UNIT I: Introduction Bank Credit – Basic Principles and Approach – Three C‟s- Purpose of lending – Security aspects / Business Experience / Management – Market – Purpose Trading – Manufacturing Service, Agriculture, Personal – Security: Primary- Collateral – Stock, Machinery, Land and Building – Guarantee – Different types of Mortgages – Management / Experience: Business Experience Technical Qualification-Professional Management –Market :Local National-Global-Types of Credit-Demand Loan- Cash Credit- Overdraft-Term Loan Basic Characteristics and difference between the four-Legal and Regulatory Aspect- Legal Documents – Loan Documents – RBI Directives – Various Committees – Tandon- Chore, Nayak and such other Committees – Brief details.
UNIT II: Lending Policy Lending to Different Customers – Individuals – Partnership – Limited companies – Trust Association-Legal aspects -Documents to be called for.
UNIT III: Loans & Disbursement Loan Processing – Sanctioning – Monitoring – Recovering Commercial Loans Activity Based)- Government Sponsored Loans (mostly agricultural, Rural and Weaker section)- Trading: small – Retail – Wholesale – Chain / Supermarket – Manufacturing: Industrial Advances Service Transport-Telecommunication-Hospital-Hotel. Infrastructure : Power- Petrol – Port – Agriculture: Crop – Plantation – Well – Motor Pump set – Tractor etc. Miscellaneous: Self Employed. Business loan (Borrower Based)-Small Business : Self Employed-Transport-Trade-HotelOthers-Approach-Assessment-Supervision- Recovery Medium and Large Scale: Small Scale Industries – Corporate – Approach – Assessment-Sanction-Disbursement-FollowUpRecoveryAgriculture:Small,Medium and Big Farmers – Short term and Medium term Loans Corporate Borrowers .Government sponsored: Priority Sector lending – Lead Bank Scheme Government sponsored loan to Weaker section-Subsidy.
UNIT IV: Project Finance Corporate Finance – Project Finance – Appraisal – Assessment – Documentation – DisbursementMonitoring-FollowUp-Review-CreationofCharge-AnalysisofBalance sheet – Profit and Loss account – Cash flow and Fund flow working – Project approach
UNIT V: N.P.A. NPA- Causes and Remedial Measures – Management of NPA‟s – Debt Recovery Tribunals – Asset Reconstruction Fund – SARFAESI Act 2002-Reserve Bank of India – Master Circulars related to NPA