Credit Appraisal /preparaion Of Appraisal Notes For Sanction / Review / Renewal Of Advances.
The Manager / Officer should critically examine the quality of credit appraisal done at the branch and ascertain as to -
1. Whether the branch has been following generally accepted sound lending norms and is examining carefully various aspects like proposed activity, diversification of activity viability of the project, creditworthiness of the applicants/guarantors, purpose and types of the credit facilities requested, competence of the borrowers to manage the business activity etc.
2. Whether the past conduct of the accounts, compliance of terms and conditions of sanctions submission of information like stock statements, QMR/HMR, financial statement etc. have been taken into account.
3. whether notes on review / renewal based on audited financial data contain details and critical observations on performance of the unit and its constituents working results vis-à-vis projections.
4. Whether status of the security charged to the bank has been re-examined. Wherever eligible i.e. in respect of credit facilities of Rs. 50.00 lakh and over, whether the same has been verified by independent C.A.firm.
5. Whether operation in the account and availment of various credit facilities has been to the satisfaction of the bank and the appraisal note contains comments about the same.
6. Whether exercise for PBF/NWC etc. has been carried out correctly/critically.
7. Whether the branch is complying with the RBI/IBA/Head Office guidelines/instructions regarding sanctions, review and renewal of advances.
8. Whether Nayak Committee/Ghosh Committee /Selective credit control norms etc. are followed.
9. Incase the borrower has been banking/availing credit facilities with other banks, whether latest opinion reports from such banks have been obtained.
10. Whether search with Registrar of Companies has been obtained before sanction / review / renewal of credit facilities.
11. Whether it is ensured that partnership firm is registered with Registrar of firms and certificate for the same is held on record.
12. Whether necessary certificates which are required for commencement of business activity have been obtained.
2. Whether the past conduct of the accounts, compliance of terms and conditions of sanctions submission of information like stock statements, QMR/HMR, financial statement etc. have been taken into account.
3. whether notes on review / renewal based on audited financial data contain details and critical observations on performance of the unit and its constituents working results vis-à-vis projections.
4. Whether status of the security charged to the bank has been re-examined. Wherever eligible i.e. in respect of credit facilities of Rs. 50.00 lakh and over, whether the same has been verified by independent C.A.firm.
5. Whether operation in the account and availment of various credit facilities has been to the satisfaction of the bank and the appraisal note contains comments about the same.
6. Whether exercise for PBF/NWC etc. has been carried out correctly/critically.
7. Whether the branch is complying with the RBI/IBA/Head Office guidelines/instructions regarding sanctions, review and renewal of advances.
8. Whether Nayak Committee/Ghosh Committee /Selective credit control norms etc. are followed.
9. Incase the borrower has been banking/availing credit facilities with other banks, whether latest opinion reports from such banks have been obtained.
10. Whether search with Registrar of Companies has been obtained before sanction / review / renewal of credit facilities.
11. Whether it is ensured that partnership firm is registered with Registrar of firms and certificate for the same is held on record.
12. Whether necessary certificates which are required for commencement of business activity have been obtained.
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