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RAG Guiding Document version 1.0 | Draft | Confidential | July 08, 2016

Oriental Bank of Commerce –

Project Udbhav

Guiding Document for Retail Assets

Group

Date: 8 July 2016

Oriental Bank of Commerce

RAG Guiding Document version 1.0 | Draft for discussion only | Confidential | July 08, 2016

Contents 1. Glossary of terms ...................................................................................................................... 4

2. Scope of the guiding document ................................................................................................ 5

3. Overview of the overall organization structure ........................................................................ 6

3.1. Principles of the design .......................................................................................................... 6

3.1.1. Clusters ................................................................................................................................. 6

3.1.2. Cluster Monitoring Offices (CMOs) ....................................................................................... 7

3.2. Organization structure ........................................................................................................... 8

4. Overview of structure, processes, and roles in RAG vertical ............................................... 14

4.1. Organization Structure ......................................................................................................... 15

4.1.1. Head Office ......................................................................................................................... 15

4.1.2. Cluster Monitoring Office .................................................................................................... 17

4.1.3. Clusters ............................................................................................................................... 18

4.1.4. Role of the branches ........................................................................................................... 19

4.1.5. Role of the Cluster Sales Team .......................................................................................... 20

4.1.6. Role of the Cluster Operations and Sanctioning Team ...................................................... 22

4.1.7. Role of the Cluster Collections and Monitoring Team ........................................................ 24

4.2. Process Flow mapping of the Retail Assets Group (RAG) - Mortgage Backed

Credit facilities1 .................................................................................................................... 25

4.2.1. Sourcing .............................................................................................................................. 25

4.2.2. Processing........................................................................................................................... 26

4.2.3. Sanctioning ......................................................................................................................... 28

4.2.4. Execution of the Sanction ................................................................................................... 29

4.2.5. Disbursement ...................................................................................................................... 31

4.2.6. Post Sanction ...................................................................................................................... 32

4.2.7. Collection and Monitoring ................................................................................................... 33

4.2.8. Account Closure .................................................................................................................. 34

4.2.9. Reporting System ............................................................................................................... 35

4.2.10. Collection of Charges .......................................................................................................... 35

4.2.11. Processing of Service Requests post disbursement .......................................................... 35

4.2.12. Other Activities .................................................................................................................... 36



4.2.13. Delegated Powers ............................................................................................................... 36

4.3. Process Flow for non-mortgage backed credit facilities (Vehicle Loan, Personal

Loan and Educations Loans without Collateral Security) ................................................... 37

4.4. Comparison of before and after work flow .......................................................................... 39

4.5. Touchpoints for the customer and external linkages .......................................................... 40

4.6. Role Mandates ..................................................................................................................... 42

4.6.1. Cluster Sanctioning Authority ......................................................................................... 42

4.6.2. Loan processing officer ................................................................................................... 43

4.6.3. Cluster Operations Officer ............................................................................................... 44

4.6.4. Cluster Sales ..................................................................................................................... 45

4.6.5. Collections and Monitoring Officer ................................................................................. 46

4.6.6. Cluster Monitoring Office Head ....................................................................................... 47

4.6.7. Sales and Product Head ................................................................................................... 48

4.6.8. Operations and Collections Head ................................................................................... 49

5. 30-day Roll-out plan ................................................................................................................. 50

6. Frequently Asked Questions (FAQs) ...................................................................................... 52

7. Annexure 1: Checklists ........................................................................................................... 55



1. Glossary of terms

Abbreviation Full form

BCC Branch Certificate of Compliance

CERSAI Central Registry of Securitization Asset Reconstruction and Security

CIR Credit Information Report

CMO Cluster Monitoring Office

CRG Customer Relations Group

DP Drawing Power

ECS Electronic Clearing Service

JRC Joint Registration Certificate

LC Letter of Credit

LRM Loan Review Mechanism

MOR Monitoring Officer’s Report

NACH National Automated Clearing House

NOC No Objection Certificate

OSV Original Seen and Verified

QIS Quarterly Information System

RBS Risk Based Supervision

RI Regional Inspectorate



2. Scope of the guiding document

This guiding document covers the changes in the organizational structure and

operating model with respect to the Retail Assets Group (RAG) vertical. The new

organizational structure and operating model for the organization will be

implemented on ground for Wave 1 branches effective July 11, 2016.

The manual maps the activities required to be undertaken for lending retail loans, to

the new organization structure detailing the different stakeholders across the work

flow. This manual on Retail Assets should be read in conjunction with the various

Retail Credit Schemes/guidelines (available on the Home Page of the OBC Web

under ‘Retail Credit Corner’), Advance Manual (Volume 1, 2 and 3), Loan Policy of

the Bank and any other circulars/guidelines/amendments issued by the Bank from

time to time.

The manual begins with an overall explanation of the new vertical organization

structure and introduces two new business units viz. Cluster Monitoring Office (CMO)

and Clusters, in place of the erstwhile geography based Regional Office (RO)

structure. In addition, this section also covers a brief description of all the verticals in

the organization.

The next section details out the organization structure of the RAG vertical and

different roles at HO, CMO and cluster level. The section details the process flow to

highlight new role boundaries and handoffs. Dependencies on other departments

have also been highlighted. The Key Responsibility Areas (KRAs) of the new roles

introduced at different levels in the vertical are detailed along with their KPIs.

The penultimate section has an indicative list of activities spread over the first 30

days for employees in their new roles to facilitate easy transition and settling in. This

is followed by the last section, which lists answers to a few frequently asked

questions.

The Delegated Powers for loans & advances have been circulated vide Circular No.

HO/ RMD/20/2016-17/241 dated June 30, 2016. In addition to this guiding document,

following documents will be circulated separately

Mapping of branches to clusters

Mapping of clusters to CMOs



3. Overview of the overall organization structure

3.1. Principles of the design

The bank’s new organization structure is based on the principle of functional

specialization instead of geography driven approach. In the new structure, two

new entities – Clusters and Cluster Monitoring Offices (CMOs) are introduced

and Regional Office structure has been discontinued. The new operating unit

structure is outlined in the figure below.

Fig 1: New organization structure based on vertical functions

3.1.1. Clusters

Clusters will take over business vertical specific activities from branches.

For example, in case of MSME lending business, clusters will be

responsible for sourcing leads from non-branch customers; processing,

sanctioning and monitoring of loans.

Branches will now be responsible for sourcing business from walk-in

customers and coordinating with clusters on a few operational activities

such as loan agreement execution and day-to-day transaction support

1,754 branches, called Udbhav Branches, are mapped to clusters though

there is no reporting line between branches and clusters. Please refer



annexure 1 for mapping of the branches

There are 81 distinct clusters each for MSME, Retail Assets Group,

Customer Relations Group (CRG) and Recovery verticals

There are 34 clusters each for Branch Business, Information Technology

(IT), and ADC & COPEC verticals

3.1.2. Cluster Monitoring Offices (CMOs)

CMOs monitor clusters for respective verticals, and drive CMO-level

business and relationships

CMOs do not have any sanctioning authority; all sanctioning to happen at

either branches, clusters or head office depending on delegation of powers

Clusters in each vertical are mapped to CMOs for the vertical and there is

no overall CMO Head

CMO Head for Branch Banking vertical will be responsible for coordination

across different verticals for cross-sell, relationship management and HR

meetings

10 CMOs are created across India:

Fig 2: Cluster Monitoring Offices spread across India

o Eastern and Central UP (Uttar Pradesh)

o Eastern India



o Haryana

o NCR

o Punjab & HP (Himachal Pradesh)

o Punjab & JK (Jammu and Kashmir)

o Rajasthan & MP (Madhya Pradesh)

o Southern India

o UP & UK (Uttar Pradesh and Uttarakhand)

o Western India

3.2. Organization structure

New organization structure constitutes of 22 verticals:

Business functions

o Large Corporate business (LCB)

o Mid Corporate business (MCB)

o Retail Assets Group (RAG)

o Customer Relations Group (CRG)

o Agriculture and Financial Inclusion

o Branch Business

o Resolution, Recovery and Law

o Treasury, IBD and MBD

o Classic Branches (detailed subsequently)

Support functions

o Project Udbhav

o IT

o Services, Security and Rajbhasa

o ADC and COPEC

o Human Resources

o Learning

Control Functions

o Inspection and Control

o Risk Management

o Compliance and RBS

o CS&P and MIS

o CFO and Accounts

o SLBC and Central Government



Fig 3: New organization consists of 22 groups

Each of the verticals is to have a clearly defined role and team. Salient

activities of these verticals are outlined below:

Large Corporate business (LCB), this vertical is responsible for:

o Driving advances more than Rs. 50 Cr

o Handling business from 5 core LCB branches, which work directly with

HO, and LCB business from other branches

o 5 core branches include - Hyderabad, Jubilee Hills (SOL 1110);

Chennai, RK Salai (SOL 1043); Mumbai, LCB (SOL 902); Kolkata, LCB

(SOL 171) and New Delhi, E-block Connaught Place (SOL 7)

Mid Corporate business (MCB), this vertical is responsible for:

o Driving advances above Rs. 10 Cr. and up to Rs. 50 Cr.

o Handling business from 43 core branches, which work directly with HO,

and MCB business from other branches

Retail Assets Group (RAG), this vertical is responsible for:

o Driving and monitoring retail advances through 81 clusters formed

across the country

o Sourcing from tie-ups such as dealers, builders, etc.

