ANDHRA PRAGATHI GRAMEENA BANK HEAD …apgb.in/files/1_8_539ab05e3184e.pdfHEAD OFFICE :: KADAPA CREDIT & RECOVERIES DEPARTMENT ... % as on 31.03.2013 as against 1.03 % under gross NPA

ANDHRA PRAGATHI GRAMEENA BANK

HEAD OFFICE :: KADAPA CREDIT & RECOVERIES DEPARTMENT

Circular No. 122-2013-BC-CD Date: 01.08.2013

Pragathi Special One Time Settlement scheme for settling Non-performing accounts under Doubtful ( DA1, DA-2 & DA-3) and Loss Assets category with outstanding real account balance of Rs.2.00 lakhs and below as on 31.03.201 3

from01.08.2013 to 30.04.2014

Branches are fully aware that there was a huge accretion of Rs. 69.37 crore to Non

Performing Assets (NPAs) as on 31.03.2013, in view of which, the NPA level has gone

upwards and stood at Rs.126.00 crore as against Rs.68.03 crore as on 31..03.2012.

The percentage of gross NPAs to total advances has gone up to 1.86 % and the net

NPA has gone up to 1.03 % as on 31.03.2013 as against 1.03 % under gross NPA and

0.09 % under net NPA in the corresponding period previous year. The increase in NPAs

has affected the profitability of the Bank to a large extent.

Further, the PNPAs as on 02.07.2013 stood at an alarming level of Rs.399.20 crores for

September, 2013. Since it has been decided to shift focus on auto moment of

NPAs from annual basis to quarterly basis from ensuing quarter ending 30th

September, 2013 as per the guidelines, the branches have to fully gear up the

recovery efforts for curtailing potential NPAs to the lowest minimum possible

by the quarter end.

In order to reduce the NPAs/ curtailing the PNPAs, the branches / Regional Offices have

been advised to regularly monitor the NPAs/PNPAs and personally visit the NPA/PNPA

borrowers at regular intervals for recovery. Though the action plan for improving the

recovery under the NPAs and curtailing PNPAs has been discussed at various forums like,

performance budget meetings, recovery review meetings, video conferences etc., the

situation is quite alarming and there is no perceptible improvement in the situation. As

such, a need has arisen to thoroughly gear up the efforts for recovery of NPAs and

curtailing PNPAs.

There have been many requests from branches/Regional Offices to introduce a Special

Pragathi One Time Settlement Scheme (SPOTS) similar to the one implemented in the

first quarter of this calendar year. The compromise route is mainly guided by the

overriding need to bring down the NPAs significantly- particularly the Doubtful and the

Loss Assets component – with twin objectives of increasing the interest income on the

one hand and reducing the provisioning burden/interest reversal on the other hand.

With a view to enable the Branches / Regional Offices to tackle the NPA borrowers, the

Bank has placed a note in the Board Meeting held on 29.07.2013 proposing to implement

a SCHEME namely “PRAGATHI SPECIAL ONE TIME SETTLEMENT SCHEME

(PSOTS)” from 01.08.2013 to 30.04.2014, for settling Non Performing Accounts

under Doubtful (DA1, DA2 & DA3) and LOSS ASSETS Category with an

outstanding book balance of Rs.2.00 lakhs and below as on 31.03.2013. The

Board has permitted the Bank to implement the Scheme. The Board approved

policy is very much advantageous and attractive to the NPA borrowers, who are under

distress and it is quite helpful to them to come out of this debt ridden situation.

Contd…2

-2-

As such, the branches / Regional Offices have to utilise the opportunity and strive hard

to scout number of OTS proposals under the special scheme and reduce the NPA level at

least by 30 % of March 2013 level so as to achieve the targeted level of Rs.88 crore by

September, 2013.

Branches are advised to take advantage of the Special Scheme for reducing the NPAs

substantially and to achieve targets set for March, 2014.

Branches may note that the PSOTS Scheme is applicable only for NPAs under

the Category of DA1, DA2 & DA3 and LOSS ASSETS. For other category of NPAs

i.e., Substandard category, the Special POTS Scheme is not applicable.

