REQUEST FOR PROPOSAL (RFP) FOR SOLUTION TO … for EWIRM Solution_10... · request for proposal (rfp) for solution to implement enterprise-wide integrated risk management architecture

REQUEST FOR PROPOSAL (RFP)

FOR

SOLUTION TO IMPLEMENT ENTERPRISE-WIDE INTEGRATED RISK MANAGEMENT

ARCHITECTURE UNDER BASEL II & BASEL III

(FOR THE BANK AND ITS GROUP ENTITIES)

CANARA BANK

(HO: Bangalore)

RFP for Solution to Implement

Enterprise-wide Integrated Risk

Management Architecture

under Basel II & Basel III.

RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 2 of 250

Definitions of major terms/ abbreviations used on the document

Sl. No. Acronym/ Term Used Definition

1 AFS Available for Sale

2 AIC Akaike Information Criterion

3 AIRB Advanced Internal Ratings Based

4 ALCO Asset Liability Management Committee

5 ALM Asset and Liability Management

6 AMA Advanced Measurement Approach

7 AMFI Association of Mutual Funds in India

8 AMS Annual Maintenance Service

9 ASCII American Standard Code for Information Interchange

10 ATS Annual Technical Support

11 Bank Canara Bank

12 Basel II Guidelines

Framework for Capital Measurement and Capital Standards issued

by Basel Committee on Banking Supervision

13

14

15

16

Basel II RBI Guidelines

• Master Circular - Prudential Guidelines on Capital Adequacy and

Market Discipline- New Capital Adequacy Framework (NCAF)

• Implementation of the Advanced Measurement Approach

(AMA) for Calculation of Capital Charge for Operational Risk -

Guidelines

• Capital Adequacy - The Internal Ratings Based (IRB) Approach to

Calculate Capital Requirement for Credit Risk

• Prudential Guidelines on Capital Adequacy - Implementation of

Internal Models Approach for Market Risk

17

Basel III Guidelines

A global regulatory framework for more resilient banks and banking

systems and International framework for liquidity risk

measurement, standard and monitoring

18

19

Basel III RBI Guidelines

• Guidelines on Implementation of Basel III Capital Regulations in

India

• Guidelines on Liquidity Risk Management and Basel III Framework

on Liquidity Standards

• Capital Requirements for Bank’s Exposures to Central

Counterparties

20 BEEL Best Estimate Expected Loss

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 3 of 250

21 BEICF Business Environment and Internal Control Factors

22 BIC Bayesian information criterion

23 BIS Bank for International Settlements

24 BLM Business Line Mapping

25 BRS Business Requirement Specifications

26 CBS Core Banking Solutions

27 CDSL Central Depository Services Limited

28 CO Commercial Offer/ Commercial Bid/ Price Bid

29 CORDEx Credit & Operational Risk Loss Data Exchange

30 CRMD Credit Risk Management Department

31 CRMS Credit Risk Management System

32 CSV Comma-Separated Value

33 CVA Credit Valuation adjustment

34 DGA Duration Gap Analysis

35 DIT Department of Information Technology

36 EAD Exposure at Default

37 ECGC Export Credit Guarantee Corporation

38 ECS Electronic Clearing Service

39 EDA Exploratory Data Analysis

40 EDW Enterprise Data Warehouse

41 EEPE Effective Expected Positive Exposure

42 EFT/ SEFT Electronic Funds Transfer/ Special Electronics Fund Transfer

43 EMD Earnest Money Deposit

44 EOD End of Day

45 EPE Expected Positive Exposure

46 ETL Extract, Transform, Load

47 EVT Extreme Value Theory

48 EWIRM Enterprise Wide Integrated Risk Management

49 FEDAI Foreign Exchange Dealers’ Association of India

50 FIFO First In First Out

51 FIMMDA Fixed Income Money Market and Derivatives Association of India

52 FIRB Foundation Internal Ratings Based

53 Flexcube Core Banking Application software used in bank

54 FM&S Financial Management and Subsidiaries

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 4 of 250

55 FX Foreign Exchange

56 GUI Graphical User Interface

57 HFT Held for Trade

58 HTM Held to Maturity

59 IMA Internal Model Approach

60 IMF International Monetary Fund

61 IPR Intellectual Property Right

62 IRB Internal Ratings Based

63 IRC Incremental Risk Charge

64 IRMD Integrated Risk Management Department

65 IT Information Technology

66 KRI Key Risk Indicators

67 LGD Loss Given Default

68 LIFO Last In First Out

69 M Effective Maturity

70 MBS Mortgage backed Securities

71 MDB Multilateral Development Bank

72 MIS Management Information System

73 MLE Maximum-Likelihood Estimation

74 MPE Maximum Peak Exposure

75 MRMS Market Risk Management System

76 MTM Marked to Market

77 MVA/E Market Value of Asset/ Equity

78 MVS Market Value Sensitivity

79 NAS Network Attached Storage

80 NCAF New Capital Adequacy Framework

81 NEFT National Electronic Funds Transfer

82 NPA Non-Performing Asset

83 NPV Net Present value

84 NSDL National Securities Depository Limited

85 OBD Overseas Banking Division

86 OEM Original Equipment Manufacturer/ Product Vendor

87 ORC Operational Risk Category

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 5 of 250

88 ORCC Operational Risk Capital Charge

89 ORM Operational Risk Management

90 ORMD Operational Risk Management Department

91 ORMF Operational Risk Management Framework

92 ORMS Operational Risk Management System

93 OSD Original Software Developer

94 PD Probability of Default

95 PFE Potential Future Exposure

96 QRRE Qualified Revolving Retail Exposures

97 RAPM Risk Adjusted Performance Measurement

98 RAROC Risk Adjusted Return on Capital

99 RBI Reserve Bank of India

100 RCA Root Cause Analysis

101 RCSA Risk and Controls Self-Assessment

102 RFP Request for Proposal

103 RTGS Real Time Gross Settlement

104 RWA Risk Weighted Assets

105 SI System Integrator/ Bidder

106 SL Specialized Lending

107 SLA Service Level Agreement

108 SLS Structural Liquidity Statement

109 SVaR Stressed Value at Risk

110 SWIFT Society for Worldwide Interbank Financial Telecommunication

111 TGA Traditional Gap Analysis

112 TO Technical Offer

113 UAT User Acceptance Test

114 VaR Value at risk

115 XML Extensible Mark-up Language

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 6 of 250

TABLE OF CONTENTS

1 INTRODUCTION 10

1.1 OVERVIEW 10

1.2 BROAD SCOPE OF WORK 11

1.3 INVITATION FOR BIDS 23

2 INSTRUCTIONS FOR BID SUBMISSION 25

2.1 GENERAL INSTRUCTIONS 25

2.2 DOCUMENTS COMPRISING THE BID 29

2.3 KEY GUIDELINES FOR PREPARING RFP RESPONSE 34

3 ADDITIONAL INSTRUCTIONS FOR BIDDERS 34

3.1 GENERAL INSTRUCTIONS 34

3.2 PAYMENT TERMS 45

3.3 WARRANTY & ANNUAL MAINTENANCE 47

3.4 TERMINATION 50

4 EVALUATION METHODOLOGY 55

4.1 NORMALIZATION OF BIDS 56

4.2 OPENING OF BIDS BY THE BANK 56

4.3 ELIGIBILITY CRITERIA 58

4.4 EVALUATION CRITERIA 63

4.5 FUNCTIONAL AND TECHNICAL EVALUATION CRITERIA 67

4.6 SHORTLISTING OF TECHNICALLY QUALIFIED BIDDER 75

4.7 COMMERCIAL EVLUATION PROCESS 77

4.8 TECHNO-COMMERCIAL EVALUATION PROCESS 77

4.9 DISQUALIFICATION PARAMTERS IN TECHNICAL BID EVALUATION 78

5 OTHER TERMS & CONDITIONS 79

6 FUNCTIONAL REQUIREMENTS FOR CREDIT RISK 84

6.1 FUNCTIONAL REQUIREMENTS 84

6.2 HARDWARE REQUIREMENTS 115

6.3 TRAINING REQUIREMENTS 115

6.4 PROJECT MANAGEMENT METHODOLOGY 116

7 FUNCTIONAL REQUIREMENTS FOR OPERATIONAL RISK 118





8 FUNCTIONAL REQUIREMENTS FOR MARKET RISK 139

8.1 FUNCTIONAL REQUIREMENTS FOR MARKET RISK UNDER IMA 139

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 7 of 250

8.2 FUNCTIONAL REQUIREMENTS FOR ALM SYSTEM 166




8.6 ADDITIONAL INFORMATION FOR MARKET RISK 186

9 INTEGRATED CAPITAL COMPUTATION & REPORTING MODULE 188





10 TECHNICAL SPECIFICATIONSACROSS ALL SYSTEMS/ RISK SOLUTIONS 192

11 ANNEXURE 201

11.1 UNDERTAKING FROM BIDDER 201

11.2 ELIGIBILITY CRITERIA FORMAT 202

11.3 COVER LETTER FOR TECHNICAL BID 203

11.4 TECHNICAL BID FORMAT 205

11.5 COVER LETTER FOR COMMERCIAL BID 213

11.6 COMMERCIAL BID (BILL OF MATERIAL) FORMAT 215

11.7 BID OFFER COVERING LETTER 224

11.8 REFERENCE SITE DETAILS 226

11.9 PARTICULARS OF BIDDER 227

11.1 PAST EXPERIENCE DETAILS 231

11.11 PERFORMANCE GUARANTEE FORMAT 233

11.12 MANUFACTURERS’ / PRODUCERS’/ AUTHORIZATION FORM 237

11.13 IMPLEMENTATION TEAM PROFILE 239

11.14 IMPORTANT PROJECT TIMELINES 242

11.15 LIST OF EXISTING APPLICATIONS 243

11.16 DATA CENTER AND DISASTER RECOVERY SITE OF GROUP ENTITIES 250

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 8 of 250

SCHEDULE OF ACTIVITIES AND EVENTS

RFP Reference RMW/01/2013-14

Date of issue of the RFP 10.07.2013

Last date and time for submission of

Queries by the Bidder

17.07.2013 - 3.00 PM

Date and time for Pre-Bid Meeting 25.07. 2013 - 3.00 PM

Date for publishing clarifications on

website

29.07.2013

Last date & time for submission of Bids:

Eligibility Criteria, Technical and

Commercial Proposals.

14.08.2013 - 3.00 PM

Place for submission of bids GM Secretariat

Risk Management Wing

2nd

Floor

Canara Bank Head Office

112 – J.C Road

Bangalore – 560002

[email protected]

Date and Time of Opening of Eligibility

Criteria and Technical Proposals

14.08.2013 - 4.00 PM

Bid document price (nonrefundable) Rs 1,00,000

Earnest Money Deposit Rs 50,00,000

Address for Communication GM Secretariat

Risk Management Wing

2nd

Floor

Canara Bank Head Office

112 – J.C Road

Bangalore – 560002

Email – [email protected]

Date for Technical Presentation Will be informed after 21.08.2013

Date and Time of Opening of Commercial

Proposals

Will be notified to the shortlisted

bidders.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 9 of 250

Note:

a. Bids will be opened in the presence of bidders’ representatives who choose to attend on the

bid opening date.

b. The schedule is subject to change and notice of changes shall be published on the website of

the Bank. The Bank reserves the right to cancel the RFP at any time without incurring any

obligation to any bidder.

c. Any queries regarding RFP may be sent to Canara Bank GM’s Secretariat, Risk Management

Wing, 2nd

Floor, Head Office, 112 J.C Road, Bangalore - 560002 or via email to

[email protected] .

d. The bidders may note that no further notice will be given in this regard. Further, in case the

Bank does not function on the aforesaid date due to unforeseen circumstances or holiday

then the bid will be accepted up to 03:00 PM on the next working day and bids will be

opened at 04:00 PM at the same venue on that day.

e. The RFP document can be downloaded from Bank’s website

http://www.canarabank.com/English/Scripts/Tenders.aspx.

f. Any bid without payment of bid document price and EMD will be rejected.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 10 of 250

1. Introduction

1.1 Overview

Risk Management especially in the post financial crisis has become a significant function in

banks across the world. In the context of ongoing changes in financial landscape banks are

required to be ever more nimble and at the same time ensure that all the risks are managed

and/or mitigated effectively.

Canara Bank (herein after referred to as the ‘Bank’) views the current market dynamics and

resulting regulatory requirements as an opportunity to create an Integrated Risk Management

Framework that will create shareholder value by aligning the Bank’s business strategy to its risk

management policies, processes and systems. Over a period of time, Canara Bank has taken

various initiatives for strengthening risk management practices. Bank has an integrated

approach for management of risk and in tune with this, formulated policy documents taking into

account the Business requirements / best international practices and the supervisory guidelines.

These policies address different risk classes viz., Credit Risk, Operational Risk and Market Risk.

Over the years, Bank has earned the reputation of being technology savvy and one of the

Frontrunners among public sector banks in modern‐day banking trends. Having implemented its

Core Banking Solution in 2010, Bank is one of the first Public Sector Banks in the country to have

all domestic branches on a single Core Banking platform. Under this solution umbrella, all

branches and ATMs of BANK have been networked, with online Tele banking, net banking and

mobile banking facility made available to both its Core Banking Customers – individual as well as

Corporate. Regular banking services apart, the customer can also avail of a variety of other

value‐added services like Cash Management Service, Insurance, Mutual Funds and Demat.

Bank has a strong network of over 3600 domestic branches, 34 Circle Offices and 5 overseas

Branches, which are.

1. Canara Bank, London Branch

2. Canara Bank, Hong Kong Branch

3. Canara Bank, Leicester Branch

4. Canara Bank, Shanghai branch

5. Canara Bank, Manama, Bahrain

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 11 of 250

Bank is having plans to open more domestic and overseas branches in other jurisdictions.

The Bank has the following subsidiaries and group entities:

i. Canbank Venture Capital Fund Limited (CVCFL)

ii. Canbank Financial Services Limited (CANFINA)

iii. Canara Bank Securities Limited

iv. Canbank Factors Limited

v. Canbank Computer Services Limited (CCSL)

vi. Canara Robeco Asset Management Company Limited

vii. Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited

viii. Can Fin Homes Limited

ix. Commercial Bank of India LLC, Moscow

x. Pragathi Gramin Bank (Regional Rural Bank)

xi. Kerala Gramin Bank (Regional Rural Bank)

1.2 Broad Scope of Work

The scope of project envisages a complete turnkey solution which includes design, sizing,

procurement, installation, customization, configuration, maintenance of the hardware, software

and other components required for an Enterprise Wide Integrated Risk Management (EWIRM)

Solution. This would also envisage parameterization, historical data management, verifying data

quality, migrating data, user acceptance testing, documentation, trainings, knowledge transfer

and support. The solution/s offered should be web based, open platform and support data

transfer and consolidation from both the networked and standalone systems either online or

dial up. The EWIRM Solution shall be implemented at the Bank and its group entities except

Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited and Commercial Bank

of India LLC, Moscow.

Credit Risk Management is an important part of bank’s operations. This would help the bank in

keeping a check on the asset quality at appraisal level as well as on an ongoing basis. For moving

to advanced Approaches for credit risk, Banks have to classify exposures into specified

categories viz. Corporate, Sovereign, Bank, Retail, Equity and Others estimate various Risk

components viz. Probability of Default (PD), Loss Given Default (LGD), Exposure At Default (EAD)

and Effective Maturity (M) and comply with minimum standards as per the Basel II Internal

Ratings Based (IRB) Approach guidelines.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 12 of 250

Bank has currently adopted Standardised Approach for Credit Risk under Basel II. Bank has put in

place four Credit risk rating models namely, RAM model, Manual model, Small Value model &

Portfolio model for assignment of Internal Ratings to the borrowers. In this regard, the Bank has

collated the required data for RAM Model validation since 2004 to 2012.Bank now intends to

adopt Advanced Internal Rating Based Approach (AIRB) for calculating capital charge for Credit

Risk.

Operational Risk, which is intrinsic to the bank in all its material products, activities, processes

and systems, is emerging as an important component of the enterprise‐wide risk management

system. Recognizing the importance of Operational Risk Management (ORM), the Bank has

adopted a Comprehensive Operational Risk Management Policy. This would entail the bank to

move towards enhanced level of sophistication in the years ahead and to capture qualitative

and quantitative aspects of operational risks in measurement and management of operational

risk.

Bank is presently under the Basic Indicator approach for Operational Risk Regulatory Capital

Calculation. Further the Bank has taken initiatives to progress towards adopting advanced

approaches. To achieve this objective, the Bank has planned to implement an Operational Risk

Management Solution (ORMS). Bank is also gearing up its risk management process for

migrating to advanced approach under Basel II operational risk estimation ‐ Advanced

Measurement Approach (AMA).

Market Risk Management is also an important part of overall risk management in Bank and it

covers both domestic and forex treasury operations. Bank is presently under Standardized

Modified Duration Approach for calculation of capital charge for Market Risk. Bank intends to

move to Advanced Approach under Basel II by adopting Internal Models Approach.

The Bank has a comprehensive system of internal controls, systems and procedures to monitor

and mitigate risk. The Bank has also institutionalized new product approval process to identify

the risks inherent in the new product and activities. The Bank has carried out a comprehensive

Self‐Assessment exercise spanning all the risk areas and evolved a road map to move towards

implementation of Basel II norms as per RBI’s guidelines. The program of Risk Management,

Organizational Structure, Risk measures, risk data compilation and reporting is getting

implemented for a period of time in the Bank with the strategic aim of migration to advanced

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 13 of 250

approaches which would help achieve long term benefits. The Bank has appointed a consultant

for assistance in the Bank’s initiative to migrate to advanced risk management approaches and

for the implementation of an Enterprise Wide Integrated Risk Management Architecture.

Bank recognizes the need for an enterprise wide risk management architecture where in

advanced risk management approaches are implemented within its subsidiaries and group

entities. All the subsidiaries and group entities of the Bank has a risk management function

including risk management policies and is guided by the Group Risk Management policy of the

Bank. The implementation of the enterprise wide integrated risk management architecture at

the Bank envisages roll out of advanced risk management approaches to all the subsidiaries and

group entities of the Bank.

The Bank has already taken steps in this direction and this Request For Proposal (RFP) is

intended to invite Techno‐Commercial bids from eligible Bidders to provide end‐to‐end

solutions for implementation of Credit Risk Management System (CRMS), Operational Risk

Management System (ORMS), Market Risk Management System (MRMS) and an Integrated

Capital Computation and Reporting Module for the advanced approaches under RBI Guidelines

on Basel II and Basel III to have an integrated risk management frame work, herein after

referred to as EWIRM Solution. The requirements under CRMS has been split into two sections

one for a CRMS in compliance with IRB requirements and second a Loan Origination System

(LOS). Similarly the requirements for MRMS have been defined for MRMS under IMA

Compliance and Asset Liability Management System (ALMS) including Fund Transfer Pricing

(FTP).

Within this RFP the terms bidder and system integrator (SI) have been used interchangeably.

Responsibilities of Bidder

Successful bidder based on this RFP terms and conditions should

(i) Implement the solution at all branches including overseas branches, and its subsidiaries

and group entities as decided by the Bank and should support multilingual requirements.

The system should:

a. Support estimation of all risk components and capital calculations (regulatory &

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 14 of 250

economic) as per the guidelines issued by RBI and Basel under the Standardized and

IRB approaches. The solution should be able to meet the Pillar I, II, III and stress

testing requirements as per RBI and Basel guidelines on Basel II and Basel III. The

solution should be capable of supporting all the required statistical, analytical, risk

modeling, pricing and reporting requirements as per regulatory and Bank’s internal

requirements.

b. Support operational risk measurement and modeling as per RBI and Basel II

requirements under AMA. ORMS should be available to the bank at Enterprise-wide

Level.

c. Be able to perform back testing, stress testing, calculate specific risk VaR and

Incremental risk VaR requirements as per Basel II, Basel III and RBI guidelines.

d. strengthen bank’s ALM system processes by complying with all ALM DGA

requirements by RBI.

e. Support home host country requirements for overseas operations and also

requirements of the subsidiaries and group entities of the Bank.

(ii) Provide data repository such as but not limited to list of KRI’s, Risk and Control, UAT

scenarios, Scenarios for scenario analysis with their due mapping, reporting templates

(iii) Set up, installation and testing of the required hardware and software within the Bank

including its data centers at Bangalore and Disaster Recovery Site in Mumbai. Ensure in

coordination with the Bank that the solution is accessible from all across the Bank

including overseas branches, its subsidiaries and group entities. Details of data center

and disaster recovery site of the subsidiaries and group entities are furnished in

Annexure no. 11.16.

(iv) Offer Facilities Management support for EWIRM solution and associated IT Infrastructure

proposed by the bidder for the entire project duration.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 15 of 250

(v) Impart training on EWIRM solution to designated personnel of the Bank and its

subsidiaries and group entities including users, technical personnel handling the system

and trainers.

(vi) Provide Hand-over of the solution at the end of the agreed period post UAT signoff.

(vii) Ensure system is in compliance with RBI requirements for all Basel II advanced

approaches and Basel III and other relevant regulatory guidelines. Any instances of non-

compliance observed will need to be rectified at no additional cost and well within

timelines stipulated by the regulator

(viii) Incorporate changes in system arising on impact of amendment to regulations/bank’s

policy at no additional cost and well within timelines stipulated by the regulator

(ix) Assist the bank in conducting the User Acceptance tests

(x) Provide complete documentation including logic used, empirical analysis done,

methodology etc. as per regulatory and audit requirements

(xi) Provide all statutory, regulatory Management Information System (MIS), adhoc MIS

(including development if needed) and Executive Information System (EIS) reports as

required by the Bank and its subsidiaries and group entities in the desired format as per

regulatory and Bank’s requirements

(xii) Meet all requirements specified in this RFP

The Bidder should implement the EWIRM Solution compliant with Basel II advanced approaches

and Basel III at the Central Processing Center (CPC), Head Office, all the Circle Offices, domestic

branches, overseas branches, subsidiaries and group entities and demonstrate their capability as

per agreed number of site demonstrations at group entities. The solution will be implemented in

branches/Administrative offices/subsidiaries/group entities as decided by the Bank.

In case the product/ solution/ vendor/ OEM is taken over/ amalgamated/ dissolved the impact

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 16 of 250

of such an event should not have any adverse implication on the service level/ time line/cost

that have been proposed for implementation of the solution.

1.2.1 Solution Design, size and procurement

(i) Selected bidder is required to design, size, procure and implement the EWIRM Solution

with the functionalities identified in the Functional Requirements and Technical Solution

Requirements for Credit Risk Management, Operational Risk Management, Market Risk

Management and Integrated Capital Computation and Reporting as detailed across this

RFP.

(ii) Automated Interfaces required of the solution with other internal system solution and

outside system solution has to be provided by the selected bidder to ensure satisfaction

of the functional and technical requirements. Bidder will be responsible for the

procurement of any tool required to develop the interface. Bidder will document the

entire interface logic and process with change management procedures in compliance

with Bank’s policies and procedures.

(iii) The selected bidder is expected to leverage the bank’s existing datacenter services, EDW

infrastructure (as and when operational), SAN storage, backup tape libraries, archival,

legacy data etc. With the endeavor to reduce the overall cost of procurement to the

Bank, the bidder shall also continuously explore avenues to reduce the cost and act in

the best interest of the Bank.

1.2.2 Gap identification & Resolution

The selected bidder will be responsible for conducting the gap assessment of the EWIRM solution

with bank’s framework, policy, procedures, governance, methodology, approach, existing

system, tools, models, reports, Basel II, Basel III and other regulatory guidelines issued by RBI etc.

pertaining to Credit Risk Management, Operational Risk Management, Market Risk Management

and Integrated Capital Computation and Reporting, in order to implement EWIRM solution as per

this RFP requirements and to:

1. Provide the Bank with the gap identification report along with the recommendations and

estimated time frames to implement the same

2. Determine the customization requirements, in case a particular functionality / requirement is

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 17 of 250

not supported by the existing version of the EWRIM solution;

3. Resolve gaps by customizing the proposed solution by way of modifications / enhancements,

as necessary

1.2.3 Parameterization, Configuration and Customization of software

1. The Bidder shall be responsible for accuracy of the parameters set in the system according

to business needs of the Bank.

2. The cost of all customizations is required to be included in the Commercial Bid and the Bank

will not make any additional costs for this throughout the term of the contract if the same

has been specified as a requirement of Canara Bank in this RFP. Thus, this is a fixed bid and

all necessary customizations based on the functional requirements specified in the RFP will

need to be conducted by the Bidder.

