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a) b) c) d) e) f)

Composition of Assets of the Client viz. Cash, Securities, Investments, Building, Landed Property, Stock in Trade, Stores, Work-in-process etc. Extent and nature of liabilities (institutional/market) of the Client i.e. whether the volume is within the manageable capacity of the Client. Opinion in this regard and justification thereof must be clearly mentioned. The value of liquid Assets viz. Cash and Book Debts of the Client to ensure required cash flow. Respectability and business reputation of the Client in the market. Experience of the Client in the business, management capability etc. Where the Asset will be kept/run/established/constructed/installed and how the same will be used. Whether the arrangement is satisfactory and Bank’s interest will be protected properly.

STEP FIVE: SANCTION a)

If on completion of the appraisal, the proposal is found viable, the branch shall sanction and issue sanction advice if it is within the business power of the branch mentioning all the terms and conditions in duplicate. One copy shall be retained by the client and the other copy shall be returned to the branch by the client duly accepted by him all the terms and conditions. The branch shall also endorse copies to Zonal and Head Offices retaining one copy in the client’s file duly accepted by the client. b) The branch shall forward the proposal with Appraisal Report if it is not within their Discretionary Power to Zonal Office in duplicate together with all required documents and papers giving specific comments and recommendations. c) Zonal Office shall accord approval/regret the proposal. d) If the proposal is beyond the business power of the Branch and the Zone, the Branch shall forward the proposal to Head Office with their views and recommendations through the Zone. e) Head Office will either approve or regret. f) On receipt of approval from the Zonal Office/Head Office, the branch shall issue the sanction advice mentioning all the terms and conditions in duplicate to the client. But if the proposal is regretted by the Zone/Head Office, the branch shall intimate the client of the same politely. g) On receipt of the Sanction letter, if the client duly accepts the sanction terms and conditions, the branch shall enter the particulars of the sanctioned proposal in the Limit Register allotting a fixed serial number for each client as per Limit Register which shall remain permanent irrespective of the Mode(s) so long as the limit remains valid and the client continues business with the Bank. h) The branch shall open file client-wise affixing the fixed number allotted to him/her as per Limit Register and client’s name, address (Business address, present address, permanent address, residential address) and Telephone/Fax/Telex/Cable numbers be recorded prominently in the inner side of the Investment File for easy tracing in case of need. i) It may be noted that, the Branch Manager or the Zonal Head shall have no power to sanction investment to the Trust Organization or Co-operative Societies. j) The branch shall obtain required papers, documents/application with the past performances and outstanding liabilities of the client, if any of the existing investment client process/sanction the proposal as per instruction laid down here-in-above after due evaluation/study.

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