The document outlines 9 principles of sound lending that banks should follow which are safety, liquidity, return or profitability, diversification, object of loan, security, margin money, national interest, and character of the borrower. The principles emphasize ensuring the safety of funds, maintaining liquidity so loans can be converted to cash without loss, earning a reasonable return while not sacrificing safety or liquidity, diversifying investments across industries and borrowers, only lending for productive purposes, requiring adequate security and margin on secured loans, complying with national priorities, and carefully examining the character and creditworthiness of borrowers.
Collection of cheque chapter 2, banker as a holder for value, conversion of a cheque, precautions to be taken by collecting banker, duties of a collecting banker, statutory protection to collecting banker
This PPT describes about function of banks. There are two types of functions:- primary functions and secondary functions. Primary function of a bank are also known as banking functions. They are the main functions of a bank. Primary function is further divided into two parts:-accepting deposits and lending loans. Secondary function of a bank performs a number of secondary functions, also called as non-banking functions. Secondary function includes:-Merchant Banking, Leasing, Mutual funds, Venture Capital (VC), ATM, Telebanking, Credit cards,Locker Service, Underwriting, BCSBI. For more information please go through the slide:-
Helps customer find the best policy according to their suitable needs
Features,pros,cons and suitability of various policies are given :-
1. Term Policy
2. Whole Life Policy
3. Unit Linked Insurance Policy (ULIP)
4. Money Back Policy
5. Endowment Policy
,
modes of charging
,
modes of charging security
,
different modes of creating charge
,
essentials of pledge
,
documents required for pledge
,
liquid asset
,
different forms of liquid assets
,
supplies of liquid assets
,
demand of assets
The presentation explains the concept of banking and its lending system. Different types of credit facilities as well as principles of sound lending are also discussed.
General Principles of Lending:
When a request for a loan is received, it is important to ensure that the borrower has the legal capacity to borrow. The other matters upon which the information should be obtained are: the purpose of advance, the amount involved, the duration of the advance, the sources of repayment, the profitability of transaction, and, where applicable, the security offered. The most fundamental principle of all is that the bank should have confidence in the integrity, competence and continuing credit worthiness of the borrower.
• Know Your Customer:
While entertaining a proposal for advance, the branch has to first ensure compliance with the KYC norms.
• Pre- Sanction Stage:
Obtain/compile the following:
• Bio-data/declaration of assets owned by the borrower and guarantor along with latest income tax/wealth tax assessment copies and compilation of opinion reports.
• Particulars of immediate family members/legal heirs along with their father’s name and age.
• Audited balance sheets for the previous 3 years, estimated balance sheet for the current year and projected balance sheet for the next year.
• Particulars of existing borrowing arrangements and credit reports/no objection letters from existing banks if any.
• It should be followed by independent verification by the branch incumbent.
• Details of associate/group concerns, their borrowing arrangements and their latest balance sheets.
• No objection letter from term loan lender(s) if already financed by them and their permission/willingness to cede pari passu/ second charge on their security.
• The position of term working capital liabilities with various banks/FIs and details thereof viz., Limit, DP, Out standings, Irregularities (if any).
• Conduct a search/obtain a search report from Registrar of Companies to ascertain position of charges created already.
•
• Due Diligence:
• Branch Manager should do adequate Due Diligence before bringing an asset to the Bank’s books. This will avoid NPA.
• Thorough inquiry about the prospective borrower (with other banks, Financial Institutions, etc.) market intelligence, his past track record of performance and repayment of obligations, credit worthiness (Net Worth) must be done.
• Personal visit to his office/place of business will give an idea of his business.
• Processing of Applications:
While processing the applications, the following should be looked into and commented upon in the proposal:
• Due diligence on promoters’ background, their track record of repayment by checking with their existing bankers (NPA status) (any rephasements, any compromise entered into), credit worthiness, market reputation etc.
• Latest RBI defaulters’ list and willful defaulters' list —Company and their Directors.
• Bank’s loan policy.