3. Bidder needs to give detailed plan for customization. All customization has to be completed

within the project timelines.

4. The Bidder should ensure that the quality assurance and development standards outlined in

the development methodology are adhered to and required functionalities/reports related

to same are generated and shared with the Bank team on a regular basis

5. Enhancements provided by the Bidder would include changes in the software due to

Statutory and Regulatory changes and those required due to changes in industry practices in

India and/or abroad or any other requirements of the Bank related to the above, which will

need to be provided at no extra cost to the Bank for the entire period of the contract. It will

include, but not limited to, all the functionalities mentioned in the Functional Requirements

and at no additional costs.

1.2.4 Testing

1. The Bidder will be responsible for conducting system integration testing to verify that all

system elements have been properly integrated and that the system performs all its

functions.

2. Bidder will conduct a “User Acceptance Test” (“UAT”) under guidance, review and

supervision of the bank to ensure that all the functionality required by the Bank is available

and is functioning accurately as per the expectations of the Bank.

3. Bidder will be responsible for setting and maintaining the test environment during the entire

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 18 of 250

period of project implementation and will ensure its configuration and parameterization for

conducting the UAT as per bank's risk management framework and in compliance with this

RFP’s requirements. The bidder shall ensure that the test environment has the same

configuration and functionalities as that of the production environment.

4. The Bidder will provide the scenarios for UAT and assist in preparing test cases including the

test data to support all the Business scenarios. The Bidder should dedicate resources (from

Bidder as well as OEM team) to work with the Bank’s project team for this purpose.

5. The Bidder will assist the Bank in analyzing / comparing the results of testing.

6. Bidder shall provide adequate resources for trouble-shooting during the entire UAT process

of the Bank.

7. The Bidder will be responsible for maintaining appropriate program change control and

version control of the system as well as documentation of UAT and change of configuration

and parameterization after making changes in the system.

8. All errors, bugs enhancements/ modifications required during and after testing will be

resolved within the overall timelines for implementation. Sign – off for the same will be

obtained from the Bank prior to implementing the work around, in respect of errors and

bugs affecting the functioning of the Bank.

9. The Bidder will be responsible for using appropriate tools for logging, managing, resolving

and tracking issues and its progress, arising out of testing and ensuring that all issues are

addressed in a timely manner to the satisfaction of the Bank and as per requirements

mentioned in this RFP.

1.2.5 Training

The Bidder shall be responsible for training the employees of the Bank including overseas

branches and its subsidiaries and group entities in the areas of system administration,

implementation, use / operations, management, database management, error handling /

troubleshooting, etc. of the EWIRM Solution.

Structure of the training program covering number of trainings, locations and number of

participants etc. is to be advised by the bidder.

Bidder will also be responsible to develop training and reference materials for all the

functionality of the software. Training / reference materials should be designed separately for

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 19 of 250

operational staff / user, IT department and senior management. Training material should

comprehensively cover all the functionality of the proposed EWIRM solution and be written in a

user friendly manner with use of graphs, processes flows, screen-shots of the actual system

functionality etc.

Bidder should provide Bank specific training material designed considering its requirements in

this RFP. Training material so provided will be subject to review and sing-off by the bank as a

project deliverable.

The training should at least cover the following areas:

• Functionality available in the solution including logic and methodology of the same;

• Customization / Parameterization;

• Techniques for Slicing and dicing of data, information, and output

• Auditing techniques including generation of audit trail reports;

• Advanced trouble shooting techniques;

• Techniques for generation, view and reporting of intermittent results;

• Deployment of various processes, risk reporting and identification procedures,

application of controls, analysis procedures provided as part of the solution;

• Techniques of Customization, development and configuration of required reports

including ad-hoc reports from the solution provided;

• Development and deployment of new functionalities using the proposed solution;

• System & Application Administration such as creation of user, user groups, assigning

rights, System Information Security Settings etc.

• Perform Impact Analysis using the solution;

• Business use of the solution

As per the requirements defined in this RFP, bank may increase more areas of trainings which

bidder would be liable to provide.

1.2.6 Implementation

The proposed solution should cover all the existing branches/units/administrative offices as

decided by the Bank and have the capability to scale up for meeting future requirements.

The solution should be scalable and capable to handle increased volumes. In the event the bank

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 20 of 250

adds/changes/updates source/core banking systems in the future the solution should be flexible

to handle such new source systems.

The Bidder will have to provide the necessary interface to all the applications as required. The

list of Bank’s existing applications in the Bank and its Group Entities is detailed later in Annexure

11.15.

At present, the Bank’s Core Banking Solution is in Oracle Database. The database for EWIRM

Solution should be compatible to CBS (Oracle). The successful bidder shall be responsible for

taking up with the system integrator of CBS for the required data. Ultimately, the EWIRM Risk

Solutions shall be linked to Enterprise Data Warehouse (as and when operational). The

successful bidder shall coordinate with EDW integrators for the requirements. The proposed

solution should be compatible both the platforms i.e. Intel & AIX.

By means of diagrammatic / pictorial representations, the Bidder should provide complete

details of the hardware, software and network architecture of the EWIRM Solution (module and

sub‐module wise), including source / method of Data capture and transfer, validation, updation

and database maintenance for networked and non‐networked branches.

The Bidder should assist for implementation in 100 branches/units /administrative offices and

subsidiaries and group entities spread across the country (along with all the Circle Offices) on

pilot basis. The Bidder should install and commission the solution and integrate with the Bank’s

applications at domestic branches, overseas branches, subsidiaries and group entities. The

branches for pilot implementation would be decided by the Bank.

The system should be implemented in all the remaining units after its satisfactory working in

100 branches/units/administrative offices and implementation in all the units should be

completed within 12 months from the date of signing of contract.

Details of functional and technical requirements are provided in Section 6, Section7, Section 8,

Section 9 & Section 10: Functional Requirements & Technical Requirements of this document.

The Bidder should provide hardware systems, operating system, database, for EWIRM solution

including CRMS application software, ORMS application software, MRMS application software,

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 21 of 250

Integrated Capital Computation and Reporting module application software and other necessary

software & hardware required for the successful implementation of the proposed solution

including DR site of equal capacity as live including data replication requirements (at the end

of day) along with data replication solution and a required Test server (Application &

Database Server).Firewall & Network Security will be provided by the Bank. The Bidder has to

ensure that vulnerabilities at application level in case of any breach shall be handled by the

offered application software.

The Bidder has to upgrade servers/ storage at no extra cost to the Bank, in case the offered

configuration does not meet the requirements, for 7 years from the implementation start date.

The total storage provided/ proposed by the bidder shall take into account incremental growth

of the Bank over the next 7 years and should be in RAID 5 or RAID 1+0. The Bidder may propose

a Network Attached Storage (NAS) / Storage Area Network (SAN) to meet the requirements as

found suitable. The proposed hardware at the data center must be in active‐passive cluster with

external SAN storage with back up tape library and support RAID 0 to 5 with no single point of

failure.

A complete Bill of Material for the hardware required for the successful operation of the

solution should also be provided by the Bidder, with full particulars like make, model, part

numbers, proposed configuration, including all details like memory type proposed with future

expandability, processor type, number of processors, processor speed, future expandability, bus

speed, etc. and clearly show no single point of failure. Please refer Annexure 11.4 Technical Bid

Format (sub sections on hardware requirements) and Annexure 11.6: Commercial Bid (Bill of

Material) Format.

The Bidder should specify the hardware requirement taking into consideration the efficiency

level, response time, data processing requirement, number of users, and all other parameters to

ensure that the efficiency of software system is not affected because of hardware. Bidder should

provide details for DR site such as network and security requirements, switches, routers etc. The

Bidder will certify that the hardware specified is adequate for meeting performance standards

set by the Bank, and it takes full responsibility of upgrading hardware without any extra cost to

the Bank, if at the time of implementation or any time subsequently it is found that the

hardware specified requires upgrade. At any point in time during the contract period, the CPU

utilization should neither exceed 60% nor should the Hard Disk utilization exceed 60% at the

Primary Data Centre. In case the hard disk utilization exceeds 60%, the additional hardware has

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 22 of 250

to be provided by the Bidder at no further cost.

The Bidder must ensure no hardware equipment or software, for which ‘End‐‐‐‐of‐‐‐‐Sale’ has been

declared, is offered as part of this bid. None of the hardware or software should have an ‘End‐‐‐‐

of‐‐‐‐Support’ mandated by the respective OEM within seven years from date of completion of

the project and the bidder should ensure continuity at all times without disruption of

operations.

The Bidder should also provide the Bank with the number of racks required for the servers /

equipment and associated infrastructure, as well as power requirements (average, peak and

rated power) and any other specific requirements for the servers / equipment (Network and

security requirements, switches, routers etc.) and associated infrastructure for both DC (Data

Centre) & DR (Disaster Recovery) sites.

Sizing of equipment, hardware etc. as required, depending on the functionalities required by the

bank as mentioned in the RFP, should be provided by the Bidder for processing of existing

portfolio of the Bank/Group with increase in volumes at approximately 20% p.a. and addition of

new products/instruments and data maintenance for a minimum period of 7 years as per RBI

guidelines.

The Bidder has to give an undertaking to implement the solution at any location / branch

identified by Bank at no extra cost.

As part of implementation all data migration (as and when required) from the existing systems

to the system proposed will be done by the Bidder. The Bidder shall demonstrate to the

satisfaction of the Bank regarding accuracy and comprehensiveness of the data migrated to the

proposed system.

During the period of contract, if any of the subsidiaries or group entities of Canara Bank get

merged, the data of the merged entity needs to be migrated and integrated to the central

database which needs to be provided at no extra cost. Similarly if any of the subsidiary and

group entity goes out of Canara Bank, the data relating to such entity needs to be extracted and

stored separately at no additional cost. During the period of contract if any entity gets merged,

the bidder shall facilitate such mergers of databases and if necessary provide suitable solution

on mutually agreed terms.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 23 of 250

1.2.7 Facilities Management Services (FMS) and Helpdesk

The Bidder is required to provide Helpdesk services till the completion of the implementation

across Bank and its group entities. Facility Management services will be provided by the bidder

till the end of the project. The bidder is required to indicate the resource requirements for FMS

in the Bill of Material.

Facilities Management: Facilities Management would include support for all hardware,

application software, etc. which would be provided by the Bidder. Bidder should elaborate on

FMS like number of resources to be deployed post implementation and detail it accordingly in

Bill of Material. FMS services should be provided for entire project duration (1 year

implementation and 6 years maintenance)

Helpdesk: Helpdesk refers to availability of resources to record and respond to events and

incidents related to the application, hardware & software implemented as per the scope of this

RFP. Helpdesk services should be provided till implementation is completed. At any point of time

during the day a minimum of two resources shall be available.

Uninterrupted services of helpdesk shall be available to all the domestic and overseas branches

situated in different time zones all through their respective working hours.

During AMC period the requirements are specified in section 3.3: Warranty and Annual

Maintenance.

1.2.8 Information Security

System should have standard input, communication, processing and output validations and

controls. System hardening should be done by bidder. Access controls at DB, OS, and Application

levels should be ensured in compliance to the Information Security Policy of the Bank.

1.3 Invitation for Bids

The Bank invites RFP for a turnkey project for implementation of EWIRM Solution for advanced

approaches under Basel II, Basel III and RBI guidelines. The broad scope of the project envisages

installation, customization, parameterization, implementation, and maintenance of application

software, system software, database, interfaces etc. as well as supply, installation &

maintenance of related hardware at primary and disaster recovery data centers of the Bank,

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 24 of 250

with training to designated personnel of the Bank and its subsidiaries and group entities.

Each Bidder should notify the Bank of any error, fault, or discrepancy found in this RFP

document but not later than 12.07.2013. The Bank’s responses to the queries raised by

proposed bidders will be put on the Bank’s website.

The Bidders shall, by responding to the Bank’s RFP document, be deemed to have accepted the

terms as stated in this RFP document.

The bidder shall ensure compliance of Central Vigilance Commission guidelines (CVC) issued/ to

be issued from time to time pertaining to works covered under this RFP.

1.3.1 Disclaimer

The information contained in this Request for Proposal (RFP) document for implementation of

EWIRM Solution under Basel II and Basel III or information provided subsequently to Bidder(s) or

applicants whether verbally or in documentary form by or on behalf of the Bank, is provided to

the Bidder(s) on the terms and conditions set out in this RFP document and all other terms and

conditions subject to which such information is provided. The RFP document contains

statements derived from information that is believed to be true and reliable at the date

obtained but does not purport to provide all of the information that may be necessary or

desirable to enable an intending contracting party to determine whether or not to enter into a

contract or arrangement with Bank in relation to the provision of services.

The RFP document is not a recommendation, offer or invitation to enter into a contract,

agreement or any other arrangement, in respect of the services. The provision of the services is

subject to observance of selection process and appropriate documentation being agreed

between the Bank and any successful Bidder as identified by the Bank, after completion of the

selection process as detailed in this document. No contractual obligation whatsoever shall arise

from the RFP process unless and until a formal contract is signed and executed by duly

authorized officers of Canara Bank with the Bidder. Each Bidder should conduct their own

investigations and analysis and should check the accuracy, reliability and completeness of the

information in this RFP and where necessary obtain independent advice. The Bank makes no

representation or warranty and shall incur no liability under any law, statute, rules or

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 25 of 250

regulations as to the accuracy, reliability or completeness of this RFP. The Bank may, at its

absolute discretion, but without being under any obligation to do so, update, amend or

supplement the information in this RFP.

2. Instructions for Bid Submission

2.1 General Instructions

2.1.1 Cost of Application/ Bid Document

Application Money of `1,00,000/‐ (Rupees One Lakh only) by way of Demand Draft/ Banker’s

Cheque/ Pay Order issued by a Scheduled Commercial Bank favoring Canara Bank, payable in

Bangalore, which is non‐refundable, must be submitted separately along with RFP response.

The RFP documents can be downloaded from Bank’s Website and Govt. Web site (National

Information Center Website). The cost of application/bid document should be deposited at the

time of submitting the response.

All costs and expenses (whether in terms of time or material or money) incurred by the

Recipient/ Bidder in any way associated with the development, preparation and submission of

responses, including but not limited to attendance at meetings, discussions, demonstrations,

site visits, etc. and providing any additional information required by the Bank, will be borne

entirely and exclusively by the Bidder.

2.1.2 Bid Security (E.M.D)

The Bidder shall furnish, as part of their Bid, a Bid security in the form of Demand Draft/Banker’s

Cheque/ Pay order only. The Bid security is required to protect the Bank against the risk of

Bidder’s conduct, which would warrant the security’s forfeiture.

The Bid security shall be denominated in Indian Rupees and shall be in the following form:

• Demand Draft/Banker’s Cheque/ Pay Order, issued by a Scheduled Commercial Bank in

India, drawn in favor of Canara Bank payable at Bangalore for a sum of `50,00,000/‐(Rupees

Fifty Lakhs Only).

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 26 of 250

Any Bid not secured as detailed above, will be rejected by the Bank, as non-responsive.

Unsuccessful Bidders’ Bid security will be refunded within 30 days after signing the agreement

with the successful bidder without any interest.

The successful Bidder’s Bid security will be discharged upon the Bidder signing the Contract and

furnishing the performance guarantee as per the format mentioned in Annexure 11.11:

Performance Bank Guarantee. No interest will be paid on the bid security

Bank reserves the right to forfeit the Bid security for any of the following reasons:

• If a Bidder withdraws their Bid after the due date of submission and during the period of Bid

validity specified by the Bidder on the Bid Form; or

• If a Bidder makes any statement or encloses any form which turns out to be false / incorrect

at any time prior to signing of Contract; or

• In the case of a successful Bidder, if the Bidder fails:

- To sign the Contract within a period of 21 days from the date of communication of the

results to the bidder by the Bank; OR

- To furnish Performance Guarantee as mentioned in Section 3.1.7: Performance Bank

Guarantee herein.

2.1.3 Registration of RFP Response

Registration of RFP response will be effected by the Bank by making an entry in a separate

register kept for the purpose upon Bank receiving the RFP response in the above manner. The

registration must contain all documents, information, and details required by this RFP. The

submission should be in the format outlined in this RFP and should be submitted only through

hand delivery.

If the submission to this RFP does not include all the documents and information required or is

incomplete or submission is through Fax mode, the RFP response is liable to be summarily

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 27 of 250

rejected. All submissions, including any accompanying documents, will become the property of

Bank. The Bidder shall be deemed to have licensed, and granted all rights to the Bank to

reproduce the whole or any portion of their submission for the purpose of evaluation, to

disclose the contents of the submission to other Bidders who have registered a submission and

to disclose and/or use the contents of the submission as the basis for any resulting RFP process,

notwithstanding any copyright or other intellectual property right of the Bidder that may subsist

in the submission or accompanying documents.

2.1.4 Request for Additional Information

Bidders are required to direct all communications for any clarification related to this RFP, to the

designated Bank officials and must communicate the same in writing (address for

communication as given in table of schedule of activities and events). All queries relating to the

RFP, technical or otherwise, must be in writing only i.e. either via physical or electronic mail. The

Bank will try to reply, without any obligation in respect thereof, every reasonable query raised

by the Bidder in the manner specified. All responses posted in the website shall be part of the

RFP.

However, the Bank will not answer any communication reaching the bank later than 3.00 PM on

17.07.2013 this being the last date to receive clarifications.

The Bank may in its absolute discretion seek, but will be under no obligation to seek, additional

information or material from any Bidders after the RFP closes. Such information sought by the

Bank and material provided by the Bidder will be taken to form part of that Bidder’s response.

The Bank may in its sole and absolute discretion engage in discussion with any Bidder (or

simultaneously with more than one Bidder) after the RFP closes to clarify any response.

2.1.5 Pre‐‐‐‐Bid Meeting

The Bank plans to hold a pre‐bid meeting on 25.07.2013 at 3.00 p.m. at the address specified in

Bid details under introduction note in order to bring greater clarity on the scope of work and

terms of the RFP being floated. The Bidders are expected to use the platform to have all their

queries answered. Bidders are requested to send their queries relating to RFP to our office by e‐

mail, well in advance (latest by 17.07.2013 3.00 pm), so that the same could be discussed during

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 28 of 250

the Pre‐Bid meeting with interested Bidders. All queries along with bank responses will be

uploaded on the bank website on 29.07.2013.

Interested Bidders will be allowed to participate in the Pre‐Bid meeting. Also, bank will allow a

maximum of 2 representatives from each Bidder to participate in the pre‐bid meeting.

Non‐attendance at the Pre‐bid Meeting will not be a cause for disqualification of a Bidder.

The Bank will have liberty to invite its project/technical consultant or any outside agency,

wherever necessary, to be present in the pre‐bid meeting to reply to the queries of the Bidders

in the meeting.

2.1.6 Disqualification

Any form of canvassing/ lobbying/ influencing/ query regarding short listing, status etc. will

result in a disqualification of the Bidder. The Bank reserves the sole right to disqualify any

prospective bidder and no obligation to discuss regarding the same with the concerned bidder

being disqualified.

2.1.7 Language of Bid

The language of the bid response and any communication with the Bank must be in written

English only. Supporting documents provided with the RFP response can be in another language

so long as it is accompanied by an attested translation in English, from a recognized translator,

in which case, for purpose of evaluation of the bids, the English translation will govern. The Bank

reserves the right to accept or reject the translated scripts after performing reasonable due

diligence. The Bidder shall submit a fresh translation from another translator in case Bank is not

satisfied with the current one.

2.1.8 Period of Validity of Bids

Bids should remain valid for the period of at least six (6) months from the last date for

submission of bid prescribed by the Bank. A bid valid for a shorter period shall be rejected by the

Bank as non‐responsive. In case the last date of submission of bids is extended, the Bidder shall

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 29 of 250

ensure that validity of bid is reckoned from modified date for submission.

2.1.9 Amendment of RFP and Bidding Documents

At least 7 days prior to the last date for bid‐submission, the Bank may, for any reason, whether

at its own initiative or in response to clarification(s) sought from the prospective Bidders, modify

the RFP contents/ covenants by amendment. Clarification /amendment, if any, will be notified

on Bank’s website. No individual communication would be made in this respect. In case any

bidder has submitted the bid prior to the amendment has the right to resubmit the bid by

modifying or withdraw the bid. The bid last submitted or bid modified by the bidder will be

considered for evaluation.

2.1.10 Authorization to Bid

The proposal/ bid shall be signed by authorized representative backed by proper authority

/authorization/ resolution of the bidder and the bid submitted by the said authorized person

shall be binding on bidder.

• All pages of the bid shall be initialed by the person or persons signing the bid.

• Bid form shall be signed in full only in blue ink & official seal of the bidder affixed.

• Any inter-lineation, erasure or overwriting shall be valid only if they are initialed by the

person or persons signing the Bid.

• All such initials shall be supported by an official seal of the Bidder’s firm.

The proposal/bid must be accompanied with an undertaking letter duly signed by the

designated personnel as provided in Annexure 11.1 Undertaking From Bidder. The letter should

also indicate the complete name and designation of the designated personnel.

2.2 Documents Comprising the Bid

The Bidder has to submit 2 copies of the response and a soft copy of the complete technical Bid

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 30 of 250

in Microsoft Office 2007 / Open Office format on a Compact Disc (CD) super‐scribing “Soft Copy

of Technical Bid against RFP– RMW/01/2013-14 dated 10.07.2013” along with the technical bid.

The Bidder will not furnish the softcopy of the commercial bid.

The Bid prepared by the Bidder should comprise the following components:

1. ENVELOPE – I: Eligibility Criteria:

Separate envelopes with superscriptions as “Eligibility Criteria” should be included within the

overall Envelope. The Bidder should submit the following:

a. The sheet mentioning compliance/ non‐compliance to all the eligibility criteria

specifications with remarks and other requirements given in Annexure 11.2: Eligibility

Criteria Format.

b. All the proofs required for eligibility criteria as mentioned in Section 4.3: Eligibility Criteria

Format

Bid Document Cost and Bid Security: Separate envelopes with superscriptions as “Bid

document cost” and “Bid Security” should be included within the overall Envelope. The Bidder

should submit the following:

c. Cost of Application/ Bid Document – a Demand draft/Bankers Cheque/Pay Order of

`1,00,000 and Bid Document

d. Bid Security (Earnest Money Deposit) – a Demand draft/Bankers Cheque/Pay Order of

`50,00,000

2. ENVELOPE – II: Technical Bid :

Technical Bid: Separate envelopes with superscriptions as “Technical Bid and Masked

Commercial Bid” should be included within the Envelope II.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 31 of 250

a. Technical Bid

b. Masked Commercial Bid

The Bidder should submit compliance / non‐compliance to all the specifications with remarks

and other requirements given in the Bid Document and Scope of Work.

The Technical Bid should be complete in all respects and contain all information asked for,

except commercial prices. The Technical Bid should include all items asked for in bid document.

The technical offer should not contain any price information. The Technical Offer should be

complete and indicate that all products and services asked for are quoted. For example, the

Technical Bid should mention that Annual Maintenance Charges (AMC) etc. are included in the

Commercial Bid, without mentioning the actual amounts in the Technical Bid and terms of

Payment, Delivery and any other conditions, which may appear in the Commercial Bid. The

Bidder should enclose a copy of the Masked Commercial Bid (as per the format provided in

Annexure 11.6.2) as per price schedule without the prices (please put ‘X’ mark wherever prices

are quoted) along with other bid documents for evaluation purpose.

3. ENVELOPE – III: Commercial Bid:

The Commercial Bid should give all relevant price information and should not contradict the

Technical Offer in any manner. Please note that if any envelope is found to contain both

technical and commercial bid together, that bid will be rejected.

The details required under Annexures as mentioned in section 2.2.1 below shall also be

enclosed. The Bank may reject any proposal not containing all the requirements called for in

Annexures.

The Technical Bid of the eligible Bidders will be opened first for evaluation. Final bidder would

be decided by Techno – Commercial Evaluation.

Prices quoted by the Bidder shall be fixed during the Bidder’s performance of the Contract and

shall not be subject to variation on any account, including exchange rate fluctuations, changes in

taxes, duties, levies, charges etc. A Bid submitted with an adjustable price quotation will be

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 32 of 250

treated as nonresponsive and will be rejected. All costs proposed by the Bidder will have to be

rational. Details of total costs provided will have to be in line with the itemized costs.

