5. The Branch shall obtain Confidential Report of the client from local Bank Branches and shall not finalize the proposal until the Confidential Report from all Bank Branches are received. Confidential Reports should also be obtained from local Financial, Credit and Leasing Institutions, if felt necessary. 6. Report from Credit Information Bureau (CIB) of Bangladesh Bank through Head Office Investment Division as per Instruction Circular of Head Office in this regard shall also be obtained by the branch. 7. The branch shall obtain declaration of the client about his liability (both contingent and real) with other Banks/Financial Institutions/Leasing Companies including any other Branches of First Security Islami Bank Ltd. 8. They shall obtain Financial Statement/Balance Sheet of the client for the last three consecutive years for Investment Proposals of Tk.50.00 lac or above or as per Head Office instruction. This is to be furnished by all clients irrespective of their status, i.e. Individual, Proprietorship, Partnership, Private/Public Limited Company, Trust Body etc. engaged in business. 9. Branch shall inspect Land, Building(s), other Assets and Properties proposed to be mortgaged or hypothecated. Ascertain Prima-facie genuineness and correctness of those in cross reference to documents, title deeds and other relevant papers. Ascertain primarily the market value and the forced sale value of the proposed collaterals. 10. The branch shall forward documents, title deeds and other relevant papers to the approved Lawyer of the Bank for examination and furnishing his opinion (Lawyer’s opinion should be clean and without ambiguity). The concerned officer of the branch shall study the following carefully and note down the actual findings in the Appraisal Form against each item. a) b) c) d) e) f) g) h)
Whether the Asset, which the Client intends to hire and purchase, is readily useable and have constant and effective demand in the market. Whether the price of the asset is subject to frequent and violent changes. Whether the Asset is non-fungible or has flow of services. Whether the quality and other specifications of the asset as desired by the Client can be ensured. Whether the assets are available in the market and it is possible to purchase/construct/ manufacture/make the asset in time and at the negotiable price/cost. Whether rental and sale price of the assets are payable by the Client at the agreed specified future date(s) in lump sum or by installments as per proposal Whether Client and Bank’s equity ratio is fixed to cover the price/cost of the asset. Whether the project/deal is profitable to generate sufficient fund to pay the rent/sale price by the Client within the deal period.
Market price and Cost price should be carefully studied by the Investment Committee of the Branch and properly recorded, verified and signed. In course of preparation of the Appraisal Report the branch shall ensure incorporation of all information, particulars, figures and statistics in Appraisal Form correctly with special attention to the following: