|
|
 |
| |
| |
| |
- The current ratio and total outside liabilities/tangible
net worth ratio of the borrower unit should be in line with
the relevant norms specified for sanction of facilities to
T&S units, according to the latest audited balance sheet
not older than 12 months.
- The unit should have earned post-tax profits in each of
the immediately preceding three years. Profits should not
have declined during the preceding three years and there should
be no such trend discernible in the near future.
Guidelines to branches:
- In all cases of take over of advances from other banks,
you need to obtain a credit information report in the format
prescribed by IBA. The experience of the present banker (item
13 of the format) should show satisfactory dealing with the
unit.
- The branch should assess the requirements of borrowers
and obtains sanction for proposed limits before actually taking
over the outstanding liability of borrowers from their existing
bank or financial institution.
- Before taking over, branch should examine the:
a. Reasons for take over
b. Market perception including the existing bank’s or
financial institution’s perception about the unit and
its management.
c. Potential ancillary business accruing to the bank.
d. Terms and conditions of the existing bank and SBH to ensure
against dilution of security cover.
|
|
