asset monitoring cbs
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CBS Knowledge Series
ASSET-Monitoring@CBS
ASSET-Monitoring@CBS
Information Technology DivisionHead Office: 5, Parliament street New Delhi
HELPLINECENTRAL HELP DESK 011-23719093,23323680
23323703,32035327011-32035328
23710021(PBX)23323697(FAX)
GENERAL MANAGER(IT) 011-23323141
DY.GENERAL MANAGER(IT)011-23717407
ASSISTANT GENERAL MANAGER(IT-CBS)011-23718045
CHIEF MANGER (IT-CBS)011-23765159
SR.MANAGER/MANAGER 011-23705948
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CBS Knowledge Series
FOREWORD
Dear members of PNB Parivar,
We have a tradition of accomplishing the given task with zeal and innovation. As you all know, management of our advances portfolio plays a very vital role in ensuring healthy and profitable growth of the Bank. Thus, it is absolutely necessary to keep our loans & advances portfolio healthy and performing. This requires very close and continuous monitoring of each loan account at every level i.e. Branch, Circle and Head Office.
Our entire business transaction process is driven on a robust and dependable technology platform-CBS with Finacle application software. In order to facilitate monitoring the health of our loan assets the 'Team CBS' in the Information Technology Division, Head Office has introduced many customised menu options for managing this task effectively. In order to give a thrust and focus on the management of irregular and NPA accounts, a series of customised modules have been introduced in the last one year. These modules facilitate the management of assets throughout its life cycle. All these details have
now been consolidated and compiled in a Booklet by the 'Team CBS' for the guidance of the field functionaries under the CBS Knowledge Series.
I am happy to release this Ready Reckoner ASSET-MONITORING@CBS which will enable the field functionaries to effectively use the system for managing recovery of irregular and NPA accounts. I am sure that by using the system generated tools, our monitoring and management of irregular and NPA accounts will be more focused and bring in the desired results as we go along.
(K.R. KAMATH)
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C o n t e n t s
Life Cycle of Loan A/c Handling in CBS
CBS Knowledge Series
Sr. Subject Pageno. no.1 Flow Chart of Asset Account 1-4
2 Irregular/Overdue Account 6
3 Advance Intimation Reminder/Report 8
4 Recovery Statement 9
5 LETGEN/LAODR 10
6 Type of Demands 11
7 Morotorium 12
8 Data Correction 12
9 Repyament Schedule Report 12
10 Type of Loan Accounts 12-14
11 Rephasement 14
12 Common Operational Discripencies 15-17
13 Calculation of Memoranda Dues 18
14 Kitty in Written off Accounts 18
15 Reports Related to NPA 19
16 Other Reports 19-23
Start
Pre sanction appraisal
Sanction of loan
Opening of account and disbursement of loans and Advances
(Role of CBS starts here)
Regular Account
(Standard Account)
All dues recoverd
Closure of A/c
B
A
No
Yes
No
Recovery within due
date
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ALife Cycle of Loan A/c Handling in CBS
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* For Identification of Irregular A/cs SASCL Report LAOPI menu option Monthly statement of recovery - PNBRPT-3/28. Half Yearly Statement of Recovery - PNBREP-1/6
Irregular Report PNBREP -1/8
$ For Follow up LAODR menu option LETGEN Menu option
C
No
No
Identification as NPA Need close follow-up
UpgradeYes
Yes
D
A
No
Yes
Recovery as per new repayment
scheduleC
@ with prior permission of competent authority
B
Recovery received within the
period of SMA
Irregular Account *SMA period starts
$ Need follow-up
C
AYes
No
Recovery of overdue
If reason of default beyond control
of the borrower
@Rephasement/Restructuring of A/c
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Life Cycle of Loan A/c Handling in CBS
D
Down grade of Asset classification
OTS/Compromise
Closure of A/c
Willful defaulter Legal Action/WLA
Sarfaesi DRT Lok Adalat
Recovery as per OTS/
Compromise/Decree
Write-Off Sale of Asset
Yes
No
CBS Knowledge Series
Lending is one of the basic activity of the Banking Industry. Profitability depends upon the quality of portfolio. Capital requirement is also related with the quality of Assets of the Bank. The better asset quality increases the profitability and improve the ratio of capital requirement to risk weighted asset.