2.2.1 List of Documents

Envelope Documents Reference

ENVELOPE –I

Eligibility Criteria

Eligibility Criteria Annexure 11.2: Eligibility Criteria

Cost of Application/

Document

Section 2.1.1: Cost of Application/ Bid

Document

Bid Security (Earnest Money

Deposit)

Section 2.1.2: Cost of Application/ Bid

Document

ENVELOPE – II

Technical Bid

Technical Bid

Undertaking from Bidder Annexure 11.1: Undertaking from Bidder

Bid Offer Covering Letter Annexure 11.7: Bid Offer Covering Letter

Cover Letter for Technical Offer Annexure 11.3: Cover Letter for

Technical Bid

Technical Bid Format Annexure 11.4: Technical Bid Format

Reference Site Details Annexure 11.8: Reference Site Details

Particulars of Bidder Annexure 11.9: Particulars of Bidder

Past Experience Details Annexure 11.10: Past Experience Details

Manufacturers’/ Producers’

Authorization Form

Annexure 11.12: Manufacturers’/

Producers’ Authorization Form

Implementation Team Profile Annexure 11.13: Implementation Team

Profile

Project Timelines Annexure 11.14: Important Project

Timelines

Masked Commercial Bid Annexure 11.6.2: Masked Commercial

Bid (Bill of Material) Format

Compact Disc Section 2.2. Documents comprising the

Bid

ENVELOPE – III:

Commercial Bid

Commercial Bid

Cover Letter for Commercial

Bid

Annexure 11.5: Cover Letter for

Commercial Bid

Commercial Bid (Bill of Annexure 11.6: Commercial Bid (Bill of

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 33 of 250

Envelope Documents Reference

Material) Format Material) Format

2.2.2 Sealing and Marking of Bids

1. The Bidder has to submit 2 copies of the response and a soft copy of the complete technical

Bid in Microsoft Office 2007 / Open Office format on a Compact Disc (CD) super‐scribing

“Soft Copy of Technical Bid against RFP–RMW/01/2013-14 dated 10.07.2013” along with

the technical bid. The Bidder will not furnish the softcopy of the commercial bid.

2. The Bidder shall seal the envelopes containing “Envelope – I: (a) Eligibility Criteria, (b) Cost

of application and Bid security”, “Envelope – II: Technical Bid” and “Envelope – III:

Commercial Bid” separately and the three envelopes shall be enclosed and sealed in a

SINGLE OUTER ENVELOPE marked as

“ORIGINAL: Solution to Implement Enterprise Wide Integrated Risk Management

Architecture under Basel II and Basel III Guidelines‐‐‐‐FINAL BID”

3. The inner and outer envelopes shall:

a. be addressed to the Bank at the address given; and

b. bear the following in separate envelopes

i. “Solution to Implement Enterprise Wide Integrated Risk Management Architecture

under Basel II and Basel III –Eligibility Criteria”

ii. “Solution to Implement Enterprise Wide Integrated Risk Management Architecture

under Basel II and Basel III – Non‐Price Bid (Technical Bid)”,

iii. “Solution to Implement Enterprise Wide Integrated Risk Management Architecture

under Basel II and Basel III – Price Bid (Commercial Bid)”,

c. All envelopes should indicate on the cover the name and address of the Bidder.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 34 of 250

4. If the outer envelope is not sealed and marked, the Bank will assume no responsibility for

the bid’s misplacement or premature opening.

2.3. Key Guidelines for preparing RFP response:

Bidder’s proposal should strictly conform to the specifications mentioned here in the RFP.

Proposals not conforming to the specifications will be rejected subject to the Bank’s discretion.

Any incomplete or ambiguous terms / conditions / quotes may result in disqualification of the

offer at Bank’s discretion. The Bidder has to offer specific remarks for technical requirements

and clearly confirm compliance. Any deviations on technical requirements should be clearly

informed in Remarks column.

Deviation/ comments on other terms prescribed by the Bank are to be provided in a separate

section in Technical Bid. The Bank is not bound to evaluate the deviations mentioned at any

other section of the bid.

For supplementary information a separate sheet should be used.

All pages should be numbered (like 1/xxx, 2/xxx where xxx is last page number of Bid document)

and initialed under the company seal.

Technical Bid documents are to be properly filed in a box‐ file and should not contain any loose

papers.

Canara Bank reserves the right to reject any or all proposals. Similarly, it reserves the right not to

include any Bidder in the final short‐list.

3. Additional Instructions for Bidders

3.1 General Instructions

3.1.1 Nature of Bid

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 35 of 250

a. The bid shall be submitted by an SI, thus the SI will be the bidder.

b. One SI cannot submit more than one bid.

c. The OEMs joining SI will be the product vendors.

d. One OEM can bid only with one Bidder (SI).

e. The SI is responsible to carry out the process and accomplish the assigned task.

f. Any third party (For e.g.: in the nature of a consultant) apart from the SI and the OEM

cannot be part of the bid.

g. A bidder to this RFP acting as the SI cannot participate in the bid submitted by another

bidder (SI) as the OEM of that bid.

h. One bidder can bid along with multiple OEMs (but only one OEM for one risk solution) to

provide EWRIM Solution through this bid subject to point g above.

i. Any subcontracting and assignments by the Bidder, of the work stated within this RFP is not

permissible

j. The bank intends to procure only Perpetual Licenses. The bank should have the entitlement

/ right to use these licenses without any restriction. The bidder (SI) should also share the

official & authentic license definition of all the proposed OEM's.

k. All the new software release/version / upgrades or otherwise for any reason should be

made available to the Bank and the bank is not liable to pay / oblige SI or any OEM any

additional charges / fees pertaining to third party royalty charges etc. And also this should

not be the reason to restrict the bank from upgrading to the new release / new version of

the software.

l. The OEM should endorse the hardware & related software sizing, stating that technically

their software can be deployed on the proposed sizing. This can be through declaration or

sharing authentic / official benchmark reports.

3.1.1.1 Participation Methodology

In this bid, either the Indian Agent on behalf of the OEM or OEM itself can act as the product

vendor but both cannot participate simultaneously for the same product in the bid.

If an agent participates on behalf of the OEM, the same agent shall not participate on behalf of

another OEM in this bid for the same item/product.

In the event of Agent/Representative being not able to perform the obligations as per the

provisions of the contract/warranty, the prime Bidder (SI) should assume complete

responsibility on behalf of the OEM/Agent for providing end-to-end solution i.e., technology,

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 36 of 250

personnel, financial and any other infrastructure that would be required to meet intent of this

RFP.

3.1.2 Source Code

a. Bidder has to keep source code of proposed solution with approved / recognized escrow

agency under escrow arrangements mutually acceptable to the bank and Bidder but at

Bidder’s cost.

b. The application software should mitigate Application Security Risks, at a minimum, those

discussed in OWASP top 10 (Open Web Application Security Project)

c. The Bank reserves the right to Audit the Application / Source Code by suitable Security

Auditor.

d. The Bidder shall provide complete and legal documentation of all subsystems, licensed

operating systems, licensed system software, and licensed utility software and other

licensed software. The Bidder shall also provide licensed software for all software products

whether developed by it or acquired from others as part of the project. The Bidder shall also

indemnify the Bank against any levies / penalties on account of any default in this regard.

e. In case the Bidder is coming with software or hardware which is not its proprietary software

or hardware, then the Bidder must submit evidence in the form of agreement it has entered

into with the software vendor or hardware vendor which includes support from the software

vendor or hardware vendor for the proposed software and hardware for the full period

required by the Bank.

3.1.3 Information Ownership

All information processed, stored, or transmitted by successful Bidder’s equipment belongs to

the Bank. By having the responsibility to maintain the equipment, the Bidder does not acquire

implicit access rights to the information or rights to redistribute the information. The Bidder

understands that civil, criminal, or administrative penalties may apply for failure to protect

information appropriately.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 37 of 250

Any information considered sensitive by the Bank must be protected by the successful Bidder

from unauthorized disclosure, modification or access. The bank’s decision will be final.

Types of sensitive information that will be found on Bank system’s which the Bidder plans to

support or have access to include, but are not limited to: Information subject to special

statutory protection, legal actions, disciplinary actions, complaints, IT security, pending cases,

civil and criminal investigations, etc. The successful bidder shall exercise adequate judgment to

decide if a particular information is sensitive and consult with the Bank in case of doubts.

The successful Bidder shall not publish or disclose in any manner, without the Bank’s prior

written consent, the details of any security safeguards designed, developed, or implemented by

the Bidder or existing at any of the Bank location. The Bidder will have to develop procedures

and implementation plans to ensure that IT resources leaving the control of the assigned user

(such as being reassigned, removed for repair, replaced, or upgraded) are cleared of all Bank

data and sensitive application software.

3.1.4 Security Configuration, Monitoring and Audit

The baseline security configuration of Operating System, Database, Web server and all other

applications to be done by the bidder, according to the industry best practices.

Compliance with security best practices may be monitored by periodic computer security audits

performed by or on behalf of the Bank. The periodicity of these audits will be decided at the

discretion of the Bank. Periodicity for Regulatory Audits would be required as per the rules and

guidelines laid down by the regulator or as required by the regulator. These audit plan to

include, but are not limited to, a review of: access and authorization procedures, physical

security controls, input/output controls, DB controls, backup and recovery procedures, network

security controls and program change controls.

To the extent that the Bank deems it necessary to carry out a program of inspection and audit to

safeguard against threats and hazards to the confidentiality, integrity, and availability of data,

the Bidder shall afford the Bank’s representatives access to the Bidder’s facilities, installations,

technical resources, operations, documentation, records, databases and personnel. The Bidder

must provide the Bank access to various monitoring and performance measurement systems

(both manual and automated). The Bank has the right to get the monitoring and performance

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 38 of 250

measurement systems (both manual and automated) audited without prior approval / notice to

the Bidder.

3.1.5 Considerations for Proposed Hardware & Software to support the EWIRM Solution

1. All software like RDBMS should be of the latest version and should be compatible to exiting

RDBMS.

2. The Bidder should provide the data sheets for all the hardware proposed.

3. Roadmap for the CPUs proposed for Database and Application servers should be presented.

4. All servers shall be configured with two numbers sufficient storage capacity of Internal Disk

Drive with Mirroring and tape/ Digital Audio Tape (DAT) drives

5. The servers proposed should have 64‐bit Quad‐core processor and latest operating system.

The offered OS should be the Enterprise version of the 64 bit and should be the latest

version.

6. All database servers should be of same capacity and models.

7. Application and Database Servers should be vertically scalable (‘in box’ upgradable) with

respect to the number of CPUs and Memory configured so as to meet the bank’s scalability

requirements as well as horizontally scalable.

8. The CPU type offered should be of the same generation / architecture across all servers and

should be of the latest generation.

9. The Memory Chipset should be of Double Data Rate 2 (DDR2) or Double Data Rate 3 (DDR3)

memory.

10. The Bidder is expected to provide SAN based storage facility for hosting EWIRM Solution

systems production, test and development data. All past and future data would be stored on

a single infrastructure i.e. new SAN. The new SAN storage capacity is required for 7 years for

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 39 of 250

the data at the DC and DRS each. The new solution proposed by the Bidder should be capable

of accessing the existing SAN for the purpose of data migration and data archival as and

when required. The bidder will also ensure that the data ultimately integrated to the

proposed EDW and facilitate this in association with the SI for the EDW project.

11. If the solution suggested by the bidders necessitates additional capacity, then the bidder

would need to provide accordingly to meet the RFP and Service Level Agreement (SLA)

requirements.

12. The Bidder should design the hardware taking note of parameters for CPU utilization,

memory utilization, disk Input/output capacity, and Storage capacity etc. as defined in the

RFP so as to meet the business requirements of the bank as well as Service Level Agreement

requirements defined in this RFP. The proposed SAN (Storage Area Network) and storage

management solution should support combinations of mostly used RAID levels (e.g. RAID

0,1,5,6 etc.). The complete production data should be on a combination of RAID 5.

13. The tape library offered should be of the latest generation and of modular design to allow

configuration, and addition of capacity to increase performance. Offered Tape Drives in the

Tape Library should be LTO5.

14. The Storage Array proposed by the Bidder should be Enterprise Class Monolithic Storage with

no Single Point of Failure. (Monolithic implies that the storage should have capabilities of

addition of Front End Boards, Back End Boards, and Cache Boards etc.).

15. The Storage System should support industry standard applications / databases, including but

not limited to MS SQL Server, Oracle, MySQL, DB2, Web and Application Servers, MS

Exchange, Lotus Notes etc.

16. The storage system should support heterogeneous multi‐host connectivity. The system

should facilitate connectivity to various flavors of Operating Systems (OS), including but not

limited to, HP‐UX, IBM AIX, SUN Solaris, Linux, Microsoft Windows, etc.

17. The switch should have support of all leading SAN / NAS disk arrays and tape libraries and

bidder should ensure connectivity of existing SAN to proposed SAN switches.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 40 of 250

18. The hard disk proposed for production storage in the array should be FC (Fiber Channel) or

SAS (serial attachment SCSI) drives only.

19. The proposed Tape Library should be offered with redundant power supplies and cooling

fans.

20. Offered tape library/ tape drives in the library should have a minimum of two redundant

connections to SAN switches.

21. The Management console/interface of the proposed tape library shall provide the following

functionalities:

a. Manage Tape Drives and Cartridges

b. Configure network parameters

c. Should have GUI Front panel

22. All the components (hardware, software etc.) in the DC site should be replicated in the DR

(except Test and Development environment). The proposed solution should have full

capability to support database to database replication and storage to storage replication

between DC and DR with a Recovery Point Objective (RPO) of 15 minutes and Recovery Time

Objective (RTO) of 2 hours. The replication between DC and DR should be possible in both

directions.

3.1.6 Performance Guidelines

The proposed solution should comply with the following guidelines on performance and solution

components in minimum.

a. Bidder should clearly specify the detailed configuration and specifications of the applications

and corresponding hardware required at various levels of performance and supply a detailed

Bill of Materials (BoM) with the part numbers for the hardware based on the technical

requirements. The bidder should separately list down the reasons for the recommended

hardware configurations and specifications.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 41 of 250

b. The bidder has to explain through proper calculations how the performance of the system

vis‐à‐vis business statistics, projected growth, redundancy, projected growth in functional

requirements, concurrent users, performance parameters expected on peak load, VaR or

other parameter calculations, transactions handled per second, quarter‐end and year‐end

activity etc., are ensured. The bidder should provide data on any other parameter which

would be required.

c. Bidder to indicate the timing of the performance testing (before/after installation of

hardware) Bidder will do this at a mutually agreed location at his cost.

d. Bidder should also provide data on the solution as how the individual components offered

under the solution (application and associated hardware) would be able to meet the current

volumes as well as the future scalability requirements.

e. The bidder should provide information on industry standard benchmarks for the system such

as TPC‐C certified by Transaction Processing Council and / or Oracle TPMC that is made

available in respective web‐ sites. The bidder has to furnish the details of the configuration of

the servers, OS and databases used in such benchmarking exercise for TPC‐C, Oracle TPMC

etc. and relate the same to the server configurations proposed for Bank’s requirement.

f. The bidder should also provide the benchmarks with Risk Management application software

preferably conducted with real time loads for similar requirement or as acceptance test with

credential and details of references involved in conducting such benchmarks. The Bidder has

to relate the same to the model and configuration of the hardware proposed for Bank’s

requirement.

g. Besides the above, the bidder may furnish the details of any other benchmarks either

Industry standard such as “SPEC” ratings or for other Financial Institutions with due

relevance.

h. The bidder may also furnish certified performance details from past implementations of

similar nature.

i. Bank may advise the bidder to conduct the benchmark when the systems are ready for

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 42 of 250

dispatch to Bank’s site or after completion of installation and evaluate performance. It is for

the bidder to establish that the sizing is proper for the requirement and to demonstrate the

performance to Bank’s designated officials and project consultants.

It will be the responsibility of the selected bidder to coordinate with Bank’s system Integrator for

the successful integration with Core Banking Solution (existing or higher versions) and EDW (as

and when operational). Role of the bank is limited to facilitating coordination between the

bidder (System integrator) and the system integrator for the CBS and EDW (as and when

operational)

3.1.7 Performance Guarantee

Within the period prescribed under Annexure 11.14 from date of receipt of notification of

contract award, the Bidder shall furnish to the bank, the Performance Guarantee for an amount

of 10% of the contract value which would be valid for the entire project period or entire period

of 7 years.

1. The proceeds of the performance Guarantee shall be payable to the Bank as compensation

for any loss resulting from the Bidder’s failure to complete its obligations under the

Contract. The Performance Guarantee shall be denominated in Indian Rupees and shall be

by way of Bank Guarantee issued by a Private Sector/ Public Sector Banks in India (other

than Canara Bank), acceptable to the bank in the Format, in Annexure 11.11 Performance

Bank Guarantee.

2. The performance guarantee will be discharged by the Bank and returned to the Bidder after

30 days following the date of completion of the Bidder’s performance obligations under the

contract.

3. In the event of any contract amendment, the Bidder shall, within 30 days after receipt of

such amendment, furnish the amendment to the performance guarantee, rendering the

same valid for the duration of the contract as amended.

3.1.8 Service Level Agreement (SLA)

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 43 of 250

Bank expects that the Bidder shall be bound by the Service Levels described in this document.

Service Levels will include Availability measurements and Performance parameters. Bank

requires the Bidder to provide reports for all availability and performance parameters a log of all

issues that have been raised and Closed/ Pending Closure by the Bidder. The frequency of these

reports would be Weekly, Monthly, Quarterly and Yearly as mutually agreed. Apart from reports

on each availability and performance measurement parameter mentioned below, the reporting

should also include the following:

1. Utilization of CPU, RAM, Hard Disk, I/O (Peak and Average)

2. Percentage of CPU utilized by the system and user activity.

3. CPU utilization broken down by user CPU and system CPU. Tabular report of CPU, Memory,

NIC and I/O utilization (peak and average) by application, if possible.

4. Percentage of physical memory utilized by system and user processes.

5. Problem Trends

6. Call Resolution Time

Audits will normally be done on monthly/quarterly basis or as required by Bank and will be

performed by Bank or Bank appointed third party agencies.

SLA for Hardware & Software

Availability Measurements Expected

Service Level

Base Amount on

which penalty will be

calculated

Penalty

Availability of Business

Infrastructure (Core Application

Servers, Core Database Servers,

Storage, SAN Switch, Tape

Library,

98.5% Value of the said

business

infrastructure for DC

or DRC,

as the case may be.

10%

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 44 of 250

Availability Measurements Expected

Service Level

Base Amount on


calculated

Penalty

RDBMS and related components

etc.) in DC and DRC

Availability of all other

infrastructure, all other

software components and Test

and Development infrastructure

98.5% Value of the relevant

infrastructure

10%

The term ‘business infrastructure’ mentioned in this document shall include all capital costs of

hardware, associated software and RDBMS (at DC or DRC, as the case may be) delivered as of

the point of time when the penalty is levied. The cost of AMC/ ATS from the second year

onwards will not be treated as capital cost and therefore excluded. The business infrastructure

shall also exclude the capital cost of all components related exclusively to other infrastructure

and Test and Development infrastructure, for the purpose of penalty calculation.

Type of

Infrastructure

Performance

Measurement

Expected

Service

Level

Base Amount on


calculated

Penalty

System

Response

Time

End to End

response time

within the DC Time

or DR (from the

CRMS & ORMS

Application to the

Database and back)

should be < 0.5

milliseconds

98.5% The bidder is to

upgrade the

Hardware along with

related software and

services without any

additional cost to the

Bank, if service level

is not met. Until

Service level is met,

penalty will be

charged on the value

of the business

infrastructure at DC

or DRC, as the case

may be.

10%

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 45 of 250

Type of

Infrastructure

Performance

Measurement

Expected

Service

Level

Base Amount on


calculated

Penalty

Disaster

Recovery Site

Availability

Business

operations to

resume from

Disaster Recovery

Site within 4 hours

of the Data

Centre failing and

vice versa.

100% Penalty will be


of the business


or DRC, as the case

may be.

10%

Data Point

Availability

Recovery Point

Objective (RPO) of

15 minutes.

100% Penalty will be


of the business


or DRC, as the case

may be.

10%

3.2 Payment Terms

For CRMS, ORMS, MRMS and Integrated Capital Computation and Reporting Module

Amount Basis

40% After completion of successful UAT of the entire EWIRM Solution

(UAT will be considered as complete on proper sign-off given by the bank based

on the review of UAT Scenarios, UAT Methodology, Expected & Actual Results and

its Complete Documentation by the Bidder)

20% On completion of 1 year of live implementation of the EWIRM Solution

(Live Implementation implies EWIRM Solution has been fully implemented across

the enterprise)

20% On completion of 2 years of live implementation of the EWIRM Solution

10% On completion of 3 years of live implementation of the EWIRM Solution

10% Post approval from RBI for migration to advanced approaches

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 46 of 250

Note: In the event of any failures of the system post live implementation, the Bank reserves

the right to withhold further payments.

For Hardware, Operating System and RDBMS

Amount Basis

50% On delivery and installation and submission of invoice with proof of delivery and

installation

40% On commissioning of Hardware, RDBMS, System Software, Communication

equipment etc. and signing of hardware UAT.

10% After completion of warranty period

Note: The payment Terms for AMC, ATS and Facilities Management have been separately

articulated in the respective sections.

Bank will release the payment after deduction of applicable TDS/Levies at source.

3.2.1 Price Composition

The Bidder is expected to quote unit price in Indian Rupees (without decimal places) for all

components (hardware, software etc.) and services on a fixed price basis as part of the

commercial Bid inclusive of all costs and taxes like customs duty, excise duty, import taxes,

freight, forwarding, insurance, delivery, installation, training etc. at the respective delivery

location of the bank but exclusive of only applicable (in India) Sales Tax/VAT, Service Tax and

Octroi / Entry Tax / equivalent local authority cess, which shall be paid / reimbursed on actual

basis on production of bills. Further, receipts of such payments made to relevant authorities

must be produced for Octroi / Entry Tax / equivalent local authority cess. The Bank will not pay

any other taxes, cost or charges.

3.2.2 Road Permit

In case of receiving of hardware to the area where Road Permit is required for transportation of

goods, it is the responsibility of the bidder to arrange for the same in advance without any extra

cost to the bank.

3.2.3 Right to Alter Quantities

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 47 of 250

The bank will be free to either reduce or increase the quantity to be purchased by 10% on the

same terms and conditions.

The bank also reserves the right to place further / repeat order on the same terms and

conditions within a period of 24 months from the date of purchase order.

3.2.4 Payment Term for Facilities Management

The payment will be released at the end of every quarter.

3.3 Warranty & Annual Maintenance

3.3.1 Maintenance Standard during Warranty & Post Warranty Maintenance

1. The warranty period for the Hardware and Software shall be for 1 year from the date of go-

live of the Enterprise Wide Integrated Risk Management system. AMC period starts after

completion of warranty period.

2. AMC payment due shall be released half yearly in advance against Bank Guarantee for the

value of AMC amount or shall be released after completion of half year.

3. The Bidder shall furnish a Bank Guarantee issued by any scheduled commercial bank in India

(other than Canara Bank) and acceptable to the Bank for an amount equal to the value of

AMC for one year. Thereafter, the BG shall be furnished every year for the value of AMC

amount due for that year.

4. The BG shall be delivered to the Bank at least 30 days prior to the expiry of warranty period.

5. During Warranty Period/ AMC, Bidder guarantees a minimum uptime of 98.5 % on monthly

basis for the entire turnkey solution provided. This will be subject to a ceiling of not more

than 120 minutes cumulative downtime. Successful Bidder is expected to submit a report

within a week after expiry of every calendar month in this regard. Delays, if any, on account

of procurement of spares will not be exempted while reckoning the uptime SLA.

6. During maintenance period also, the Bidder guarantees on monthly basis an uptime of

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 48 of 250

98.5% of the entire solution provided. Accordingly it is expected that necessary redundancy

is built into the solution for all components whether software or hardware.

7. During the period of AMC, if the service provided by the Bidder is not satisfactory, the bank

reserves the right to terminate the AMC contract and appoint any other agency at the risk

and cost of the Bidder.

8. The maximum response time for a maintenance complaint from the site of installation (i.e.

time required for Bidder’s maintenance engineers to report to the installations after a

request call / fax /e‐mail is made or letter is written) shall not exceed One hour.