• Contractual capacity of the borrower regarding borrowing powers/any restrictions on borrowings and names of persons authorized to borrow by verifications of:
• Partnership deed
Collection of cheque chapter 2, banker as a holder for value, conversion of a cheque, precautions to be taken by collecting banker, duties of a collecting banker, statutory protection to collecting banker
This PPT describes about function of banks. There are two types of functions:- primary functions and secondary functions. Primary function of a bank are also known as banking functions. They are the main functions of a bank. Primary function is further divided into two parts:-accepting deposits and lending loans. Secondary function of a bank performs a number of secondary functions, also called as non-banking functions. Secondary function includes:-Merchant Banking, Leasing, Mutual funds, Venture Capital (VC), ATM, Telebanking, Credit cards,Locker Service, Underwriting, BCSBI. For more information please go through the slide:-
Helps customer find the best policy according to their suitable needs
Features,pros,cons and suitability of various policies are given :-
1. Term Policy
2. Whole Life Policy
3. Unit Linked Insurance Policy (ULIP)
4. Money Back Policy
5. Endowment Policy
,
modes of charging
,
modes of charging security
,
different modes of creating charge
,
essentials of pledge
,
documents required for pledge
,
liquid asset
,
different forms of liquid assets
,
supplies of liquid assets
,
demand of assets
The presentation explains the concept of banking and its lending system. Different types of credit facilities as well as principles of sound lending are also discussed.
General Principles of Lending:
When a request for a loan is received, it is important to ensure that the borrower has the legal capacity to borrow. The other matters upon which the information should be obtained are: the purpose of advance, the amount involved, the duration of the advance, the sources of repayment, the profitability of transaction, and, where applicable, the security offered. The most fundamental principle of all is that the bank should have confidence in the integrity, competence and continuing credit worthiness of the borrower.
• Know Your Customer:
While entertaining a proposal for advance, the branch has to first ensure compliance with the KYC norms.
• Pre- Sanction Stage:
Obtain/compile the following:
• Bio-data/declaration of assets owned by the borrower and guarantor along with latest income tax/wealth tax assessment copies and compilation of opinion reports.
• Particulars of immediate family members/legal heirs along with their father’s name and age.
• Audited balance sheets for the previous 3 years, estimated balance sheet for the current year and projected balance sheet for the next year.
• Particulars of existing borrowing arrangements and credit reports/no objection letters from existing banks if any.
• It should be followed by independent verification by the branch incumbent.
• Details of associate/group concerns, their borrowing arrangements and their latest balance sheets.
• No objection letter from term loan lender(s) if already financed by them and their permission/willingness to cede pari passu/ second charge on their security.
• The position of term working capital liabilities with various banks/FIs and details thereof viz., Limit, DP, Out standings, Irregularities (if any).
• Conduct a search/obtain a search report from Registrar of Companies to ascertain position of charges created already.
•
• Due Diligence:
• Branch Manager should do adequate Due Diligence before bringing an asset to the Bank’s books. This will avoid NPA.
• Thorough inquiry about the prospective borrower (with other banks, Financial Institutions, etc.) market intelligence, his past track record of performance and repayment of obligations, credit worthiness (Net Worth) must be done.
• Personal visit to his office/place of business will give an idea of his business.
• Processing of Applications:
While processing the applications, the following should be looked into and commented upon in the proposal:
• Due diligence on promoters’ background, their track record of repayment by checking with their existing bankers (NPA status) (any rephasements, any compromise entered into), credit worthiness, market reputation etc.
• Latest RBI defaulters’ list and willful defaulters' list —Company and their Directors.
• Bank’s loan policy.
• Contractual capacity of the borrower regarding borrowing powers/any restrictions on borrowings and names of persons authorized to borrow by verifications of:
• Partnership deed
Model Attribute Check Company Auto PropertyCeline George
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Personal development courses are widely available today, with each one promising life-changing outcomes. Tim Han’s Life Mastery Achievers (LMA) Course has drawn a lot of interest. In addition to offering my frank assessment of Success Insider’s LMA Course, this piece examines the course’s effects via a variety of Tim Han LMA course reviews and Success Insider comments.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
2. Principles of Sound Lending
▹ The primary function of a bank is to receive
deposits and lend loans, the majority of the funds
are used for lending and this also considered as
the major source of income for the bank. But
lending is accompanied by risk, therefore a banker
must be cautious in this aspect.
3. A banker must be extra careful while granting loans. A
banker should take the following precautions:
1. Safety
▹ The most important golden rule for granting loans is
the safety of funds.
▹ The main reason for this that the very existence of
the bank is dependent upon the loans granted by
him.
