NPA - Non Performing Assets by Meka SantoshSantosh Meka
NPA which is gobal problem for the banks with the borrower who they not pay money back to the banks with the given period of time.The silde have been describing toward INDIAN bank. More over it includes the impact, problem, solution and action taken by RBI and Govt of India to solve the issue of NPA.
Watch full video on YouTube -
https://youtu.be/f3VgVOgAUoE
Credit management is the process of granting credit , setting the term its granted on, recovering this credit when its due and ensuring compliance with company credit policy.
The difference in the rate of interest that a bank charges on the amount lent and the rate it pays to the depositors is technically called spread or interest rate spread.
This spread bank has to use to meet all its overheads and interest on deposit but also provide for NPA.
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Subscribe to DevTech Finance
NPA - Non Performing Assets by Meka SantoshSantosh Meka
NPA which is gobal problem for the banks with the borrower who they not pay money back to the banks with the given period of time.The silde have been describing toward INDIAN bank. More over it includes the impact, problem, solution and action taken by RBI and Govt of India to solve the issue of NPA.
Watch full video on YouTube -
https://youtu.be/f3VgVOgAUoE
Credit management is the process of granting credit , setting the term its granted on, recovering this credit when its due and ensuring compliance with company credit policy.
The difference in the rate of interest that a bank charges on the amount lent and the rate it pays to the depositors is technically called spread or interest rate spread.
This spread bank has to use to meet all its overheads and interest on deposit but also provide for NPA.
Thank You For Watching
Subscribe to DevTech Finance
Watch out full video on youtube-
https://youtu.be/zBUSzKnK9bw
Principles of Credit Lending
1. Safety
2. Liquidity
3.Spread
4. Security
5. Purpose
6. Profitability
7. Policy Validation
Thank You For Watching
Subscribe to DevTech Finance
Watch out full video on youtube-
https://youtu.be/zBUSzKnK9bw
Principles of Credit Lending
1. Safety
2. Liquidity
3.Spread
4. Security
5. Purpose
6. Profitability
7. Policy Validation
Thank You For Watching
Subscribe to DevTech Finance
WordPress est un CMS très utilisé dans le monde entier. Mais il possède malheureusement de très nombreuses lacunes dès lors que l'on parle de référencement naturel. Dans ces slides, Daniel Roch explique les défauts de WordPress pour votre SEO.
Par l'agence Seomix : http://www.seomix.fr
Dhaka's Tech Communities - 18th GBG Dhaka MeetupNash Islam
Dhaka’s technology scene is home to a variety of communities that meet regularly to share their technology interests. This event in partnership with BASIS hosted a number of these communities in one session on Sunday, September 8 so we can all learn what the communities are doing.
As part of GBG's efforts to support local small businesses in Dhaka, we are starting a project to get all the business on Banani Road 11 added to Google Maps.
We'll send teams out on to Road 11 to visit businesses and collect their maps listing information, such as address, phone number, website & more! We'll then add all this information to Google Maps so the business can easily be found by anyone searching the map.
This PPT is useful for SYBMS Finance Specialization students
CLASS: SYBMS (FINANCE)
SUB:- BASICS OF FINANCIAL SERVICES
CHP:- 4 Development Banks &
Commercial Banks
Whereas, Commercial Bank of Ethiopia (CBE) has changed its strategic direction to customer centricity with the aim of making saving and credit products more customer centric based on customer value propositions;
WHEREAS, it has become necessary to improve customer experience by digitizing retail and micro business segment through Micro saving and loan products;
WHEREAS, it is necessary to set eligibility requirements, terms and conditions of saving and credit products and services to the retail and micro business segment in view of risk involved and customer’s demand;
WHEREAS, retail and micro business segments are viable and growing segments to be leveraged by the bank through designed products and services that can satisfy the segment’s demand;
WHEREAS, Commercial bank of Ethiopia intends to diversify its credit portfolio mix in terms of tenure through expanding the short-term financing to be availed to retail and micro business segments;
WHEREAS, it is necessary to attract the underserved segment of the society and enhance financial inclusion with low-cost financial services availed through mobile money platform;
NOW, therefore, this procedure is issued to enable implementation of bank’s DMSL policy.