To understand the sequence of steps for better asset quality management, foregoing flow chart describes the life cycle in simple way. In CBS number of functionalities/reports are made available to achieve the ultimate objective of effective monitoring of loan portfolio.
CBS systems facilitates management of account after the sanction. The loan/facility account is opened and disbursement is made in the CBS system on its sanction. The due care is to be taken while capturing the data at this stage to ensure appropriate/expected behavior of the system and account and to avoid irregularity reflected in any account due to wrong selection of Scheme code, GL sub head, interest code, Moratorium period and other details required during opening of account with emphasis on 'V' Details data feeding is to be given for correct MIS.
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The account runs regular if customer deposit the due payments in the accounts or operate the account regularly.
Whenever the normal/expected behavior of the account deviate from normal/expected pattern extra vigilance/care is required from the user to keep the accounts regular/performing.
The irregularities in the account can be checked from followingrepo rts:
i. It is available for Sol/Set wise.
ii. It can be generated on the limitamount also.
iii. It can be generated on the Sector also like Agriculture /SME/Retail Lending Schemes/Other/All
iv. It is also available on the period basis like upto 30 days, upto 60 days and more than 60 days
i. This report help in monitoring the credit portfolio as it provide the irregular amount immediately if the demand remains unsatisfied.
a) Irregular Report PNBREP -1/8
b) Daily Outstanding report PNBRPT 3/7
CBS Knowledge Series
c) SASCL Report
a. SASCL report is made available on monthly basis from DC under 'Interest Report' link under SOL_ID='000000' available on the first page of Finacle.It is a pre generated data file and can be improted in the excel sheet(Circle wise data is available)
b. In addition branch DBA has option to Run menu option 'SASCL Trial mode - N' in MIS server and customized Report from PNBRPT-26/1can be generated by any user as and when required(both menu option be run same day). If Trial mode is set as 'Y' Report can be generatedfrom PNBRPT-26/5 by the same user only (DBA).
c. Branch DBA also has option to run SASCL menu in Live server with 'Trial Mode-Y' and report can be generated through DAYRPT-24/5 by the same user only.
d. Accounts appeared as 'STANDARD ASSET in the report generated from PNBRPT-26/1 or 26/5 or 24/5 after running of SASCL menu option with Overdue account only flag='Y', falls
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under the SMA(Special mention account) category of accounts.
It is available in Live (Production server) for one account at a time only, range of accounts can be checked in MIS (Report Server)
After knowing the position of accounts and extent of irregularity, follow up with the borrower/ customer may be required the same has been facilitated in CBS and details are as follows:
To ensure the recovery, advance intimation letter to borrower may be sent with this menu.
The intimation of next instalment due may be sent to the borrower and it refer to overdue amount, if any.
To expedite the process of recovery and to facilitate the monitoring, a list of a/cs where
Please also refer related guidelines revised vide itd/cbs/ cir/no.121/2010 dated 22/11/2010.
For inquiry of overdue loan a/cs M e n u option LAOPI
PNBRPT 3/ 23. Advance Intimation Letter in Loan A/Cs
PNBRPT 3/34. List of A/cs where next installment is due within 91 days.
instalment is due within next 91 days can be generated as per the guidelines circulated vide ITD Cir. No. 16/2008 dated 19.02.2008.
The demands raised is the amount due from the borrowel account and it is adjusted from the recovery made in the account. The adjustment of Demands is done in chronological order of date as per the banks guidelines. The demand raised first by the system adjusted first whenever credit made in the account thereafter. The demand adjusted once is remain adjusted during the currency of the account. The issue related to demands are explained in details in next few pages.
Beside the half yearly statement of recovery of advances, a monthly report is also providedto know the monthly demand & recovery forthe branch -
To facilitate the recording of follow up action
Recovery in Loan accounts:-
PNBRPT 3/28. Monthly statement of recovery of Advances.