Customer Relations Group (CRG), this vertical is responsible for:



o Driving institutional CASA business such as state government,

societies, salary accounts, etc.

o Driving cross-sell advances and fee products to institutional CASA

customers

o Managing local relationships through 81 clusters

o Conducting Publicity and PR activities

Micro, Small and Medium Enterprises (MSME), this vertical is responsible

for:

o Driving commercial loans up to Rs. 10 Cr., through 81 clusters across

India

o Processing of LCB and MCB files in non-LCB / MCB branch locations

o Processing and sanctioning commercial Agriculture and RD&PS loans

such as food processing units

o Processing and sanctioning retail agriculture loans (e.g. OGC, OKGC)

beyond the sanctioning powers of the branches

o The scope of this vertical may not include priority sector lending as per

the RBI definition; the scope is defined in terms of loan value

Agriculture and Financial Inclusion, this vertical is responsible for:

o Handling retail agriculture advances such as OGC, OKGC, etc.

o Agriculture loan officers are co-located with MSME cluster

Branch Business, this vertical is responsible for:

o Driving retail CASA, Third Party Product (TPP) sales and managing

support operations such as currency chest, CASA account opening

back-office, customer care, complaints, DEAF, etc. through 34 clusters

o Prospecting advances customers and referring to respective verticals

Resolution, Recovery and Law, this vertical is responsible for:

o Driving NPA recovery and resolution across all verticals

o Managing legal proceedings in NPA cases

Treasury, IBD and MBD (operations), this vertical is responsible for:

o Maintaining SLR, CRR, Investments and Fund Management

o Handling treasury dealing room operations

o Handling forex policy formulation, forex operations and forex support to

branches

Classic branches:

o 545 branches are not mapped to vertical clusters, due to distance and

small size constraints, and function independently under Classic

Branches vertical

o These branches and vertical continue to function as per the old system

and focus on all advances and deposits business based in their



geographical location, reporting to 10 CMOs they are mapped to

o Such branches constitute less than 15% of the bank’s business

Fig 4: Business group consists of 10 verticals

Fig 5: Support group consists of 6 verticals



Fig 6: Control group consists of 6 verticals



Fig 7: Summary of all 22 verticals in the new structure



4. Overview of structure, processes, and roles in RAG vertical

Retail Assets Group (RAG) shall be responsible for the overall growth of the

Retail Assets portfolio of the Bank. The group shall be responsible for:

Growth and quality of the retail assets portfolio

Layout and implementation of the strategy for ensuring robust retail assets

portfolio including driving internal campaigns

Designing of retail assets products and formulation of policies with regard

to retail assets

Leading sales and marketing initiatives related to institutional, builder and

Original Equipment Manufacturer (OEM) tie-ups, etc.

Market research and business intelligence, new initiatives

Vendor management and Service Level Agreements (SLAs)

Monitoring sales performance and productivity management

Sanctioning, collection and monitoring of retail assets

Managing co-ordination with other verticals including Information

Technology, Resolution, Recovery & Law, Inspection & Control, Risk

Management, Human Resource and Compliance.

The following credit facilities to individual borrowers shall fall under the

purview of Retail Assets Group:

Housing Loan

Education Loan

Vehicle Loan

Personal Loan

Oriental Mortgage Loan

Finance against Government Securities/LIC etc.

Reverse Mortgage

Loan against Gold Ornaments

Earnest Money

Loan against Bank’s own Deposit

Credit facilities to Staff members

In case above mentioned credit facilities are to be sanctioned to non-individual

borrowers, the same shall be dealt by MSME Vertical. However, Loan

against Bank’s own Deposit irrespective of the constitution of the

borrower shall be dealt by the Retail Assets Group.



4.1. Organization Structure

Fig 8: Overview of RAG organization structure

4.1.1. Head Office

The Retail Assets Group (RAG) shall be headed by a General Manager (GM)

at the Head Office. He shall be responsible for driving overall business

performance of the Retail Assets portfolio, setting and monitoring of targets,

and overall co-ordination across the Group. The ten Cluster Monitoring Heads

(Retail Assets Group) shall report to the General Manager (RAG).



Fig 9: Overview of HO organization structure

The General Manager (Retail Assets Group) at Head Office shall be

supported by:

Head, Sales and Product responsible for -

o Driving sales performance across the vertical by allocation and

monitoring of targets

o Establishing national level tie-ups with builders, original equipment

manufacturers (OEMs), educational institutes and coordinating internal

campaigns

o Management of product portfolio

o Designing strategy and implementation plan with regard to new

Initiatives and products

o Market research and intelligence

o Analysis of IT Infrastructure requirements and necessary

customizations across various IT Systems

o Formulation of policies with regard to Retail Assets in co-ordination

with Risk Management



Head, Operations, Sanctioning & Collection responsible for -

o Processing and sanctioning of credit proposals/deviations falling under

the Delegated Powers of Head Office

o Overseeing sanctioning, disbursement, collection and monitoring of the

retail assets portfolio across the Bank

o Vendor management

o Monitoring of Service Level Agreements (SLAs)

o Processing and lodging of subsidy claims

o Co-ordinating with various verticals like Recovery, Resolution & Law

(RR&L), Information Technology (IT), Inspection & Control (I&C),

Human Resource (HR), Risk Management (RM) and Compliance &

RBS

4.1.2. Cluster Monitoring Office

Fig 10: Overview of CMO organization structure

The Cluster Monitoring Head (CMH) at the Cluster Monitoring Office shall be

responsible for the business performance of the retail assets portfolio at the

CMO and target allocation and monitoring for all assigned Cluster Offices -

Retail Assets. The Cluster Monitoring Head (Retail Assets) shall work in

coordination with the Cluster Monitoring Head (Branch Business) to allocate



and monitor the targets of the branches with respect to retail assets and

insurance products. The Cluster Monitoring Head (Retail Assets) shall be

supported by the following officers at the Cluster Monitoring Office:

Head, Sales and Product responsible for -

o Driving sales performance across the CMO by allocation and

monitoring of targets

o Establishing regional level tie-ups with builders, Original Equipment

Manufacturers (OEMs), educational institutes, large auto dealers

o Execution of internal campaigns across various Cluster Offices-Retail

Assets

Head, Operations, Sanctioning & Collection responsible for -

o Overseeing sanctioning, disbursement, collection and monitoring of all

Cluster Offices (Retail Assets) under their supervision

o Regional level vendor management

o Monitoring of Service Level Agreements (SLAs)

o Consolidation and validation of Subsidy Claims from the Cluster Offices

(Retail Assets)

o Co-ordination with various verticals like Recovery, Resolution & Law

(RR&L), Inspection & Control (I&C), Human Resource (HR) and Risk

Management (RM)

The Cluster Offices - Retail Assets shall report to Cluster Monitoring Head

(Retail Assets) and the Cluster Office - Retail Assets shall have following

teams:

Cluster Sales Team

Cluster Operations & Sanctioning Team

Cluster Collection and Monitoring Team

The senior-most person in the Cluster Operations and Sanctioning Team shall

be the de-facto Head of the Cluster Office.

4.1.3. Clusters

The Cluster Office- Retail Assets shall be responsible for sourcing Retail

Assets business form external tie ups, appraisal, sanctioning, servicing and

monitoring of retail credit proposals. However, Udbhav Branches (mapped to

Cluster Office-Retail Assets) shall continue to sanction Loans against Bank’s

own Deposit and Loan against Gold Ornaments within their respective

Delegated Powers. Branches shall also be responsible for monitoring of the



above portfolios irrespective of the sanctioning authority.

The credit proposals related to Loan against Deposit and Loan against

Ornaments falling beyond the Delegated Powers of the Branch Incumbents of

Udbhav Branches shall be sanctioned at the Cluster Office-Retail Assets and

Head Office within their respective Delegated Powers.

The review/renewal of the existing credit proposals (except Loan against

Deposit and Loan against Gold Ornaments) shall be done by Cluster Office-

Retail Assets and Head Office within their respective Delegated Powers.

Fig 11: Overview of Cluster roles and responsibilities

4.1.4. Role of the branches

Branches shall be responsible for sourcing of Retail Assets (RA) business

from the walk-in customers, referrals and leads generated from CIBIL

Consumer Triggers. The Branches shall also be responsible for

cross-selling of insurance products for such walk-in customers. The

Branches shall discuss the requirements of the customer and explain the

product features to the prospective borrowers.

