Indian Bank Promotion 2022-23: Practice Set 02

1. SMA Audit should be conducted for accounts with exposure of Rs.  ……………… other than Government accounts where the account status is SMA 1 or 2 twice in the last 6 months.

2. For accounts classified as ‘fraud’, the Bank should make a provision at one go to the full extent irrespective of the value of security.

3. For accounts under SMA-1 category, ………………… notice is to be sent to borrowers/ guarantors and ………………. visit is to be done to borrowers’/ guarantors’ place.

4. Threshold limit (Working Capital- FB + NFB) for Stock/ Book debt audit for Individual/ Partnership Firm is Rs. …………. and above.

5. …………………. is required to conduct unit visit yearly for exposure of Rs. 5 Cr to 10 Cr.

6. Agencies for Specialised Monitoring (ASM) is to be engaged in respect of projects with an exposure of Rs. …………. and above and exposure of specialised nature where our bank is the sole banker, leader of consortium or largest lenders in Multiple banking arrangements.

7. All Standard Borrowal A/Cs with rating of IB-BBB (Combined) and above are to be covered under Credit Audit if the limit is Rs. ………. Cr and above.

8. All Review/ Renewal proposals with limits of Rs. ……….. and above shall be put under LRM (Loan Review Mechanism) within ………..  from date of sanction:

9. RBI has set up the CRILC to collect, store and disseminate data on all borrowers’ credit exposures including Special Mention Accounts (SMA0, 1 & 2) having aggregate fund-based and non-fund based exposure of Rs…………. and above.

10. Coverage under LRM and Credit Audit shall not be less than ………. % and ……… % of the standard domestic credit outstanding as on the previous year end respectively. It should cover not only the value but also the numbers respectively.

11. Which type of SMS is sent from Central office level to loan accounts ?

12. The cut-off limit for classifying borrwers as non-cooperative would be those borrowers having aggregate fund-based and non-fund based exposures of Rs. ………… from our Bank.

13. Sanctioning authorities should sanction Home Loan and other Personal Loan Products only after due diligence and after verification from any two of the four CICs (CIBIL/ CRIF HIGHMARK/ EXPERIAN/ EQUIFAX) in case loan amount of Rs. ………… and above.

14. A system of legal audit for accounts with exposure of Rs. …………. where mortgage of property is involved, has been put in place.

15. RBI has advised to go for periodical legal audit within three years from the last legal audit in case of all credit exposure of Rs. ………….. .

16. For monitoring of high value of advances of Rs. ………….., the monthly Credit Relationship Manager Report (CRM Report) is to be submitted through the software made available in EWS portal.

17. The Bank is to obtain a certified copy of the passport of the promoters/ directors and other authorized signatories of companies availing loan facilities of Rs. …………… and above.

18. The Bank may appoint Nominee Directors on the boards of borrower companies in the following instances:

• Where Bank’s credit exposure to the company exceeds Rs. …………….. Crore or
• Where Bank’s credit exposure exceeds Rs. ……….. Crore and the account has become SMA/ NPA

19. As per RBI direction, the threshold for EWS and RFA is exposure of Rs. ………….. or more. However, the threshold for RFA was fixed at Rs. ………… and above as per our Bank Board direction. The EWS software triggers signals for accounts are now scaled down covering loan exposure of Rs. …………. and above. 

20. SAMC (Standard Assets Monitoring Committee) at CO will monitor individual accounts with limits of Rs. ………… and above. The committee shall also review the consolidated position of SMAs (Special Mention Accounts) of Rs. …………….. and above.