9. In the event of failure of maintaining the uptime SLA (based on point no. 5 &6 above)

liquidated damages of 20,000/‐ per hour with a grace period of 120 minutes would be

levied up‐to max of 10% of overall value of the project. The liquidated damages mentioned

under clause 3.3 shall be independent of liquidated damages/penalty mentioned in clause

5.2.

3.3.2 Terms and Conditions During Warranty and AMC Period

During the period of contract up to completion of Warranty and also during annual maintenance

(if contracted), the selected bidder shall do the following:

1. Any engineering changes/ upgradations applicable to the Hardware shall be

communicated to the Bank by the Bidder within a period of one month from the date of

release/observation. It shall be supplied, installed and commissioned free of cost by the

bidder. The bank reserves the right to procure the update/enhancement/system software

upgrade and at an extra cost, if the software is not under Warranty and AMC.

2. Any software support like update/enhancement/software upgrade etc. released till the

completion of warranty and during annual maintenance (if contracted) shall be supplied,

installed and commissioned free of cost by the bidder. However, any such software

support like update/ enhancement/upgrade shall be communicated to the Bank by the

Bidder within a period of one month from the date of release. The Bank reserves the right

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 49 of 250

to procure the update/enhancement/ System software upgrade and at an extra cost, if

the software is not under warranty and AMC.

3. If any software and Hardware upgrades and updates provided by the OEM as free of cost,

it should be provided and installed & configured by the selected bidder during Warranty

and AMC support [If contracted].

4. Any corruption in the Software or media shall be rectified during the full period of the

contract including Warranty and AMC, if contracted, at no extra cost to the Bank.

5. The system spare parts/services, as and when required, and complete maintenance of the

System during warranty period and AMC (if contracted), shall be supported for a period

not less than 6 years from the date of acceptance of live implementation of the System

by the Bank.

6. Service Support is defined specifically as helpdesk, update/enhancement, upgrade,

technical guidance, technical consultancy, enablement of features and functionality,

problem solving and troubleshooting, providing technical solution, rectification of bugs,

enabling features of the software already provided, providing additional user controlled

reports, Changes in configuration & settings, device configuration, enabling

parameterized features, future product information, migration, manpower resource

allotment for pre-planned activity, co-ordination for changes in structure, etc.

7. The support shall be given in person or through telephone, FAX, letter and E-mail within a

reasonable time as the case may be.

8. In future, if any configuration changes are required, it should be done by the bidder

during warranty and AMC period [if contracted]. However bank will intimate the bidder

well in advance for doing such configuration changes. Configuration changes may be done

either centrally or remotely. However If bidder personnel required at the remote place as

informed by the Bank, the bidder should arrange the personnel to make such

configuration / cooperation at the respective location. However in case the bidder has

any concerns, it should be informed to the bank in writing with reason for taking

appropriate/ amicable/ mutually agreed on decision in the matter.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 50 of 250

9. The Bank reserves the right to modify/update the parameter files/configuration with

required awareness of its consequences and any such modification/ updation will be

recorded for information of the selected bidder without any impact on the media as per

OEM descriptions.

10. Only licensed copies of software shall be supplied and ported. The bidder shall grant an

irrevocable perpetual license to the Bank to use the software. Further, all software

supplied shall be of latest version.

11. The Bidder shall also give an undertaking as a part of this contract to provide technical

consultancy and guidance for successful operation of the Risk Solutions and its expansion

in future by the Bank during the warranty and AMC period (if contracted). The said

undertaking letter shall be submitted along with the bid, otherwise, the bid is liable for

rejection.

12. Preventive maintenance shall be compulsory during Warranty and AMC period [if

contracted]. Preventive maintenance activity should be completed every quarter and

report should be submitted to the bank. Preventive maintenance activity should take care

of physical verification, device configuration verification, device health checkup, cleaning

of devices, fine-tuning the configuration, security checkup, verification of bugs/patches,

etc. The preventive maintenance report format shall be prepared by bank, the bidder

shall strictly follow the format of bank and submit the same for each location while

claiming AMC payment if contracted.

13. The image/video data stored on hard disk should be periodically taken as backup on

media provided by the Bank and handed over to the concerned branch.

14. The bidder shall provide centralized complaint booking facility to the bank and the dash

board, if available, shall be provided to the Bank. The method of booking complaints shall

be E-mail, Toll-free no, on line portal, web, etc.

3.4 Termination

3.4.1 Termination For Default

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 51 of 250

The Bank, without prejudice to any other remedy for breach of contract, by written notice of

default sent to the Successful Bidder, may terminate this Contract in whole or in part:

a. if the Successful Bidder fails to deliver any or all of the deliverables within the period(s)

specified in the Contract, or within any extension thereof granted by the Bank; or;

b. If the Successful Bidder fails to perform any other obligation(s) under the contract.

c. If the Successful Bidder, in the judgment of the Bank has engaged in corrupt or

fraudulent practices in competing for or in executing the Contract.

Corrupt practice means the offering, giving, receiving or soliciting of anything of value or

influence the action of a public official in the procurement process or in contract execution; and

“fraudulent practice” means a misrepresentation of facts in order to influence a procurement

process or the execution of a contract to the detriment of the Bank, and includes collusive

practice among Bidders (prior to or after bid submission) designed to establish bid prices at

artificial non‐competitive levels and to deprive the Bank of the benefits of free and open

competition.

3.4.2 In the event, the Bank terminates the Contract in whole or in part, the Bank may procure,

upon such terms and in such manner as it deems appropriate, Goods or Services similar to those

undelivered, and the Successful Bidder shall be liable to the Bank for any excess costs for such

similar Goods or Services. However, the Successful Bidder shall continue performance of the

Contract to the extent not terminated.

3.4.3 Termination for Insolvency

If the Bidder becomes bankrupt or insolvent, has a receiving order issued against it, compounds

with its creditors, or, if the Bidder is a corporation, a resolution is passed or order is made for its

winding up (other than a voluntary liquidation for the purposes of amalgamation or

reconstruction), a receiver is appointed over any part of its undertaking or assets, or if the

Bidder takes or suffers any other analogous action in consequence of debt; then the Bank may,

at any time, terminate the contract by giving written notice to the Bidder. If the contract is

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 52 of 250

terminated by the Bank in terms of this Clause, termination will be without compensation to the

Bidder, provided that such termination will not prejudice or affect any right of action or remedy

which has accrued or will accrue thereafter to the Bank. In case, the termination occurs before

implementation in all the locations in terms of this clause, the Bank is entitled to make its claim

to the extent of the amount already paid by the Bank to the Bidder.

3.4.4 Termination – Key Terms & Conditions

The Bank shall be entitled to terminate the agreement with the Bidder at any time by giving

ninety (90) days prior written notice to the Bidder. The Bank shall be entitled to terminate the

agreement at any time by giving notice if:

The Bidder

a. has a winding up order made against it; or

b. has a receiver appointed over all or substantial assets; or

c. is or becomes unable to pay its debts as they become due; or

d. enters into any arrangement or composition with or for the benefit of its creditors; or

e. Passes a resolution for its voluntary winding up or dissolution or if it is dissolved.

The Bidder shall have right to terminate only in the event of winding up of the Bank.

3.4.5 Consequences of Termination

In the event of termination of the Contract due to any cause whatsoever, [whether consequent

to the stipulated term of the Contract or otherwise], The Bank shall be entitled to impose any

such obligations and conditions and issue any clarifications as may be necessary to ensure an

efficient transition and effective business continuity of the Service(s) which the Bidder shall be

obliged to comply with and take all available steps to minimize loss resulting from that

termination/breach, and further allow the next successor Bidder to take over the obligations of

the erstwhile Bidder in relation to the execution/continued execution of the scope of the

Contract.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 53 of 250

In the event that the termination of the Contract is due to the expiry of the term of the

Contract, a decision not to grant any (further) extension by the Bank, the Bidder herein shall be

obliged to provide all such assistance to the next successor Bidder or any other person as may

be required and as the Bank may specify including training, where the successor(s) is a

representative/personnel of the Bank to enable the successor to adequately provide the

Service(s) hereunder, even where such assistance is required to be rendered for a reasonable

period that may extend beyond the term/earlier termination hereof.

Nothing herein shall restrict the right of the Bank to invoke the Performance Bank Guarantee

and other guarantees, securities furnished and pursue such other rights and/or remedies that

may be available to the Bank under law or otherwise.

The termination hereof shall not affect any accrued right or liability of either Party nor affect the

operation of the provisions of the Contract that are expressly or by implication intended to

come into or continue in force on or after such termination.

3.4.6 Exit Option

1. The Bank reserves the right to cancel the contract in the event of happening one or more of

the following Conditions:

a. Failure of the successful Bidder to accept the terms of the contract and furnish the

Performance Guarantee within 21 days from the date of signing of the Contract by the

Bank and the Bidder.

b. Failure of the bidder to agree on the term of the contract within 21 days from the date of

communication of award by the Bank and sharing of terms of contract by the Bank. If the

bidder does not meet this criteria, then the Bank may at its discretion declare the next

best bidder as the successful bidder.

c. Failure of the successful Bidder to sign the contract within 7 days from the agreement on

the terms of the issue of Contract by the Bank

d. Delay in completing installation / implementation and acceptance tests/ checks beyond

the specified periods;

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 54 of 250

e. Serious discrepancy in functionality to be provided or the performance levels agreed

upon, which have an impact on the functioning of the Bank.

f. In addition to the cancellation of contract, Bank reserves the right to appropriate the

damages through encashment of Bid Security/ Security Deposit /Performance Guarantee

given by the Bidder and retention money.

2. The Bank and the Bidder shall together prepare the Reverse Transition Plan as part of Bidder

exit plan. However, the Bank shall have the sole decision to ascertain whether such Plan has

been complied with.

3. Notwithstanding the existence of a dispute, and/or the commencement of arbitration

proceedings, the Bidder will be expected to continue the facilities management services. The

Bank shall have the sole and absolute discretion to decide whether proper reverse transition

mechanism over a period of 6 to 12 months, has been complied with.

4. Reverse Transition mechanism would typically include service and tasks that are required to

be performed / rendered by the Bidder to the Bank or its designee to ensure smooth

handover, transitioning of application knowledge, Bank’s deliverables, and maintenance and

facility management.

3.4.7 Termination for convenience

The Bank, by written notice sent to the Bidder, may terminate the Contract, in whole or in part,

at any time at its convenience. The notice of termination shall specify that termination is for the

Bank’s convenience, the extent to which performance of work under the Contract is terminated

and the date upon which such termination becomes effective.

3.4.8 Force Majeure

a. Notwithstanding the provisions of TCC (Terms & Conditions of the Contract), the Bidder shall

not be liable for forfeiture of its performance security, liquidated damages, or termination

for default if and to the extent that its delay in performance or other failure to perform its

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 55 of 250

obligations under the Contract is the result of an event of Force Majeure.

b. For purposes of this clause, “Force Majeure” means an event beyond the control of the

Bidder and not involving the Bidder’s fault or negligence and not foreseeable. Such events

may include, but are not restricted to, acts of the Bank in its sovereign capacity, wars or

revolutions, fires, floods, epidemics, quarantine restrictions, and freight embargoes.

c. If a Force Majeure situation arises, the Bidder shall promptly notify the Bank in writing of

such condition and the cause thereof. Unless otherwise directed by the Bank in writing, the

Bidder shall continue to perform its obligations under the Contract as far as is reasonably

practical, and shall seek all reasonable alternative means for performance not prevented by

the Force Majeure event.

4. Evaluation Methodology

Each Recipient acknowledges and accepts that the Bank may, in its sole and absolute discretion,

apply whatever criteria it deems appropriate in the selection of organizations, not limited to

those selection criteria set out in this RFP document. The issuance of RFP document is merely an

invitation to offer and must not be construed as any agreement or contract or arrangement nor

would it be construed as any investigation or review carried out by a Recipient. The Recipient

unconditionally acknowledges by submitting its response to this RFP document that it has not

relied on any idea, information, statement, representation, or warranty given in this RFP

document.

• The objective of the evaluation process is to evaluate the bids to select an effective solution

at a competitive price.

• Through this Request for Proposal, Bank aims to select a Bidder/ application provider who

would undertake the designing and implementation of the required solution. The Bidder

shall be entrusted with end‐to‐end responsibility for the execution of the project under the

scope of this RFP. The Bidder is expected to commit for the delivery of services with

performance levels set out in this RFP with a Service Level Agreement.

• The Bank has adopted a two bid process in which the Bidder has to submit (1) Technical Bid

and (2) Commercial Bids separately but at a time as stipulated.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 56 of 250

• The Bank shall evaluate the Technical Bids initially and based on Technical Bid evaluation

shall undertake evaluation of the Commercial bid of the technically qualified proposals only.

This will be followed by a techno‐commercial process for the technically qualified bidders.

• Bank will be evaluating the bids and its decision on selecting the bidder will be final.

4.1 Normalization of bids

The Bank will go through a process of technical evaluation and normalization of the bids to the

extent possible and feasible to ensure that Bidders are more or less on the same technical

ground. After the normalization process, if the Bank feels that any of the bids needs to be

normalized and that such normalization has a bearing on the commercial bid; the Bank may at

its discretion ask all the technically short‐listed Bidders to resubmit the technical and

commercial bids once again for scrutiny. The Bank can repeat this normalization process at

every stage of technical submission or till the Bank is satisfied. The Bidders agree that they have

no reservation or objection to the normalization process and all the technically short listed

Bidders will, by responding to this RFP, agree to participate in the normalization process and

extend their co‐operation to the Bank during this process. The Bidders, by submitting the

response to this RFP, agree to the process and conditions of the normalization process.

4.2 Opening of Bids by the Bank

4.2.1 Opening of Eligibility Criteria & Technical Bids

1. The Bank will open the Eligibility Criteria & Technical bid in the presence of Bidders’

representatives who choose to attend.

2. In case the bid opening date is declared a Bank holiday in Bangalore, the bids shall be

opened at the same time on the next working day.

3. Those Bidders satisfying the eligibility criteria and accepting the terms and conditions of

this document shall be short‐listed for further evaluation.

4. The Bank will examine the bids to determine whether they are complete, whether

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 57 of 250

required information has been provided as stated in the bid document, whether the

documents have been properly signed, and whether bids are generally in order.

5. The evaluation shall include fulfillment of functionality requirements as given in the RFP.

Any bid determined as not in order as per the specifications will be rejected by the Bank.

6. Any effort by Bidder to influence the Bank in the Bank’s bid evaluation, bid comparison

or contract award decision may result in the rejection of the Bidders’ bid. Bank’s decision

will be final and without prejudice and will be binding on all Bidders.

7. The Bank reserves the right to accept or reject any bid and annul the bidding process and

reject all bids at any time prior to award of contract, without thereby incurring any

liability to the affected Bidder or Bidders or any obligation to inform the affected Bidder

or Bidders of the ground for the Bank’s action.

8. To assist in the examination, evaluation and comparison of bids the Bank plans to, at its

discretion, ask the Bidders for clarification and response shall be in writing and no

change in the price or substance of the bid shall be sought, offered or permitted.

9. Technically short listed Bidders shall be invited for a presentation of the solution at a

date, time and venue to be conveyed separately. Final short listing for opening

commercial bids shall be done based on the solution demonstration and the ability of the

proposed solution to meet the functional requirements.

4.2.2 Opening of Commercial Bids

1. Technically qualified bidders will be informed about the date and time of opening of

commercial bid and they will be invited to participate in the opening of the bid. The

Commercial Bid (Part II) will be opened by the Bank notwithstanding the presence of the

bidders.

2. The Bidders’ names and bid prices will be recorded at the bid opening.

3. Commercial bids of technically non‐responsive Bidders shall be returned un‐opened.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 58 of 250

4.2.3 Determination of Successful Bidder and Awarding of Contract

On Completion of evaluation process of Technical Bid and Commercial Bid, Bank will carry out a

techno‐commercial evaluation of the bid as per business rules given in Sub Section 4.8 and

terms & conditions mentioned under Evaluation Criteria and the contract will be awarded to the

bidder having the highest Final Evaluation Score (FES) which is an outcome of Techno‐

Commercial Evaluation process.

Bidders are advised to refer to Section 4.4: Evaluation Criteria for details and methodology of

Evaluation Criteria

4.3 Eligibility Criteria

Sr.

No.

Eligibility Criteria Compliance

(Yes/ No)

Proofs to be enclosed

1. The Bidder (SI) must have a presence in

India for at least 3 years and should

have average revenues in excess of INR

100 Cr. For the past 3 financial years

i.e.2009‐10, 2010‐11& 2011‐12.

Provide provisional figure for 2012-13

Copies of Annual Reports in

case of listed companies and

Copies of audited balance

sheets and P&L statements in

case of others for past 3

financial years.

For 2012-13 provisional

certificates from auditors are

to be provided.

2. The proposed OEM/s must have a

presence in India for at least last 3 years

and should have Indian revenues in

excess of `10 Crores for the past 2

financial years i.e. 2010‐11& 2011‐12

Each of the OEMs should have an office

in India with support of adequate staff.

Copies Annual Report (in case

of listed companies) and

Latest audited financial

statements for others

Certificate of Incorporation,

Certification of

commencement of business.

Self-declaration containing

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 59 of 250

Sr.

No.


(Yes/ No)


the staff strength of the firm.

3. The Bidder (SI) and OEM should have

made Net Profit After Tax during the last

three financial years

Copies of Annual Reports (in

case of listed companies) and

copies of audited balance

sheets and P&L statements in

case of others.

4. The Bidder (SI) should own the

intellectual property rights of the

product / solution or he should have

rights from the owner If not, the Bidder

(SI) should have in place proper tie‐ups/

commercial agreements/ authorized

implementation partnership for

deployment/ resale/ customization of

software with the OEM whose software

products are offered.

Letter from OEM authorizing

the bidder to use the solution

and sign the contract for this

solution

5. The Bidder (SI) and OEMs should not

have been blacklisted at the time of

submission by the Central/any of the

State Governments/ statutory body/

regulatory body/Indian Banks

Association in India and globally.

Self-Declaration/s

6. The Bidder (SI) should be registered

company in India with an established set

up with support of adequate staff and

an office in Bangalore, India

Certificate of Incorporation,

Certification of

commencement of business

Self-declaration of offices in

India

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 60 of 250

Sr.

No.


(Yes/ No)


7. The Bidder (SI) / OEM having at least

one of the following Accreditations

ISO9001:2000, CMMI 5

Relevant and Valid

Certificates to be provided

(copies)

9. Disclosure of Conflict of Interest by

bidder/ OEM

Self-Declaration/s

10. Credit Risk - The Bidder (SI) should have

implemented/implementing a Credit

Risk Solution for Basel II Compliance

under FIRB and AIRB in 1 public sector

bank/private bank in India/globally. In

case of global implementations, the

implementation should be in

jurisdictions where IRB has been

adopted by the regulator.

Implementations in Co‐operative

banks (State Co‐operative banks,

District Central co‐operative banks,

Urban Co‐operative banks, etc.), credit

unions and housing building societies

shall not be considered for evaluation

Copies of credential letters

from bank(s) containing scope

of work, timelines and OEM

partners for the project

Case studies of

implementation where

available

11. Credit Risk – Loan Origination System

The Bidder (SI)/OEM should have

implemented/implementing a Loan

Origination System in at least 1 public

sector bank/private bank/financial

institution in India/globally.









Case studies of


available

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 61 of 250

Sr.

No.


(Yes/ No)




12. Operational Risk - The Bidder (SI) should

have implemented/implementing an

Operational Risk Solution for Basel II

Compliance under The Standardized

Approach and Advanced Measurement

Approach in 1 public sector


case of global implementation, the

implementation should be in a

jurisdiction where AMA has been












Case studies of


available

13. Market Risk - The Bidder (SI) should

have implemented/implementing a

Market Risk Solution for Basel II

Compliance under Internal Models

Approach in 1 public sector


case of global implementations, the


jurisdictions where IMA has been








Case studies of


available

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 62 of 250

Sr.

No.


(Yes/ No)






14. Asset Liability Management and Fund

Transfer Pricing – The bidder (SI) should

have implemented/implementing an

asset liability management solution in 1

public sector bank/ private bank in

India/globally.

In case of global implementations, the


jurisdictions where ALM guidelines have

been prescribed by the concerned

regulator.







Copies of the credential

Letter from the Bank(s)

containing scope of work,

timelines and OEM partners

for the project

Case studies of


available

15. Integrated Capital Computation and

Reporting Module –

The bidder (SI)/ OEM should have

implemented/implementing an

integrated capital computation module

in in at least 1 public sector

bank/private bank in India/globally.




Copies of Credential Letters

containing scope of work,

timelines and OEM partners

for the project

Case studies of


available

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 63 of 250

Sr.

No.


(Yes/ No)





4.4 Evaluation Criteria

4.4.1 Preliminary RFP Examination

The Bank will scrutinize the offers to determine whether they are complete, whether any errors

have been made in the offer, whether required technical documentation has been furnished,

whether the documents have been properly signed, and whether items are quoted as per the

schedule.

During the process of scrutiny, evaluation and comparison of offers, the Bank may, at its

discretion, seek clarifications from all the bidders/any of the bidders on the offer made by them.

The bidder has to respond to the bank and submit the relevant proof /supporting documents

required against clarifications, if applicable. The request for such clarifications and the Bidders

response will necessarily be in writing and it should be submitted within the time frame

stipulated by the Bank.

The Bank may, at its discretion, waive any minor non-conformity or any minor irregularity in an

offer. This shall be binding on all Bidders and the Bank reserves the right for such waivers and

the Bank’s decision in the matter will be final.

4.4.2 Technical Bid Evaluation Criteria

The proposal submitted by the Bidders shall be evaluated on technical grounds covering various

components of the projects as follows:

1. Functional requirements: The minimum functional specifications for the CRMS, ORMS,

MRMS and Integrated Capital Computation and Reporting Module are given in Section 6,

Section 7, Section 8 and Section 9 on Functional Requirements. All the requirements are

mandatory.

The total marks obtained against the total number of functional specifications will be a

maximum of 350 for evaluation in line with tables in Section 4.5 for each risk solution.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 64 of 250

The response to the functional requirements are to be furnished in the formats specified in

annexure no. 11.4 – Technical Bid Format

2. Technical Requirements: The minimum technical specifications for the CRMS, LOS, ORMS

MRMS, ALMS and Integrated Capital Computation and Reporting Module software are given

in Section 10 – Technical Requirements. All the requirements are mandatory.

The total marks obtained against the total number of technical specifications will be a

maximum of 100 for evaluation in line with tables in Section 4.5

The Response to functional and technical requirements should be as per the table below

Scale Description

S Standard feature: Required features readily available and to be provided by

the Bidder

A Alternative available: Bidder will suggest & provide the alternative

approach which should be convincing to the Bank. Alternative approach

may not be acceptable to the bank if it is not as per risk management

framework of bank. Bank will be the sole decision make in this respect.

C Customization required: Bidder will provide the customization within the

stipulated date as informed by Bank

U Unavailable; Functionality is not available and will not be provided by the

Bidder.

Response except ’S’/’A’/’C’/’U’ are not acceptable and will be treated as ‘Unavailable’

Each line item in the functional and technical requirement mentioned carry weights as

below, as per the response provided by the bidder.

Scale Weights

S-Standard feature 10

A-Alternative available 7

C-Customization required 5

U–Unavailable 0

4.4.3. Product Demonstration & Bid Presentation:

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 65 of 250

Eligible Bidders are required to make presentations to supplement their bids and show a

detailed product demonstration. The Bank will schedule presentations and the time and location

will be communicated to the Bidders. Failure of a Bidder to complete a scheduled presentation

to the Bank may result in rejection of the proposal.

The total marks obtained against product demonstration will be a maximum of 80 for evaluation

in line with the respective tables.

Technical score will be finalized based on both ‐ scores given to the Bidder as per functional

requirements product demonstration and presentation.

4.4.4. Past Experience:

The Bidder should provide details of past experience in implementing CRMS, LOS, ORMS, MRMS,

ALMS and Integrated Capital Computation and Reporting Module

a. The Bidder’s past experience shall be evaluated and the score obtained by the Bidder shall be

considered for evaluation as given in Annexure 11.10: Past Experience Details

b. The Bidder should provide the details of all the implementations in Banks including details of

Scope of Project, Number of Branches with breakup of the role, Proof of Implementation and

approval by the Regulatory Authority.

c. Experience at co‐operative banks (State Co‐operative banks, District Central co‐operative

banks, Urban Co‐operative banks, etc.) shall not be considered for evaluation.