Branches shall collect loan application form and other related documents

as per the list for the particular scheme/product and forward the same to



Cluster Operations and Sanctioning Team after entering in the details of

the lead in Loan Origination System (Oriental Lend Smart). While

forwarding the credit proposal to the Cluster Operations and Sanctioning

Team, the branch shall ensure that the application form is duly filled in and

accompanied by all the related documents as per the Scheme guidelines.

The branch shall verify KYC documents with original documents and

stamp OSV. Ensuring compliance of KYC norms shall be the responsibility

of the branch. (Refer Circular No. HO/CS&P/ 39 /2015-16/649 dated

November 12, 2015).

The online verification of Income Tax Return shall be done by the Branch.

(Refer Circular No. HO/ RMD/65/2015-16/790 dated January 07, 2016).

The Branches shall not reject any credit proposal on account of any

deviation/relaxation sought by the prospective borrower from the extant

guidelines. The request for deviation/relaxations shall be dealt by the

Cluster Operations and Sanctioning Team within their respective

Delegated Powers. The request for deviation/relaxations falling beyond the

Delegated Powers of the Cluster Office-Retail Assets shall be forwarded

by the Cluster Operations and Sanctioning Team to Head Office along with

the justification and recommendations for necessary approval.

In case of delay by the Cluster Operations and Sanctioning Team in

conveying the decision, the Branch Incumbent shall take up the matter

with their Cluster Monitoring Head-Branch Business who shall in turn

co-ordinate with the Cluster Monitoring Head -Retail Assets and ensure

quicker decision making and reduced turnaround time (TAT). However, the

branch shall follow up with the Customer for early availment of the credit

facility after it has been sanctioned.

The Loan Processing Officer shall communicate the sanction to the

branch. Documentation and Disbursement shall be done by the disbursing

branch in close co-ordination with the Loan Processing Officer (LPO).

The disbursement voucher shall be prepared by the Branch in duplicate.

The original vouchers shall be sent by the Branch to the Cluster Office-

Retail Assets to be kept with the loan documents and the duplicate copy of

the disbursement voucher shall be retained by the Branch.

The branches shall provide the borrower statement of account and interest

certificate. However, all other services requested like fore-closure of the

credit facility, partial disbursement, issuance of NOC shall be forward by

the branch to the Cluster Operations and Sanctioning Team.

4.1.5. Role of the Cluster Sales Team



The Cluster Sales Team shall be responsible for making various

institutional tie-ups with builders, real estate brokers, educational

Institutes, dealers etc. The Cluster Sales Team shall maintain MIS of

various institutional tie-ups with builders, real estate brokers, educational

Institutes, dealer etc. and shall be placed to Cluster Monitoring Office -

Retail Assets.

The Cluster Sales Team shall have an active follow up with the various

institutional tie-ups with builders, real estate brokers, educational

Institutes, Original Equipment Manufacturers, dealer etc. so as to ensure

maximum leads are generated through those institutional tie-ups.

Cluster Sales Team shall discuss the requirements of the customer and

explain product features to the prospective borrowers.

Cluster Sales Team shall collect loan application forms and other related

documents as per the list for the particular scheme/product and forward

the same under a covering letter of the Sales Team to Cluster Operations

and Sanctioning Team. While forwarding the credit proposal to the Cluster

Operations and Sanctioning Team, the Cluster Sales Team shall ensure

that the application form is duly filled in and accompanied by all the related

documents as per the Scheme guidelines.

The Cluster Sales Team shall verify the KYC documents with original

documents and stamp OSV. Ensuring Compliance of KYC norms shall be

the responsibility of the Cluster Sales Team (Refer Circular No. HO/CS&P/

39 /2015-16/649 dated November 12, 2015)

The online verification of Income Tax Return shall be done by the Cluster

Sales Team. (Refer Circular No. HO/ RMD/65/2015-16/790 dated January

07, 2016)

The Cluster Office - Retail Assets shall communicate the sanction to the

Cluster Sales Team (in cases where lead was generated by the Cluster

Sales Team), the borrower and the disbursing branch. Documentation and

disbursement shall be done by the disbursing branch in close co-ordination

with the Loan Processing Officer (LPO).

The lead shall be accounted to the Branch or Cluster Sales Team

based on who does the collection and submission of the loan application

form along with the documents to the Cluster Operations and Sanctioning

Team.

Selection of a branch for booking of loan in cases of leads sourced by

the cluster sales team will be done as per the convenience and will of the

customer.



4.1.6. Role of the Cluster Operations and Sanctioning Team

The Cluster Operations and Sanctioning Team shall have Sanctioning

Authority, Loan Processing Officers (LPOs) and Cluster Operations Officers

(COO).

Sanctioning Authority

The senior-most person in the Cluster Office-Retail Assets shall be part of

the Cluster Operations and Sanctioning Team and shall be the de-facto

Head of the Cluster Office. The Delegated Powers for sanction of credit

facilities shall be vested with the de-facto Head of the Cluster Office-Retail

Assets

Loan Processing Officers (LPOs)

The Loan Processing Officer shall be responsible for processing of the

credit facilities at the Cluster Office-Retail Assets. The Loan Processing

Officer shall scrutinize the loan application form for ensuring that the

documents are complete in all respects. In case of any discrepancy, the

Loan Processing Officer shall collect relevant information/ documents from

the Branch/ Cluster Sales Team (depending upon who has submitted the

documents).

The Loan Processing Officer shall ensure that all the discrepancies are

communicated in a single instance to the Branch/ Cluster Sales Team so

as to avoid multiple iterations and ensure shorter turnaround time (TAT).

The Loan Processing Officer shall carry out thorough due-diligence of the

borrower/guarantor, conduct pre-sanction visit(s) and carry out verification

of securities/credentials etc.

The Loan Processing Officer shall obtain Non-Encumbrance Certificate

(NEC)/Legal Opinion and Valuation report from the advocate and valuer

respectively.

The Internal Credit Risk Rating of the borrower shall be initiated/ carried

out by the Loan Processing Officer.

The Loan Processing Officer shall prepare the process note and place the

same along with their views/ recommendation before the sanctioning

authority (Cluster Head-Retail Assets) for sanction / rejection of proposal.

The credit facilities shall be sanctioned by the Cluster Head-Retail Assets.

In case of credit proposals falling under the Delegated Powers of Head

Office, the Loan Processing Officer shall forward the credit proposals to



Head Office after incorporation of the recommendations of the Cluster

Head-Retail Assets.

The Loan Processing Officer shall communicate the decision of the

sanctioning authority to the Branch, Cluster Sales Team, Cluster

Operations Officer and Borrower.

The Loan Processing Officer shall ensure that all the pre-disbursement

conditions have been complied with and all the documents as per

NEC/Legal Opinion have been obtained and kept on record.

The Loan Processing Officer shall prepare and send the complete set of

documents (after duly filling in all the required information in the

documents) to be executed by the borrower to the Branch. The set of

documents being sent to the Branch Office shall be accompanied by a

covering letter specifically delineating the details of all the documents to be

executed by the borrower.

CERSAI search at the time of creation of mortgage and registration of

Security Interest shall be done by the Loan Processing Officer (LPO).

The documentation and creation of mortgage and obtaining of

ECS/NACH/Standing Instructions mandate from the customer shall be

done by the branch in close co-ordination with the Loan Processing Officer

(LPO).

The registration/notification of the equitable mortgage shall be done by the

Loan Processing Officer (LPO) in coordination with the Loan Processing

Officer, wherever applicable.

The assignment of LIC policies and pledge of NSC/RBI Relief Bond etc.

shall be the responsibility of the Loan Processing Officer (LPO).

The Loan Processing Officer (LPO) shall get the documents vetted from

the Local Legal Counsel/Legal Retainer/Law Officer as per the Bank’s

extant guidelines.

The Loan Processing Officer (LPO) shall ensure that all other post

disbursement activities like obtaining of Joint Registration Certificate (JRC)

of the Vehicle are completed in a time bound manner.

The Loan Processing Officer shall prepare Branch Certificate of

Compliance (BCC).

The Loan Processing Officer shall be responsible for recovery of all the

charges including those related to CERSAI, Credit Information Report

(CIR) from Credit Information Companies (CICs), processing fee etc.

The Loan Processing Officer shall process the request for partial

disbursements and communicate the disbursement details to the Branch.



The disbursement shall be made by the Branch.

The audit related activities shall be carried out by the Loan Processing

Officers in coordination with other members of the Cluster Operations and

Sanctioning Team.

Cluster Operations Officers (COOs)

The Cluster Operations Officer (COO) shall open the loan account.

ECS/NACH/Standing Instruction shall be fed into the system/executed by

the Cluster Operations Officer (COO).

The satisfaction of Security Interest on Central Registry (CERSAI) shall be

done by the Cluster Operations Officer (COO).

The Cluster Operations Officer (COO) in co-ordination with the Branch

shall ensure that the Balance Confirmation/Letter of Revival has been

obtained as per the Bank’s extant guidelines.

The Cluster Operations Officer (COO) shall be responsible for ensuring

that all the assets financed by the Bank are adequately insured at all times

and the information with regard to insurance is updated in the system.