PNBREP 1/6. Half Yearly Statement of Recovery of Advance
Follow up of loan a/cs:
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Health of the loan account depends upon the amount due and overdue position of demands made in the account and its adjustment. The different types of demand and the events which trigger their generation are as follows:
Demands are divided into three categories namely:
Principal demand (PRDEM)
Interest Demand Normal & Penal (INDEM & PIDEM)
Charges demand - Bank charges & Other charges (BCDEM & OCDEM)
Except the principal demand (PRDEM), all other demands are generated with the debit transaction in the loan account which is based on the flow_id fed during transaction.
Principal demand (PRDEM) is generated based on the data fed in the account in 'E' details while opening the account i.e. based on flow start date, no. of flow, flow amount and frequency.
A report PNBRPT 3/52 as per the guidelines circulated vide ITD Cir.No. 90/2009 dated 25.11.2009 will facilitate the same.
u
u
u
Some times principal demand is not generated due to various inconsistency-
initiated by the branch, a new functionality 'LETGEN' was introduced vide ITD Cir. No. 58/2009 dated 09-07-09. This new functionality is complete work flow which facilitate the recording of various action beside generating the reminder to borrower/guarantor.
The two new reports have also been customized and made available through menu option PNBRPT -3, to know the follow up action taken by the branch:
PNBRPT -3/44 Report of Follow up notice issued for a Loan Account
PNBRPT -3/44a Report of Follow up Notice Issued for loan accounts bySol Between given dates
The first report lists all the actions initiated for a particular loan a/c, whereas the second report lists the action taken by the branch for all LAA type of a/cs between two dates. This will serve as pointer to the follow up action of the branch and the Circle offices can make use of it for monitoring the branch activity.
The reminder to the customer based on the overdue position can be generated through menu option LAODR also.
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Moratorium period
Data correction
PNBRPT 3/ 40.
Loan accounts can be divided in to five types, in the system:
EI type:
EI with moratorium period:
- Detailed guidelines to deal with the issue of moratorium circulated vide ITD Cir. no. 41/2007 dated 06.07.2007.
- Detailed guideline for data correction was circulated vide ITD Cir. No. 54/2008 dated 11.08.2008.43/2009 dated 04/05/2009.
To strengthen the monitoring, a report to ascertain the repayment schedules of all loan a/c is available at:
Report on repayment schedule details in LAA accounts
The amount of repayment is fixed taking the principal and interest in to the consideration.
The amount of repayment is fixed taking the principal and interest (loan period) in to the consideration but the interest during the moratorium period is not considered in repayment schedule. To include the interest charged in the account during the moratorium period, interest needs to be
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capitalized and new repayment schedule is created. It is to be done through REPHASEI menu on the expiry of moratorium period.
Repayment schedule is created with the principal amount only. Interest amount is to be recovered as and when charged in the account.
Staff Housing loan(Scheme code - TLSHL) and Staff vehicle loan (Scheme code TLSVL) having condition of repayment of Interest portion after repayment of principal and interest is not to be charged on the interest portion. Interest Demand effective date and interest on Interest flag is important for these schemes.
Interest is to be charged with simple rest during the moratorium period and kept aside. After the moratorium period, interest charged during the moratorium period is to be capitalized into principal amount and compounding of interest starts. Repayment schedule is to be created after moratorium period.
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Non-EItype:
Simple Interest loans to Staff:
Education Loan:
CBS Knowledge Series
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Detailed guidelines to handle the education loan and staff housing/ vehicle loan were circulated vide ITD Cir. No.68/2010 dated 20.07.2010.
Transfer of interest liability to main loan a/c
PNBRPT 3/35.
PNBRPT 3/51.
Interest liability needs to be transferred to loan account when repayment start in education loan and principal is repaid in staff housing/Vehicle loan. To know such a/cs a report is available at
PNBRPT 3/30. An Indicative report on LAXFRINT Overdue
The guidelines were circulated vide ITD Cir.No. 31/2007 dated 01-05-2007.
Rephasement Rephasement in CBS refer to recreat ing the repayment schedule. Rephasement needs to be done when moratorium period is allowed and with approval wherever required. The reports related to rephasement due/done are available as under:
List of accounts where rephasement has expired or is due in next 31 days
Statement for Rephased loan A/c
PNBRPT 3/51a. History of Rephased Loan Account No.
