Wednesday, October 31, 2012

Credit Officers in Bank

Tips for Credit processing Officers



 As an officer with good amount of experience, I wish to caution my junior colleagues.

1. Whenever you process any credit proposal, first list out both positive and negative points. (The trick is list out the positive ones first)

2. Then prepare a brief compendium on where the proposal meets the eligibility criteria and where it doesn't (give point-wise, page-wise references to latest H O Circulars and Manuals brought out by the bank).

3. When you list out the shortfalls or deficiencies, forget not to suggest the remedial action needed.

4. Do not use strong words or harsh language, because they are understood as expressions in your own voice.

5. Never share important and sensitive information on any high profile cases with your colleagues - peers or sub-ordinates.

6. Even if you are ridiculed or insulted by your immediate boss on your assessment, don't lose heart.

7. If the boss is adamant that you change your rating score or some observations in the proposals, do not enter into any argument with him.

 8. Readily oblige him. But, you must learn the art and knack of recording some hard truths, indisputable truths, as just passing remarks. Use your intelligence cleverly here.

9. Do not highlight any disqualification or deficiency at the beginning and at the space meant for final 'Recommendations'.

10.When you reproduce some facts and statistics, quote their sources without fail.

11.When you incorporate some uncomfortable matter in the process note,  do not add your interpretation or opinion. Let the facts speak for themselves.

12.Do not add something that is blatantly false, only to please your boss and escape from his anger.

If you like you may read an excellent article written by said writer on sick unit and role of banks, pl click on following link:----------

Bitter Truth Of Credit Processing In Public Sector Banks

Bitter Truth Of Credit Processing 
In Public Sector Banks 
Bitter Truth of Promoters of Sick Units

In India -   Companies   Become Sick    But   NOT   Their  Promoters !! 


 When Sick Industrial Companies Act was enacted in 1985, some questions were repeatedly asked in CAIIB examinations at that time.  Some of them were:

1.                 > What is the definition of a ‘Sick Company’?
2.                 >  What are the possible causes for a company to become sick?
3.                 > What are the measures to be taken to prevent a company from falling sick?

I have a few words of caution to my fellow bankers.

1.    (i) Do not obey the unlawful instructions of your bosses, fearing retribution. 
2.    (ii) I always tell my colleagues and sub-ordinates: deviation from the procedures is one thing and violation of law is another. For the latter, there is no excuse at all.

3.    (iii) Remember, you have many more years of service left in your bank, whereas your top brass will continue in your bank for only a few years.
4.    (iv) There is nothing wrong or shameful, if you yourself apply for a transfer from a sensitive place or position, before you are transferred to a hard-living area, if such a situation develops.

5.    (v) Unfortunately, an honest officer like Ashok Khemka, who received 41 transfers in his 21 years of service, is not appreciated by his own colleagues, leave alone the society.  Such person is branded as one who does not know the ‘knack of adjustment’.

Is DLF VS Vadra VS Bank Another Version OF SATYAM COMPUTERS?
Who to believe: Vadra's bank or balance sheet?
BS Reporter / New Delhi Oct 12, 2012, 00:02 IST

The curious dealings of Robert Vadra have become even more curious, with a bank mentioned in the balance sheet of one of his companies denying it ever undertook a transaction clearly stated in the firm’s auditor’s report.

Mangalore-headquartered Corporation Bank has said in its reply to a Business Standard report (Vadra: ‘A little help from my friends’, October 10), which pointed out that the bank’s Friends Colony branch had given an overdraft of Rs 7.94 crore to Vadra’s firm Sky Light Hospitality, that such a transaction did not take place. “We have gone though (sic) our records and do not find that any such facility was granted to M/s Sky Light Hospitality as has been reported,” the bank said in a fax this evening, quoting the article mentioned, but did not deny it had business dealings with Vadra or any of his firms.

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