Therefore Branches are advised to follow Cir.No.205-2011-BC-CSRD

dt.05.08.2011 to settle the compromise proposal under the Sub Standard

Assets.

Further, Branches may note that in respect of compromise, the offer is not unilateral by

the borrower but it is arrived at after protracted negotiations at various levels and

therefore it shall be a negotiated compromise. As such, it should be our endeavor to

recover the dues to maximum extent with minimum sacrifice / concession.

The salient features of the Special Scheme are given in the annexure.

Salient features of Pragathi Special One Time Settlement Scheme (PSOTS) :

1) Coverage of accounts:

a) The account should have been classified as doubtful (DA1, DA2 or DA3) and

loss assets (borrower wise) as at 31.03.2013.

b) Original advance / limit and book balance outstanding as at

31.03.2013 should be Rs.2.00 lakhs and below and should have been

remained unpaid.

c) Settlement proposals may be considered in respect of these accounts

irrespective of the sector, nature of business / purpose, suit filed / decreed

accounts status. d) Cases of frauds, malfeasance and willful defaulters will not be covered.

e) NPAs secured by cash securities such as NSCs, IVPs, Jewels are not eligible for

consideration.

f) NPA accounts standing in the name of staff, ex-staff members are excluded.

2) Scheme period

The scheme period is from 01.08.2013 to 30.04.2014.

3) Offer amount under settlement:

As far as possible, efforts shall be made to recover book balance plus a portion of

interest. However in deserving cases considering the age of the loan, means of

the borrowers / sureties, chances of recovery, status of suit filed accounts and the

amount recovered so far, write off / waiver can be considered / permitted by the

competent authorities. As such, it should be the endeavour of every staff member

to recover the dues to the maximum extent with minimum sacrifice / concession.

Further, the notes on settlement proposal should indicate enough justifications

from Bank’s point of view for making the proposed sacrifice and indicate the

factors to ensure that the advantage lies in favour of the Bank.

contd…3

-3-

4) Sanctioning powers:

a) Sanctioning powers of Branch heads up to Scale III

The sanctioning powers of Scale I, Scale II and Scale III Branches is being

continued as delegated earlier as shown below:

(Amt. in Rupees)

Cadre Existing

Powers

Powers under

Spl.OTS

Branch Heads (waiver only) (waiver only)

Scale I 5000 5000

Scale II 10000 10000

Scale III 15000 15000

b) Sanctioning powers of Chief Manager Headed branches (Scale IV),

Regional Managers, and the General Manager :

(Amt. in Rupees)

Functionary

Existing

Powers

Powers delegated under

Spl.POTS Scheme

from 1.08 2013 to 30.04.2014

Waiver Write

off

Write off+ Waiver under One

Time Settlement per party

Chief Manager (Branch

Head-Scale-IV)

25000 5000 Not more than

Rs. 100000

Regional Manager 50000 10000 Not more than

Rs. 100000

General Manager 100000 25000 Not more than

Rs. 150000

c) Extent of sacrifice:

NPAs with Book Balance up to Rs.2.00 lakhs (Excluding interest

receivable / Notional interest)

Classification of Asset

Existing settlement formula Settlement formula during the special POTS scheme period i.e., from 01.08.2013 to 30.04.2014

Sub

Standard

Minimum amount to be

recovered shall be:

“Book balance (+) interest

@ 8% simple on book

balance from the date from

which interest not debited to

the date of realization.

Minimum amount to be recovered

shall be:

“Book balance (+) interest @ 8%

simple on book balance from the

date from which interest not debited

to the date of realization

(same as per the existing policy

communicated vide Cir.No.205-

2011-BC-CSRD dt. 05.08.2011)

Doubtful

Asset -

DA-1


recovered shall be:


@ 7% simple on book


which interest not debited to

the date of realization.

Minimum to be recovered shall

be 100 % of Book Balance.