The common operational discrepancies observed in the loan accounts are as under:
OCDEM/BCDEM is not recovered in as and when charged
Charges are to be recovered as and when debited to the account, because the demand for c h a r g e s i s r a i s e d immediately on debiting the account.
Reversal of entry has been passed with wrong flow_id instead of making reversal flag as 'Y'.
Reverse the entry with Reversal Flag as 'Y', with the same flow_id given while creating the original transaction. Thereafter, pass the correct entry with value date.
Account has not been disbursed fully b u t r e p a y m e n t schedule has been prepared for full amount of Sanction.
Check the documents, is the repayment starts before full disbursement of the loan?In such cases :
Repayment schedule can be created for different amount for different period.If the sanction is specific and it is different from normal scheme, matter may be handled in consultation with Data Centre.
PRDEM type of Accounts:
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Delay in repayment c a u s i n g P e n a l interest.
Recover the ent i re amount of penal Interest so charged.
Recovery of the account. Further, i t requires approval of competent authority.
Change in rate of i n t e r e s t a n d repayment schedule not regenerated.
Recreate the repayment schedule with appropriate s a n c t i o n f r o m t h e competent authority through menu option ' REPHASE I ' a s pe r procedure given in the manual and Inform the customer to repay as per the revised schedule.
Filling of wrong flow start date.
Demand is generated based on the details fed at the time of account o p e n i n g a n d i t i s generated as per the frequency defined for the account. Demand can't be regenerated for every modification/corrections. Therefore, for such errors, the account has to be reopened in Transfer-in mode (Non_EI type of accounts only).
Rephasement of account is not the proper solution as it hides all the previous history of Demand and
Filling of wrong/ b l a n k I n t e r e s t demand effective date.
Filling of wrong number of flows
Filling of wrong amount of flow
Other reasons:
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DisbursementAmount andSanction Amount.
?Clubbing of
amount of charges
with INDEM.
?Not capturing of
history of recovery
from Manual
system to legacy
system.
Difference in
Demand is generated based on the details fed at the time of account o p e n i n g a n d i t i s generated as per the frequency defined for the account. Demand can not be regenerated for every modification/corrections. Therefore, for such errors, the account has to be reopened in Transfer in mode.
Various facilities are available in CBS for continuous monitoring and follow-up of loan account. Whenever despite all efforts account does not remain regular and irregularity continue for certain period (as Asset classification guidelines issued by SAMD) accounts are classified as NPA at this stage also CBS provide facility to restructure/rephase the account with the prior permission of competent authority. As shown in the flow chart account
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CBS Knowledge Series
may become regular and upgraded ,else other action for recovery under various legal avenues and OTS route can be initiated for final adjustment of the account.
CBS also provides facility to maintain memoranda records of accounts after becoming NPA which includes following:
Calculation of memoranda dues.
Getting the availability of Kitty amount in written off account.
Branches are required to feed data related to all NPA accounts marked in the CBS system using the menu options:
NPAMIS & NPAMGT are two menu options available in the CBS system to provide the reports/statements related to NPA.
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For memoranda dues
NPAD - Details related to all NPA accounts.
COWO Details related to WLA/WO/ Compromise.
RCYM Recovery received in the NPA accounts after NPA date till 31-03-2010.
Report related to NPA:
Under Menu NPAMIS 26 Reports/ Statements are available where all the relevant data/ fields are already available in the CBS system.
Guidelines issued vide ITD/CBS/Cir. 15/2008 dated 16.02.2008
Under Menu NPAMGT 28 Reports/ Statements are available for which some or other data/fields to be fed through menu NPADET.
Guidel ines issued vide ITD/CBS/ Cir.84/2008 dated 26.11.2008.
Important: Reports can be generated in background (option on print screen) to facilitate the user to fire more than one report generation simultaneously. System release the user quickly for other work/report generation.
PNBREP 1/20. Working Capital Limits Overdue for Renewal/Review
PNBREP 1/24. Report For Loans/Advance A/c's Having Zero Balance
PNBREP 1/25. Report For Loans/Advance A/c's Having Credit Bal.
