PUNJB & SIND BANKKOT ISE KHANTel.01682-240021 Email-k0051@psb.co.in

KIK/Dated:

The Zonal ManagerPunjab & Sind BankZonal OfficeFaridkot

Dear Sir,

Reg: Inspection Report dated 04.02.2015.We are submitting point wise reply of the progress made in rectification of the discrepancies/ lapses that has been pointed during inspection visit on 04.02.2015, as follow:

A. Cash Management:We are putting our best efforts to keep cash under retention limit. During crop season it is observed that cash in hand normally exceeds retention limit, so it is very difficult to maintain retention limit. During normal period we will keep cash in hand within retention limit.B. Deposits:We are opening new saving & current accounts and instructed each staff to open five accounts per day.Utilizing full potential of our BCAs to increase deposit.C. Number of Accounts:We are opening more new accounts and instructed all the staffs accordingly.D. Advances:We are organizing small camps per week in each village allotted to us through the help of our BCAs to make fresh crop loan and retail lending to achieve our target.

IRREGULARITIES IN LOAN ACCOUNTS:1. Clean Loan 12/495, Jadish, Rs.1.50Lac:Pre Sanction report is on record.Sanction letter is signed by BM.Customer Rating is signed by BM.Sign. of Guarantor has been taken on form No. 256.2. Clean Loan 12/496, Nishan Singh, Rs.1.20Lac:Photo ID is signed by Customer.Rating is signed by BMWe have asked customer to change sign.3. ODFD25037, Rs.6.00Lac:Lien got marked on FDRFDR details on form no.108A is completed.Verified the signature of the borrower.4. KCC70051, Ajaib Singh, Rs.2.00Lac:Photo ID is signed by Customer.Application page3 is properly filled.Guarantors detail is properly filled.Terms & conditions got signed by Customer.2nd NEC is on record.5.KCC70053, Harnam Singh:Photo ID is signed by Customer.Guarantors detail is properly filled.Terms & conditions got signed by Customer.2nd NEC is on record.6. KCC50336, Gurnam Singh, Rs.6.00Lac:Photo is signed by Customer.Guarantors detail is properly filled.Terms & conditions got signed by Customer.Appraisal is on record.7. CC70056, Sarabjit Singh:Form No. 84A got signed by individual, owner of the property.Mutation got entered with revenue authorities and mutation certificate obtained from the Advocate on Banks panel.Vetting has been done from advocate on Banks panel.8. CAOD25038, RM Enterprises:Application form is completely filled.Appraisal form is properly filled and is signed by BM.All documents are properly filled with date of execution.BM-Acct. valuation report is on record.Fresh valuation will be taken after completion of one year of registry in Oct2015.Value of the property will increase as superstructure of house will be added.9. Expired Documents:One Document of KCC50294, Ram Prakash Singh expired on 04.01.2015 as he was outside India to meet his relatives overseas. We have got the BC slip signed and is on record.

GENERAL IRREGULARITIES IN LOAN PORTFOLIO:a. CIBIL report on record in all loan accounts.b. 2nd NEC obtained in all eligible accounts.c. Banks charge got registered with CERSAI.d. Final utilization certificate is on record.e. Certificate from BM-Accountant is on record for leased land in KCC accounts.f. In all LABD loans, Banks lien marked on the leaf of FDR and sign. of depositors/ borrower got verified by the counter officer.g. Terms & condition of loan sanctioned are accepted and acknowledged by the Borrower as well as by the Guarantor.h. Compliance certificate is on record.i. RC & Insurance is on record in all vehicle loans.F. Renewal/ Reviewal of Loan/ Limits:Renewal/ Reviewal of loan accounts has been done as per bank norms and is on record.G. Non Performing Assets and Fresh Slippage:We are visiting each and every NPA & TWO party personally and pursuing them for recovery.H. Customer Service and KYC Norms:1. Meeting of valuable clients, respectable persons of the village and staff members is being held on monthly basis and receive their suggestions and feedback to improve customer service of our branch. 2. We ensure that all norms of Know Your Customer are being implemented in letter and spirit. All terms/ Guidelines as per P & D Cir. No.2186, dated 05.04.2005 are being implemented strictly.3. We are putting our best efforts and taking all suitable measures to prevent frauds on KYC Norms as per H.O. P&D Circ. No.185/2004 dated 18.11.2004.4. Anti Money Laundering Standards is strictly implemented in letter and spirit as per H.O. P&D Circ. No.2186 dated 05.04.2005 regarding Formulation of Banks Policy on Know Your Customer guidelines.5. Display board along with complete address of Ombudsman is placed on prominent place.

I. Computerized Operations:1. We ensure that all the user ID & passwords of transferred employees are deleted from finacle.2. We ensure that no other person except staff members is allowed access to computers.3. We have maintained AMC Register and ensure that regular visits are being made by the AMC Person and his visit is recorded on the register.4. We ensure that transactions pertaining to debits made directly into GL heads and pertaining to staff accounts is cross checked by BM or IInd Man.5. We ensure strict compliance of Vigilance Deptt. Circ. No.189/2004 dated-30.11.2004. regarding guidelines for Computerized Branches.6. The Password of operators/officers/Managers is changed periodically and its secrecy is maintained.J.Security:We will implement security measures as per H.O. Security Circ. No.1/2005 dated:05.01.2005, 2/2005, 3/2005 dated:19.05.2005 and 04/2005 dated:26.05.2005.K. Fair Practice Code for Lenders:We are adhering to all guidelines in respect of Fair Practice Code for lending of the bank as per circ. No.1567 dated 24.09.2004.L. General Routine of the Branch:a. Day Book is being checked by authorized official on regular basis.b. Instruction noted by BM for cross checking Day Book on regular basis.c. KYC control sheet has been signed by the desk official and BM.d. Letter of thanks is being sent to customer /Introducer.e. Photocopy of documents obtained for identification / Address proof is being verified with original and marked with stamp.Further we may inform you that rectification of some of the irregularities/ discrepancies will be done shortly.

Yours Faithfully

Manager

PUNJAB & SIND BANK, KOT ISE KHAN, email:k0051@psb.co.in