▹ In case the bank does not get back the loans grated
by it, it might fail.
▹ A bank cannot and must not sacrifice the safety of
its fund to get a higher rate of interest.
.
4. 2. Liquidity
▹ The second important golden rule of the grant loan is
liquidity. Liquidity means the possibility of converting
loans into cash without loss of time and money.
▹ Needless to say, the funds with the bank out of which
he lends money are payable on demand or short notice.
▹ As such a bank cannot effort to block its funds for a
long time.
▹ Hence, the bank should lend only short term
requirements like working capital.
▹ The bank cannot and should not lend for long term
requirements, like fixed capital.
▹ Related: Benefits and Problems of Reverse Mortgage
5. 3. Return or Profitability
▹ It is another important principle. The funds of the
bank should be invested to earn the highest return,
so that it may pay a reasonable rate of interest to
its customers on their deposits, reasonably good
salaries to its employees and a good return to its
shareholders.
▹ However, a bank should not sacrifice either safety
or liquidity to earn a high rate of interest.
▹ Of course, if safety and liquidity in a particular
case are equal, the banker should lend its funds to
aa person who offers a higher rate of interest.
6. 4. Diversification
▹ One should not put all his eggs in one basket is a
proverb which very clearly explains this principle.
▹ A bank should not invest all its funds in one
industry. Incase that industry fails, the banker will
not be able to recover his loans.
▹ Hence, the bank may also fail. According to
the principle of diversification, the bank should
diversify its investments in different industries and
should give loans to different borrowers in one
industry.
▹ It is less probable that all the borrowers and
industries will fail at one and at the same time.
7. 5. Object of Loan
▹ A banker should thoroughly examine the object for
which his client is taking loans.
▹ This will enable the bank to assess the safety and
liquidity of its investment. A banker should not grant
loans for unproductive purposes or to buy the fixed
assets.
▹ The bank may grant loans to meet working capital
requirements.
▹ However, after the nationalization of banks, the banks
have started granting loans to meet loan term
requirements.
▹ As per prudent banking policy, it is not desirable
because of term lending by banks a large number of
banks had failed in Germany.
8. 6. Security
▹ A banker should grant secured loans only. In case
the borrower fails to return the loan, the banker
may recover his loan after realizing the securing.
▹ In the case of unsecured loans, the chances of
bad debts will be very high.
▹ However, the bank may have to relax the
condition of security in order to comply with
the economic policy of the government.
▹ Related: Essential Steps of Loan Documentation
Procedure.
9. 7. Margin Money
▹ In the case of secured loans, the bank should carefully examine
and value the security.
▹ There should be a sufficient margin between the number of
loans and the value of the security.
▹ If an adequate margin is not maintained, the loan might become
unsecured in case the borrower fails to pay the interest and
return the loan.
▹ what are the principles of lending in the bankingThe amount of
loan should not exceed 60 to 70% of the value of the security. If
the value of the security is falling, the bank should demand
further security without delay.
▹ In case a person fails to do so, the loan might become
unsecured and the bank has to suffer a loss on account of bad
debt.
▹ Key Benefits of Depository System (Explained).
▹
10. 8. National Interest
▹ Banks were nationalized in India to have social
control over them.
▹ As such, they are required to invest a cetin
percentage of loans and advances in priority
sectors, viz, agriculture, small scale, and tiny
sector, and export-oriented industries, etc.
▹ Again, the Reserve Bank also gives directives in
this respect to the scheduled banks from time to
time.
▹ The banks are under obligation to comply with
those directives.
11. 9. The Character of the Borrower
▹ last but not the least, the bank should carefully
examine the character of the borrower.
▹ Character implies honesty, integrity,
creditworthiness, and capacity of the borrower to
return the loan.
▹ In case a person fails to verify the character of the
borrower, the loans and advances might become
bad debts for the bank.
12. Conclusion
▹ Banks lend money as term loan when the
repayment is sought to be made in fixed,
predetermined installments.
▹ This type of loan is normally given for acquiring
long term assets, namely, assets will benefit the
borrower over a long period (exceeding at least
one year).
▹ Financing for purchases of plant and machinery,
constructing buildings for factories, setting up new
projects purchasing automobiles and consumer
durables, real estate, and creation of infrastructure
all fall in this category.