The request for closure of the credit facility shall be received by the Branch

and the branch shall forward the same to the Cluster Operations Officer

(COO). The Cluster Operations Officer (COO) shall process the closure

request and issue ‘No-Objection Certificate (NOC)’ to the borrowers. In

case of mortgage backed credit facilities, the Cluster Operations Officer

(COO) shall make arrangements for handover of the original property

documents to the borrower.

The Cluster Operations Officer (COO) shall prepare and submit the

Monthly statement of Regular Advances sanctioned i.e.STM-41 to the

Cluster Monitoring Office (Retail Assets).

The audit related activities shall be carried out by the Cluster Operations

Officer (COO) in coordination with Loan Processing Officers.

4.1.7. Role of the Cluster Collections and Monitoring Team

The Cluster Collection & Monitoring Team shall track all the borrowers’

accounts to ensure that repayment is being made as per schedule.

The Cluster Collection & Monitoring Team shall contact the borrowers

whose accounts are classified as SMA-0, 1 and 2 and persuade them for

regularization. The Cluster Collection & Monitoring Team shall contact the

customer through phone calls, overdue notice and personnel visit in case

of SMA-0, SMA-1 and SMA-2 respectively.



The Cluster Collection & Monitoring Team shall be responsible for handing

over the borrowal account to the Cluster Office-Resolution, Recovery &

Law as and when the account is classified as Non-Performing Asset.

4.2. Process Flow mapping of the Retail Assets Group (RAG) - Mortgage

Backed Credit facilities1

4.2.1. Sourcing

Sourcing shall be done by the Branches and the Cluster Sales Team. The

Branch/ Cluster Sales Team shall discuss the requirements of the

customer and explain the product features to the prospective borrowers.

The sourcing of the Retail Assets business shall be done by the Branches

and the Cluster Sales Team. The Branch/ Cluster Sales Team shall

discuss the requirements of the customer and explain the product features

to the prospective borrowers.

After having the proposal discussion with the customer, the Branch/

Cluster Sales Team shall collect all the required documents as per the

checklist for sanction of the credit facilities and get the application form

duly filled by the customer

The Branch/ Cluster Sales Team shall verify the KYC documents with

original documents and stamp OSV. Ensuring Compliance of KYC norms

shall be responsibility of the Branch/ Cluster Sales Team. (Refer Circular

No. HO/CS&P/ 39 /2015-16/649 dated November 12, 2015).

The online verification of Income Tax Return shall be done by the Branch.

(Refer Circular No. HO/ RMD/65/2015-16/790 dated January 07, 2016).

The Branch/Cluster Sales Team shall input the lead in the Oriental Lend

Smart) and forward the same to the Cluster Office-Retail Assets. A unique

acknowledgement Number is generated for every lead that is input in the

system (Oriental Lend Smart).

The system generates three copies of the acknowledgement letter one to

be duly signed and handed over to the customer, one to be duly signed

and sent along with the application form and other documents to the

Cluster Operations and Sanctioning Team (Loan Processing Officer) and

one to be retained by the Branch/Cluster Sales Team.

The Branch/ Cluster Sales Team shall submit the duly filled application

form along with the documents, checked checklist (Refer Annexure 4) and

system generated acknowledgement letter to Cluster Operations and

Sanctioning Team of the Cluster Office-Retail Assets (Loan Processing



Officer).

The Branch/Cluster Sales Team while forwarding the lead to the Cluster

Office-Retail Assets shall ensure that there are sufficient funds available in

the saving/current account of the borrower for recovery of fees/charges

including fee to be paid for obtaining Non Encumbrance Certificate (NEC)/

Legal Opinion and Valuation Report from the Advocate and Valuer. The

Branch shall mark a lien in the borrower’ saving/current account on the

tentative amount to be paid for obtaining Non Encumbrance Certificate

(NEC)/ Legal Opinion, Valuation Report and other charges.

The Cluster Sales Team shall also ensure that lien is created in the

borrower’ saving/current account for recovery of fees/charges in cases

where lead has been generated by the Cluster Sales Team.

The Branch/ Cluster Sales Team shall clearly communicate to the

borrower regarding applicable fees/charges and marking of lien in the

saving/current account.

1- Housing Loan, Oriental Mortgage Loan, Reverse Mortgage and Education Loans with

Collateral Security Housing Loan, Oriental Mortgage Loan, Reverse Mortgage and Education

Loans with Collateral Security

4.2.2. Processing

The Loan Processing Officer from the Cluster Operations and Sanctioning

Team shall acknowledge the application received from the Branch/Cluster

Sales team and scrutinize the loan application form for ensuring that the

documents are complete in all respects.

In case any document is missing, information is incomplete or any other

discrepancy, the Loan Processing Officer shall collect the relevant missing

information/ documents from the Branch/ Cluster Sales Team (depending

upon who has submitted the documents).

Fig 12: RAG loan process flow – Sourcing, Processing



The Loan Processing Officer shall check the Credit Information Report

(CIR) provided by the Credit Information Companies (CICs), Defaulter List,

Caution List etc. as per the guidelines issued by the Head Office from time

to time.

In case of mortgage backed credit facilities, the Loan Processing Officer

shall search the details of the property proposed to be mortgaged on the

Central Registry (CERSAI) portal for ensuring that the property is free from

all encumbrances. (Refer: Circular No. HO/RMD/71/2014-15/860 dated

January 30, 2015, Circular No. HO/RMD/13/2016-17/127 dated May 24,

2016, Circular No. HO/RMD/16/2016-17/207 dated June 15, 2016 and

amendments issued by the Bank from time to time)

Further, the Loan Processing Officer shall carry out in-depth study of the

property documents like title deeds/ allotment letter/ leasehold letters etc.

and entrust the job of issuance of NEC/ Legal Opinion and Valuation

Report to the Advocate and Valuer respectively on the panel of the Cluster

Office-Retail Assets.

The Cluster Office-Retail Assets shall have at least four advocates and

similar number of valuers on its panel and job for issuance of NEC and

Valuation Report shall be assigned to them by the Cluster Office-Retail

Assets (Loan Processing Officer). Assigned advocate and valuer shall be

required to visit the Cluster Office-Retail Assets to collect papers and to



submit the report thereon. Similarly, the Valuer shall have to submit the

Valuation Report within 2 days of collection of papers from the Cluster

Office-Retail Assets. (Refer Circular No. HO/RMD/07/2016-17/46 dated

April 15, 2016)

The Loan Processing Officer shall carry out pre-sanction visit and thorough

due diligence of the prospective borrower.

The Loan Processing Officer shall verify the property for its marketability

and realizable value. During the visit, the Loan Processing Officer shall

ascertain the Sale Price/Realizable Value of similar House/Flat/Plot from

the market/ nearby areas and shall ensure that value of property as

assessed by the valuer is in accordance with the rates prevailing in the

area.

As quite a large number of frauds on account of forged title deeds/stamp

papers are taking place, the Loan Processing Officer shall exercise utmost

care to mitigate the frauds. The Loan Processing Officer shall ensure

meticulous compliance of all the guidelines issued by the bank for

prevention of frauds.

The Loan Processing Officer shall carry out/initiate the Internal Credit Risk

Rating of the borrower and shall forward the same to the sanctioning

authority at the Cluster Office-Retail Assets for vetting of Internal Credit

Risk Rating. (Refer: Circular No. HO/RMD/26 /2016-17/261 dated July 02,

2016).

After having conducted legal formalities, verification of Realizable Value of

property, personal verification and thorough due diligence of the

prospective borrower, the Loan Processing Officer shall prepare a

process note on the basis of the guidelines issued by the Bank from time

to time and place the same along-with his views/ recommendation before

the sanctioning authority (Cluster Head-Retail Assets) for sanction /

rejection of proposal. The senior-most person in the Cluster Office

shall be part of the Cluster Operations and Sanctioning Team and

hence be the de-facto Head of the Cluster Office.

4.2.3. Sanctioning

The sanctioning authority shall scrutinize the process note and accordingly

approve/reject the credit proposal depending upon the merits of the case.

In case of credit proposals falling beyond the Delegated Powers of the

sanctioning authority at the Cluster Office, the credit proposal shall be sent

to Retail Assets Group (RAG) at Head Office for sanctioning.

The de-facto Cluster Head-Retail Assets shall vet and sanction the Internal



Credit Risk Rating of the borrower. (Refer: Circular No. HO/RMD/26 /2016-

17/261 dated July 02, 2016).

Fig 13: RAG loan process flow – Sanctioning

On approval by the sanctioning authority, Sanction/ Rejection Letter shall

be conveyed by the Loan Processing Officer to the Branch, Cluster Sales

Team (if lead was sourced by the Cluster Sales Team), and the borrower.

4.2.4. Execution of the Sanction

The Loan Processing Officer while conveying the sanction to the borrower,

requests him/ her to visit the Branch for completion of documentation

formalities and disbursement of the credit facility thereafter. If customer is

required to bring additional documents, he/ she shall be informed

accordingly.