4.4.5. Approach and Methodology

a. Reference site visit/ Call/ Email Confirmations: Executives from the Bank would carry out

Reference Site Visits and/or solicited email with the existing customers of the Bidder. The

inputs that have been received from the Customer would be considered by the Bank and

this might not need any documentary evidence. This rating would be purely on the inputs

(like satisfaction of the organization of the product, timeliness of implementation,

promptness of support services etc.) provided by the Bidder’s customers and score would be

assigned to Bidder as mentioned in Annexure 11.8: Reference Site Details.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 66 of 250

The Bank at its discretion may reject the proposal of the Bidder without giving any reasons

whatsoever, in case the responses received from the Site Visits are negative.

b. Team Strength:

i. Bidder responses to each point under Team Strength in Annexure 11.13:

Implementation Team Profile, including the team profile provided by the Bidder, would

be evaluated.

ii. The Bidder should ensure that the people above the role of the Team Lead who are

proposed for this project should have worked on projects in Indian Banks earlier.

c. Project Management

i. Bidders are required to respond to each point under Project Management set out for

CRMS, ORMS, MRMS, LOS, ALMS and Integrated Capital Computation and reporting

Module and each question will be evaluated for suitability of response.

ii. The Bidder should provide explanation on the Project Management process in the

formats prescribed within the Annexure 11.4 Technical Bid Format that is proposed for

the Bank including details of how the same was applied in a similar project.

d. Training:

i. The Bidder will be responsible for training the Bank’s employees in the areas of

implementation, operations, management, error handling, system administration, etc.

with respect to the implementation of EWIRM Solution.

ii. The training should be imparted in two ways – one for handling the solution and the

other for day to day users.

iii. The training will include functional as well as technical training to the implementation

group of the bank which is responsible for project oversight as decided by bank.

iv. The end user training should be also included in the scope. The end user must be trained

on all functionalities required for efficient daily operations of the EWIRM Solution.

v. The quality of the Bidder’s training program shall form an integral part of the final

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 67 of 250

evaluation and selection of the Bidder.

vi. The training requirements are set out for CRMS, ORMS, MRMS, LOS, ALMS and

Integrated Capital Computation and reporting Module. The questions pertain to the

training techniques, course details provided by the Bidder and the educational

qualifications and experience of the trainers.

vii. The bidder has to furnish responses to the training requirements in the format

prescribed in Annexure 11.4 Technical Bid Format.

4.5 Functional & Technical Evaluation Criteria

4.5.1. For Credit Risk Management Solution under IRB

Sr.

No.

Technical & Functional Evaluation Phase Sub Scores Max Total

Score

1 Functional Requirements Evaluation 350

2 Technical Requirements Evaluation 100

2.1 Technical Solution Evaluation 60

2.2 Proposed Hardware & Infrastructure Configuration Evaluation 40

3 Past Experience 300

3.1 Proposed solution is implemented/ under implementation (FIRB

and AIRB) in a Bank of comparable size/complexity of operations

as that of Canara Bank in a jurisdiction where FIRB and AIRB

Approach is adopted by the regulator (Outside India)

1 Bank 40

2 Banks 80

More than 2 banks 100

3.2 Proposed solution has been implemented under Standardized

Approach in Banks in India of comparable size/complexity of

operations as that of Canara Bank

1 Bank 5

2 Banks 10

More than 2 Banks 20

3.3 Proposed Solution is under implementation of FIRB and AIRB in

Banks in India of comparable size/complexity of operations as

that of Canara Bank

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 68 of 250

Sr.

No.


Score

1 Bank 80

2 Banks 100


3.4 Proposed solution has been implemented/ under

implementation for advanced approaches by the bidder and the

OEM together in a bank in India and globally

1 Bank 30

2 Banks 40


4 Product Demonstration – detailed product demonstration as per

the functionality requirement mentioned in the RFP

90

5 Approach & Methodology 150

5.1 Reference site visit/call/email 50

5.2 Team Strength 60

5.3 Project Management 20

5.4 Training 20

6 The proposed software must be positioned as “Leaders” (top 5)

in Gartner/Forrester/Chartis/Celent or any other globally

recognized body report in the last 2 years

10

Rank 1 to 2 10

Rank 3 to 4 7

Rank 5 5

TOTAL 1000

4.5.2. For Loan Origination System

Sr.

No.


Score

1 Functional Requirements evaluation

350

2 Technical Requirements Evaluation

100

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 69 of 250

Sr.

No.


Score




3.1 Proposed solution is implemented in 1 Bank/FI abroad

1 Bank/FI 30

2 Banks/FI 50

More than 2 Banks/FI 80

3.2 Proposed Solution is implemented in 1 Bank/FI in India

1 Bank/FI 80

2 Banks/FI 100

More than 2 Banks/FI 120

3.3

Proposed solution has been implemented/ under



1 Bank 50

2 Banks 80




100





5.4 Training 20

TOTAL 1000

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 70 of 250

4.5.3. For Operational Risk Management Solution

Sr.

No.

Technical & Functional Evaluation Phase Sub

Scores

Max Total

Score

1 Functional Requirements Evaluation 350





3.1 Proposed solution is implemented/ under implementation (AMA)

in a Bank of comparable size/complexity of operations as that of

Canara Bank in a jurisdiction where AMA is adopted by the

regulator (Outside India).

1 Bank 40

2 Banks 80


3.2 Offered solution has been implemented under The Standardized

Approach (TSA) in Banks in India /Globally of comparable

size/complexity of operations as that of Canara Bank

1 Bank 5

2 Banks 10


3.3 Offered Solution is under implementation of AMA in Banks in India

of comparable size/complexity of operations as that of Canara

Bank

1 Bank 80

2 Banks 100


3.4

Proposed solution has been implemented/ under implementation

for advanced approaches by the bidder and the OEM together in a

bank in India and globally

1 Bank 30

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 71 of 250

Sr.

No.

Technical & Functional Evaluation Phase Sub

Scores

Max Total

Score

2 Banks 40




90





5.4 Training 20

6 The proposed software must be positioned as “Leaders” (top 5) in

Gartner/Forrester/Chartis/Celent or any other globally recognized

body report in the last 2 years

10

Rank 1 to 2 10

Rank 3 to 4 7

Rank 5 5

TOTAL 1000

4.5.4. For Market Risk Management Solution

Sr.

No.


Score

1 Functional Requirements evaluation 350





3.1 Proposed solution is implemented/under implementation (IMA)

in a Bank in a Bank of comparable size/complexity of operations

as that of Canara Bank in a jurisdiction where IMA is adopted by

the regulator (Outside India).

1 Bank 40

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 72 of 250

Sr.

No.


Score

2 Banks 80


3.2 Proposed solution has implemented under the Standard

Measurement Methodology in Banks in India of comparable

size/complexity of operations as that of Canara Bank

1 Bank 5

2 Banks 10


3.3 Proposed Solution is under implementation of IMA in Banks India

of comparable size/complexity of operations as that of Canara

Bank

1 Bank 80

2 Banks 100


3.4 Proposed solution has been implemented/ under



1 Bank 30

2 Banks 40




90





5.4 Training 20




10

Rank 1 to 2 10

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 73 of 250

Sr.

No.


Score

Rank 3 to 4 7

Rank 5 5

TOTAL 1000

4.5.5. For Asset Liability Management Solution

Sr.

No.


Score






3.1 Proposed solution is implemented/under implementation in a

Bank of comparable size/complexity of operations as that of

Canara Bank in a jurisdiction where the regulator has prescribed

ALM guidelines (Outside India).

1 Bank 30

2 Banks 50


3.2 Proposed Solution is under implementation in a Bank in India of

comparable size/complexity of operations as that of Canara Bank

with current RBI guidelines

1 Bank 40

2 Banks 80


3.3


implementation by the bidder and the OEM together in a bank in

India and globally

1 Bank 50

2 Banks 90

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 74 of 250

Sr.

No.


Score




90





5.4 Training 20




10

Rank 1 to 2 10

Rank 3 to 4 7

Rank 5 5

TOTAL 1000

4.5.6. For Integrated Capital Computation and Reporting Module

Sr.

No.


Score






3.1 Proposed solution is Implemented/under implementation in 1

Bank abroad of comparable size/complexity of operations as that

of Canara Bank

1 Bank 30

2 Banks 50


CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 75 of 250

Sr.

No.


Score

3.2 Offered Solution is Implemented in 1 Bank in India of

comparable size/complexity of operations as that of Canara Bank

1 Bank 40

2 Banks 80


3.3


implementation by the bidder and the OEM together in a bank in

India and globally

1 Bank 50

2 Banks 90




90





5.4 Training 20




10

Rank 1 to 2 10

Rank 3 to 4 7

Rank 5 5

TOTAL 1000

4.6. Short listing of Technically Qualified Bidders

Technically qualified Bidders will be shortlisted based on the following criteria:

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 76 of 250

Bidders (RTS) scoring 75% or above in all the Credit Risk Management, Operational Risk

Management, Market Risk Management and Integrated Capital Computation and Reporting

Module individually in the technical evaluation will be short‐listed for commercial evaluation.

However, in case there are less than 3 Bidders who score 75% or above, the Bank may, at its

discretion, choose the top 3 scoring Bidders subject to the bidder scoring 65%.

The technical score Tx = Score from Technical Evaluation for Credit Risk + Score from Technical

Evaluation LOS + Score from Technical Evaluation for Operational Risk + Score from Technical

Evaluation for Market Risk + Score from Technical Evaluation for ALM + Score from Technical

Evaluation Integrated Capital & Reporting Module (The score will be out of 6000)

The Relative Technical Score (RTS) for the Bidders will be calculated based on the following

basis:

RTSx = Tx/ T1 *100

Where,

RTSx: Relative Technical Score of each Bidder

Tx: Technical Score of bidder X

T1: Technical Score of the Bidder with Highest Technical Score

Up to 4 decimal values will be considered for the score.

Example: If Bidder A scores 5500 points and has the highest technical score, thenT1 = 5500

If Bidder B scores 5000 points, then Bidder B is TB = 5000

Hence,

RTSA = 5500/5500*100 = 100.0000

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 77 of 250

RTSB = 5000/5500*100 = 90.9090

4.7. Commercial Evaluation Process

The technically qualified bidder will participate in the Commercial Evaluation process

The price quoted by the bidder in the Commercial Bid Format would be considered for the

commercial evaluation process.

The Relative Commercial Score (RCS) for each shortlisted Consultant will be calculated as given

below:

RCS = L1 / L * 100

Where,

RCS: Relative Commercial Score

L: Amount quoted by the current proposal

L1: Lowest Amount quoted by lowest quoted (L1) proposal

4.8. Techno – Commercial Evaluation Criteria

The final selection of a Bidder will be based on the outcome of the combined Technical &

Commercial Evaluation process for the qualified bidders in the Technical Bid round. For

finalization of the most competitive offer, the Bank will calculate Relative Commercial Score

(RCS) and assign 30% weightage to this score in the final evaluation. The Relative Technical Score

(RTS) will be assigned 70% weightage.

The Final Evaluation of Score (FES) will be as below:

FES = 0.70 * RTSX + 0.30 * RCSX

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 78 of 250

Where:

FESX = Final Evaluation Score of Vendor X

RTSX = Relative Technical Score of Vendor X

RCSX = Relative Commercial Score of Vendor X

The Bidder securing the highest FES would be the successful bidder. The Bidder whose technical

& commercial Bid is accepted will be referred to as “Successful Bidder” and the Bank will notify

the same to the Successful Bidder.

Bank reserves the right to select the next ranked Bidder if the selected Bidder withdraws his

proposal after selection or at the time of finalization of the contract or disqualified on detection

of wrong or misleading information in the proposal.

In case of a Tie between two or more Bidders for Final Evaluation Score (FES), the Bid with

higher Relative Technical Score would be chosen at the discretion of the Bank.

The Highest Technical bidder shall not automatically qualify for becoming selected bidder and

for award of contract by the bank.

The Lowest Commercial Bidder shall not automatically qualify for becoming selected Bidder and

for award of contract by the Bank.

The Bank shall not incur any liability to the affected Bidder on account of such rejection.

The final decision on the vendor will be taken by Canara Bank. The implementation of the

project will commence upon successful negotiation of a contract between Canara Bank and the

successful bidder based on the Techno – Commercial evaluation.

4.9. Disqualification Parameters in Technical Bid Evaluation

The Bank at its discretion may reject the proposal of the Bidder without giving any reason

whatsoever, if in the Bank’s opinion, the Solution does not meet the functional requirements

and other performance criteria as stipulated by the Bank.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 79 of 250

The Bank at its discretion may reject the proposal of the Bidder without giving any reasons

whatsoever, in case the responses received from the Site Visits are negative.

5. Other Terms & Conditions

5.1 Indemnity

The Bidder agrees to indemnify and keep indemnified the Bank against all losses, damages,

costs, charges and expenses incurred or suffered by the PURCHASER due to or on account of any

claim for infringement of copy right or any such right of any other person in the services or any

material or software provided by the Bidder.

The Bidder agrees to indemnify and keep indemnified the Bank against all losses, damages,

costs, charges and expenses incurred or suffered by the Bank due to or on account of any

breach of the terms and conditions contained in this agreement.

The Bidder agrees to indemnify and keep indemnified Bank at all times against all claims,

demands, actions, costs, expenses (including legal expenses), loss or reputation and suits which

may arise or be brought against the purchaser, by third parties on account of negligence or

failure to fulfill obligations by contractor.

All indemnities shall survive notwithstanding expiry or termination of Contract and Bidder shall

continue to be liable under the indemnities.

5.2 Liquidated Damages

5.2.1 Liquidated Damages for delay:

In case of delayed supply or implementation, the supplier shall be liable to pay as Liquidated

damages at the rates specified below, for each completed week of delay or part thereof, on the

purchase order value of the EWIRM Solution.

Liquidate Damages rate per week or

part thereof

Delay Period

1% of the contract price with a

maximum cap of 10%

For each week of delay

The bank may however extend the time of completion under Force Majeure conditions.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 80 of 250

5.2.2 Liquidated damages for non-performance:

If the specifications of the RFP are not met by the Bidder during various tests, the Bidder shall

immediately rectify or replace the same to comply with the specifications as defined in the RFP

and within the committed response time, failing which the Bank has the sole right either to

reject or to accept it finally by recovering the suitable amount as deemed reasonable by the

Bank out of the payments due to the vendor or even by invocation of Performance Guarantee.

Both the above clauses are independent of each other and are applicable separately and

concurrently.

The bidder agrees and considers that the liquidated damages set out herein above are fair and

reasonable and that he will raise no objection or dispute with regard to the bank’s right to

recover the liquidated damages.

The liquidated damages shall be deducted / recovered by the bank from any money due or

becoming due to the bidder under this purchase contract or may be recovered by encashment

of bank guarantees or otherwise from supplier.

5.3 Penalty

The Bidder shall perform its obligations under the agreement entered into with The Bank, in a

professional manner.

If any act or failure by the Bidder under the agreement results in failure or inoperability of

systems and if The Bank has to take corrective actions to ensure functionality of its property,

The Bank reserves the right to impose penalty, which may be equal to the cost it incurs or the

loss it suffers for such failures.

The Bank plans to impose penalty to the extent of damage to its any equipment, if the damage

was due to the actions directly attributable to the staff of Bidder.

The Bank shall implement all penalty clauses after giving due notice to the Bidder.

If the Bidder fails to complete the due performance of the contract in accordance with the

specification and conditions of the offer document, The Bank reserves the right either to cancel

the order or to recover a suitable amount as deemed reasonable as Penalty / Liquidated

Damage for non-performance.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 81 of 250

Failure to maintain uptime SLA will attract penalty as given in Section 3.1.8: Service Level

Agreement

Failure to meet the required timelines/deadlines for various milestones for implementation

would attract penalty as given in Section 5.2: Liquidated Damages.

5.4 Insurance

The equipment (hardware, software etc.) supplied under the contract shall be fully insured by

the successful Bidder against loss or damage incidental to manufacture or acquisition,

transportation, storage, delivery and installation. The insurance shall be obtained by the Bidder

naming Canara Bank as the beneficiary, for an amount Equal to 100% of the invoiced value of

the goods on “all risks" basis. The period of insurance shall be up to the date the supplies are

accepted and the rights of the property are transferred to The Bank. The successful bidder shall

ensure that the insurance policy is in force and make necessary arrangement for renewal of the

policy whenever required.

Should any loss or damage occur, the selected Bidder shall: ‐

i. initiate and pursue claim till settlement and

ii. Promptly make arrangements for repair and / or replacement of any damaged item

irrespective of settlement of claim by the underwriters.

5.5 Inspection & Tests

Bank shall have the right to inspect and / or test the goods to check their conformity to the

contract specifications at no extra cost to the purchaser.

The inspection and test may be done on the premises of the supplier or at the point of delivery.

5.6 Warranty

The offer must include comprehensive on‐site warranty of 1 year from the date of go live of

Enterprise Wide Integrated Risk Management system. Bidder must provide warranty for all

equipment, accessories etc.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 82 of 250

5.7 Delivery of servers – period

The goods are to be delivered within six weeks from the date of signing of contract.

5.8 AMC price Validity

The prices finalized shall remain valid for six months from the date of purchase order. However,

AMC price will remain valid for 5 years post warranty period.

5.9 Dispute Resolution

If a dispute, controversy or claim arises out of or relates to the contract, or breach, termination

or invalidity thereof, and if such dispute, controversy or claim cannot be settled and resolved by

the Parties through discussion and negotiation, then the Parties shall refer such dispute to

arbitration.

Both Parties may agree upon a single arbitrator or each Party shall appoint one arbitrator and

the two appointed arbitrators shall thereupon appoint a third arbitrator.

The arbitration shall be conducted in English and a written order shall be prepared.

The venue of such arbitration shall be at Bangalore. The arbitration shall be held in accordance

with the Arbitration and Conciliation Act, 1996. The decision of the arbitrator shall be final and

binding upon the Parties, provided that each Party shall at all times be entitled to obtain

equitable, injunctive or similar relief from any court having jurisdiction in order to protect its

intellectual property and confidential information.

5.10 Project Documentation and Manuals

All works related to the assignment handled are to be well documented and will form the part

of deliverables.

They should be delivered both in hard copy and soft copy at the end of the each stage.

5.11 Right to reject bids

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 83 of 250

The Bank reserves the absolute and unconditional right to reject the bid if it is not in accordance

with RFP terms and conditions and no correspondence shall be entertained by the Bank in the

matter. The bid is liable to be rejected if:

• It is not in conformity with the instructions mentioned in the RFP document including its

annexures.

• It is not accompanied by the requisite bid document price & EMD.

• It is not properly/duly signed.

• It is received through any mode other than the prescribed mode.

• It is received after expiry of the due date and time.

• It is incomplete including non-furnishing the required documents.

• It is evasive or contains incorrect information.

• There is canvassing/ lobbying/influence/query regarding short listing, status etc. of any kind.

5.12 Change Orders

The Bank may, at any time, by a written order given to the successful bidder, make changes

within the general scope of the Contract in Technical and functional specifications. If any such

change causes an increase or decrease in the cost of, or the time required for the successful

bidder’s performance of any provisions under the Contract, an equitable adjustment shall be

made in the Contract Price or delivery schedule, or both, and the Contract shall accordingly be

amended. Any claims by the successful bidder for adjustment under this clause should be

asserted within thirty (30) days from the date of successful bidder’s receipt of Bank’s change

order.

5.13 Substitution of Project Team Members

During the project, the substitution of project team including project manager identified for the

assignment will not be allowed unless such substitution becomes unavoidable to overcome the

undue delay or that such changes are critical to meet the obligation. In such circumstances, the

Bidder, as the case may be, can do so only with the prior written concurrence of the Bank and

by providing the replacement staff of the same level of qualifications and competence. If the

Bank is not satisfied with the substitution, the Bank reserves the right to terminate the contract

and recover whatever payments(including past payments and payment made in advance) made

by the Bank to the Bidder during the course of the assignment pursuant to this RFP besides

claiming an amount equal to the contract value as liquidated damages. However, the Bank

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 84 of 250

reserves the unconditional right to insist the Bidder to replace any team member with another

(with the qualifications and competence as required by the Bank) during the course of

assignment pursuant to this RFP.

6. Functional Requirements for Credit Risk

The Bank aims to migrate to the Internal Ratings based Approaches (IRB) for Credit risk as per

Basel II, Basel III and RBI guidelines. The solution should support estimation of all risk

components and capital calculations (regulatory & economic) as per the guidelines issued by RBI

and Basel under the Standardized and IRB approaches. The solution should be able to meet the

Pillar I, II, III and stress testing requirements as per Basel‐II / RBI guidelines and Basel‐III

guidelines. The solution should be capable of supporting all the required statistical, analytical,

risk modeling, pricing and reporting requirements.

6.1 Functional Requirements

6.1.1 Functional Requirements for Credit Risk under IRB

The responses to the requirements mentioned within this section are to be furnished in the

format specified in Annexure 11.4 Technical Bid Format in sub section 11.4.1.

Sr. No. Credit Risk Functional Requirements

1.0 Analytics – Solution for Model Development and Validation

The solution should provide a statistical package / tool for credit risk model

development and model validation. The solution should support the following key

features:

1.1

Data Management Capability:

Support access of data via multiple data sources, databases and support diverse file

types. Access and integrate structured and unstructured data sources.

Ability to read data in any format, from any kind of file, including variable-length

records, binary files, free-formatted data and even files with messy or missing data.

The solution should have capability to import text files (delimited and fixed width),

Excels, MS Access and other standard data format. Support Structured Query

Language (SQL).

Support export of data in multiple formats for use or update into different tools and

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 85 of 250


system – delimited text files, Excel, MS Access, XML, SAS, SPSS Statistics, etc. Exports

results to other applications such as Adobe Acrobat, Microsoft Excel, HTML or

Microsoft Word.

Support implementation of process that continuously and/or on demand provides

up-to-date de-normalized tables with customer data from multiple sources. Support

automatic update of analyses as per the schedule. Enable automatic data preparation

in a single set

Support consolidation of customer and account information from a multitude of

systems and tables

Enable filtering, labeling, derivation of variables, binning, ranking, field reordering of

fields

Create and maintain historical tables on customer and account which can be used

any time for model development, model validation, model monitoring

Enable outlier filtering, data sampling, data partitioning, merge and append, sorting,

Univariate statistics, Bivariate statistics, segment analysis, data quality check and

report, interactively linked plots, missing data imputation etc.

Enables string functions like string creation, substitution, search, whitespace removal

and truncation

Should include interactive Graph Builder which enables to drag and drop variables.

The tool should be able to generate various types of graphs including but not limited

to area chart, bar chart, box plot, bubble plot, line plot, map graph, pie chart, radar

chart, scatter plot, surface plot and contour plot.

Have Interactive variable binning.

Transparently document, create logs of all data creation, transformation and analysis

Enable impact analysis and reverse impact analysis, i.e. is the user should be able to

verify which source fields were used to create a derived field, and which fields are

impacted by changes in fields downstream

The solution should enable relevant user(s) to configure sources of data for model

development and validation.

the solution should address various country/language specific data quality concerns

the system should

o connect to various data sources natively and via ODBC

o identify redundant data analysis

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 86 of 250


o ensure data standardization

o capable of ensuring uniform data value representation

o correct mistakes in spellings, inconsistencies, casings and abbreviations

the system should be

o available for batch mode data quality implementation

o available for real time (online) mode data quality implementation

o extendable to enterprise wide data integration capabilities

o extendable and/integrated to querying & reporting modules across enterprise

o extendable and/integrated to analytical solutions across enterprise

o extendable and/integrated to vertical solutions across enterprise

the solution should

o Be interoperable

o natively read and write data from RDBMS

o natively read and write data from Mainframes & ERP

o have scheduling capabilities

o have data transformation capabilities

o have data synchronization and data federation capabilities

The tool should support Sampling for model development and validation

The tool should support sample using Random, Systematic and Stratified sampling

Criteria and data used for sampling process should be saved

Every sample modification should carry an audit trail

Option to exclude specific items from the sample should be available along with audit

trail

The tool should be able to perform a test on the representativeness of a sample

against the total database

The sampling technique used in the tool should automatically provide a set of

samples for comparison

The solution should enable relevant user(s) to configure sampling criteria. For

example, the user should be able to specify the portfolio, product, time period etc.

for the sampling data.

