Corporate Banking Branch Operations
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Questions and Answers

What is the purpose of obtaining a re-valuation report after the expiry of the existing valuation?

  • To evaluate the market trends
  • To assess borrower creditworthiness
  • To increase the loan amount
  • To comply with bank guidelines (correct)

    • What should be monitored to ensure proper repayment of loans?

  • Withdrawal limits on accounts
  • Interest rates from competitors
  • Customer feedback on the bank's services
  • Repayment of loan and servicing of interest (correct)

    • In which scenario is independent follow-up required?

  • When repayment terms need to be renegotiated
  • When the borrower requests a loan extension
  • When the account reaches SMA-0 category (correct)
  • When the account goes into SMA-1 category

    • What should the approval of the CMC Head concern in terms of Drawing Power Allocation?

    <p>Updating CBS with changes</p> Signup and view all the answers

    What does the submission of a status note for SMA/stressed accounts involve?

    <p>Providing details on account performance</p> Signup and view all the answers

    What is one of the key responsibilities when creating charge in CERSAI?

    <p>Recording movable and immovable securities</p> Signup and view all the answers

    What is essential for disbursement of facilities according to the bank’s policies?

    <p>Meeting all Conditions Precedent</p> Signup and view all the answers

    What is necessary to avoid leakage in revenue to the bank?

    <p>Correct interest rate charges and recovery of all charges</p> Signup and view all the answers

    Which body is responsible for sanctioning loans up to the power of ZO?

    <p>Zonal Office Credit Approval Committee (ZOCAC)</p> Signup and view all the answers

    Where will the proposals for HO Power be submitted?

    <p>To CBB with a copy to ZO</p> Signup and view all the answers

    What is the ticket size that aligns CBB with MCC for handling loans?

    <p>Above ₹10 Crore</p> Signup and view all the answers

    What can happen to accounts with exposure up to ₹10 Crore?

    <p>They can continue at CBBs or be shifted as per customer request</p> Signup and view all the answers

    How will accounts above ₹10 Crore be managed?

    <p>Shifted to CBBs from MCCs</p> Signup and view all the answers

    Who will cater to the establishment-related work for CBBs?

    <p>Circle Office (CO)</p> Signup and view all the answers

    What should happen to the Non-Performing Assets (NPA) accounts?

    <p>They continue in the Sol of CBB</p> Signup and view all the answers

    What role does the Circle Office/ Zonal Office have regarding CBBs?

    <p>They perform account wise credit monitoring</p> Signup and view all the answers

    Who has the authority to sanction proposals regarding Lab Grown Diamonds?

    <p>ZOCAC &amp; above</p> Signup and view all the answers

    Which authority is responsible for sanctioning water supply projects?

    <p>CHCAC &amp; above</p> Signup and view all the answers

    What is required for all other infrastructure proposals not explicitly mentioned?

    <p>Prior administrative approval of HOCAC–I</p> Signup and view all the answers

    Which type of loaning powers must be exercised for educational institutions constructed by real estate entities?

    <p>Real estate project financing powers</p> Signup and view all the answers

    What kinds of proposals can PLP-CAC /MCC-CAC sanction?

    <p>Proposals related to agro-processing and cold storage</p> Signup and view all the answers

    What is the maximum funding for solar power projects that can be approved without additional oversight?

    <p>₹10 Cr</p> Signup and view all the answers

    Which authority has the maximum general loaning powers for infrastructure projects not listed in specific categories?

    <p>ZOCAC</p> Signup and view all the answers

    For which proposal must technical appraisal assistance be sought?

    <p>Mini hydropower projects</p> Signup and view all the answers

    What is the minimum PNB SME Score required for non-government sponsored schemes?

    <p>52</p> Signup and view all the answers

    Which of the following is NOT an indicative activity performed by branches after loan sanctioning?

    <p>Sanctioning additional fund limits</p> Signup and view all the answers

    What kind of compliance must be ensured before disbursement of a loan?

    <p>Pre-Disbursement Compliance (PDC)</p> Signup and view all the answers

    For MSME loans above ₹100.00 Lakh, what is the discretionary power authority involved?