The Loan Processing Officer shall ensure that all the pre-disbursement

conditions have been complied with and all the documents as per

NEC/Legal Opinion have been obtained and kept on record.

The Loan Processing Officer shall prepare and send the complete set of

documents (after duly filling in all the required information in the

documents) to be executed by the borrower to the Branch. The set of

documents being sent to the Branch Office shall be accompanied by a



covering letter specifically delineating the details of all the documents to be

executed by the borrower.

The Loan Processing Officer shall coordinate with the branch for execution

of the documents and creation of mortgage. The Branch shall get the

documents executed from the borrower and the Branch Manager shall sign

the loan documents on behalf of the Bank.

The Branch in coordination with Loan Processing Officer shall obtain

ECS/NACH/Standing Instructions mandate from the customer at the time

of execution of the documents.

In case of mortgage backed credit facilities, the mortgage shall be created

at the Branch and the Mortgage Register (Recital of Title Deeds) shall be

updated and maintained by the Branch. (Refer Chapter 7 of Advances

Manual Volume II)

Before creation of mortgage, the Loan Processing Officer shall check on

the Central Registry (CERSAI) that the property being mortgaged is free

from all encumbrances.

The registration of Security Interest pertaining to immovable, movable and

intangible assets on Central Registry (CERSAI) shall be done by the Loan

Processing Officer subsequent to creation of charge on the security.

The Branch Manager shall update the details in the Document Register.

The Document Register shall be kept in the Branch under the custody of

the Branch Manager.

The registration/notification of the equitable mortgage shall be done by the

Loan Processing Officer, wherever applicable.

The Branch Manager shall get the registered mortgage created, wherever

applicable. The mutation in the records of the Revenue authorities

(Patwari, Tehsildar, Incharge of Consolidation/Chakbandi etc. as per the

state laws) shall be done by the Loan Processing Officer.

After execution of the documents, the Branch shall send the loan

documents and title deeds in original to the Cluster Office-Retail Assets

with a forwarding letter stating that the documents have been executed in

his presence and clearly specifying the details of the documents that have

been executed. Besides, photocopy of the relevant pages of the Mortgage

Register (Recital of Title Deeds) and Document Register verified by the

Branch Manager shall also be sent to Cluster Office-Retail Assets.

Documents (loan documents, original title deeds) shall be kept at the

Cluster Office.

The Loan Processing Officer shall get the documents vetted from the Local

Legal Counsel/Legal Retainer/Law Officer as per the extant Bank’s



guidelines. (Refer: Circular No. HO/RMD/21/2016-17/241 dated June 30,

2016).

The authority that has carried out the vetting of the documents i.e., Law

Officer/Legal Retainer/Local Legal Counsel (as the case may be) shall

scrutinize the records with Revenue Authorities (Patwari, Tehsildar,

Incharge of Consolidation/Chakbandi etc. as per the state laws) to verify

the noting of Bank’s charge/mutation in favour of the Bank.

In cases where vetting of Loan Documents is not required, the Branch

shall send a confirmation by e-mail to Loan Processing Officer that

documents have been executed and enforceable charge has been created

on the security so that Cluster Office-Retail Assets can open the Loan

account for disbursement. However, the Branch shall send the original

loan documents subsequently to the Loan Processing Officer for safe

custody.

4.2.5. Disbursement

The Cluster Operations Officer (COO) shall open the loan account. The

disbursements shall be made by the Branch in coordination with Loan

Processing Officer. The Loan Processing Officer shall provide the details

of disbursement to the Branch.

The disbursement voucher shall be prepared by the Branch in duplicate.

The original Vouchers shall be sent by the Branch to the Cluster Office-

Retail Assets to be kept with the loan documents and the duplicate copy of

the disbursement voucher shall be retained by the Branch.

In cases where disbursement has to be done using Demand

Draft/Bankers’ Cheque, the branch shall handover the Demand

Draft/Bankers’ Cheque to the seller/deal, as the case may be.

In cases that involve multiple partial disbursements, the borrower shall

make a request to the branch along with relevant information/papers. The

Branch shall in turn forward the request for partial disbursement to the

Loan Processing Officer. After scrutinizing the request for partial

disbursement, the Loan Processing Officer shall provide the details of

partial disbursement to the Branch and subsequently the disbursement

shall be done by the Branch.

The Cluster Operations Officer (COO) shall feed into the system/execute

ECS/NACH/Standing Instruction before disbursing the credit facilities.

Fig 14: RAG loan process flow – Execution, Disbursement



4.2.6. Post Sanction

The Loan Processing Officer shall obtain the insurance certificate at the

time of sanction/disbursement and ensure that the details with regard to

insurance are fed into the system.

The Loan Processing Officer shall prepare the Branch Certificate of

Compliance (BCC) and BCC shall be cleared by the sanctioning authority.

(Refer: Circular No. HO/RMD/26 /2016-17/261 dated July 02, 2016).

The Loan Processing Officer shall be responsible for carrying out post

sanction visits as per the Bank’s extant guidelines.

The Cluster Operations Officer (COO) in co-ordination with the Branch

shall ensure that the Balance Confirmation/Letter of Revival has been

obtained as per the Bank’s extant guidelines. (Refer: Para 15.10 of the

Loan Policy Circular No. HO/ RMD/80/2013-14/948 dated January 14,

2014)

Fig 15: RAG loan process flow – Post Sanction, Mortgage Creation



Fig 16: RAG loan process flow – Post Sanction, Mortgage Creation

4.2.7. Collection and Monitoring



The Cluster Collection & Monitoring Team shall track all the borrowers’

accounts to ensure that repayment is being made as per schedule.

The Cluster Collection & Monitoring Team shall contact the borrowers

whose accounts are classified as SMA-0, 1 and 2 and persuade them for

regularization of account. The Cluster Collection & Monitoring Team shall

contact the customer through phone calls, overdue notice and personnel

visit in case of SMA-0. SMA-1 and SMA-2 respectively.

Fig 17: RAG loan process flow – Collection, Monitoring

The Cluster Collection & Monitoring Team shall be responsible for handing

over the borrowal account to the Cluster Office-Resolution, Recovery &

Law as when an account is classified as Non-Performing Asset.

4.2.8. Account Closure

If customer comes to the branch for account closure or foreclosure, the

branch shall accept the payment so that interest accrual stops for the

repaid amount. For further processing of account closure, the branch shall

refer the case to the Clusters Operations Officer (COO).

The Cluster Operations Officer (COO) shall process the closure request

and issue ‘No-Objection Certificate (NOC)’ to the borrowers. In case of

mortgage backed credit facilities, the Cluster Operations Officer (COO)



shall make arrangements for handover of the original property documents

to the borrower.

Fig 18: RAG loan process flow – Account closure

The satisfaction of Security Interest with CERSAI shall be done by the

Cluster Operations Officer (COO).

4.2.9. Reporting System

The credit proposals sanctioned by the Cluster Office-Retail Assets shall be

reported in the Monthly statement of Regular Advances sanctioned i.e.,

STM-41 by Cluster Operations Officer (COO) to the Cluster Monitoring Office

(Retail Assets)

4.2.10. Collection of Charges

The Loan Processing Officer shall be responsible for recovery of all charges

including those related to CERSAI, Credit Information Report (CIR) from

Credit Information Companies (CICs), processing fee etc.

4.2.11. Processing of Service Requests post disbursement



The branches shall provide the borrower statement of account and interest

certificate. All other service requested like fore-closure of the credit facility,

partial disbursement, issuance of NOC shall be forward by the branch to the

Cluster Operations Officer (COO).

4.2.12. Other Activities

The Cluster Operations Officer (COO) shall be responsible for ensuring

that all the assets financed by the Bank are adequately insured at all

times and the information with regard to insurance is periodically updated

in the system.

Fig 19: RAG loan process flow – On-going activities

The concurrent audit of the Cluster Office shall be done on the basis of

the loan documents and title deeds in original along with the photocopy of

the relevant pages of the Mortgage Register (Recital of Title Deeds) and

Document Register and proof of notification/registration of equitable

mortgage, wherever applicable. .

The audit related activities shall be carried out by the Cluster Operations

and Sanctioning Team.

4.2.13. Delegated Powers



The senior-most person in the Cluster Operations and Sanctioning Team

shall be the de-facto Head of the Cluster Office. The Delegated Powers for

sanction of credit facilities shall be vested with the de-facto Head of the

Cluster Office-Retail Assets.

In case of high value loans/deviations, that do not fall under the Delegated

Powers of the Head of the Cluster Office-Retail Assets, the credit proposals

shall be sent to Retail Assets Group (RAG) at Head Office for sanctioning

along with the recommendations of the Cluster Head-Retail Asset. (Refer:

Circular No. HO/ RMD/20/2016-17/241 June 30, 2016).

The guidelines with regard to takeover of Retail Credit proposal shall be as

per respective scheme.