The solution should be able to retrieve data on demand as per the sampling criteria

defined.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 87 of 250


1.2

Analytical Capability – model development and validation:

The tool should provide a methodology for development of models using Analysis of

variance, Mixed models, Regression, Categorical data analysis, Bayesian analysis,

Multivariate analysis, Survival analysis, Psychometric analysis, Cluster analysis,

Nonparametric analysis, Survey data analysis, Multiple imputation for missing values

System should

o help in structure discoveries

o enable frequency distribution

o enable pattern distribution

o help in data discoveries

o provide metadata validations and statistics

o identify data scarcity

o identify outliers and percentiles

o allow identifications on range and domain checks

o help in relationship discoveries

o identify referential integrity (pk/fk relationship) analysis

o perform the data quality functionalities without creating a copy of the data in

a proprietary/external format

o enable application of flexible business rules for validations

o enable drill through to source level information

o have the capability to cluster records

o have intuitive, flexible rules to identify households

o provide fuzzy logic to induce tolerance during matching

o use the parsed data to provide flexible matching criteria

o use scoring algorithms

o have the capability to merge the records into a gold standard

o have options for manual/automatic merging of clustered records

o enable to define rules for record and/or field selections during the merging

process

o have the capability to enrich data from internal data sources

o have the capability to enrich data from external/third party data sources

o invoke events to correct the data

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 88 of 250


The tool should provide capabilities to perform linear and nonlinear modeling,

classical statistical tests, time-series analysis, classification, clustering, and other

analytics including but not limited to:

Analysis of Variance (ANOVA) predictive models: t-test, one-way ANOVA,

nonparametric one-way ANOVA, linear models and mixed linear models.

Linear regression, Probit, Logit, logistic - binary, logistic multinomial (Unordered,

Ordered), nonlinear, generalized linear models and non-parametric regression.

Cluster analysis, CART, CHAID, factor analysis, principal components, canonical

correlation and discriminant function analysis.

Survival analysis: Life table and proportional hazards.

Control charts: mean and range, mean and standard deviation, individual

measurements, box, p, np, u and c charts.

Pareto: Pareto charts.

Monte Carlo Simulation

Gini indices

Correlation analysis

Forecasting: Data transformation, basic forecasting, ARIMA modeling and

forecasting, regression analysis with autoregressive errors and regression analysis of

panel data.

Support Neural Network, Genetic algorithm and Bayesian algorithm

Operations research: Numerical optimization, algebraic modeling language, project

and resource scheduling, generic algorithms and constraint programming.

Support grouping of variables through automatically creating groupings and allowing

to change the groupings interactively

Supporting modeling for: multiple category – binary, ordinal, nominal and continuous

Support Vector Machines

Support automatic modeling, regression – stepwise, backward and forward

Enable documentation and logs for the model development process

Have capability to archive models, model development process, validation process

and logs

Enable creation of pools for the retail portfolio based on the following criteria’s:-

Segmentation of the credit exposures using clustering techniques

Range of credit scores

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 89 of 250


Range of PD values

Range of PD & LGD values

Range of PD, LGD & CCF values

The solution should fulfill requirements of Working Paper 14 of BCBS document for

the validation of the rating systems.

The model validation solution should be able to perform validation of:

Internal rating system for various portfolios

Scoring models and Probability of Default (‘PD’) models (retail, corporates, sovereign,

equity and banks)

Loss Given Default (‘LGD’) models (retail, corporates, sovereign and banks)

Exposure at Default (‘EAD’) models (retail, corporates, sovereign and banks)

Solution should contain statistical package to support model validation tests such as:

Rating System and PD validation:

Discriminatory power test

Frequency and cumulative distribution graphs for both defaulters and non-defaulters

Cumulative Accuracy Profile (CAP) and its summary index, the Accuracy Ratio (AR)

Receiver Operating Characteristic (ROC) or the Area Under Curve (AUC) and its

summary indices, the Gini and

KS Statistic

Pairwise correlations

Expert ranking correlation

Kendall’s τ and Somers’ D (benchmarking)

Brier Score

Calibration accuracy test

Observed default rates compared to PDs for overall portfolio and at each rating

grade.

Binomial test

Chi-square test

Normal test

Traffic lights approach

Observed migration compared to projected migrations

Stability analysis

Population Stability Index (PSI)

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 90 of 250


Rating migration matrix to illustrate rating stability

Granularity

Herfindahl Index (HHI)

Concentration per rating over time

Gini coefficient

LGD Model Validation

Discriminatory Power

Frequency and cumulative distribution graphs for observed and actual losses per LGD

bucket (or percentile).

Proxy Gini measure

Pair-wise correlations

Calibration

Observed loss rates compared to average predicted LGD for the overall portfolio and

per loss bucket (or percentile)

Applying ordinary least squares to fit the best linear regression, compare the

observed versus the predicted LGD

R-squared, Correlation

Observed versus predicted: recovery rate, cure rate, collateral values post default,

time to default, recovery costs

Stability

LGD migration between buckets (or percentiles)

Population stability index of: Key risk drivers including recoveries, collateral values

(pre and post default), recovery cost, cure rate and time to default and Overall

output

Granularity

Herfindahl index

Concentration per LGD bucket (or percentile) over time

EAD Model Validation

Discriminatory Power

Frequency and cumulative distribution graphs for observed and actual EADs.

Calibration Accuracy

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 91 of 250


Test if the average observed EAD equals the average predicted EAD

Applying ordinary least squares to fit the best linear regression, compare the

observed versus the predicted EAD

R-squared, Correlation

Stability

EAD migration between buckets (or percentiles)

Population stability index of overall EAD outputs

1.3

Model Deployment

Solution should support export of model implementation code in different format –

SQL, PMML, C, Java etc.

Support Interactive scoring in real-time or as batch process

1.4 The solution should support the creation of model inventory including but not limited

to areas of model development, amendments, validation performed including those

in the past, usage and so on

1.5 The solution should

Be able to analyze big data and generate visualizations on the fly, without any

performance degradation

have integrated modules for in-memory analytics comprising data preparation,

exploration, visualization and administration

provide self-service analytics on data in-memory without the need to create a

semantic metadata layer prior to exploration, thus reducing dependency for end

users

provide capabilities to forecast on the fly with forecasting confidence intervals to

further enhance data exploration and analysis.

provide Geographical map views to provide a quick understanding of geospatial data

have the capability to monitor the In-memory server environment including resource

utilization including CPU, I/O and memory, Mobile device logging history.

The solution should include/support

corporate and macro-economic variables included in the pre-defined mart, allowing

their use in models easily

Altmans Z through variables definitions

Pluto-Tasche method for LDP’s

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 92 of 250


Complex derived variables and allow for covenant based default definitions

Development and execution of facility and customer level scorecards – application

and behavioural

The solution should provide Quantitative risk strategies to integrate scorecard output

with other qualitative inputs based on business knowledge to facilitate informed

decision making

2.0 Capital Calculator

2.1 Asset Categorization

2.1.1 The solution should have the ability to categorize Bank’s exposures into IRB asset

classes as defined in RBI’s IRB Guidelines based on business rules. Asset/sub-asset

classes should include:

Corporate

Corporate Exposures

SME Corporate Exposures

Specialised Lending

Project Finance

Object Finance

Commodities Finance

Income Producing Real Estate

Sovereign

Bank

Retail

Exposures secured by residential properties

Qualifying revolving retail exposures

Other retail Exposures

Equity

Others

Comprising of fixed assets, venture capital fund, loans and advances to bank’s own

staff and any other exposure which the bank is not able to categorize under the five

asset classes given above

Securitization exposures

2.1.2 The system should be able to identify exposures to ECGC, BIS, IMF or any other

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 93 of 250


MDB under the Bank asset class

2.1.3 The system should be able to identify restructured and default assets under each

asset category. Additionally, it should be able to identify restructured assets for

which ‘hardship’ clauses apply

2.1.4 The solution should be able to determine categorization exposure for each

transaction based on the product type, sanctioned limit and outstanding For e.g. :

for all fund based and non-fund based facilities including all forms of off-balance

sheet exposures, exposure would mean sanctioned limit or the actual outstanding

whichever is higher. In case of term loans and EMI based facilities, where there is no

scope for redrawing any portion of the sanctioned amounts, exposure shall mean

the actual outstanding.

2.1.5 The system should provide ability to add new business rules and modify existing

business rules based on changing regulations

2..2 Risk Components Determination

2.2.1 The system should have the ability to configure capital treatment approach per asset

category. The capital treatments include:

Standardized approach for all asset categories (for parallel run)

Foundation and Advanced IRB approach for corporate, bank and sovereign exposures

IRB for retail exposures

Equity IRB approaches:

PD/LGD approach

Market based approach

Simple risk weighted approach

Internal models method

Securitization IRB

Securitization Supervisory Formula (‘SF’)

Securitization Ratings-Based Approach (‘RBA’)

Supervisory Slotting for Specialized Lending

IRB approaches for purchased receivables – top down and bottom up approaches for

corporate purchase receivables and treatment for handling homogenous and

heterogeneous pools for retail purchase receivables

2.2.2 For portfolios under the standardised/simple risk weight/ supervisory formula

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 94 of 250


approaches, the solution should be able to map the exposures to appropriate

supervisory risk weights

2.2.3 The solution should be able to identify failed/default transactions and compute

capital for them as well

2.2.4 For securitization exposures, the solution should be able to apply a hierarchy of

approaches based on whether ratings are available or can be inferred

2.3 Final Value of Risk Components

2.3.1 Probability of Default

2.3.1.1 The solution should be able to map the transactions to appropriate PD values based

on facility and obligor characteristics and parameters in the relevant model

2.3.1.2 For each non-retail exposure, the solution should be able to map a single PD for all

multiple facilities/ exposures to the same customer.

For retail, the solution should be able to map PDs to each retail pool, identify

facilities in the pool and assign PD at a facility level.

2.3.1.3 The solution should be able to perform PD substitution in case of eligible guarantee

2.3.1.4 The solution should be able to apply a proxy PD where one does not exist

2.3.1.5 The solution should be able to accommodate inputs from external PD models

2.3.1.6 The solution should support use of business logic in order to apply the correct PD in

instances where more than one exists. For example, if new rating model (and as a

result associated PD) has been implemented, but not yet approved for use in

regulatory calculations

2.3.1.7 The solution should support situations where new PD rating models have been

developed, but not implemented, in order to assess the RWA impact on the portfolio

(or a sub-section thereof). For example through the use of a test/sandpit

environment that allows for analysis and comparison with live data

2.3.1.8 The solution should apply the supervisory floors (wherever applicable)

2.3.2 Loss Given Default/BEEL

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 95 of 250


2.3.2.1 The solution should be able to map the transactions to appropriate LGD values based

on facility, obligor characteristics and level of collateralization and lookup tables

provided by model development function

2.3.2.2 The solution should be able to handle inputs from external LGD models

2.3.2.3 The solution should support situations where new LGD estimates have been

developed, but not implemented, in order to assess the RWA impact on the portfolio

(or a sub-section thereof).For example through the use of a test/sandpit

environment that allows for analysis and comparison with live data

2.3.2.4 The solution should apply the supervisory floors (wherever applicable) For e.g. A

floor of 20% for LGDs for retail exposures secured by residential properties

2.3.2.5 The solution should be able to optimize the use of credit risk mitigants to enhance

the use of capital

2.3.2.6 For defaulted assets, the solution should be able to compute BEEL that considers the

amount of loss and the provisions

2.3.3 Exposure at Default

2.3.3.1 For on balance sheet exposures, the solution should support adjusting exposure

amounts for netting agreements

2.3.3.2 The solution should be able to apply appropriate haircuts to collateral (under the

netting agreement) for currency and maturity mismatches

2.3.3.3 Apply appropriate CCFs based on nature of transaction and capital treatment

approach i.e. AIRB

2.3.4 Maturity

2.3.4.1 The solution should compute effective maturity for the Bank’s non-retail exposures

(under the AIRB approach) based on expected cash flows and payment schedule for

repayment

2.3.4.2 The solution should be able apply residual maturity if effective maturity cannot be

computed

2.3.4.3 The solution should apply the supervisory floors and caps (wherever applicable)

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 96 of 250


2.4 Manual Adjustments

2.4.1 The solution should have the ability to add, remove and modify transactions and

view data pre and post adjustment

2.4.2 The solution should have a provision to apply overrides at different levels :

transaction level and asset class level along with provision to capture rationale for

overdue

2.4.3 The solution should support configuration of an escalation matrix for approval for

the manual adjustments

2.4.4 The solution should identify the user (maker) applying a manual adjustment and the

user (checker) approving a manual adjustment as per delegation of authority matrix

2.4.5 The solution should enable adjustments before and after the RWA calculation and

re-performing the computation of RWAs

2.4.6 The system should enable bulk uploads for any missing transactions

2.4.7 The solution should allow reversal of the adjustments made

2.4.8 The solution should maintain an audit trail of all adjustments

2.5 RWA Calculation

2.5.1 The solution should be able to compute RWA at various levels : transactional level,

product level, exposure level and business unit and bank levels

2.5.2 The solution should support:

calculating an external view of the portfolio's RWA calculations, where all inputs /

models are approved for use by the regulator

calculating an internal view of the portfolio's RWA calculations, which include risk

components based on models which have not been approved by the regulator

calculating regulatory RWAs for the same portfolio under different approaches when

there is a specific requirement for a parallel run (e.g. in the case of a portfolio

moving from standardized to IRB approach)

2.5.3 The system should be able compute RWA for defaulted assets as a difference of

downturn and Best Estimate of Expected Loss (BEEL)

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 97 of 250


2.5.4 The solution should have the ability to calculate Expected Loss (EL) and Excess EL

2.5.5 The solution be able to apply the relevant correlations per asset class and perform

firm-size adjustment for small and medium size entities as per the RBI guidelines

2.5.6 The solution should be able to calculate capital charges for default and dilution risk

for purchase receivables (corporate and retail exposures)

2.5.7 The solution should be able to calculate RWA reduction generated by securitization

of assets

2.5.8 The solution should be capable of performing daily and monthly regulatory RWA

calculations

2.5.9 The solution should be able to display original currencies and rupee equivalents by

using the same exchange rate provided by the front office for conversion of currency

to rupee equivalent.

2.6 RWA Aggregation

2.6.1 The solution should be able to aggregate RWA across all asset classes

2.6.2 The solution should be able to apply the scaling factor for all relevant assets classes

(assets for which the IRB treatment is applied)

2.6.3 The solution should be able to compare the amount of total eligible provisions with

the total EL amount as calculated within the IRB approach for determining

deductions to capital / common equity

3.0 Credit Risk Stress Testing and Event Identification

3.1 The system should have the capability to create, edit and maintain a scenario library

containing both bank-wide and business unit specific scenarios with assumptions,

portfolios and considered exclusion etc.

3.2 The system should have the ability to execute stress tests at a portfolio (or

exposures at a bank level) or a sub-portfolio or transaction level and should provide

ability to capture supporting information such as:

Scenario description and key assumptions.

Macroeconomic and industry specific data for specific stress testing themes based

on particular business groups and pre-defined scenarios.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 98 of 250


Stress the following key credit risk parameters:

PD (PIT and TTC) – Client, Portfolio Segment & Geography

Credit rating migration matrices

LGD (normal & downturn)

EAD via stressed CCFs

Correlations between PD/LGD/EAD

Collateral haircuts

Loss rates by product type and vintage for securitization

Other parameters decided by the bank periodically

3.3 The system should have the following capabilities with respect to the requirements

for Business Stress Testing:

The system should have the ability to set triggers for industries based on pre-

determined thresholds for Key Risk Indicators (KRIs) to alert the CRMD for initiating

stress tests.

The system should have the capability to link the primary industries with the

identified ancillary or second-order industries based on correlations.

3.4 The credit risk stress testing module should support quantifying the impact of stress

scenarios on the following performance measures at the Bank level and for sub-

portfolios (e.g. Corporate loans, Treasury Portfolios, etc.):

Expected loss;

Provisions on defaulted exposures;

Unexpected loss;

Risk weighted assets;

Profitability;

Growth in Non-Performing Assets on selected portfolios

Growth Rates of the bank across Core Industries

Total Income of the Bank

Economic capital; and

Capital Ratios (e.g. CRAR)

Other parameters as decided by the bank

3.5 The system should support facility by facility and/or higher level portfolio or

geography level stress testing to exposures and credit risk parameters, as part of

overall stress testing scenario.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 99 of 250


3.6 System should be able to support manual overrides of parameters, stress test

results and maintain trails for the same.

3.7 System should capture the management action recommended for the scenarios

based on the severity of the results of the scenarios.

3.8 The system should provide ability to compare the following measures for base and

stressed conditions: exposures, credit risk parameters and resulting capital and

loss estimates.

3.9 System should provide ability to apply stress test scenarios for the current as well as

simulated portfolios of the Bank.

3.10 The system should be capable of performing/supporting reverse stress testing

including linking potential scenarios to targeted capital or tail losses

3.11 System should have the ability to connect with external sources to extract

information on economic factors, industry trends etc.

4.0 Limit Setting and Approval

4.1 The system should:

Provide capability to identify portfolios based on risk profile aggregation along with

ability to define and determine portfolio limits (across various dimensions e.g.

industry, sector, rating group) based on risk based approach (e.g. internal rating

scale)

Be able to develop and support optimization models (e.g. Hill Climbing Algorithms)

to determine credit limits.

Provide workflow mechanism to manage a rule-based limit approval process. Ability

to configure multiple approval workflows depending on business lines, products and

other considerations.

Maintain complete audit trail of the changes made with respect to change/approval

of limits.

Incorporate the effects of netting agreements, collateral and credit risk transfer

mechanisms (Credit Default Swap (CDS) and guarantees) while computing portfolio

risk for the bank.

Provide ability to calculate credit P/L for the portfolios considering default / no-

default and rating-transitions.

Provide ability to compute credit portfolio metrics including Expected Loss (EL),

Unexpected Loss (UL), Credit VaR (CVaR) and Expected Shortfall (ES) on marginal

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 100 of 250


and standalone basis for various portfolios and sub portfolios.

Have capability to capture inputs of bank strategy across parameters such as growth

in exposure to specific sectors, regions, products etc.

Periodic alerts to users when limit is due for review

5.0 Exposure Calculation, Aggregation and Concentration Risk

Non-Fund Based Market Related Products

5.1 The system should be able to estimate exposure for different purposes:

Regulatory Capital calculations

Economic Capital Calculations

Credit Risk Control purposes (e.g. Limit setting, Concentration monitoring)

5.2 System should be able to determine Mark to Market (MTM) or replacement value

using full-revaluation approach for the following set of indicative products:

Derivative products – FRAs, Interest Rate Swaps, Cross Currency Swaps, FX forward

and FX options;

Equities;

Mutual Fund units;

Corporate Bonds, Government Securities, Hybrid Securities;

Structured notes (e.g. CLNs, CDOs); and

Money market products – Commercial papers, Commercial deposits, repos, reverse

repos.

5.3 System should provide ability to determine Potential Future Exposure (PFE) for off-

balance sheet items including derivatives and other non-fund based banking

products for normal market conditions and stress market conditions.

5.4 System should be able to determine Potential Future Exposure using different

approaches:

Monte-Carlo simulation based approach.

Credit Conversion Factor (CCF) based approach (MTM + Add-on approach).

Any other relevant advanced methods that are widely in use Internationally

5.5 System should provide ability to compute Credit Value Adjustment (CVA) as

prescribed by RBI in Basel-III guidelines based on PFE profile

System should provide ability to compute CVA on marginal basis and standalone

basis at trade level and portfolio levels

5.6 System should provide ability to:

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 101 of 250


Determine MTM and exposure for future points in time with explicit consideration

for ageing of the trades.

Simulate various relevant market risk factors (e.g. interest rate, equity, foreign

exchange rates) using Monte Carlo approach using various stochastic processes (e.g.

Geometric Brownian Motion or GBM, mean-reversion models).

Measure Potential Future Exposure (PFE) for various tenor points (e.g. up to 20

years or 30 years as desired by the Bank).

Produce other exposure related metrics including Expected Exposure (EE), Effective

Expected Exposure (EEE), Expected Positive Exposure (EPE) and Effective EPE for

normal market conditions and stressed market conditions.

Aggregate Direct, Indirect and Contingent exposure for borrower/counterparty and

borrower/counterparty and across various groups.

Determine gross and net exposure (incorporating the effects of netting, collaterals,

and credit hedges) for current exposure and potential future exposure

Ability to capture information related to collaterals and netting with respect to Over

the Counter (OTC) derivatives transaction

Non Fund Based Non Market Related

5.7 The system should be able to estimate exposure for different purposes through CCF

estimation:

Regulatory Capital calculations

Economic Capital Calculations

Credit Risk Control purposes (e.g. Limit setting, Concentration monitoring)

Exposure Aggregation and Concentration Management

5.8 Based on extraction of data, the solution should be able to:

Aggregate credit exposure and credit equivalents for non-funded products including

derivatives and other market based product exposures based on rules

Maintain different rules for credit exposure aggregation for different purposes (for

e.g. regulatory capital purposes vs. economic capital calculations) and utilisation vis-

à-vis risk based limits.

Ability to measure and distinguish direct, indirect and contingent exposure for

various portfolios and sub portfolios (e.g. borrower, borrower groups, industry,

country, product group).

Ability to aggregate and consolidate credit exposures across domestic and

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 102 of 250


international locations as per prudential norms set out by the regulator(s).

5.9 The system should be able to

Support measurement of concentration risk across different categories of

exposures, for e.g. Top 20 single borrowers, Top 10 group borrowers, Top 20

depositors.

Model risk correlations among different borrowers /sectors /industries, etc. and

factor it in concentration risk management

Measure concentration risk using different measures, for e.g. Lorenz Curve,

Herfindahl-Hirschman Index (HHI), Gini coefficient.

Measure diversification benefit on a dynamic basis for the bank on a standalone

and consolidated basis

Integration with loan proposal and review systems for monitoring concentration

prior to sanction.

Provide workflow for approval of limit breaches with adequate audit trails.

Provide alerts on dynamic basis before exposure is sanctioned to identify breaches

6.0 Wrong-way Risk

6.1 The system should support :

Identification and measurement of wrong way risk.

Measurement of settlement risk (including incremental default risk in the trading

book).

6.2 The system should provide ability to:

Identify and display block trades and facilities involving wrong-way risk before

execution of trades/facilities based on business rules.

Identify and display specific or general wrong-way risk involved in the Treasury and

Banking transactions

Track underlying collateral linked to wrong way risk transactions.

Quantify the wrong-way risk exposure in the portfolio separately.

Make specific adjustments to credit risk parameters for the counterparties/ trades

or facilities (PD, LGD, EAD) involving wrong way risk.

Report exposures for counterparties with and without including wrong-way risk

exposure.

Specify separate limits and approval work flows for trades/facilities involving

wrong-way risk.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 103 of 250


Rate and estimate credit risk components (PD, LGD) for the credit protection

providers (Guarantors and CDS providers) and the underlying trades/facilities.

Estimate credit loss for all possible scenarios involving default/no-default of

protection providers and the underlying reference entity.

Specific adjustments to credit risk components (PD, LGD) for trades/banking

facilities involving multiple entities.

7.0 Collateral Management

7.1 The solution should have facilities for extracting, displaying and exporting the

following details, but not limited to, from the source systems (or enterprise data

warehouse as and when functional) vide user defined reports or system triggered

alerts

7.1.1 Collateral and Guarantor details

Nature/description of collateral securities

Data points to enable classification of collateral in to IRB eligible collateral as per

regulatory considerations along with classification outcome

Collateral(s) and the list of related facilities

Legal relationship between collateral provider and borrower

Personal / Corporate guarantor information including means of guarantor

7.1.2 Collateral Valuation

Valuation details including date of valuation, name of valuer, next valuation due

date, frequency of valuation based on type of collateral and margin details

7.1.3 Guarantees accepted /credit default swaps purchased by the Bank:

Data points to assess eligibility of the same as means of credit protection along with

existing status of eligibility for capital relief under IRB regulatory guidelines

prescribed.

Details of the guarantee taken as part of the loan including comprehensive details

of the guarantor(s).

Value of the guarantee/CDS including the % of facility covered and exclusions in

guarantee/CDS agreement.

Linkage between the guarantees and its facilities.

7.1.4 Managing Collateral documentation and storage:

Details of documents to be collected as per the legal opinion, name of the

empanelled lawyer providing opinion, etc. along with details of those already

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 104 of 250


collected

Details of the legal documents actually collected for each product type.