    <p>MCCs</p> Signup and view all the answers

    What must be ascertained before disbursing the loan amount?

    <p>Genuineness and credentials of the supplier/dealer</p> Signup and view all the answers

    Which of the following growth rates should be accepted based on loan projections?

    <p>Growth rates conforming to past trends</p> Signup and view all the answers

    What is one of the targeted schemes under the MSME loan segment?

    <p>PNB Trade Growth</p> Signup and view all the answers

    Which of the following must be analyzed as part of the loan process?

    <p>Promoter's capacity and resourcefulness</p> Signup and view all the answers

    Which financing methodology allows for the consideration of cash flow mismatches in assessing working capital requirements?

    <p>Cash deficit/Cash flow mismatch</p> Signup and view all the answers

    What is the minimum loan component percentage that borrowers with aggregate fund-based working capital limits of ₹150 Crore and above must maintain from 01.07.2019?

    <p>60%</p> Signup and view all the answers

    Which system is empowered to accept any methodology for working capital assessment depending on the borrower's business model?

    <p>HOCAC-II &amp; above</p> Signup and view all the answers

    What must branches provide upon receiving loan application forms from applicants?

    <p>An acknowledgment of receipt</p> Signup and view all the answers

    Field functionaries must enter leads pertaining to all modules into which application system?

    <p>PNB Lens</p> Signup and view all the answers

    For proposals above ₹25 crore and not configured in LenS, what must be indicated in the status of the application?

    <p>Sanctioned Manually</p> Signup and view all the answers

    What financial assessment method is specifically linked with turnover?

    <p>Traditional Method i.e., MPBF System</p> Signup and view all the answers

    Which area does an 'Acknowledgment of receipt' primarily fall under according to the provided guidelines?

    <p>Loan proposal handling</p> Signup and view all the answers

    Study Notes

    Corporate Banking Branch (CBB)

    • CBBs handle loans over ₹10 crore, acting as a one-stop solution for corporate credit needs.
    • CBBs will handle both fund-based and non-fund-based corporate credit requirements
    • Accounts over ₹10 crore from other branches can be shifted to CBBs at the customer's request.
    • Existing accounts under ₹10 crore can remain at CBBs or be shifted to other branches, at the customer's request.

    Loan Sanctioning Powers for CBBs

    • Loans up to ZO Power: Sanctioned by ZOCAC
    • HO Power Proposals: Submitted to Head Office, with recommendation from Zonal office.
    • Lab Grown Diamonds: Sanctioned by ZOCAC and above
    • Financing to Jewellers: Continued as per extant IRMD/MSME scheme.

    Infrastructure Loan Sanctioning

    • Agro-Processing, Cold Storage, Warehouses, Hospitals: Sanctioned by PLP-CAC/MCC-CAC and above.
    • Water Supply, Irrigation, Water Treatment, Sanitation, Sewerage, Solid Waste Management: Sanctioned by CHCAC and above.
    • Mini Hydropower Projects: Sanctioned by ZOCAC and above.
    • Other Infrastructure: Sanctioned by ZOCAC and above, but require prior administrative approval/clearance from HOCAC-I.

    MSME Loans

    • MSME Loans up to ₹100.00 Lakh: Sanctioned by PLPs.
    • MSME Loans over ₹100.00 Lakh: Sanctioned by MCCs.
    • Working Capital Assessment: Methodology including MPBF, Assessed Bank Finance (ABF), Cash Budget and Cash deficit/Cash flow mismatch can be used based on the borrower's business model and operational requirements.

    Loan Application Process

    • Field staff must use PNB Lens to enter all credit leads.
    • Leads for proposals above ₹25 crore and schemes not configured in Lens should be marked as "Sanctioned Manually" with additional details captured.

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    Related Documents

    PNB Credit Officer Handbook PDF

    Description

    This quiz covers the functions and loan sanctioning powers of Corporate Banking Branches (CBBs). Learn about the management of corporate credit needs, the criteria for loans, and the infrastructure loan procedures under CBBs. Test your understanding of corporate banking operations and regulations.

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