4.3. Process Flow for non-mortgage backed credit facilities (Vehicle Loan,

Personal Loan and Educations Loans without Collateral Security)

The process flow for non-mortgage backed credit facilities shall be as

mentioned for mortgage backed credit facilities. However, the processes with

regard to visit, valuation verification of immovable property and creation of

mortgage shall not be applicable in case of non-mortgage backed credit

facilities.

The specific processes to be carried out in case of non-mortgage backed

credit facilities are as shown below:

Vehicle Loan

The Loan Processing Officer in close co-ordination with the Branch shall

ensure that the Joint Registration Certificate (JRC) of the Vehicle is

obtained in a time bound manner.

The Loan Processing Officer shall ensure that same chassis number and

engine number is mentioned on the following:

o Vehicle

o Invoice

o Registration Certificate (RC)

Car dealers have adopted a practice of taking photographs while handling

over the vehicle keys to their customers. Wherever possible, a copy of the

same needs to be obtained by the Loan Processing Officer and kept on

record.



Financing against Govt. Securities/ LIC Policies

The Loan Processing Officer shall ensure that the credit facility against

Government Securities/LIC Policies etc. is allowed after registration of

lien/assignment/ endorsement on securities in Bank’s favour/or receipt of

confirmation to this effect from the issuing office.

The Loan Processing Officer shall ensure that the maturity date of all Govt.

securities kept as security are noted and payment of the same is

immediately collected from the issuing institution, otherwise the Bank will

not get the overdue interest over that instrument.

The Cluster Operations Officer (COO) shall calculate the Drawing Power

(DP) on regular intervals.

The Cluster Collection & Monitoring Team shall ensure that Interest shall

be recovered from the borrower(s) whenever charged so that outstanding

in the loan/advance may not exceed the maturity value of the security

pledged/assigned/lien etc. with the Bank.

Loan against Bank’s Own Deposit and Loan against Gold Ornaments

The Loan against Bank’s own Deposit and Loan against Gold Ornaments

shall be sanctioned by the Branch Managers of Udbhav Branches within

their respective Delegated Powers. The review/renewal of the credit

proposals shall also be done by the Branch.

The documentation and charging of securities shall be done by Udbhav

Branches. The gold Ornaments shall be stored at the Branches.

The opening of loan account and disbursement shall also be done by the

Branch.

The closure of the credit facilities including pre-mature closure shall be

dealt at the Branch.

In case of credit facilities falling beyond the Delegated Powers of the

Branch Manager, the credit facilities shall be sanctioned by the Cluster

Office-Retail Assets and Head Office within their respective Delegated

Powers. The Head Office shall communicate the sanction to the Branch

and Cluster Office-Retail Assets. The documentation, charging of

securities and disbursement shall be done by the branch.

Monitoring of the portfolio of Loan against Bank’s Deposit and Loan

against Gold Ornaments shall be the responsibility of the Branch.

Loan Origination System (Oriental Lend Smart)

The Bank has put in place a Loan Origination System (Oriental Lend Smart) whereby

the complete journey of a credit facility from origination till disbursement is made



through the System.

Presently, three credit facilities i.e., Housing Loan, Vehicle Loan and Education Loan

are available in the Oriental Lend Smart. The functionaries are advised that the

processing, sanctioning and all other activities with regard to Housing Loan, Vehicle

Loan and Education Loan are done using Oriental Lend Smart. The other credit

product shall also be brought under the ambit of the Oriental Lend Smart.

The lead generation for all the retail credit facilities shall be done using

Oriental Lend Smart.

The job card for Oriental Lend Smart is available on the Bank’s internal portal

(OBCWeb).

4.4. Comparison of before and after work flow

The following tables summarize key differences with the existing process –

Fig 20: Comparison between the process flows- Part 1



Fig 21: Comparison between the process flows- Part

4.5. Touchpoints for the customer and external linkages

Following figure shows customer touch points across the life cycle of the loan

Fig 22: Customer touchpoints in the new process

The following figure illustrates linkages to other verticals for RAG



Fig 23: External linkages to other verticals



4.6. Role Mandates

The following section should be read in conjunction with the process flow.

4.6.1. Cluster Sanctioning Authority

Review Authority: Cluster Monitoring Head, RAG

Direct Reports: Cluster Sales Team, Loan processing officers, Operations officers,

Collections and Monitoring officers

Key Responsibility Areas

Key Performance Metrics

Key Performance Metrics Units

Bu

dg

eta

ry

Yield on advances %

Non-interest income %

% GNPA %

Fresh slippage % of accounts,

% of value

Growth in advances %

Value of loans originated Rs.

Value of loans sanctioned Rs.

Regularization of SMA by accounts and value % of accounts,

% of value

No

n-

bu

dg

eta

ry Proposals disbursed within defined TAT Number

Service requests TAT Number

# of meetings per sales person Number


Individual Sanction all loans coming to the cluster (deviations – within authority)

Escalations coordination

Manage operating, credit risks

o Pre-emptively identify and manage risks with a mitigation approach

o Escalate exceptions/ risks in a timely manner

Supervision Formulate cluster strategy and annual operating plan

Monitoring cluster teams, performance and productivity



4.6.2. Loan processing officer

Review Authority: Cluster Sanctioning Authority



Individual

Coordinate with branches and sales team for sourcing of

leads and document collection

Processing of loan applications: pre-sanction visits, legal

and technical approval, CIC and CERSAI checks, credit risk

rating, process note preparation

Coordination with sanctioning authority for sanction letter

preparation

Coordinate with branch in execution of documents and

mortgage creation

Post-sanction visits for part-disbursement cases



Bu

dg

eta

ry

Yield on advances %


% GNPA %

Fresh slippage % of accounts,

% of value



No

n-

bu

dg

eta

ry

Proposals disbursed within defined TAT Number



4.6.3. Cluster Operations Officer




Individual Account opening

Storage of documents will be done at the cluster by the loan

processing officer

Account closure - documents’ execution and in system

Generation of monthly reports like STM-41

BCC preparation and closure

Insurance details update

Service requests – Issuance of NOC, pre-payment etc.



Bu

dg

eta

ry

Loans sanctioned % of

accounts, %

of value

No

n-b

ud

ge

tary

Proposals disbursed within defined TAT Service requests TAT

Number



4.6.4. Cluster Sales




Individual Generate/source leads within geographical area assigned to

cluster - make telephone calls, in-person visits and

presentations to existing and prospective customers

Research sources for developing prospective customers and

determine potential

Conduct initial prospecting and customer meetings

Identify advantages of OBC products over competitors



Bu

dg

eta

ry


Ratio of value of loans sanctioned to value of loans

originated Number


No

n-

bu

dg

eta

r

y

# of months for which monthly target is achieved Number



4.6.5. Collections and Monitoring Officer




Individual Track borrowers’ accounts to ensure that repayment is being

made as per schedule

Contact borrowers whose accounts are classified as SMA-0,

1 and 2 and persuade them for regularization of account

Contact customer through phone calls, overdue notice and

personnel visit in case of SMA-0, SMA-1 and SMA-2

Handing over borrowal account to the Cluster Office-

Resolution, Recovery & Law as and when account is

classified as NPA



Bu

dg

eta

ry

Fresh slippage

% of

accounts, %

of value

Regularization of SMA by accounts and value

% of

accounts, %

of value



4.6.6. Cluster Monitoring Office Head

Review Authority: GM Head Office, RAG

Direct Reports: Cluster Heads, Operations and Collections Head, Sales and

Product Head



Individual Drive RAG business within clusters assigned; set targets

for each cluster head

Conduct meetings with key accounts within cluster (with

cluster head)

Manage operating and credit risks:

o Pre-emptively identify and manage risks and define

mitigation approach

Supervision Monitor sanctions conducted at clusters as per bank

policies

Overall performance of the clusters and the productivity of

cluster heads

Conduct training sessions for cluster heads



Bu

dg

eta

ry

Yield on advances %


% GNPA %

Fresh slippage

% of

accounts, %

of value





% of

accounts, %

of value

No

n-

bu

dg

eta

ry

Proposals disbursed within defined TAT Number




4.6.7. Sales and Product Head

Review Authority: Head, Cluster Monitoring Office, RAG



Individual CMO level institutional tie-ups - generate/source leads within

geographical area - make telephone calls, in-person visits

and presentations to existing and prospective customers

Execution of local campaigns

Sales performance monitoring through CMOs

Research sources for developing prospective customers and

determine potential

Conduct initial prospecting and customer meetings

Identify advantages of OBC products over competitors



Bu

dg

eta

ry Value of loans originated Rs.