Storage/despatch details of the security.

Work flow Status for monitoring of the movement of the security documents from

the storage till the final release to the customer.

7.1.5 Insurance:

Details of the security- insurance company, validity of the policy, exclusions from

the policy, insured amount etc.

Providing alerts when insurance pertaining to a collateral falls due for expiry

7.1.6 Legal aspects of collateral:

Details of legal documentation collected pertaining to the facility including

deviations if any.

Information from external sources like Ministry of Corporate Affairs, central registry

of properties.

7.1.7 Pending collateral to be collected.

Average Loan to Value ratios of the portfolio.

Average margin and extra collateral to be collected.

Concentration of collateral based on collateral type

7.1.8 Others:

Details for treatment of pools of collateral, maturity and currency mismatches.

Details of the actual realisation value during sale/auction of securities when they

are classified as NPA.

Associated costs related to sale and recovery such as but not limited to legal costs,

administrative costs, haircuts and other disposal costs and related time for

completing sale of assets

7.2 Functional

Provide alerts for top up of security in case its value breaches acceptable

thresholds.

Estimate value of collateral using market price on real time basis

Setting up master data regarding external vendors.

Capability to de-duplicate internal information to identify if the security has already

been assigned to any other facility

Classification into IRB eligible Collaterals

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 105 of 250


Assess eligibility of Guarantee and CDS as Credit Risk Mitigant

8.0 Credit Risk Based Pricing

8.1 The system should support enable computation of Risk based Pricing as per the

methodology defined linking it to the Rating grades and the PD bands separately for

retail and corporate accounts.

8.2 The system should be able to aggregate cost of funds, operating expenses, cost of

capital and other costs, spread and risk premium as calculated using PD and

assumed LGD values.

8.3 The system should embed standard pricing calculations and policies into the loan

origination workflow, and understand the impact of each deal on the shareholder

value.

8.4 The system should support calculation of RAROC based on regulatory capital as well

as economic capital. It should also calculate RAROC at various levels of granularity

i.e. deal level, facility level, account level and relationship level to provide analysis

of impact of new loan on overall risk and return.

8.5 System should allow monitoring of deals that have been approved by the business

below the hurdle rate defined by the bank. This should include details such as

reason for override, amount of override, approver, relationship manager etc., along

with complete documentation on workflows and pricing calculations to assist in

improvement of the pricing process.

8.6 System should capture audit trails to satisfy regulatory requirements that the risks

inherent in loan products and services have been adequately accounted for in the

pricing of loans.

8.7 System should have adequate controls to ensure that loan pricing practices comply

with bank policies and strategy including authorization and also facilitate adequate

reporting to appropriate levels of all exceptions.

8.8 The tools for arriving at RAROC and Risk based pricing basis Regulatory and

economic capital to include all relevant relationship components (revenues and

expenses) and also carry capability to depict future profitability/returns

8.9 The comparison of pricing for different customer views e.g. industry, product

geography, business unit, related MIS and reporting on the corporate portfolio

should be enabled at the Head office level.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 106 of 250


8.10 The system should enable branch / Relationship managers to price deals, offer

alternatively deal structures, and respond to customer requests by direct input of

necessary details.

8.11 The system should calculate a price based on a target performance metric and re-

calculate performance if a price override is granted.

8.12 System should provide complete flexibility and control. It should pull in data from

third-party systems and internally built tools, as well as adjust the data to create a

differentiated pricing approach. It shall also retain audit trail.

8.13 The system should support industry standard pricing models for a wide range of

derivative and non-derivative products.

9.0 Capital Planning

9.1 System should enable capture of requisite data and for user defined periods for

development of the capital plan at the bank and at sub portfolio levels such as but

not limited to

Balance sheet and PL estimates

Anticipated growth in topline/revenue year on year, profitability margins, costs

Increase in risk weighted assets

Capital types, amounts, maturity (for non-equity), capital cost.

Risk Adjusted performance measures across various business lines and products

9.2 The system should have capital planning and budgeting modules for estimating

bank-wide capital for future, stress testing by changing assumptions/ macro-

economic scenarios, allocation across business units, geographies, products etc., if

needed.

10.0 Reporting

10.1 The system should generate reports both for internal and external/regulatory

purposes including all Pillar 3 disclosures under Basel II and III.

10.2 Capital Calculation

The system should have the ability to produce reports related to capital adequacy

and risk components. Reports may include:

External Reports

Capital Adequacy for all exposures (except equity)

Capital Adequacy Disclosures for equity exposures

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 107 of 250


Exposures (except equity) covered under Basel II approaches

Report on Exposures subject to Supervisory Risk Weights

Capital Calculation Reporting by PD Range

Capital Calculation Reporting by LGD Range

Disclosures for retail exposures by PD and LGD range

Disclosures for retail exposures by EL grades

Disclosures for retail exposures by pools

Charge-offs and specific provisions

Write-offs, provisions and risk components

Bank's estimates against actual outcomes

PD comparison report

LGD comparison report

EAD comparison report

Mitigation Analysis Report

Eligible Collateral Analysis Report

Approaches followed and coverage of exposures

Qualitative disclosures for IRB approaches

Qualitative Disclosures for Credit Risk Mitigation

Internal reports

Analysis of Exposures Asset Class-wise

Asset Migration Report

Facility Utilization Report

Overdraft Credit Quality Report

Collateral Revaluation Report

Corporate Exposures - Rating Model Compliance Report

Retail Exposures - Rating Model Compliance Report

Specialized Lending - Rating Model Compliance Report

Rating Grade Assignment Report

Rating Grade Comparison Report

Rating Grade Migration Report

Rating Grade Overdue Compliance Report

Historical Default Analysis Report – Obligor Level

Historical Default Analysis Report – Portfolio Level

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 108 of 250


Historical Default Analysis Report – Rating Grade Level

Rating Grade analysis

Analysis of Default across Rating Grades

Rating Grade Distribution Report

LGD Migration Report

EL Band Distribution Report

Maturity Mismatch Reports

Analysis of Maturity Mismatch as per facility

Analysis of Maturity Mismatch Bucket-wise

Stress Test Reports

Report on Specialized Lending (SL) RWs

Disclosures for SL Exposures – Sub-category wise

Report on Equity Exposure RWs

Notional Principal and Credit Equivalent amounts for non-market related off-balance

sheet exposures.

Notional Principal and Credit Equivalent amounts for market related off-balance

sheet exposures.

RWA and EL for default and dilution risk for Purchased Receivable Exposures

RWA and Capital for Securitization Exposures

Manual Adjustments Report

Expected Loss & Provisioning Comparison report

Pool Migration Report

The solution should be able to perform reporting by defined calendar period at the

transactional level (E.g. comparing RWA, PD, LGD and EAD at transaction level)

10.3 Stress Testing-

System should provide dashboards and reporting for base and stress test results

across the multi-year horizons. System should provide ability to drill down the

results of stress testing based on portfolio, sub portfolio, borrower, industry,

geography and business entities specific to the Bank should be possible.

10.4 Limit Setting and Portfolio Reporting

System should:

Generate standardized reports for portfolio/limit analysis on demand basis.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 109 of 250


Provide ability to the user to drill down from the portfolio level to the individual

facility/product/exposure level, enabling multi-dimensional analysis as required

(Portfolio snapshot/ Time series analysis/ Facility level exposures/ Exceptions

generated/ Limit breach instances/ Track record of repayment, etc.).

Provide early warning signals based on various parameters to identify deterioration

in asset quality, borrower quality, trends in limit utilization etc.

Provide report of the results of the measurement of concentrations risk. The MIS

reporting function should be dynamic and open for customization.

10.5 Credit Risk Analysis and Reporting Capabilities:

Rating migration matrix, which would provide insights on the overall quality of the

credit portfolio capturing the following information:

Number of accounts across rating grades at the start/end of the period.

% accounts migrated to better or worse grade.

Exposure metrics for various exposure types (e.g. direct, indirect, contingent etc.,)

for portfolios and sub-portfolios.

Ratings Distribution across exposures and migration analysis.

Performance metrics like EL, UL, Sharpe ratio, risk contribution, earning

components etc.

Support credit Risk MIS reports across various portfolio dimensions including the

following:

Product type

Branch

Circle

Country

Remedial action

Business unit

Scorecard / Collectability

Balance at risk

Customer Value and band

Collateral

Reports on Quick Mortality Analysis.

Reports on Loan to Value (LTV) analysis.

Interest rate sensitivity analysis reports.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 110 of 250


Customer value report.

10.6 Credit Risk Pricing

The system should have the ability to see all pending deals and their performance

relative to the overall portfolio and the organization’s policies.

System should support dashboard reporting to provide insights into pricing, price

sensitivity, competitor pricing, attrition risk, and opportunities for improvement.

Ideally the reporting should provide drill-down functionality by division, region,

branch, and employee.

10.7 Capital Planning

Provide report on the capital plan of the bank for user defined period and at

varying level of granularity in terms of balance sheet, products, and business

10.8 In addition to specific reporting requirements mentioned above for specific modules,

the system should support the following general reporting requirements across all

modules:

The system should provide a robust reporting framework that can generate a wide

range of standard and user defined reports (Dashboards for Senior Management and

detailed reports for risk managers).

The solution should enable report customization by allowing users to specify the

exact layout of the required report including location of fields, header, footer and

title.

Reports should be user-configurable with the flexibility to add/remove certain fields,

data sources etc.

Users should be able to see/download the underlying data related to a report. The

solution should enable an admin user to define users to whom reports can be sent

automatically

Reports should be generated both through batch processing and on-demand basis.

Reports must be customizable according to different user levels and authorizations

The solution should support graphs, charts and other graphical representations to be

embedded in the reports

The solution should have the ability to allow for slice and dice and generate different

dimensions of the data. It should also allow for sorting of data in reports

The solution should enable user to define filters for reports

The solution should support the following file formats for generating reports:

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 111 of 250


o View Mode

o Excel Mode

o Text Mode

o HTML Table

o CSV format

11 Training

11.1 The system should have training modules for each component

The modules have to be complemented by training workshops conducted by the

vendor

6.1.2 Functional Requirements for Loan Origination System (LOS)


format specified in Annexure 11.4 Technical Bid Format sub section 11.4.1.

Sr. No Functional Requirements for LOS

Loan Origination – Corporate Portfolio

1.0 Lead Management

1.1 The system should provide ability to create lifecycle stages of a lead including but

not limited to income potential, deal value, deal nature, actionables, status

1.2 The system should be able to generate analysis and reports on the leads. The

reports should be able to track the lifecycle of the lead and variation from specified

targets.

1.3 The system should enable the sales person/relationship manager to view the

history of the relationship with the Bank highlighting any irregularities.

2.0 Customer Management

2.1 The system should provide ability to:

Record all customer interactions.

Capture the financial data of the customer both current and projections (if

needed): Equity / capital details, Credit facility sanctioned/availed by/from other

banks/institutions, profit and loss statements, balance sheet statements, projected

cash flows.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 112 of 250


Spread core financial statement data and other qualitative data through

standardized spreads with optionality for various accounting standards and

currencies (USD,EUR,HKD,AUD etc.)

Allows users to directly enter projected financial statement information under

different scenarios or via the solution be able to forward project the financials

Capture Non-financial details of the customer but not limited to the below :

Management – its quality, succession planning, total relevant experience and

details such as names of directors, designations, addresses, Din, experience.

Installed and licensed capacities, Number of operating Units, Locations,

Environmental clearances etc.

industry details - growth, profitability margins (operating, net), competition etc.

project details – date of commercial operation, regulatory approvals,

environmental clearance

Others - Trade terms with buyers and suppliers, exposure to foreign currency risk

etc.,

Interface with external credit bureaus for external credit ratings.

To introduce new fields for data capture as required for model development and

deployment

2.2 Cross Selling:

The system should be able to suggest products for cross selling through predictive

analysis.

3.0 Document Management

3.1 The system should be able to maintain all relevant customer documentation in soft

copy format including:

Financial statements

Quarterly Progress Report(QPR) statement

Stock statements

Comments on operations/over dues

4.0 Proposal Evaluation

4.1 The system should be able to perform financial performance analysis of data based

on the following criteria:

Ratio Analysis based on - turnover, liquidity, profitability, leverage, debt service

ratios, etc.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 113 of 250


Balance sheet and Profit and Loss analysis

Cash flow and fund-flow analysis

Internal rate of return (IRR)/ net present value (NPV) analysis

Drawing power analysis

Ability to compute ratings and risk components (PD, LGD) for the customers based

on specified models

4.2 The system should provide ability to host/deploy models either directly (embedded

model) or through the model deployment platform for ratings and risk component

estimation (PD and LGD) at various levels of granularity (facility level, customer

level etc.) and as a pre and post sanction exercise

4.3 The system should be able to perform comparison of selected key ratios, financial

parameters across borrowers within the industry and against bench marks.

4.4 The system should be able to provide an initial assessment of working capital /

term loan requirement based on the financial performance measures and policy

thresholds.

5.0 Review and Decision Making

5.1 The system should aid credit decision making based on the proposal evaluation

analysis and credit risk rating. It should facilitate users/reviewers in understanding

assessments through electronic case files and summary reports

5.2 The system should be able to capture external ratings for the customers as well as

interactions between individuals involved in the rating and loan sanction process

E.g. proposal flow including details of the reviewer/approver, sales manager etc.

along with their comments. The system should also be flexible i.e. capable of being

configured and calibrated in line with the bank’s internal credit culture, policies,

and experience.

5.3 The system should support creation and maintenance of a list of standard user-

defined terms and conditions, which will be included in the appraisal note and

sanction letters.

5.4 The system should have the ability to:

Record syndication process across various institution and banks.

Price loan based on proprietary pricing model using PD, LGD and other details at

origination

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 114 of 250


Capture variances if any in model-determined and the actual pricing

Capture overrides along with facility to add notes to explain/provide justification

for the override

6.0 Loan Sanctioning

6.1 The system should support creation of sanction advice with the following details at

a minimum:

Customer details

Product details

Classification of loan / sector code

Purpose of the sanctioned loan

Terms and conditions of the sanction amount (rate of interest including any

additional charges applicable)

Period of sanction or tenure of loan

Payment terms of interest, margin etc.

Credit rating

Repayment schedules

Moratorium period

Renewal details (where applicable)

Charges to be created with appropriate authorities

Guarantees

Insurance details

Documentation and legal formalities to be executed

7.0 Credit Management

7.1 Support risk assessment tool(s) to enable monitoring of existing loans along with

the list of required information and how credit monitoring team would use the

tool(s). The tool(s) should be user friendly and enable the bank officers to monitor,

analyze and action as required.

Support early warning and related risk and monitoring systems across all portfolios

of the bank

Support calculator for customer life time value (CLTV)

Provide ability to carry out/implement account monitoring including identification

of unlikeliness to pay and other follow up strategies.

Provide capabilities for continual improvement in risk management and monitoring

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 115 of 250


systems.

Provide linkages to the credit risk pricing module to enable consideration of

customer value for pricing purposes

Offer single view of customer/relationship/group

Provide all account related and other details for an effective account monitoring

and devising credit risk management strategies.

6.2 Hardware Requirements

The Bidder must specify complete details of Hardware and other systems required for successful

implementation of the offered Solution, in the format specified in Annexure 11.4 Technical Bid

Format sub section 11.4.2.

Sr. No. Module/ Item Module Description Requirement Quantity

Note: The hardware and infrastructure sizing should be done with a user base of 7500 users for

CRMS and LOS with a scope of annual growth of 15 – 20% for next 7 years.

6.3 Training Requirements

Please provide descriptive responses to the following requirements in the format specified in

Annexure 11.4 Technical Bid Format sub section 11.4.3.

Sr. No. Requirements

1 How many Implementation trainings (CRMS and LOS) have been undertaken by

the Bidder so far?

2 Please provide a brief description on the Training approach taken by the Bidder.

3 Please provide the following details for training :

3.1 Number of man‐days / duration for completion of training

3.2 Optimum batch size

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 116 of 250


3.3 Total efforts for conducting the training

3.4 Location

3.5 Frequency of training offered

3.6 Pre‐requisites / Preparations required before training

4 Please answer the following about the trainers in‐charge of conducting the

training on behalf of the Bidder for the Bank:

4.1 Median experience of all trainers with the Bidder who would be involved with the

Project

4.2 Median experience of all trainers involved with the Project, working / training on

the solution proposed by the Bidder

5 Please provide a sample training response and feedback from previous

implementations

Also, please give details of the following:

5.1 Name of the Bank where product was implemented and the training conducted

5.2 Date and place where training conducted

5.3 Training audience

5.4 Indicative rating [if any provided] Note: Please attach the feedback in a separate

document with proper cross‐referencing

6 Please specify the various modes through which the training will be delivered?

[e.g. Classroom training, Online self‐help training modules within application

/ e‐learning modules, Quiz, etc.]

6.4 Project Management Methodology



Sr. No Requirements

1 Details of methodology / approach

The methodology section should Adequately address the following stages of the

project:

1.1 Frequency and approach for periodic reporting on the progress of the project and

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 117 of 250

Sr. No Requirements

actual status vis‐ à‐vis scheduled status

1.2 Detailed Study of Current State, with detailed work steps and deliverables

1.3 Gap analysis including identification and resolution of gaps

1.4 Customization, development and necessary work around

1.5 Building up of interfaces with various applications currently used by the Bank

1.6 Setting up of the data center and the disaster recovery site

1.7 User acceptance testing

1.8 Planning for roll‐out and identification of key issues that may arise along with

proposed solutions

2 Timelines

3 Project management activities

4 Roles and responsibilities of proposed personnel both from the bidder

5 Following details with respect to the methodology followed by the bidder in

Project Management for a Public Sector/Private Bank of comparable size/

complexity of operations as that of Canara Bank

5.1. Project Name

5.2. Project Location

5.3. Client Name

5.4. Client address

5.5. Client contact/reference person(s)

5.6. Project started (month/year)

5.7. Project elapsed time – months

5.8. Man months effort

5.9. Project Size (No of branches, modules covered and any other relevant

details)

5.10. Name of senior project staff

5.11. Nature of the Project

5.12. Project Management Methodology used

5.13. Role of the Bidder, whether complete end‐to‐end involvement or for a particular

module

5.14. Project detail (Broad detail – information about all activities handled, modules

forming part of the Credit Risk and LOS Project of the Client Bank, associated

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 118 of 250

Sr. No Requirements

activities, time lines activity‐wise and module‐ wise may be detailed.)

7. Functional Requirements for Operational Risk

The Bank aims to improve its operational risk management capabilities to migrate to Advanced

Measurement Approach (AMA). To this end, the Bank is developing policies, frameworks to

address the qualitative and quantitative requirements of RBI. For quantification of operational

risk capital under AMA, it is essential that the Bank has robust operational risk management

system and tools in place, considering the complexity involved in the process. This section sets

out the functional requirements for an Operational Risk Management Solution (ORMS) for

estimation of operational risk capital under AMA. The system should support operational risk

measurement and modeling as per RBI and Basel II requirements under AMA. ORMS should be

available to the bank at Enterprise-wide Level.

7.1 Functional Requirements for Operational Risk



Sr. No. Operational Risk Functional Requirements

1.0 General Requirements

1.1

Configurations of the bank’s legal, governance and business structure such as

group, legal entities, organization and governance structure, risk entities,

product, processes, systems, locations, business lines, outsourcing vendors and

other dimensions enabling operational risk management and measurement.

1.2 Configuration of bank’s operational risk management framework in terms of

methodology, work-flow, templates, consolidation, analysis and reporting.

1.3

Administration of the module to define access to the system as per job profile of

the employee with function specific controls such as read-only, restricted access

to reports, no deletion rights etc. Flexibility to provide and control access rights

at various dimensions such as location, geography, employee, department / unit

etc.

1.4 Availability of comprehensive audit trail with report generation facility.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 119 of 250


1.5 Pre-configured report on exception with ability to configure reports based on

requirements of the bank.

1.6

Flexibility for system enhancement due to change in regulatory requirements,

bank’s policy and procedures and due to good risk management practices, as

required by the bank.

1.7 Existing pre-configured relevant database of risk and controls, external loss data,

KRI, scenarios etc.

1.8 Multi-lingual, which can help to roll-out in multiple jurisdiction.

1.9 The system should have ‘help’ function to assist the user in understanding the

system functionality.

1.10

System should facilitate alerts, reminders, notifications at various stages of ORM

framework implementation such as RCSA, KRI, Loss data etc. by various channels

such as e-mails, SMS etc.

1.11

The system should have the functionality to create, approve, save, submit, reject,

view, print, download, upload, de-activate & delete records/data at appropriate

places of the work-flow attached to the user rights matrix.

1.12 System should give relevant error message such as on incomplete data upload,

on execution of wrong command etc. including generation of log

1.13 System should provide search facility of various records using fields which are

used to define that particular record.

2. Risk Control Self-Assessment (RCSA)

2.1 The system should enable to upload, plan and facilitate, tracking and reporting

on a bank-wide basis of the risk and control self-assessment process.

2.2

Planning for RCSA by considering various parameters such as risk profile, business

size of the risk entity, audit findings, actual loss experience, inherent criticality of

the business operations and various other parameters considered relevant by the

bank. Planning will ensure identification of risk entities for assessment over the

RCSA period.

2.3

Support planning such that it can be done for some of the processes for a

particular risk entity e.g. under a particular RCSA schedule, bank may decide not

to cover all the processes of the branch or may decide different processes for

each branch.

2.4 System should have customized templates for rolling out RCSA across all the

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 120 of 250


operational/ functional/ administrative units. The bidder should assist in

customizing the RCSA templates to suit the requirements of the Bank.

2.5

The system should support rollout of RCSA using multiple approaches such as

top-down, bottom-up and hybrid as determined by the Bank. Methodology may

include clustering / grouping of risk entities by risk profile, geography or any

other criteria where each cluster can be treated as one risk entity.

2.6 The system should have the capability to map the existing Organization Structure

to the relevant Business Line as per RBI Basel-II guidelines.

2.7 The system should support questionnaire based & risk based RCSA approach.

2.8 System should facilitate end users to rate the identified risks and controls.

2.9

Assessment scheduling shall be done through the system as to when RCSA is to

be done over defined RCSA period. System should have capabilities of sending

auto reminders through emails when the scheduling is due and escalation for

delay in completing the assessment to various levels. Scheduling will ensure

timing of the RCSA of a particular risk entity in the RCSA period. System should

support assigning ownership for each RCSA schedule.

2.10 Control record should have the classifications of "key or secondary", "detective

or preventive", "automated or manual".

2.11

It should create RCSA template for risk and control assessment which should be

customizable as per risk entity, as all risk-entity may not have same number of

risk events.

2.12 The system should enable logical structuring of the self-assessment scenarios

into units, departments and business lines.

2.13

The system should have the capability to automatically communicate the

identified outliers to the respective users for further clarifications through bulk e-

mail or other appropriate modes.

2.14 The system should have the capability to reclassify/categorize the operational

risks as per Basel/RBI Guidelines.

2.15

The system should have the capability to generate heat maps automatically

based on testing results and compare the same with earlier heat maps to

highlight the shift in risk levels.

2.16 The system should have the capability to customize the logic used for creating

Heat Maps (preferably through a master user setting).

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 121 of 250


2.17 The system should have a dashboard facility to view the risk profiles by business

area, business unit, Basel business category etc.

2.18

System should maintain an inventory of assessment questionnaires and provide

an option for two factor assessment viz. probability and estimated impact. It

should have the functionality to assign assessment questionnaire to identified

business units. Scope for multiple units assessing same process, risk, cause and

control to be supported.

2.19 System should have the capability of rolling out web-enabled RCSA solution.

2.20 The system should have the functionality to retain a historical record of previous

self-assessments for comparing with present self-assessment results.

2.21 The system should have the capability to upload the existing RCSA assessments

with the Bank, stored in MS-excel, word etc. formats.

2.22

RCSA template must have the facility for creation of risk and control library .It

should have flexibility to enter any new risks identified and corresponding

controls in all the operations and activities of the bank including in the support

functions. Risk and controls so identified should be updated in the risk and

control data library.

2.23 Risk and Controls in the RCSA template should be sourced from the Risk and

Control Library to avoid repetitive preparation of templates.

2.24

System should have flexibility to create numerous templates based on type of

risk entity, e.g.: type of branches, operating units etc. by incorporating processes,

risks and controls.

