INDIAN BANK PROMOTION 2022-2023: PRACTICE SET 01

1. Hypothecated Plant and Machinery shall be taken at Written Down Value (WDV) excluding revaluation, if any, as per the latest Audited Balance Sheet(ABS) which is not ……….. year(s) old. Else, fresh valuation report is to be obtained and the Realizable Value as per valuation report is to be reckoned.

2. Immovable properties are to be valued by two independent valuers for advances of Rs…………… crores and above in case of Non-Structured Loan accounts and SME SLP. For other Structured Loan Products, two independent valuations are required for advances exceeding Rs………… Crore.

3. While calculating NPV of securities for the purpose of OTS, if two valuation reports have been obtained from two different valuers, ………….. of the
two Realizable values given by the different valuers should be reckoned:

4. Which is/ are not one of the recovery measure(s)?

5. An account will be treated as fraud only after CO FRMC classifies the same as such and report to ………….. .

6. No compromise proposal should be rejected at the Branch Manager’s level (except SAM Large / LCBs) . It should be referred to the next higher authority for decision

7. Real Balance, Total dues, Notional Dues are :

8. Whether OTS can be considered in respect of Lok Adalat settled accounts ?

9. Any Recovery should be first appropriated to:

10. An account is eligible for transfer to SAM branch if it remains as NPA for more than ……….. months from the date of classification of NPA.

11. In respect of all OTS proposals, particularly the high value proposals of Rs. 10 Lac and above, the offer should be accompanied by a minimum upfront amount of …………% of the OTS offered from the Borrower so as to commit him / her to the proposal. 

12. In respect of Branch Managers who are in a lower Scale and heading a Branch of higher Scale, whether he/she can exercise the higher Scale Branch Manager powers for compromise settlement ?

13. Forensic audit should compulsorily be conducted in respect of NPA accounts with Book Balance of Rs…………… and above.

14. Even if the NPV of securities is less than Notional Dues, Net worth of the borrower and guarantors need not to be reckoned for the purpose of computation of RRA for accounts (put together for all the facilities) with Real Balance upto Rs. …………. .

15. The authority to consider OTS proposals below RRA is:

16. Net Present Value (NPV) of the securities represents present value of amount that may be recovered at a future date:

17. Settlement formula for (a) Educational Loans with limit upto Rs………… , (b) Agricultural Loans (Except Agri Jewel Loans) and Micro and Small Enterprises Loans with Limit upto Rs………  under Sub-standard category is ………….. .

18. RBI & Audit Committee of the Board directed that compromise settlements in case of Fraud/Wilful Defaulter/Non-Co-operative accounts to be sanctioned not below the level of …………………

19. For arriving at NPV of the realizable value of the available securities, branches have to calculate the NPV by applying the discount rate. The rate to be applied is
…………… .

20. Subject to the discretionary powers specified in the Policy subject to the condition that no fraud is involved, OTS in Staff/Retired staff loans either direct or indirect can be considered by a) COLCC (ED) where Real Balance is upto Rs……… Lac (b) CAC where Real Balance is above Rs………….. Lac and upto Rs. ……. Lac and MCB for accounts not covered under (a & b).

21. If the value of stocks and book debts is more than 100 Lac, its value will be based on any one of the following:

22. For accounts sanctioned upto COLCC (GM), the sanctioning authority to consider compromise in respect of stressed assets in Standard accounts under SMA 2 category is:

23. “Out of Pocket expenses” that may be incurred by Recovery Agent for taking physical possession of “property with value upto Rs. 1 Cr” including obtaining order from DM/ CMM/ CJM will be reimbursed by Bank on declaration basis:

24. For centralized decision in case of requirement of manual upgradation / downgradation of any borrowal account, the delegation of powers vests with:

25. FGM (CAC) is empowered for according approval to the proposal for ‘Private Treaty’ involving the property having reserve price upto ………….. beyond which the proposal is to be referred to Corporate Office.