1.2. Short Title
This procedure may be cited as” Digital Micro Saving And Loan Procedure of the Commercial Bank of Ethiopia.”
1.3. Definition of terms
“Credit policy” means a general framework approved by the board that spells out and guides the bank’s credit/financing strategic directions and credit /financing decisions.
“Credit Scoring” means judging/evaluating the creditworthiness of a customer based on basic characteristics and past performance in credit and other relationships with Bank.
“Digital Micro Credit” means micro loans that are requested, received and repaid all through mobile phones (or any other appropriate tools) via interaction with a computer system.
“Digital MSL Policy” means a policy document that governs the management of digital micro saving and credit services.
“Fixed Account” means a saving account locked for a certain period, a minimum of three months, based on the preference of the customers to fulfil their designated plan.
“Lending officials” means any person involved in MSL business of customer acquisition, Credit Worthiness evaluation, Credit operation, Collection, monitoring and decision-making as well as write off and post write off follow up process.
“Loan Pricing” means setting the interest rate, fees, commission, and others to be charged by the Bank on loans, advances, and guarantees extended to customers.
“Retail and Micro Business Segment” means a category of customers having less investible asset, trading transaction and return from business.
“Micro loan” means a small amount of loan availed to micro businesses and individuals for the purpose of supporting businesses and consumption.
“Micro Saving” means a saving scheme designed for small deposits from micro businesses and low income individ
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
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Putting the SPARK into Virtual Training.pptxCynthia Clay
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Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
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Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
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Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
Improving profitability for small businessBen Wann
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Credit Management Practices of BDBL
1.
2. To The Presentation on,
Credit Management Practices of
Bangladesh Development
Bank Limited
3. Definitions
The loans and advances made by the bank to its customers or borrowers.
Supervision of the bank’s philosophy, standards, and guidelines that its
employees must observe in granting or refusing a loan request
7. Name : Bangladesh Development Bank, a state-owned commercial
Bank (formed through merger of Bangladesh Shilpa Bank &
Bangladesh Shilpa Rin Sangstha)
Legal Status : Public Limited Company
Date of incorporation : November 16, 2009
Banking License
obtained
: November 19, 2009 issued by Bangladesh Bank
Vendors’ Agreement
Signed
: December 31, 2009 between the Government and Board of
Directors of BDBL nominated by the Government.
Formal Inauguration : January 03, 2010
Registered Office : BDBL Bhaban, 8, Rajuk Avenue, Dhaka-1000
Authorized Capital : Tk.10000 million
Paid Up Capital : Tk. 4000 million
Reserve (As on
01.01.2010)
: Tk. 2270 million
Total Assets (As on
01.01.2010)
: Tk. 16747 million
Total Human Resource : 781
Number of Zonal Office : 3
Number of Branch
Office
: 17
Membership : Dhaka Stock Exchange & Chittagong Stock Exchange Ltd.
Web Site : www.bdbl.com.bd
8. BDBL Lending Philosophy
Permitted & Restricted Lending
Uniform Credit Standard & Approval Process
Define Responsibilities
Specify terms of Maturity, Collateral, Risk and Return etc.
Profit Generation
Outlining Legal Procedures
Minimizing Lending Risk
Building up a Balanced Portfolio
9. A. Industry and Business Segment Focus
• Industrial Loan
• Public Private Partnership (PPP) Project
• Small and Medium Enterprise (SME) Financing
• Trade and Commerce
• Consumer Credit
• Lease Financing
• Real Estate Financing
• Agro-based ventures
Guidelines of Lending Policy
10. B. Green Banking
Transition to resource efficient Industries
Transition to low-carbon Industries
Impact on environmental sensitive sectors
Guidelines of Lending Policy
11. C. Types of Loan Facilities
(a)
Term
Loan
Project
Loan
Small
Business
Loan
House
Loan
Personal
Loan
Lease
Finance
Transport
Loan
Guidelines of Lending Policy
(b)
Working
Capital
Cash Credit
(Hypothecation)
Cash Credit
(Pledge)
Secured
Advances
(General)
Secured
Advances
(Financial
Obligation)
12. Guidelines of Lending Policy
C. Types of Loan Facilities
(c)
Foreign
Trade
Finance
Export Cash
Credit
Packing Credit
Purchase of
Documentary
Bills
Payment
Against
Documents
Loan Against
Imported
Merchandise
Loan Against
Trust Receipt
13. CREDIT EXPOSURE TO SINGLE
BORROWER/ GROUP LIMIT
1. - FOR IMPROVING RISK MANAGEMENT THROUGH RESTRICTION
2. - TO FIX LIMIT ON LARGE CREDIT EXPOSURE
15. DISCOURAGED
BUSINESS/ INDUSTRIAL SECTOR
Highly Leveraged Transactions
Finance of Speculative Investments
Lending to companies which are CIB black listed or known defaulters
Counterparties in countries subject to UN sanctions
Lending to Holding Companies
Bridge Loans relying on equity, etc. as a source of repayment.