No write-off allowed under DA-1

Doubtful

Asset –

DA-2


recovered shall be:


@ 7% simple on book


which interest not debited

to the date of realization



write-off allowed under DA-2 is

30 %

-4-

Classification

of Asset

Existing settlement

formula

Settlement formula during the

special POTS period i.e., from

01.08.2013 to 30.04.2014

Doubtful

Assets –

DA-3

“Book balance (+)

interest @ 5% simple on

book balance from the

date from which interest

not debited to the date of

realization.



write-off allowed under DA-3 is

50 %

Loss Assets Minimum 50% of the book

balance as on date of NPA



write-off allowed under Loss

Asset is 60 %

The above settlement formulae indicate only the minimum amount (bench mark)

to be recovered and negotiable for higher amounts, wherever possible. All-out

efforts shall be made to recover as much as possible over the minimum bench

mark stipulated.

d) Recovery of legal expenses:

Existing Relaxation under Special OTS

Scheme

Along with minimum settlement

amount, branches shall recover

undebited legal expenses.

The undebited legal expenses shall be

waived while arriving at the minimum

recoverable amount.

The above proposed formulae are applicable for DA-1, DA-2 & DA-3 and Loss

assets category advances of Rs.2.00 lakhs and below during the scheme

period.

e) The cost and other out of pocket expenses incurred / to be incurred will have

to be borne by the borrower. In genuine cases the cost & out of pocket

expenses may be waived.

f) The delegated powers shall not be exercised by the sanctioning

authority in OTS cases where the authority himself has sanctioned the

credit facilities. The decision on Compromise Settlement for such

cases should be taken by the next higher authority.

5. Payment:

a) The amount of settlement arrived at as above, should normally be

collected in one lump sum immediately or within one month from the

date of Sanction. In deserving cases Branches / ROs may consider the recovery

of settlement amount by giving time. However, the entire offer amount shall

be collected with in 90 days from the date of sanction. In all such cases,

interest shall be collected at 12 % from the date of communication of sanction till

the entire offer amount is paid in full.

b) Down Payment:

Down Payment of not less than 25% of the offer amount is to be

collected at the time of sanction of settlement to ensure the commitment of

borrowers to pay the dues as agreed. However, in special cases, where

genuine problems are noticed, down payment at 10 % of the offer amount

may be accepted with the prior permission of General Manager.

Contd…5

-5-

6. Procedure:

a) The branches shall identify the eligible NPAs under doubtful & loss assets

fulfilling the eligibility criteria and explore possibility of recovering the dues

under settlement by contacting the borrowers and negotiating for best

possible offer advantageous to the Bank.

b) Thereafter, the branches shall obtain consent letter from the borrowers and

build the settlement proposal as per Annexure-I. Branches to prepare this

format in duplicate and shall submit to the Sanctioning Authority in duplicate.

The Sanctioning Authority shall get the proposal processed and submit a copy

of the process note to the next higher authority for taking note of the

sanction. If the sanction under PSOTS is not taken note, it is deemed that

the sanction is unauthorized and the Bank is at liberty to take any action

against such officers for the deviations / irregularities in such sanction.

c) Settlement Proposals within the powers of the Branch Head shall be

sanctioned at their level and proposals beyond their sanctioning powers shall

be referred to RO along with recommendations. In the cases of Chief Manager

Headed Branches, the proposals beyond their sanctioning powers shall be

submitted to Head Office-Credit & Recoveries Department.

7. Committee Approach:

a) The settlement Committees constituted at branches/Regional

Offices/Head Office are required to examine all compromise proposals and recommend to appropriate sanctioning authority for

sanction/rejection of the proposal. b) At branch level, the Officer (Advances) is the recommending authority

and the Manager is the sanctioning authority. Where there is no Officer

(Advances), the Manager alone constitutes the committee. c) At branches headed by Chief Managers, two Officers constitute the

committee. d) At Regional Office, the Head of the Credit/Recoveries Department and

an Officer shall constitute the committee for the proposals within the delegated powers of the Regional Manager.

e) At Head Office, the Chief Manager, Credit & Recoveries Department,

Chief Manager of the Planning Department and an Officer constitute the committee where the sanctioning authority is the General

Manager. The General Manager joins the said committee in respect of proposals falling under the sanctioning powers of the Chairman.

f) It shall be ensured that the Recommending Authority shall give his / their specific recommendation duly mentioning the words “ I / We recommend for settlement of the OTS proposal on the

following terms….”.