PNBREP 2/16 Report for NPA A/cs having Zero Balance.
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Other important reports available in CBS are as under:
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PNBREP 2/17 Report for NPA A/cs having Credit Balance.
PNBREP 1/29. Report of Address wise list of borrowers of SOL
PNBREP 3/8 - Flash report
PNBREP 3/18. Advances to SC/ST
PNBREP 3/18A. DRI Advances to SC/ST
PNBREP 3/19. Advances to Minority
PNBRPT 3/31. INTTM done by branch between two given dates
PNBRPT 3/31A. INTTM done by branch for a given account
PNBRPT 3/32. Report of Loan A/c's for reporting LTV Ratio based on O/S
PNBRPT 3/39. List of a/c where 'A/c pegged' flag is 'y'
PNBRPT 3/45 List of accounts where MIS codes are not filled.
PNBRPT 3/45a List of accounts where inappropriate codes are filled
PNBRPT 3/47. Report of Accounts where Score card id is not fed
PNBRPT 3/48. Report for Accounts of Sick Units.
PNBRPT 3/50. A new Report for Reporting ITI Ratio
PNBRPT 3/50a. A Report (ITI Ratio) for list of accounts where Income field is not fed
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PNBRPT 3/24. A/c wise position - Int. accrued on advances
PNBRPT 3/24a.Int. accrued on advances- Summary on given date
PNBRPT 28/1 Report on NPA accounts not transferred to NPA GL Head.
PNBRPT 28/2 Report on RI calculation on memoranda accounts.
PNBRPT 28/3 Report on NPA accounts Details not entered in NPAD.
PNBRPT 28/4 Report on Write off kitty position.
Raudit 1/11. List of A/cs where Penal Interest is set to 'No'
Raudit 1/12. List of Advance A/cs where penal int. applicable date is more than limit expiry date
Raudit 1/13. A/Cs where Penal Int. on Delayed Submission of Stock Statement is not set
Raudit 1/14. List of A/cs where Interest Is Refunded In Loans A/Cs
Raudit 1/15. List of A/cs where Interest Table Code is 'ZERO'
PNBRPT 28/5 Report of standard accounts under NPA GL head
Raudit - 1 Revenue Audit reports
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Raudit 1/16. List of Loan a/cs where Inter RAUDIT 1est Amount is 0.00
Raudit 1/17. List of A/cs where Limit Level Interest is not defined
Raudit 1/18. List of Loan a/cs where Last run date of a/c is less than last run date of the system
Raudit 1/20. Cheque Stop Payment Charges
Raudit 1/21. Interest Table History
Raudit 1/25. List of Staff Housing/Vehicle loan a/cs where no interest is charged by system as outstanding pertains to Interest only
Raudit 1/28. Report of loan accounts having redundent interest rate codes.
Raudit 1/30. Report on Interest Rate Code assigned in credit risk rated A/Cs
Raudit 1/31. Report on Due Date Diary for Warehouse Receipts.
Raudit 1/32. Preferential Interest in loan (CC/OD/TL/DL) A/Cs
Raudit 1/37. Report for showing manual interest paid by the branches through menu option - IARM.
Raudit 1/38. List of DEBIT Entries in Income Accounts
RAUDIT - 2 Control Audit report
Raudit 1/2. List of Accounts where Stock Stmnt is not Received OR Stock Stmnt is due in next 30 days
Raudit 1/2a. List of Accounts where Stock Stmnt is not Received OR is due (as per no.of days)
Raudit 1/3. FD Due Date Diary - Under Bank LIEN
Raudit 1/4. Due Date Diary for Govt. Securities - Under Bank LIEN
Raudit 1/5. FD Due Date Diary - Bank LIEN is not marked
Raudit 1/6. Stop Payment Register
Raudit 1/7. Limitation Register - All A/cs
Raudit 18. Limitation Register - Customer Id wise
Raudit 1/17. List of customer id with cust group (AS 17)
Raudit 1/21. Report on Due Date Diary for Warehouse Receipts
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