Professional Documents
Culture Documents
STUDY
ON
THE
WORKING
OF
CPCs
AT
AMRITSAR
CENTRE
BY
ALOK SHARMA
CHIEF MANAGER
STATE BANK LEARNING CENTRE
JAMMU
STUDY REPORT
This study has been conducted on the instructions received from H R Deptt.,
Chandigarh L H O vide note No.HR/L&D/HCS/1083 dated the 20th June 2009. The
study has been conducted by Alok Sharma, Chief Manager (L) from SBLC Jammu
at Amritsar Centre. The under noted CPCs were covered for the Study.
a. RASMECCC, Amritsar
b. SAARC, Amritsar
c. CCPC, Amritsar
The main areas covered by the study are:1. Workflow at CPCs as also whether it is able to match the expectations of the
bank.
2. How CPCs can be best utilized by the Branches.
3. Common reasons for Rejection/ return of the loan proposals and how these can
be reduced
4. How Branches and sales outfits can have qualitative synergy with CPCs for early
sanction of proposals.
I would like to thank Sh. S C Arora, Assistant General Manager, who choose me to
conduct this study and he also helped/guide me to conduct this study. I also thank
my other trainers to their moral support given to me to conduct the study.
( ALOK SHARMA)
Chief Manager
SBLC JAMMU
28.07.2009
RASMECCC
AMRITSAR
Accounts handled
Irregular Accounts
NPAs
31.03.2008
No. of Amt.
A/Cs
7576 277.47
3076 119.73
153
4018
31.03.2009
No. of
Amt.
A/Cs
7856
344.78
3640
178.05
37
0.94
No. of accounts
No. of applications received from 01.04.09 to
30.06.09
No. of applications sanctioned
No. of applications Rejected/Returned
No. of applications under process
Inspection rating
Retail
6551
410
SME
1968
214
393
12
5
A+
193
8
13
OBSERVATIONS
The concept of Centralized Processing Cell under BPR was introduced with
an objective to enhance customer satisfaction by prompt processing of
proposals and free the Branches to focus on sales and marketing of Banks
various products. However, it has been observed that linked branches have
not taken new role seriously and the number of new proposals sourced by the
linked branches does not match the potential available at the Centre.
On the other hand, sourcing agencies are of the opinion that attitude of the
staff posted at CPC is generally non cooperative and negative. Proposals
forwarded by the Branches are not given weight-age. Generally, the
proposals are returned/rejected with one or the other reasons. CPC staff
strictly follows the check list without any deviation. Like if the applicant is
non income tax payee, he is being asked for a copy of Income Tax return or
Form 16 for Housing Loan.
After sanctioning the loan at CPC, only a copy of the sanction letter is sent to
the concerned branch. The Branch remains un-aware of the terms and
conditions of the sanction of loan for want of copy of arrangement letter.
The Assistant Managers posted at the Cell are newly promoted officers from
clerical staff and they are not fully aware of their roles. Moreover they are
not having any exposure in advances.
Customer relation programme is not being held by the CPC to educate the
borrowers of the working of the Cell. Therefore, required liaison between the
CPC and the customers is missing.
The space available with the Cell is also inadequate. Even though very few
customers visit the Cell, but they are not able to get the proper seating and
other amenities.
It has been observed that after sanction of the loan, neither the Cell nor the
Branch owns the customer and he is required to visit cell for further
information even if the same is available in the system.
The proposals received at the Cell not being entered into the system on the
same day but are entered in bunches. Some of the proposals have been
returned to the sponsoring branch/MPST without entering in the system
with a view to show lesser rejection percentage.
The loan documents are not being revived at the given intervals. It has been
reported that a large number of loan documents are time barred. The
concerned staff is not taking this aspect with the seriousness it deserves.
Generally, AMOs keep a close follow up of the irregular accounts and send
the notice to the borrower/guarantor.
Loan documents are executed at the Cell and not handed over to the
borrowers.
RC` s of vehicles financed by the Cell are not on record in a large number of
cases.
A large number of accounts are due for renewals. Some of the accounts are
due for more than 90 days.
The Cell has many documents which are time barred and no efforts are
being made to revive the documents.
TIRs are obtained from the Bank` s Advocate through the borrower which is
fraught with the risk. Similarly, valuation reports are also being collected
through the borrowers.
PDCs are not regularly processed at the Centre. If any PDC is received
returned unpaid, no action under section 138 of the Negotiable Act is taken
by the Cell.
SUGGESTIONS
Staff posted at the Cell should preferably have exposure in advances and
they should be aware of the system and procedures to process and sanction
the advances. They should also display helping attitude towards customers.
The staff should be regularly deputed to SBLCs for learning. On site training
programme can be arranged by SBLC to train the officials at the Cell.
The Cell should on continuing basis review the functioning of Banks Lawyer
and ensure that TIR is being submitted complete and in time. The documents
should be delivered to the Advocate and the Valuer by the Cell itself to avoid
any untoward incident and borrower should not be asked to collect the
reports.