8. Taking Note of sanctions :

All the sanctions under compromise proposals shall be got noted by the

next Higher Authority.

Contd…6

-6-

9. Control Mechanism:

All the settlement proposals sanctioned shall be taken note by the next high

authority. Branches shall submit ARM 55 (Annexure-II) & Abstract

(Annexure-III) to Regional Office giving details of the PSOT settlement made

during the month. Similarly, the Regional Offices shall submit ARM-555

(Annexure-IV) & Abstract (Annexure-V) at the end of the each month to Head

Office giving details of settlements made under the PSOTS.

10. Claiming Credit for the write off amount:

The branches shall claim write off amount involved, if any, from RO by raising

Dr.IBA, soon after recovery of compromise offer amount by furnishing full

particulars to RO as per the laid down procedure, vide HO Cir.No.205-2011-BC-

CSRD dated 05.08.2011. The Regional Offices shall consolidate the same and

submit to HO::CRRD every month so as to reach HO by 5th of succeeding month

The HO may issue Cr.IBA or effect online credit for the write off amount claimed

by the branches to ROs by debiting the “Bad Debts Written off” expenditure

account, in respect of sanctions made up to their level.

11. Other Terms & Conditions:

a. No due / No objection certificates may be issued after collecting the total offer

amount as per extant guidelines.

b. Suits can be withdrawn after recovery of the dues in terms of settlement with

the permission of the respective ROs / HO as the case may be.

c. Staff Accountability aspects, if any, shall be examined and closed before

entertaining the PSOTS proposal as per extant guidelines issued by HO.

d. Proportional share of DICGC / ECGC shall be remitted as per extant

guidelines.

e. All other terms and conditions mentioned in comprehensive recovery policy

guidelines shall be adhered to invariably.

f. In the PSOTS proposal, the branch shall confirm that

i) the sanctioning authority had exercised the powers judiciously and

adhered to the guidelines issued by the Bank in the matter of grant of

advance and the terms and conditions stipulated.

ii) there was no laxity in the conduct and post disbursement supervision

of advance.

iii) there was no act of commission or omission on the part of the staff

leading to the debt proving irrecoverable.

iv) all possible steps to recover the dues have been taken and there are

no further prospects of recovering the debt and that the compromise is

in the larger interest of the Bank

v) accountability is not fixed on any staff member with regard to above

loan.

vi) fraud and malfeasance are not involved in the loan and

vii) the OTS proposals is in tune with the guidelines under “Pragathi

Special OTS scheme” issued by the Bank.

g. All other terms which have not been specified in this Circular shall be followed

by the Branches/ROs as envisaged in Circular No.205-2011-BC-CSRD,

dt.05.08.2011.

Contd…7

-7-

12. Publicity:

Branches / ROs shall give wide publicity to the scheme and make vigorous efforts

to settle as many accounts as possible. Branches shall form teams and visit the

NPA borrowers and apprise them about the scheme. Executives from ROs shall

review the performance of the branches on a regular basis and special emphasis

shall be given to the branches having large number of eligible accounts.

13. Submission of Progress Report:

A monthly report (ARM-55) on compromise proposals and an abstract of the same

shall be submitted by the branches to ROs as per Annexure II & III. The ROs

shall also prepare a Monthly report (ARM-555) on compromise proposals and a

consolidated report in Annexure- IV & V and submit the reports to HO: Credit &

Recoveries Department before 5th of succeeding month.