16. THRUST SECTORS
A credit policy will be successful until there is a
predetermined target BDBL has their target to acquire the
following markets by providing loan and advances.
Trade Finance Solar energy generation
Working Capital Bio-gas plant
Lease Finance Automatic brick manufacturing
Agriculture Eco-friendly projects
Agro-Based Industry Computer Software & IT/Date export
Natural Resources Work order finance favoring contractors
Small and Cottage Industry Export oriented industries
CNG station Construction Materials
Tourism Paper and paper product
Electronics Power sector
Construction Urban housing
Export oriented garments Chemical, Pharmaceutical products
18. -Review on a periodical basis
-Record of borrowers payments
-Quality & condition of collateral
-Completeness of documentation
-Evaluation of situation
-Assessment of loan program
-Accelerating the loan review schedule
19. ProblemSituations
Unusual delays in receiving
documents.
Changes in methods:
depreciation.
Restructuring in of dividends,
credit rating.
Changes in stock’s price.
An over-eager owner
Questionable start date
An ostentatious business name
Unexpectedly robust financial
statements
Atypical trade references
Trade references all from one
industry
Business principals involved in
other failed or fraudulent
enterprises
Net losses in more than one
year.
Changes in capital structures,
liquidity or activity level.
Deviation of actual sales from
projected sales.
Unexpected changes in
deposits balanced maintained
by the customers.
20. Firmly in mind: full recovery of funds.
Examine the largest loans outstanding routinely.
Rapid detection and reporting.
Workout responsibilities should be different from lending policies of BDBL.
Workout specialists should confer the troubled customer quickly.
Estimation of available resources to collect the troubled loan
Tax and litigation search.
Quickly, competence and integrity of management.
Consideration of all possible alternatives.
Loan Workout
21. GUIDING PRINCIPLES OF LOAN FACILITY
i. Evaluate the tenure of loans and advances.
ii. Determine the size of loan facilities.
iii. Execute Security Documents.
iv. Properly insure of Inventory/Stocks.
v. Valuation of Property.
22. CROSS BORDER RISK
• JUDICIOUS OF PRODUCT RELATIVE RISK.
• OBTAINING THE CREDIT REPORT AND CONFIDENTIAL OPINION.
• AVOIDING COUNTRIES BURNED WITH DEBTS.
• OBTAINED THE INSURANCE AND OTHER COVERAGE
• BDBL WILL NEED TO BE CAUTIOUS WHILE CONSIDERING INSURANCE.
24. Loan Proposal/Application
Before receiving any credit proposal, the
following particulars will have to be examined
with due care for their incorporation:
Name of Product
Proposal
Service
Entrepreneur
Sponsors
25. Processing of Proposal
Full attention on the following issues:
Selection of project land.
Right selection of entrepreneurs and their ability.
Entrepreneur’s image and track record including financial strength.
Appropriateness of technology and machinery.
Scope of marketability in free market economy.
Over all Viability.
27. Capability to mobilize working capital:
Satisfy BDBL’s availability of working capital
Need to assess working capital requirement
Sufficiency/Credit exposure:
Financed only if there is full coverage for its
financing total capital cost including sponsors’
equity and the Bank’s investment
Leverage:
working capital requirement of a project will be
separately assessed
Debt-equity ratio for business entities should
not exceed the ratio of 60:40
28. Security:
• Security documents relating to ownership of assets must be
verified
• Coverage of the Bank’s exposure, by acceptable tangible
assets, shall not any time be less than 1.5 times of the
principal exposure.