When the branches forward the proposal to Cell, they should complete the
KYC formalities and related documents should also be authenticated. This
will help the Cell to process the proposals without any delay/fear.
Branch staff should be aware of the fact that the customer linked to Branch
by the Cell has to be attended to. The Branch should maintain liason with the
customers. The Branch staff should accept stock statements and financial
data submitted by customer for onward submission to the Cell. This will also
help the Branch to cross sell the Banks products as well as technology
products to the customers.
The Cell should enter all the proposals received from Branches and MPST
on the date of receipt itself. The rejections should be properly recorded and
put up to the higher authority and TAT should be maintained.
The staff posted at the cell should follow the workflow chart so that TAT is
maintained in true spirit and customers` visits to Cell are curtailed.
The AVO/AVS during their visit to the unit should have latest position of the
account and necessary follow up for smooth conduct of account and
obtaining financial data is made by them.
The staff posted at the Cell is not getting any incentive and they have a
psychological pressure of staff accountability. Necessary counseling should
be done to make them comfortable for processing the loan proposals.
Sincere efforts should be made to get the revival letters for the time barred
documents.
Borrowers should be contacted to get the copy of the RCs of the vehicles
financed by the Cell and a copy of insurance policies where it is not on the
record should also be obtained without any delay.
Opinion reports are not being compiled properly. The copies of the relative
documents/receipts should be attached to the same.
Staff is motivated but they feel that the incentive being passed on to the
Branch for the loan processed and served by them should be maid available
to them.
SARC
AMRITSAR
The SARC was established at Amritsar on 31st October 2006 and is headed by
Assistant General Manager and is supported by 2 Chief Managers, 4 Deputy
Managers and 2 Assistant Manager. The details of accounts handled by the Cell and
recovery effected during the period from 01.04.2008 to 31.03.2009 and 1.04.2009 to
30.06.2009 is submitted as under:-
Assets upgraded
Rehablitated/Restructing
Compromise
Write off
Lok Adalat organized
Action under SARFASI Act
AUCA recovery
Recovery through Recovery Agents
Inspection rating
31.03.2009
No. of
Amt.
A/Cs
135
6.10
4
18.58
150
3.29
221
3.67
2
56
5.47
3.14
140
0.33
A
30.06.2009
No. of
Amt.
A/Cs
71
1.99
53
1.28
32
0.73
35
0.73
0.48
45
0.21
OBSERVATIONS
The premises are not sufficient to for the customers and the staff
The Civil Suits filed in the court are properly followed by the concerned
staff. Regular meetings of staff and Bank` s Advocates are being held to
review their performance.
The Cell is utilizing the services of Recovery Agents for recovering dues from
defaulting borrowers. During the period 1.04.09 to 30.06.09, recovery agents
effected recoveries of Rs.0.21 Lacs.
The Cell has written off 221 accounts with outstanding of Rs.3.67 Lacs
during the year ended 31.03.2009 and 32 accounts with outstanding of
Rs.0.32 Lacs during the current year. The accounts are being followed on
regular basis.
The Cell upgraded 135 accounts with loan amount of Rs. 6.10 Lacs during
2008-09 and 71 accounts with outstanding of Rs.1.99 Lacs during the current
year.
No targets have been fixed to City Case Officers for effecting recovery,
compromise etc.
Full particulars of the borrower and guarantor are not entered in the
system/register for write off accounts as a result of which proper follow up
for recovery is not viable.
SUGGESTIONS
CCPC AMRITSAR
The CCPC, Amritsar was opened in Amritsar on 22nd November 2006 and was fist
CCPC in Chandigarh Circle. 18 branches of the centre are linked to the Cell.
OBSERVATIONS
The Module of clearing used by the Cell is not compatible with CBS.
Therefore, the data received from the MICR centre has to be modified before
posting to CBS.
Cheques received at the branch are duly crossed & no instrument has been
reported lost. Some times instruments are delivered to Data Entry Operators
without entering into transit voucher book.
ECS is not being used by the Cell and at the branches as a result of which
delay in collection takes place.
Non MICR cheques if presented in clearing are being returned by the Cell to
the Branches, which make delay in clearing of the cheques.
Dividend warrants are not paid by the cell and are paid the Amritsar Main
Branch as per instructions.
SUGGESTIONS
1. For smooth function of the Cell, Metro Module should be introduced at the
Cell.
2. The cut off time for acceptance of the cheque should be extended to 1.30 PM
or instruments should be collected from the branches twice in a day.
3. Branch should be advised to scan all the pending signatures immediately.
4. ECS should function at the Centre to avoid delay in clearing the instruments.
5. Non-MICR cheques should not be returned to the branches but should be
paid at the Cell itself.
6. Software should be developed to pay the dividend warrants at the Cell.
7. Clearing CPC should follow the instructions advised in Cheque Collection
Policy (CCP) 2009.