The Branches shall also submit a consolidated progress report (Annexure- VI), on

sector-wise details, after completion of each month to their respective ROs. In

turn the ROs shall submit the consolidated progress report, with sector-wise

details,(Annexure-VII) to HO : Credit & Recoveries Department at the end of

each month. These two statements are to be submitted by the Branches in both

soft copy & hard copy, to RO and the ROs shall send consolidated statement

(Both in soft and hard copies) to HO: CRRD, Kadapa positively before 5th of

succeeding month as the Sector-wise and Branch-wise particulars of write off

details are required for audit purpose.

It is once again reiterated that the progress in recovery of NPAs / PNPAS is very

poor and the situation is quite alarming and there is every need to fully gear up

the efforts by involving all the staff members, giving individual targets, and

implementing the same in true spirit, in a time bound action plan. It is also

envisaged to conduct “Special OTS settlement camps” (Mondi Bakaila

satvara parishkara sibiram ) at various clusters in every Region from 26th

August and the branches / ROs are advised to motivate the staff and

make it a grand success. The Executives from HO will be participating in

the said drives for settlement of POTS proposals then & there itself on

the merits of the proposals. The Regional Managers are also advised to ensure

conducting “Group Recovery Drives” in all high NPA/PNPA branches and submit

weekly progress to the HO: Credit & Recoveries department. It is imperative on

the part of every individual staff member to actively participate in this marathon

effort to reduce the NPAs to the lowest minimum possible by September 2013. It

should also be ensured that, after sanction of POTS proposals under the scheme,

the offer amount is fully recovered within a month, as far as possible, otherwise

within a maximum period of 90 days from the date of sanction at any cost.

Clarifications required, if any, on this circular may be sought from Head Office:: Credit &

Recoveries Department, as per extant guidelines.

(D.SAMPATH KUMAR CHARY)

CHAIRMAN

ANNEXURE-I


REGIONAL OFFICE / BRANCH:_____________________

PROCESS NOTE FOR SETTLEMENT OF NPA A/C UNDER SPECIAL POTS

Date: __ _________ A) PARTICULARS OF LOAN:

Branch

Present status

(SSA/D1/D2/D3/Loss)

Borrower’s name

Amt.Recovered (other than comp.offer)

A/c No. Whether staff accountability involved

Dt.of sanction Status of legal action

Loan amt. sanctioned

Net worth of borrower

Net worth of the surety

B) FINANCIAL IMPLICATIONS & IMPACT ON P&L A/C:

01 Date of NPA 11 Recoverable amt as per

decretal terms in case of decreed a/cs

02 Book Balance 12 Min. Recoverable amt. as per Rec. Policy

03 Notional interest as at the end of previous qrtr.

13 Provision made

04 Undebited legal/other

expenses

14 Final impact on P&L a/c

( (6-2)+13)

(+)

(-)

05 Total dues(2+3+4) 15 Yield on advance

06 Compromise offer 16 Age of the loan

07 Shortfall (5-6) 17 Down payment details

08 Waiver of interest a)Amount paid

09 Write-off b) Dt. by which balance to be paid

10 Legal/other expenses

C) JUSTIFICATION FOR RECOMMENDING THE PROPOSAL:

D) SPECIFIC RECOMMENDATIONS OF THE RECOVERY COMMITTEE:

MEMBER MEMBER MEMBER

_______________________________________________________________________

E) ORDERS OF THE SANCTIONING AUTHORITY / REMARKS OF THE RECOMMENDING

AUTHORITY:

SANCTIONING / RECOMMENDING AUTHORITY

ANNEXURE-II

ARM 55


HEAD OFFICE :: KADAPA

______________________BRANCH

STATEMENT OF COMPROMISE PROPOSALS (UNDER PRAGATHI SPECIAL OTS) SETTLED UNDER BRANCH MANAGER DISCRETIONARY

POWERS DURING THE MONTH OF ______________________2013

(Amount in Rupees)

We certify that the above information is true and correct and the compromise proposals are settled duly observing all the guidelines under Pragathi

Special OTS scheme.

Date: ASSISTANT MANAGER BRANCH HEAD

Sl No.

Name of the Borrower

Purpose & A/c

No.

