than RLCC-RH

Centre / Regional Inspectorates
HLCC-ED

Branch Incumbent
Irrespective the place of posting
Page 104 of 108
CHAPTER 19
LARGE CORPORATE BRANCHES (LCBs): DELEGATION OF POWERS
With a view to have a customer centric approach and to build a healthy portfolio of
advances, the consolidation of Large Corporate advances of `50.00 Crore and above at
select branches was undertaken. With this in view, few branches have been identified as
Large Corporate Branches (LCBs) which are located at main cities viz, Mumbai, Delhi,
Ahmedabad, Bengaluru, Chennai, Kolkata, Hyderabad and Chandigarh.
The CGM/GM Large Corporate Credit shall be the In-charge/Controller of all the
designated Large Corporate Branches (LCBs) of the Bank.
The functioning of Large Corporate Branches shall be as per Circular No. HO/RMD/28/
2013-14/433 dated 05.08.2013 and HO/RMD/41/2014-15/458 dated 04.09.2014.
CHAPTER 20
CONVERSION FROM PRE-SHIPMENT FACILITY TO POST-SHIPMENT FACILITY
In case of export advances, automatic convertibility from PC / PCFC facility into post sale
(FDBP/FUDBP/FBRD) facility shall be allowed but not vice versa.
CHAPTER 21
APPROVAL OF NEW SCHEMES / FORMATS / DELEGATION RELATED ISSUES
All new Schemes / Formats / Delegation related issues shall be put up to Credit Risk
Management Committee for approval as prelude to advising field functionaries.
CHAPTER 22
DELEGATED POWER FOR PERMITTING SWITCHOVER FROM PLR TO BASE RATE
As there shall not be any change in the interest rate being charged to the customers during
switchover from PLR to Base Rate, the approval of switchover from PLR to Base Rate shall be
given by the respective sanctioning authorities at Branches / Regional Office.
For sanctions at Head Office level (including MCB), HLCC-ED shall be competent authority for
approval of switchover from PLR to Base Rate.
In case any concession is to be provided to any borrower on case to case basis, the same
shall be approved as per existing policy in vogue.
Page 105 of 108
CHAPTER 23
COMPLIANCE / FLEXIBILITY / DEVIATIONS / EXEMPTIONS FROM THE LAID DOWN
POLICY GUIDELINES
The policy recognises the need for allowing a degree of flexibility to the decision makers to
succeed in the competitive business environment and achieve the corporate goal.
The deviation / exemption from the norms / bench-marks levels laid down in the Policy but
within RBI/Statutory norms may be permitted only in rare, genuine and exceptional cases,
on account of emergent and unavoidable business exigencies. However, the exemptions &
concessions which are part of the Delegated powers vested with the respective
sanctioning authority shall not be considered as deviation of the Policy.
In all other matters not expressly provided for, the Board shall be the authority on pure
policy related deviations and the MCB/ CAC shall be the authority on deviations related to
matters of credit sanctions.
23.1.
MONITORING OF DEVIATIONS
Unless specifically provided otherwise in the Policy itself, the authority to permit/ approve
such deviation / exemptions shall be as under:
Reporting Authority for
Deviations permissible
Deviations permissible are
are already stated in the not expressly stated in the
Loan Policy
Loan Policy
Sl.
No.
Sanctioning
Authority
Deviation
Authority
Branch
Incumbent
RLCC-RH
Executive Director
Board of Directors
RLCC-RH
HLCC-ED
MCB
Board of Directors
HLCC-ED
CAC
Not Applicable
Board of Directors
CAC
CAC
Not Applicable
Board of Directors
MCB
MCB
Not Applicable
Board of Directors
The deviations / exemption from the norms / benchmark levels shall be clearly brought out
in the appraisal note, duly recording the exhaustive reasons/ justifications for permitting the
deviations.
However, any modification of / deviation from both pre and post disbursement terms and
conditions of sanctions shall be permitted only by the respective sanctioning authority.
Amendments in terms and conditions in the credit facilities approved by the MCB shall be
permitted by the MCB only except the following:
Page 106 of 108

Specific powers given to CAC to permit Relaxation/ waiver of ECGC premium to be
borne by the borrower for the Whole Turnover Packing Credit Guarantee (WTPCG)
/Penal Interest
Copy of the note of deviations/exemptions as put up to the Board shall be submitted to
Risk Management Department on yearly basis in the month of January of each calendar
year so as to review the Loan policy keeping in mind the deviations permitted vis--vis risk
involved and practices being followed by peer groups.
23.2. RELAXATION IN BENCHMARK RATIOS (OTHER THAN TAKEOVER ACCOUNTS)
Financial Ratio
Current Ratio
Relaxed Benchmarks by respective Sanctioning Authority

Upto 1.17:1
(Working Capital limits beyond `5.00 Crore)
Upto 1.10:1
(Working Capital limits upto `5.00 Crore)
The sanctioning authority may take a view and satisfy himself / herself
while accepting a lower current ratio and the reasons may be suitably
recorded. While taking a final view on the current ratio and/or projected
level of current ratio, the sanctioning authority may examine various
options to improve the ratio such as exploring possibility of injection of
additional funds and / or ploughing back of profits, stipulations for not
declaring dividend / non withdrawal of profits, reduction in the level of noncurrent assets and liquidation of investments outside business, if any,
within a reasonable time.
Debt Equity Ratio
3:1(other than SME, capital intensive industries ,infrastructure projects)