Ratio of value of loans sanctioned to value of loans

originated Number

No

n-b

ud

ge

tary


# of months for which monthly target is achieved Number



4.6.8. Operations and Collections Head

Review Authority: Head, Cluster Monitoring Office, RAG



Individual High importance loan sanctioning and deviations

Over-seeing monitoring and collection of past-due accounts

Geography level vendor management (E.g. field verification

agencies, legal retainers, cross-coordination with other

departments)

Monitoring of SLAs and productivity of cluster teams

Coordination with CMO level Recovery Team



Bu

dg

eta

ry

Yield on advances %


% GNPA %

Fresh slippage

% of

accounts, %

of value




% of

accounts, %

of value

No

n-

bu

dg

eta

ry

Proposals disbursed within defined TAT

Service requests TAT Number



5. 30-day Roll-out plan

The following figures denote the key activities to be conducted by various

stakeholders over the first 30 days post roll out.

Fig 24: Key activities as part of roll out plan at HO



Fig 25: Key activities as part of roll out plan at CMO

Fig 26: Key activities as part of roll out plan at Cluster



6. Frequently Asked Questions (FAQs)

Q1. Who will collect the required documents for the Retail Loan?

The Branch/ Cluster Sales Team, who has mobilized/marketed the loan proposal,

shall collect all required documents as per the checklist for sanction of the credit

facilities and get the application form duly filled by the customer.

Q2. Who will verify the KYC documents?

The Branch/ Cluster Sales Team, who has mobilized/marketed the loan proposal,

shall verify the KYC documents with original documents and stamp OSV. Ensuring

Compliance of KYC norms shall be responsibility of the Branch/ Cluster Sales Team.

Q3. Who will carry out the Internal Credit Risk Rating?

The Loan Processing Officer shall carry out/initiate the Internal Credit Risk Rating of

the borrower and shall forward the same to the sanctioning authority at the Cluster

Office-Retail Assets for vetting of the Internal Credit Risk Rating.

Q4. Where will the mortgage be created?

The mortgage shall be created at the Branch and the Mortgage Register (Recital of

Title Deeds) shall be updated and maintained by the Branch.

The Branch shall send the title deeds in original along with the photocopy of the

relevant pages of the Mortgage Register (Recital of Title Deeds) and to the Cluster

Office.

Q5. Who will online verify Income Tax Return (ITR)?

Branch/Sales team, who has mobilized/marketed the loan proposal, shall online

verity Income Tax Return (ITR).

Q6. Who shall get the documents executed?

The Loan Processing Officer shall prepare and send the complete set of documents

(after duly filling in all the required information in the documents), to be executed by

the borrower/guarantor, to the Branch. The set of documents being sent to the

Branch Office shall be accompanied by a covering letter specifically delineating the

details of all the documents to be executed by the borrower/guarantor.

The Loan Processing Officer shall coordinate with the branch for execution of the

documents and creation of mortgage. The Branch Manager shall sign the loan

documents on behalf of the Bank.



Q7. Where will the documents be kept?

The Branch Manager shall send the documents to the Cluster Office-Retail Assets

with a forwarding letter stating that the documents have been executed in his/her

presence and clearly specifying the details of the documents that have been

executed. The documents (loan documents, original title deeds) shall be kept at the

Cluster Office.

Q8. Who will open the Loan account in the system?

The Cluster Operations Officer (COO) shall open the loan account in the system.

Q9. Who shall disburse the credit facilities?

The disbursements shall be made by the Branch in coordination with Loan

Processing Officer. The Loan Processing Officer shall provide the details of

disbursement to the Branch.

The disbursement voucher shall be prepared by the Branch in duplicate. The original

Vouchers shall be sent by the Branch to the Cluster Office-Retail Assets to be kept

with the loan documents and the duplicate copy of the disbursement voucher shall

be retained by the Branch.

Q10. Who will ensure end use of funds?

Cluster Operation and Sanctioning team shall ensure end use of funds.

Q11. Who will obtain Balance Confirmation/Letter of Revival?

The Cluster Operations Officer (COO) in co-ordination with the Branch shall ensure

that the Balance Confirmation/Letter of Revival has been obtained as per the Bank’s

extant guidelines

Q12. Which facilities will be exempt from vetting?

The following facilities will be exempt from vetting –

Loans to staff members (under Staff or General Loans Schemes) which are

not secured by immovable property (ies).

Loan against self-Deposit to an individual.

Loan against Third Party Deposit to an individual where the Deposit Receipt is

also in the name of an individual.

Loan to individuals against Shares/Bonds /Debentures /Mutual funds, NSC,

LIC Policy and other Government securities.



Purchase of Government cheques, Pay orders, bank draft issued by

Scheduled Commercial Banks.

Occasional cheques purchase and withdrawal against uncleared

instruments/cheques in case of non-borrowal accounts. (In case of borrowal

accounts, Occasional cheques purchase and withdrawal against uncleared

instruments/cheques is done within Over Limit and no documentation is done

in case of Over Limit.)

Credit facilities upto `10 Lacs sanctioned under Government Sponsored

Schemes.

Oriental Green Card (OGC) upto ` 10 Lacs.

Credit facilities covered under Mudra Scheme.

Credit facilities upto ` 10 Lacs sanctioned under Retail Credit Schemes which

are not secured by immovable property (ies).

Q13. Who will sanction loans beyond powers of Branch Incumbents in case of

Loan against deposit?

Cluster Office (RAG) shall sanction the loan beyond the powers of branches.

Q14. Whether 3rd Housing Loan can be considered by Cluster Office -Retail

Assets?

Yes, Cluster Office-Retail Assets can consider 3rd Housing Loan (as per Oriental

Home Loan Scheme).

Q15. Who will be responsible for creation of hypothecation on Vehicle (in case

of Vehicle Loan) and obtaining JRC?

Loan Processing Officer shall be responsible for creation of hypothecation on the

vehicle financed with RTO and obtaining JRC.

However, the Branch Manager of respective branch shall sign on RTO form for

creation of hypothecation on the vehicle on behalf of the Bank.



7. Annexure 1: Checklists

Oriental Car /Vehicle Loan Scheme (New Vehicle)

Checklist to be attached at the time of submission of proposal

S.

No.

Particular Attached

(Mark √)

For all borrowers/co-borrowers/guarantors

1 Identification of the borrower :

KYC complied

a) Loan application form(LF2) and (LF 4),as applicable, duly completed with photographs of the applicant/co-applicant /guarantors etc. (attested by the branch officials)

b) Passport size photograph of applicant, co-applicant &

guarantor

c) Customer identification proof (Pan Card/Voter ID/Driving License/ration card/Aadhar Card etc.)

d) Address Proof (Passport/Voter ID/Ration Card/Aadhar Card etc.)

e) Copies of constitution documents like copy of partnership deed, Memorandum & Article of Association etc. in case of advances to borrowers other than individuals

f) Bank Statement: Copy of bank account statement for last 12 months

i. Where salary is credited , for salaried applicants

ii. Saving/current accounts, if any for other than salaried

applicants

2 Proof of Income –

For Salaried: Salary certificate issued by the employer /

Income Tax return / Proof of confirmed service / proof of

length of service

For Agriculturist: Record of land holding & cropping

pattern or any other proof of incom.

For all other individuals: Last 2 yrs. Income Tax Return &

computation sheet / Bank A/C statement

3 Quotation from authorized dealer for vehicle to be purchased

4 Any other information/documents/papers which may be necessary

as per requirement of the case



Oriental Car/Vehicle Loan Scheme (Second hand Car)


S.

No.

Particular Attached

(Mark √)



KYC complied


b) Passport size photograph of applicant, co-applicant & guarantor





i. Where salary is credited , for salaried

applicants

ii. Saving/current accounts, if any for other than

salaried applicants




length of service

For Agriculturist: Record of land holding & cropping pattern

or any other proof of income.

For all other individuals: Last 2 yrs. Income Tax Return &

computation sheet / Bank A/C statement

3 Particulars of vehicle to be purchased and copy of Registration

Certificate of vehicle.

4 Agreement to Sell between Seller and Purchaser

5 Prescribed Transfer Form duly executed by the Seller for onward

submission to RTO

6 Copy of receipt of up-to-date deposit of Road tax/other taxes



7 Certificate as to the Age of the Vehicle, Residual Life, Valuation of

Vehicle etc. from the approved surveyors of General Insurance

Companies or authorized dealer under True Value Scheme

alongwith RC and Insurance

8 Any other information/documents/papers which may be necessary

as per requirement of the case



PERSONAL LOAN TO CORPORATE EMPLOYEES/GOVERNMENT EMPLOYEES


S.

No.

Particular Attached

(Mark √)



KYC complied

a) Loan application form, duly completed with photographs of the applicant/co-applicant /guarantors etc. (attested by the branch officials)


guarantor



e) Bank Statement: Copy of bank account statement for last 12 months (Where salary is credited)

2 Proof of Income – Salary certificate issued by the employer /

Income Tax return / Proof of confirmed service / proof of length

of service

3 Any other information/documents/papers which may be

necessary as per requirement of the case



PERSONAL LOAN TO PENSIONERS


S.

No.

Particular Attached

(Mark √)



KYC complied

a) Loan application form, duly completed with photographs of the applicant/co-applicant /guarantors etc. (attested by the branch officials)


guarantor



e) Bank Statement: Copy of bank account statement for last 12 months (Where pension is credited)

2 Pension Payment Order.(wherever applicable)





EDUCATION LOAN


S.