Classifi- cation

of asset

Book Balance

Un-debit-ed Int.

Costs Total dues

(5+6+7)

Min. Amount

to be recover-

ed

Compromise offer

Waiver of Interest

Write Off Amt

Down pay-ment

Balance to be

recovered (10-13)

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

ANNEXURE-III

ARM 55



______________________BRANCH

ABSTRACT -

Particulars No.of

Accounts

Book

Balance

Compromise

Offer

Waiver of

Interest

Amount

Written-off

Out of Offer amount

Amt. recovered

Balance

During the Month

Cumulative sanctions (From

Aug’2013 to

We certify that the above information is true and correct and the compromise proposals are settled duly observing all the guidelines

under Pragathi Special OTS scheme.

Date: ASSISTANT MANAGER BRANCH HEAD

ANNEXURE-IV

ARM 555



______________________REGION.

STATEMENT OF COMPROMISE PROPOSALS (UNDER PRAGATHI SPECIAL OTS) SETTLED UNDER REGIONAL MANAGER DISCRETIONARY

POWERS DURING THE MONTH OF ______________________2013/14

(Amount in Rupees)

Sl No.

Branch Name of the Borrower

Purpose & A/c

No.

Classifi-cation of

asset

Book Balance

Un-debited

Int.

Costs Total dues

(6+7+8)

Min. Amount to

be recover-

ed

Com-promise

offer

Waiver of

Interest

Write Off Amt

Down pay-ment

Balance to be

recover-ed

(11-14)

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.



Date: MANAGER /SENIOR MANAGER REGIONAL MANAGER

ANNEXURE-V

ARM 555



______________________REGION.

ABSTRACT -

Particulars

During the month

Cumulative sanctions (From August 2013 to ….)

No. of

A/cs

Book

balance

Total

Dues

Comp.

offer

Waiver

of

interest

Amt.

written

off

Out of offer amount No.

of

A/cs

Book

balance

Total

Dues

Comp.

offer

Waiver

of

interest

Amount

written

off

Out of offer amount

Amt

recover-

ed

Balance

Amt

recover-

ed

Balance

At Branch Level (as per ARM-55)

At RO level

Region-Total



Date: MANAGER /SENIOR MANAGER REGIONAL MANAGER

ANNEXURE – VI Consolidated Progress Report on Sector-wise details of Pragathi Special OTS sanctioned under DA-1, DA-2 & DA 3 and Loss Assets of

Rs.2,00,000/- & below as at 31.03.2013

Report as on Last working day of the month.

Branch : BIC: Regional Office:

(Amount in Rupees)

Item Category of Advance No. of

Accounts

Book Balance as on the date of

recommendation

DICGC claim received amount adjusted

Amount permitted for

Write Off

Notional Interest

waived as on the date.

Amount Recovered

1 2 3 4 5 6 7 8

a.

1. Agriculture (S.T.)

2. Agriculture (M.T)

3. Flexi Trade

4. ISB Sector

5. SHG

6. PBLs

7. Education

8. Others

a)

b)

c)

d)

b TOTAL

c Of (b) above suit filed and decreed

debt accounts

(Note: This statement is to be submitted by the Branches to RO (Both in Soft and Hard Copies) positively before 5th of succeeding month

Date: Prepared by: Asst. Manager Branch Head



______________________REGION

ANNEXURE – VII

Consolidated Progress Report on Sector-wise details of Pragathi Special OTS sanctioned under DA-1, DA-2 & DA 3 and Loss Assets of Rs.2,00,000/- & below as at 31.03.2013

Report as on Last working day of the month.

Regional Office:

(Amount in Rupees) Item Category of Advance No. of

Accounts Book Balance as on the date of

recommendation

DICGC claim received amount

adjusted

Amount permitted for

Write Off

Notional Interest

waived as on the date.

Amount Recovered

1 2 3 4 5 6 7 8

a.

1.Agriculture (S.T.)