4:1 (in respect of SME, capital intensive industries ,infrastructure projects)
Leverage Ratio
5:1(other than SME, capital intensive industries ,infrastructure projects

and trading concerns)
6:1 (in respect of SME, capital intensive industries ,infrastructure projects
and trading concerns)
DSCR
Only RLCC-RH are permitted for relaxation in DSCR for Branch/RO

cases.
For Head Office -respective sanctioning authority.
Page 107 of 108
The relaxation in Benchmark Ratios as approved in the Loan Policy shall be subject to the
following conditions:
Relaxation as above shall be considered selectively and on case to case basis for
borrowal accounts with internal credit risk rating of OBC 1 to 6 by the sanctioning authority
and cogent reasons thereof shall be recorded in the process note.
Relaxation shall not be considered in benchmark ratios in OBC 7 and below rated
accounts without prior approval of the next higher sanctioning authority. However, HLCCED/CAC/MCB shall be the competent authority to consider relaxation in Benchmark
Ratio for such cases falling within their respective Delegated Powers.
For relaxation beyond the above mentioned relaxation in the ratios, prior approval shall be
obtained from the next higher sanctioning authority before permitting the relaxation.
However, in case of Head Office accounts, further relaxation may be permitted by the
respective sanctioning authority on case to case basis.
For renewal of accounts, where the current ratio is below the benchmark levels, the
sanctioning authority shall explore all possibilities of improving the current ratio to the
benchmark levels by injection of additional funds and / or ploughing back of profits,
stipulations for not declaring dividend / non withdrawal of profits, reduction in the level of
non-current assets and liquidation of investments outside business, if any, within a
reasonable time.
Relaxation in financial benchmark ratios shall not be permitted in case of takeover of
accounts without permission of HLCC-ED for cases under RLCC-RH powers. For cases
falling under the powers of Head Office, deviation is to be permitted by next higher
authority.
Evaluation of risk mitigant available to the Bank in cases where relaxation is being
permitted shall be done and recorded in the process note.
Page 108 of 108

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Annexure II

ORIENTAL BANK OF COMMERCE

DELEGATED POWERS FOR

(FOR INTERNAL CIRCULATION ONLY)

DELEGATED POWERS FOR LOANS & ADVANCES-INDEX

Categories of Advances Exempted from NBG

Delegated Powers for Purchase/Discounting of Bills under Letter of Credit

Delegated Power for Letter of Credit (Purchase of Capital Goods / Machinery)

Delegated Powers for allowing Concession in Rate of Interest

Delegated Powers for Permitting Concession in Rate of Interest In Case Of Accounts

Delegated Powers for Permitting Concession in Rate of Interest in Accounts

Details of Service Charges Wherein Concession Can Be Permitted

Consortium Financing/ Syndication

Multiple Banking Arrangement

Delegated Powers to Allow amendment in HO sanctions for limits under

JUDICIOUS EXERCISE OF DELEGATED POWERS

The Delegated Powers of the various functionaries are to be exercised judiciously so as to

Quality of Loan Assets and Conservation of Capital

To increase non-interest / non-fund based income.

To meet varied needs of customers through cross-selling of products.

COMPLIANCE OF LOAN POLICY GUIDELINES, INSTRUCTIONS IN THE

INFRASTRUCTURE FOR PROPER APPRAISAL OF LOAN PROPOSALS,

It is incumbent on the Branch Incumbents as well as Regional Heads to ensure effective

FUND BASED SECURED LIMITS

FUND BASED UNSECURED LIMITS

POWERS THAT CAN BE EXERCISED OVER AND ABOVE THE DELEGATED

allied/associate/sister concerns merely because of having a common guarantor if the

THIRD PARTY COLLATERAL

Property belonging to the following can be taken as

DEFINITION OF CLOSE RELATIVE

CLOSE RELATIVE means

CONSTITUTION OF CREDIT COMMITTEES

CREDIT COMMITTEES AT VARIOUS LEVELS

SANCTIONING AUTHORITIES AND THEIR DELEGATED POWERS FOR LOANS &

# Within the RBI prescribed Regulatory Limit

However, HLCC-ED/CAC/MCB can consider the credit proposals irrespective of the

Chairman and Managing Director

Note: In case, any GM mentioned as mandatory member is not

Maximum exposure to one group

Maximum exposure to single borrower

# Within the RBI prescribed Regulatory Limit

The Credit proposal declined by Management Committee of Board

HEAD OFFICE LEVEL CREDIT COMMITTEE (HLCC) & FUNCTIONING

One Executive Director

Note: In case any General Manager mentioned as mandatory

Weekly or More Often

The presentation of credit proposals / Loan Compromise & Write-Off

3.6. REGIONAL OFFICE LEVEL CREDIT COMMITTEE (RLCC) & FUNCTIONING

For Loan compromise / Write Off proposals:

The quorum of the Committee is three members including mandatory

Sanctioning of credit proposals (funded and non-funded);

The powers delegated to RLCC RH for sanctioning of credit

Weekly or More Often

The respective departments i.e. Credit & Recovery Department at RO

TERMS & CONDITIONS FOR EXERCISING DELEGATED POWERS BY CAC,

CONSTITUTION OF NEW BUSINESS GROUP

Chairman and Managing Director

General Manager/Functional Head in charge of:

Mandatory Members of NBG

2nd Man at Regional Office

In-charge of Loans Department of the concerned Regional Office

In-charge of Planning Department of the concerned Regional Office

In-charge of Recovery Department of the concerned Regional Office

Risk Manager of the respective Regional Office