No.

Particular Attached

(Mark √)



KYC complied

a) Loan application form(LF2), duly completed with photographs of the applicant/co-applicant /guarantors etc. (attested by the branch officials)

b) Customer identification proof (Pan Card/Voter ID/Driving License/ration card/Aadhar Card etc.)

c) Address Proof (Passport/Voter ID/Ration Card/Aadhar Card etc.)

d) Proof of age of the applicant should also be obtained

e) Bank Statement: Copy of bank account statement for last 12 months

i. Where salary is credited , for salaried

applicants

ii. Saving/current accounts, if any for other

than salaried applicants

2 Proof of Income of parents/co-obligants-



length of service


pattern or any other proof of income.

For all other individuals: Last 2 yrs. Income Tax

Return & computation sheet / Bank A/C statement

3 Matriculation or Higher Secondary or Senior School Board

Certificate / Marks Sheet / Degree (last exam passed)

4 Admission Letter / Slip issued by the Institution in India or

Abroad giving complete details of Fee/Charges

5 Receipt of Fees, if any

6 Details of Scholarship available, if any

7 Brochure issued by the institution giving information about



recognition of the course by appropriate authority/university

8 Declaration/Affidavit (duly notarized) that no loan has been

taken for this purpose from other financial institutions/Banks

9 Passport /Visa in case of Students going abroad and

Permission for release of Foreign Exchange wherever required

10 Documents/ proof of Movable collateral security like

FDR/NSC/LIP, wherever required in case of Loans exceeding

Rs.7.50 Lac

11 Details of collateral securities offered along with proof of

ownership with complete chain of Title deeds, latest House Tax

Receipt, Income Tax and Other Statutory dues clearance

certificates. , in case of Loans exceeding Rs.7.50 Lac

12 Salary certificate along with deductions duly certified by

employer in case of working professionals/Defense Personnel

seeking assistance for part-time courses

13 In case of Loan to working executive, Letter of authority duly

confirmed by the employer for deduction of monthly installment

from salary OR ECS/NACH debit Mandate/Standing Instruction

be obtained





ORIENTAL MORTGAGE LOAN SCHEME


S.

No.

Particular Attached

(Mark √)



KYC complied



guarantor




f) Bank Statement: Copy of bank account statement for last 12 months i. Where salary is credited , for salaried applicants

ii. Saving/current accounts, if any for other than salaried

applicants




length of service





3 Property Documents on which Loan is required





HOME LOAN


S.

No.

Particular Attached

(Mark √)



KYC complied



guarantor

c) Customer identification proof(Pan Card/Voter ID/Driving License/ration card/Aadhar Card etc.)


e) Copies of constitution documents like copy of partnership deed, Memorandum & Article of Association etc. in case of advances to borrowers other than individuals.


i. Where salary is credited , for salaried applicants

ii. Saving/current accounts, if any for other than

salaried applicants




length of service





3 Property Documents on which Loan is required





PROPERTY DOCUMENTS:

1. Free Hold Land:

i) Copies of Agreement to sell/ Sale Deed in favour of the borrower ii) Copy of Possession Letter iii) Copy of Approved Drawings/Site plan of proposed construction issued by

the competent authority iv) Estimate of proposed construction from an Architect v) Proof of advance payments made, if any, by the borrower to the seller for

purchase of the plot / house

2. Land Allotted by DDA/Govt. Authority viz. HUDA,PUDA,MAHADA, Noida, Greater Noida, GDA etc.: i) Copy of Allotment Letter in favour of the borrower/seller/allottee ii) Copy of Possession Letter iii) Copies of Receipts of advance Payments made by allottee and/or borrower,

as the case may be iv) Copy of Approved Drawings/Site Plans of proposed construction issued by

the competent authority v) Estimate of proposed construction from an Architect

3. Plot purchased /Sub leased from Co- operative Housing Societies as member:

i) Copy of Share certificate issued to the borrower by the society ii) Copy of Registered Sale / Sub lease deed in favour of the borrower iii) Copy of Possession Letter iv) Proof of advance payments made to the society till date v) Copy of Approved Drawings/Site Plans of proposed construction issued by

competent authority vi) Estimate of proposed construction from an Architect

Additional documents to be submitted in cases when the plot/house is

acquired by way of Re-sale / Gift/ Transfer

i) Copies of complete correspondence with respect to the Transfer permission from Govt. Authority viz. HUDA etc.

ii) Copies of Previous Conveyance Deeds / Transfer permissions iii) Copy of transfer deed in favour of the borrower– stamped and registered

with Govt. Authority viz. HUDA etc. iv) Proof of payments in respect of stamp duty / applicable taxes, etc.

4. Purchase of flat from Delhi Development Authority (DDA)



i) Copy of Allotment / Allocation letter issued by DDA

The terms of allotment attached to it should also be submitted

ii) Copies of all challans for payments made to DDA in original

iii) Copy of registered deed (wherever applicable)

iv) Copy of Possession Letter (Wherever applicable)

In case of Re-Sale of a Free Hold Flat, all the above-mentioned documents must be

submitted along with:

i) Copy of Stamped and Registered conveyance deed between the seller

and borrower in original

ii) Copies of receipt for the advance payments made to the seller till date.

Margin has to be brought in and paid to the seller equivalent to the

agreement value less the bank loan before the bank disburses the loan

amount in part or in full

iii) Copies of previous Conveyance Deeds/Transfer permissions, if any

5. Purchase of flat from Development Authorities of various cities, Housing Boards, Improvement Trust, GDA, NOIDA, GREATER NOIDA, etc.

i) Copy of Allotment/allocation letter issued by the Housing Development

Authority

ii) Copy of Possession Letter (Wherever applicable)

iii) Copy of Stamped and registered conveyance deed

iv) Permission from concerned Housing Development Authority to mortgage

the plot in favour of the Bank

v) Copies of Receipts/Proof of the advance payments made to Housing

Development Authority till date

In case of these flats being sold in resale, all the above-mentioned

documents must be submitted along with:

i) Copy of Stamped and registered conveyance deed between the seller and the borrower, if any

ii) Copies of receipts for the advance payments made by the borrower to the seller till date

iii) Permission to mortgage in favour of the Bank iv) Copies of Previous Conveyance Deeds/Transfer permissions, if any



6. Purchase of flat / Portion from Builder

i) Copy of stamped agreement of borrower with the builder. Copies of Receipts / Proof of the advance payments made by original allottee and complete chain of documents till date

ii) Copies of Original receipts for advance payments made by borrower to the builder

iii) Copy of approved plan and sanction letter from the concerned authority issued by the competent authority.

In case of these flats being sold in resale:-

Case 1: The seller has a registered sale deed in his favour.

In this case the borrower, in addition to aforesaid documents as the case may

be, is required to submit: -

i) Copy of stamped and registered original sale deed between the builder and the seller, who sold the said property/plot to the said builder

Case 2: The seller has only an agreement to sell between him and the builder.

In this case the borrower, in addition to aforesaid documents as the case may

be, must submit:

i) Copy of stamped sale agreement between the seller of the plot/property and the borrower and/or an undertaking to deposit the same, in original with the bank as and when the same is ready

7. Flat acquired as a member of a co–op. group housing society

i) Copy of share certificate issued to the borrower by the society ii) Copy of all receipts for the advance payments made by the borrower to

the society iii) Certificate from the society in respect of the cost of the flat along with the

schedule of payments iv) Copy of the bye –laws of the society v) Copy of the lease deed in the name of the society vi) Copy of the approved plan issued by the competent authority

In case these flats/portions being sold in resale, all the above-mentioned

documents must be submitted along with



i) Copy of transfer of share certificate in the borrower’s favour ii) Copy of chain of Title Deeds, if any, in respect of property to be mortgaged in

Original

LOAN AGAINST BANK’S OWN DEPOSIT


S.

No.

Particular Attached

(Mark √)



KYC complied



guarantor




2

Duly discharges Original Deposit Receipt



LOAN AGAINST GOVERNMENT SECURITIES


S.

No.

Particular Attached

(Mark √)



KYC complied



f) Loan application form(LF2) and (LF 4),as applicable, duly completed with photographs of the applicant/co-applicant /guarantors etc. (attested by the branch officials)

g) Passport size photograph of applicant, co-applicant &

guarantor

h) Customer identification proof (Pan Card/Voter ID/Driving License/ration card/Aadhar Card etc.)

i) Address Proof (Passport/Voter ID/Ration Card/Aadhar Card etc.)

j) Copies of constitution documents like copy of partnership deed, Memorandum & Article of Association etc. in case of advances to borrowers other than individuals.

2

Letter/certificate issued by LIC/ Post offices gone thoroughly

and verified for genuineness.

3

The Securities issued by post office, the same are validly

charged to the bank by delivery or obtaining term fee

4 The securities are lodged for transfer/endorsement personally

by an official of the Bank or sent through registered AD to post

office.