2.Agriculture (M.T)

3.Flexi Trade

4.ISB Sector

5.SHG

6.PBLs

7.Education

8..Others

a)

b)

c)

d) b TOTAL

c Of (b) above suit filed and decreed debt accounts

(Note: This consolidated statement is to be submitted by RO (Both in Soft and Hard Copies) to Head Office –Credit& Recoveries Dept., positively before 10th of succeeding month.

Date: Prepared by: Senior Manager Regional Manager

ANDHRA PRAGATHI GRAMEENA BANK, __________________________Branch.

…..

PROPOSAL FOR PRAGATHI SPECIAL ONE TIME SETTLEMENT SCHEME (PSOTSS) FOR DA-1,DA-2, DA-3 & LOSS ASSETS OF Rs.2.00 LAKH &

BELOW (Circular No.122-2013-BC-CD dt.01.08.2013 )

1. Name & address of borrower/s : Net worth Rs.

Status of the Loan as on 31.03.2013:

2. Name & address of guarantor/s : Net worth Rs.

3. Particulars of loan: (Amount in Rupees)

Date of

loan

Amount sanctioned

A/c No. Purpose

Balance outstanding

Amount recovered so far (other than

compromise offer) Book Shadow

1. 2. 3. 4. 5 6 7

Details of

security

Present market

value Rs. Date of NPA

Asset

Classification Provision held

OTS offer amount &

terms of payment

8. 9. 10. 11. 12. 13.

Financial Implications & impact on P&L A/c

Implications Impact on P&L Account

a. Book balance Rs. 1. Compromise offer Rs.

b. Undebited Interest Rs. 2. Book balance Rs.

c. Undebited Legal Exp. Rs. 3.Bank’s share out of

DICGC Claims received

d. Total due (a+b+c) Rs. 4.Surplus/deficit

e. Compromise offer Rs. 5.Provision held Rs.

f. Gross Loss (d-e) Rs. 6.Final impact Rs.

g. Less : DICGC share Rs. 7. Compromise offer as %

to book balance

h. Net Loss (f-g) Of which Rs.

Waiver of Int. Rs. 9.Down payment details Rs.

Write off - Rs. a) Amount Paid Rs.

b) Date by which

balance to be paid.

Rs.

5. Reasons for default (furnish specific reasons) :

6. Specific recommendations of the Branch:

..2..

7. Certificate of the Branch:

This is to certify that the information furnished in the above OTS proposal is true and correct.

Further, we confirm

viii) the sanctioning authority had exercised the powers judiciously and adhered to the

guidelines issued by the Bank in the matter of grant of advance and the terms and

conditions stipulated.

ix) there was no laxity in the conduct and post disbursement supervision of advance.

x) there was no act of commission or omission on the part of the staff leading to the debt

proving irrecoverable.

xi) all possible steps to recover the dues have been taken and there are no further

prospects of recovering the debt and that the compromise is in the larger interest of the

Bank

xii) accountability is not fixed on any staff member with regard to above loan.

xiii) fraud and malfeasance are not involved in the loan and

xiv) the OTS proposals is in tune with the guidelines under “Pragathi Special OTS scheme”

issued by the Bank.

Date: ASST. MANAGER (ADV) BRANCH HEAD

(In case staff accountability was fixed for this loan or staff accountability is required to be examined, the details of the loan and the name/s of staff member/s shall be reported separately).

Space for Regional Office use

Specific Recommendations of the Recovery Committee at Regional Office:

Member Member Member

Sanction by the Chief/Regional/General Manager.

Date: CHIEF/REGIONAL/GENERAL MANAGER

Space for Head Office use:

Recommendations of the Recovery Committee at Head Office

ASST. MANAGER/MANAGER CHIEF MANAGER-CRD CHIEF MANAGER- PLAN

GENERAL MANAGER

ANDHRA PRAGATHI GRAMEENA BANK HEAD …apgb.in/files/1_8_539ab05e3184e.pdfHEAD OFFICE :: KADAPA CREDIT & RECOVERIES DEPARTMENT ... % as on 31.03.2013 as against 1.03 % under gross NPA

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