• Property/assets of any Trust will not be acceptable as security
against loan
• Revaluation of assets done in 5 years interval
• Extended collateral security for the projects risky in nature
• Movable properties will not be considered as collateral
security.
• Security arrangements may also be made based on Bank-Client
relationship
Landed properties acceptable as collateral security:
• Well-identified land and landed property may be accepted as security
• Third party collateral may be accepted
29. Verification/ valuation of security:
• will be verified and valued by an enlisted valuer/
surveyor
• Loans up to Tk.30.00 lack will rest with Bank officials
at branch level.
Credit Committee:
Unless otherwise specified, Managing Director or
the senior most General Manager at Head Office
will preside over the Committee meeting
Chairman
All General Managers at Head Office Member
Managing Director will nominate a secretary to the
committee from amongst the officers nit below the
rank of Principal Officer
Secretary
30. Sanction of Loans
• After a thorough examination will be placed before the appropriate
authority with recommendation of the Credit Committee
• All loans and advances sanctioned shall comply with –
Bank’s Memorandum and Article of Association
Banking companies Act in 1991
Bangladesh Bank’s instructions
• Loan shall be sanctioned following certain terms & conditions –
Before signing loan agreement
Before 1st disbursement of loan or opening of L/C
Re-imbursement of capital expenditure will be considered
Approval must be signed by approving authority
Database must be maintained both at Head office and Braches.
Any credit proposal that does not come with the credit guidelines must
be referred to the managing director or board of directors
31. LOAN TRACKING THROUGH ADMINISTRATION
AND MONITORING CHART
• Monitoring and review of all accounts
• Monitoring of delinquent accounts
The scope of credit administration function basically
will include the following chart:
Documentation. Disbursement
Compliance Credit monitoring
Credit recovery Early warning signals analysis.
32. Documentation of loans
• Starts just after the sanction of loan
• BDBL maintains a standard set of documentation forms and formats
Disbursement
• Ensure the documentation formalities.
• Sponsor’s investment would be assessed by BDBL inspection team.
• Insurance policies covering risk- depending on the nature of project is
to be obtained.
Compliance Requirements:
• As per Bangladesh Bank’s guidelines, all requirements would be
submitted in a correct format in a timely manner.
• All approved service providers’ performance be reviewed on an
annual basis.
33. Credit Monitoring after Implementation
• To minimize investment losses monitoring procedures
and systems should be placed to indicate the financial
health of a borrower.
• BDBL’s IT systems must produce this information for
Head Office as well as for branches for review.
Past due principal or interest payments
Past due trade bills
Account excesses, and breach of loan covenants.
Loan terms and conditions
Timely correction actions should be taken.
Borrowers’ loan facilities are reviewed at least
annually
34. Credit Recovery
-Is a dynamic process.
The Recovery Unit’s primary functions at Head office or Branch are to:
Recovery Strategy
Pursue all options to maximize recovery
Early Warning Signals Analysis
Early Warning Signals (EWS) indicate risk or potential weakness of an
exposure requiring monitoring, supervision, or close attention by the
management.
Early identification and prompt reporting of deteriorating credit
sings done to insure swift action to protect the Bank’s interest.
35. Internal Audit
• Audit shall be carried out annually
• Shall ensure compliance with credit policy,
procedural guidelines, regulatory guidelines and
Bangladesh Bank requirement.
Credit Rating by outside agencies
• Required for large loans
36. CREDIT RISK MANAGEMENT
The bank will follow core risk management guidelines
according to the instructions of Bangladesh Bank.
Credit Risk Management
Foreign Exchange Risk Management
Asset-Liability Management
Internal Control and Compliance management
Money Laundering Management
CORE
RISK
38. Recognize Potential Frauds
Avoid Underestimating How Much Existing
Customers Contribute to Bad Debt
Proper Allocation of Time and Money on Credit
Evaluations
Taking Full Advantage of Technology
Ignore ‘Getting Caught Off-guard by
Bankruptcies’