2.25

It should have facility to roll-out of the same template to multiple risk entities

due to similarities in the risk profile e.g. rural branches can have similar type of

template.

2.26

Template should be designed with appropriate classification, sub-classification,

sequencing, grouping and sub-grouping of risk events as specified by the bank

e.g. logical sequencing of first processes and then risks and controls within a

particular process.

2.27

Risk and controls should be mapped to respective classification such as risk

entity, process, product, Basel II classification, causal factors, risk drivers,

significant / non-significant risk, preventive / detective control, control

frequency, risk identification by (auditor / risk entity / ORMD / external events /

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 122 of 250


others) etc.

2.28

System should facilitate performing RCSA in two ways i.e. (i) inherent risk, control

design and operating effectiveness and residual risk assessment (ii) only residual

risk assessment.

2.29

While performing the risk assessment, user should be able to see the respective

process / activities under consideration/assessment process. User should also be

able to enter any remark while doing the assessment.

2.30 System should facilitate performing RCSA assessment by multiple users

simultaneously for the same risk entity.

2.31

Scale for risk assessment available in the system should be customizable by the

bank with appropriate color coding where each color should bear a different

meaning.

2.32 The system should be able to capture RCSA testing results.

2.33 The system should have the ability to compute residual risk values based on the

ratings applied for risks and controls for each process step.

2.34 Residual risk should be rated as a result of probability and impact assessment by

the system i.e. product of probability and impact.

2.35 The System should be able to aggregate the different ratings across branches,

circles, products, processes etc. and identify outliers.

2.36 Report on comparison of RCSA results with past RCSA results.

2.37 The system should be able to re-run the past assessments based on the revised

scale when there is a change in the rating scales.

2.38 Exceptional reports such as risk entities which has not completed RCSA as per

schedule.

2.39 Graphical report on overall Residual risk with comparison and drill-down facility

at multiple dimensions and to the most granular level.

2.40

Generate reports of RCSA results such as action plan report etc. in order to share

it with internal audit, compliance, information security etc. to validate the

implementation in the next audit / review.

2.41 The system should record action points arising out of RCSA exercise It should also

generate test plan in accordance with agreed timelines.

2.42 The system should be able to follow up for unresolved action points and generate

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 123 of 250


status report for the same.

2.43 It should have standard reporting formats as well should be able to customize

reports as required by the bank at no extra cost.

2.44

Action plan should include information such as task to be done, original target

date, revised target date, number of revisions done in the target date, owner for

action plan, link with the respective risk event etc.

2.45

ORMD should be able to change the RCSA rating based on validation results or on

occurrence of some risk event within or outside the bank. Change in RCSA rating

should happen through recording of an audit trail and communication to the

concerned risk entity by automated e-mail. Rating can be changed of a risk,

process, risk entity etc.

2.46 The system should provide linkages of risks and controls with assessments, KRI,

loss data, plan of action and ownership.

2.47 There should be a document upload facility to substantiate the RCSA.

2.48

System should provide monitoring of RCSA status to various users such as ORMD

where they can view by branch, region, zone, bank, group level for a given time

period.

2.49 Bidder should conduct a sample run of the entire RCSA exercise as per the

process mentioned by the Bank.

3. Risk and Control Data Library, External Loss Data and KRI Data

3.1 Risk and Control Data Library

3.1.1 There should be a separate Risk and Control Data Library to store all the risks &

controls at bank wide level in a centralized manner

3.1.2

Risk should be mapped and classified with process, product, system, compliance

standard / guidelines, outsourcing, risk type, business line, causal factor, risk

drivers, significant / non-significant etc. and control should be mapped to its

frequency, type (preventive & detective) etc.

3.1.3 It should facilitate to view the risks and controls using various filters used to

define risk and control

3.1.4 Upload and download facility should be available in the standardized template.

3.1.5 It should generate reports based on the defined criteria over and above standard

reports in the system. Bank specific reporting requirement should be

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 124 of 250


customizable.

3.2 External Loss Database

3.2.1

Provide a database of External Loss in a structured manner with appropriate

mapping to product, process, systems, business lines etc. relevant for use in

Indian Banking environment.

3.2.2 External Loss database shall carry comprehensive information to facilitate

adjustments and scaling.

3.3 KRI Database

3.3.1

Provide Key Risk Indicators database in a structured manner with appropriate

mapping to product, process, systems, business lines etc. and shall be relevant

for use in Indian Banking environment.

3.3.2 Key Risk Indicators database shall have comprehensive information required for

effective implementation.

4.0 Key Risk Indicators (KRIs)

4.1

System should enable the authorized users to create new KRIs and edit as well as

map existing KRIs. The system should also be capable to interface with multi data

source systems (such as CBS etc.) and extract the data from the same in an

automated manner.

4.2

Provide for the upload of data manually as well as download of data to various

file formats such as word, excel, pdf etc. The data upload includes KRI calculation

data at defined frequency and data related to KRI definition and assignment. For

upload of data, bidder should provide the templates.

4.3

Definition of the KRI in the system should be independent of its assignment to

various risk entities so that one single KRI can be assigned to more than one risk

entities as per applicability.

4.4

The system should have the ability to upload, plan and facilitate the process,

track and report KRIs based on the different threshold decided by the Bank on a

firm-wide basis.

4.5 The system should allow responsibility and accountability for KRI monitoring to

bank personnel across branches.

4.6 The system should allow assignment of accountability to each KRI and list out

underlying common risk factors for the KRIs. System should also be capable of

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 125 of 250


estimating/quantifying loss events based on the scenarios for underlying risk

factors.

4.7

The system should have the ability to take values from different users and

consolidate them at various levels such as business function, location and

business line.

4.8

The system should be able to generate reports such as dash board, tabular,

graphical etc. for risk entity, region, zone, bank and group and analyze trends

based on logic approved by the Bank.

4.9 The system should allow setting up KRI specific tolerance threshold limits.

4.10 At the time of monitoring, if a KRI values exceed the set threshold, then the KRI

should be classified into risk zones like red, amber, green etc.

4.11 System should cull out continuous red (high) and amber (medium) risk indicators

and automatically intimate the person responsible for that KRI.

4.12 The system should record, suggest and monitor action points arising out of red,

amber and green indicators with agreed timelines.

4.13 The system should be able to follow up (as per escalation matrix) for unresolved

action points and generate status report for the same.

4.14 The system should allow reassessment/validation of indicators and thresholds. It

should allow setting different thresholds for different risks.

4.15 The bidder should extend assistance in customizing various reports and MIS.

4.16 The system should permit selecting the data points to generate various reports

and MIS for each KRI monitoring.

4.17 The system should allow setting of different monitoring frequencies (weekly,

monthly etc.) for each KRI.

4.18 Trigger/ breaches should be mapped with various level of automated notification

and escalation across hierarchies e.g. through emails, sms etc.

4.19 The system should provide templates to collate data from processing units for

identified Key Risk Indicator components for date to be sourced manually.

4.20 The system should permit entering of KRI data manually from front end as well as

via flat file upload.

4.21

The system should have an algorithm for converting KRI data monitored across

branches, units, geographies into risk scores. The algorithm should also provide

for aggregating risk scores across business lines, geographies, branches and

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 126 of 250


provide risk scores at different levels for comparison.

4.22 System should provide a report highlighting the risk profile of business lines

based on the KRI framework and across past year.

4.23 System should generate reports for KRIs which is in the high-risk zone and the

businesses where these risks are at high levels.

4.24 System should have report for monitoring and comparing KRI values across

different branches/geographies/business units.

4.25

Definition of KRI with its mapping with various dimensions and classifications e.g.

KRI name, description, mapping with process, activity, product, risk entity, risk

event type classification, unit of measurement, calculation criteria, data

attributes etc.

4.26 The bidder should assist by conducting a sample run of the KRI process as per the

Bank specifications.

4.27

System should provide for comparison of KRI results with benchmarked KRIs

along with capturing of benchmarked KRI in the system itself. Benchmark could

be industry, peers, or others.

4.28

System should provide facility to assign KRI to various risk entities with

specification of threshold, triggers, calculation frequency, and KRI review

frequency.

4.29 Compute KRI value as per defined frequency based on the data uploaded.

4.30 On the KRI review frequency, allow changes to be done after validation of KRIs

such as whether that particular KRI is relevant or to be discontinued.

4.31


date, revised target date, number of revisions done in the target date, owner for

action plan, link with the respective risk event etc.

4.32

Generation of reports at multiple dimension such as for individual KRI level, risk

entity level, business unit, KRI sensitivity level (e.g. High, Medium, Low), region /

zone / bank / group level, risk type, product, process etc.

4.33 System should provide for configuration of ad-hoc reports required by the bank

over and above standard report in the system at no extra cost to the bank.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 127 of 250


4.34 System should enable computing an overall KRI index by aggregating results of

KRI monitored.

5.0 Loss Data Management

5.1

System must support all the requirements of RBI and Basel II with respect to

internal and external loss data management in terms of operational risk

management as well as measurement / modeling.

5.2

Loss Data Module should be comprehensive to record all the information for the

purpose of operational risk management as well measurement as per advanced

measurement approach. Management of loss event also includes capturing

intermittent status of risk event such as investigation status, recovery status, so

that end to end flow of risk event can be monitored for its progress and closure

i.e. capturing the life-cycle of loss event.

5.3 It should have download and upload facility for loss risk events in a specified

template.

5.4 System should have facility to capture near-miss events, gains arising from

operational risk loss event and opportunity cost.

5.5 System should be capable of being customized to bank's loss data management

framework, template, work-flow, reports.

5.6 It should be able to capture loss data from all geographies and departments of

the bank including overseas operations.

5.7 It should be able to migrate the existing internal loss data of the bank through

upload facility.

5.8 It should have strong internal controls around loss data such as, restricted access,

viewing or printing rights, audit trails, exception reports etc.

5.9 It should be able to do scaling, judgment overrides or other adjustments to the

loss estimates.

5.10

Information with respect to risk event should be captured such as date of risk

event occurrence, event end date, date of discovery,

date of providing contingent liability, date of accounting / provisioning,

description of risk event, location, product, process, risk

entity, root-cause analysis (RCA), causal factors, risk drivers, mapping with

business line and loss event type as per Basel II classification, bank’s internal

classification etc.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 128 of 250


5.11 System should flag events as loss event, near-miss, external loss data, operational

gain and opportunity cost1 for distinct identification of each entry.

5.12 It should enable identification of related loss events over time i.e. grouping of

related loss events over a period of time.

5.13

It should have facility to arrive at the Gross Loss inter alia including any direct

charges to reserves due to operational losses, all

expenses incurred as a consequence of operational risk events, provisions made,

penalty and fines etc.

5.14

System should differentiate the status of loss such as estimated, contingent

liability, provision made, loss accounted for with appropriate GL reference, Cost /

Profit Center, currency.

5.15

It should record loss type such as Legal Cost / Regulatory Penalties / Loss or

Damage to Assets / Restitution / Loss of Recourse / Write

Downs.

5.16 Loss information should include type of valuation such as book value,

replacement cost, Mark to Mark (MTM) etc.

5.17 Allocation of losses to business lines and loss event type categories as defined by

RBI/Basel II guidelines along with the methods used to allocate the losses.

5.18 It should enable classification of risk events as boundary events to specify it as

credit risk related or market risk related.

5.19

It should be able to record recovery from all sources (from insurance and other

recovery such as from employees, third parties, customer etc.) with clear

identification.

5.20 System should enable tracking of status of recovery such as recovery process

initiated but yet to be received.

5.21 It should be able to produce loss as gross loss, loss net of all other recoveries

other than insurance, loss net of all recoveries including

1 Opportunity costs/lost revenues would mean operational risk events that prevent undetermined future business

from being conducted (e. g. unbudgeted staff costs, forgone revenue, and project costs related to improving

processes), are important for risk management but not for quantification.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 129 of 250


insurance etc.

5.22 It should be able to identify the risk events which are covered in the existing

operational risk insurance policies.

5.23 It should facilitate creation of action plan with reference to the loss event.

5.24 System should have the ability to identify sufficiency of data in each of the cell

(8x7 matrix) and flag off such business line & risk type combination cells.

5.25


date, revised target date, number of revisions done in

the target date, owner for action plan, link with the respective risk event etc.

6.0 External Loss Data Management

6.1

System should also facilitate, where relevant, the use of external data to enhance

scenario analysis, fit severity distributions or benchmark operational risk

exposure results.

6.2 External loss data should be separately identifiable in the system.

6.3

System should be able to capture information w.r.t external loss data including

actual loss amount, information on the scale of business operations where event

occurred, information on the cause and circumstances of the loss events, or

other information that would assist in assessing the relevance of the loss event of

the bank.

6.4 External loss data from all sources e.g. public data / pooled industry data /

vendor data, should be supported by the system.

6.5

System should be able to do scaling, adjustments (qualitative as well as

quantitative). The scaling process should be systematic, statistically tested and

generate outcome consistent with the operational risk profile of the bank.

6.6

System should facilitate appropriate filtering process to ensure the relevance of

data. The filtering process should be applied consistently and any exceptions

thereto should be documented and supported with rationale.

6.7

It should facilitate validation of loss data through multiple levels of reviews and

approvals e.g. maker-checker and there can be more than one level of review and

approval.

6.8 It should facilitate reconciliation of loss data with other source data such as GL

entries etc.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 130 of 250


6.9 System should have a comprehensive analysis and reporting mechanism for

review and monitoring.

6.10 It should be able to analyze data on multiple dimensions such as risk entity,

product, process, business lines, risk type, causal factor, and risk drivers.

6.11 Analysis should include trend analysis, comparison with past data and peer data.

6.12 Apart from standard reports in the system, it should also configure ad-hoc

reports required by the bank.

6.13

The system should have the ability to seamlessly incorporate the external loss

data received from CORDEx and differentiate internal loss event from external

loss data. It should facilitate to record all the data points required for external

loss data including information required to do the scaling / adjustments.

6.14 The system should be able to generate report/ data in the format provided by

CORDEx.

6.15 User should be able to extract the data based on applied filters e.g. loss between

a particular period.

6.16 Reports should be in all formats tabular, graphical, dash-board, heat map etc.

6.17

Reports should be with drill-down facility up to the most granular level including

loss information into 8*7 matrix of loss types and business lines in order to model

the operational loss distribution for the entire 56 operational risk cells.

7.0 Action Plan

7.1 System should provide for recording of action plan as part of RCSA, KRI, Loss

Data, External Events etc.

7.2

Action plan should capture information such as task, start date, original target

date, revised target date, number of revisions done, reason for revision, owner,

action plan type (long terms/ short term/medium term), status, reference of risk

event / KRI / Loss event due to which it was raised.

7.3 It should provide a direct link to the respective RCSA, KRI and Loss Data module

when action plan is required to be created as well as direct access to the module.

7.4 It should facilitate creation of action plan without any reference to a particular

risk event, KRI and loss event.

7.5 System should generate reports on the status, action plan which has breached

timelines, with open status, owner by action plan, risk entity / unit wise etc.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 131 of 250


7.6 It should be able to customize bank specific reporting requirements at no extra

cost to the bank.

8.0 Business Line Mapping & Capital Computation under TSA

8.1 The system should have the capability to map the existing Organization Structure

to the relevant Business Line as per Basel-II guidelines on TSA.

8.2 System should be able to map all activities of the bank into the eight level 1

business lines in a mutually exclusive and jointly exhaustive manner.

8.3 The system shall also be capable to map the activities of the bank into level 2 & 3

mapping as envisaged by RBI.

8.4

When mapping gross income, if an activity cannot be mapped into a particular

business line, then the system should be capable of using an objective mapping

criteria in accordance with the Basel II guidelines.

8.5 System should be capable of defining the mapping of any new activities or

products introduced by the bank.

8.6 System should be capable of generating reports as envisaged by management.

8.7 The bidder should extend assistance in customizing various reports and MIS.

8.8 The bidder should also extend assistance by conducting a sample run of the

Business Line mapping process as per the Bank specified process.

8.9 System should allow the user to extract the data based on applied filters e.g.

Gross Income mapping for a particular period.

8.10

System should be able to compute gross income for different business lines as

per Basel II / RBI guidelines for TSA, by interacting with data warehouse or other

source systems.

8.11 System should incorporate validation checks such as reconciliation of income as

per GL/FS with income considered for capital computation.

8.12 System should be able to store documentation containing the rationale for

mapping of Income codes appearing in GL.

8.13 System should be able to calculate the operational risk capital as per RBI’s TSA

guidelines by applying the Beta % prescribed by RBI for each Business line.

9.0 Scenario Analysis

9.1 Systems should facilitate scenario analysis of expert opinion to evaluate its

exposure to high-severity loss events e.g. including macro-economic scenarios for

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 132 of 250


calculation of operational risk capital and for operational risk management.

9.2 The system should support development of scenario related models under the

scenario based approach.

9.3 System should facilitate use of assumptions in scenario analysis based on

empirical evidence.

9.4 System should also facilitate review and validation of scenarios.

10.0 BEICFs

10.1

Solution should provide various methods for the identification and assessment

of Business environment and internal control factors and combining results

thereof by using bank’s existing operational risk management framework and its

implementation results such as RCSA (Risk and Control Self-assessment) results,

KRI results and Audit Review findings, etc.

10.2

Solution should support flexibility for use of BEICF directly or indirectly in the

capital calculation process :

as upward / downward adjustment to operational risk capital

indirect input to the scenario analysis process

Solution should have capability of calculation of capital before and after

consideration of BEICF factors.

11.0 Capital Computation under AMA and Modeling

11.1

Solution should consider all four elements required for operational risk

measurement namely internal loss data, relevant external operational risk data,

Scenario analysis and Business Environment and Internal Control Factors

(BEICFs).

11.2

Solution should have ability to suggest an optimum mix of four elements using

statistical techniques by analyzing the available data points with a credible,

transparent, well- documented and verifiable approach for weighting the

estimates of the AMA elements in overall calculation dataset used.

11.3 Solution should have flexibility for changing the weightages of AMA elements

suggested by the system and provision for documenting rationale for the same.

11.4

Solution should provide capability to scale and adjust the external loss data

(either public data and/or pooled industry data) using acceptable statistical

techniques before it can be used for modeling.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 133 of 250


11.5 Solution should provide flexibility for making Operational Risk Categories

2 (ORCs)

sufficiently ‘granular’3 as per the capital computation framework of the Bank.

11.6 Solution should be able to provide options for the choices of ORCs from the

available loss data set and homogeneity of risk within an ORC.

11.7

Based on this granularity determination for ORCs, Solution should be able to

model one or more appropriate de minimis gross loss thresholds. The thresholds

shall be determined across business lines or loss event types, for the collection of

internal loss data as per RBI / Basel II.

11.8

Solution should provide capability for the allocation of capital to business lines,

RAPM (Risk Adjusted Performance Measurement) and RAROC (Risk Adjusted

Return on Capital).

11.9

Solution should provide capability for performing Exploratory Data Analysis (EDA)

for each of the ORCs to get an idea of the statistical properties of the data and

select the most appropriate distribution.

11.10 Solution should provide capability for using estimation techniques to fit the

operational risk models to historically available operational loss data.

11.11

Solution should provide capability for using goodness of the fit testing for the

chosen distribution using visual test such as Quantile-Quantile Plots (Q-Q), Mean

Excess Plots, Autocorrelation Plot, Hill Plot estimations

Common formal tests for the goodness of fit could be but not limited to

Likelihood Ratio Test, Chi - square test, Maximum-likelihood Estimation (MLE),

Kolmogorov - Smirnov Goodness of fit test, Anderson-Darling Test, Cramer-Von

Mises Test, Quantile Distance Estimation method

11.12 Solution should display the parameters that are used for fitting the distributions.

It should rank and report all the test statistics.

11.13 Solution should provide capability for using statistical techniques for estimation

2An Operational Risk Category (ORC) or unit of measure is the level (for example, organizational unit, operational loss event type, risk category,

etc.) at which the Bank's quantification model generates a separate distribution for estimating potential operational losses. This term identifies a

category of operational risk that is homogeneous in terms of the risks covered and the data available to analyze those risks. Within ORCs losses

are independent and identically distributed

3Sufficiently granular (as defined by RBI) means the number of ORCs are neither too few nor too large, to capture the major drivers of operational

risk affecting the shape of the tail of the loss estimates

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 134 of 250


of information criteria such as Akaike Information Criterion (AIC) and Bayesian

Information Criterion (BIC).

11.14 Solution should provide capability to conduct parametric and non - parametric

bootstrapping process.

11.15 Solution should provide capability to calculate risk measures separately for each

ORC.

11.16 Solution should have provision for commonly used frequency distribution such as

but not limited to the poisson, binomial and negative binomial distribution.

11.17

Solution should provide commonly used severity distribution such as but not

limited to Gamma, Lognormal, Weibull, Pareto, Generalized Pareto and

Generalized Pareto distribution (with Block Maxima Model and Peak Over

Threshold Model):

Solution should have capability for considering and adjusting the positive

skewness and leptokurtosis of the data, when selecting a severity distribution.

Solution should provide for Single Severity Distribution and Piece-wise

Distribution.

11.18 Solution should be able to generate appropriate body-tail modeling threshold for

modeling the body and tail of the loss distribution separately.

11.19

In the case of heavy tailed data, Solution should have capability for using sub-

exponential distributions whose tails decay slower than the exponential

distributions.

11.20 Solution should provide capability for using models recognized by the Extreme

Value Theory (EVT) for treating the distribution of very high quantiles of data.

11.21

Solution should be able to compute aggregate loss distribution with appropriate

methods such as but not limited to Monte carlo-simulations, Panjer's Recursive

Method, Fourier Transforms and Single Loss Approximation. Simulations,

numerical or approximation methods may be necessary to derive aggregate loss

distributions.

11.22 Solution should be able to model the correlations/ dependence

4 between various

ORCs in order to get the diversification benefit of operational risk exposures

4The term dependency would be broadly interpreted to mean any form of dependency (e.g. linear or non-linear, relating to all the data or just to

the body or the tail) across two or more operational risk classes, caused by internal and/or external factors

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 135 of 250


across various business lines and loss event types using various methods

including but not limited to Copulas.

11.23 Solution should be able to estimate diversification benefits factored in at the

group-wide level or at the Banking subsidiary level.

11.24

Solution should be able to capture insurance policy data helpful in establishing

the eligibility of the insurance as risk mitigant for operational risk. Data could be

details of insurance policy, risks covered, minimum claims paying ability rating,

initial term, residual terms, minimum notice period of cancellation, insurance

provider being a third party and the uncertainty of claim payment.

11.25

Solution should be able to map insurance coverage to the exposures in Bank's

operational risk profile. Mapping is required to generate an estimate of the

probability of insurance recovery and the possible timeframe for receipt of

payments by insurers.

11.26 Solution should be able to map insurance policies to Basel II event types for risk

mitigation.

11.27

Solution should be able to calculate capital on a gross- and net-of-insurance basis

for each capital calculation, and possibly at a level of granularity such that

termination of any one policy could be immediately recognized for its effect on

capital.

11.28 Solution should provide capability for the validation of the AMA measurement

model through back testing, statistical testing.

11.29

Solution should have provision for sensitivity analysis of the Bank's ORCC

(Operational Risk Capital Charge) to change in modeling choices, assumptions

and data inputs (including internal data, relevant external operational risk data,

scenario analysis, and business environment and internal control factors).

11.30

Solution should be able to conduct empirical analysis of data (where the

modeling is primarily based on internal and external data) to be used in model

validation.

11.31 Solution should have capability for applying robust statistical techniques to test

the reasonableness of the assumptions about the underlying distributions.

12.0 Model Validation

12.1 The system should have the capability to implement a Bank defined verification &

validation process and should fulfill all audit and compliance requirements.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 136 of 250


12.2 The system should be able to incorporate the process flow as mentioned by the

Bank.

12.3

The system should have the capability to initiate the verification & validation

process and track the progress of various process steps as per the timelines

provided by the Bank.

12.4 The ORMS should be validated by independent third parties to ensure it is

compliant with RBI guidelines.

12.5 System should provide all the information as may be required for independent

review of operational risk management framework (ORMF).

13.0 Analysis and Reporting

13.1 System should have a comprehensive set of reports for all the stakeholders.

13.2 Report should be of all types such as graphical, heat-map, dashboard, tabular etc.

with drill-down facility to the most granular level.

13.3

Reporting should have flexibility to be generated using multiple dimensions and a

combinations of them such as risk entity, legal entity, geography / location,

process, product, risk type etc.

13.4

There should be some pre-configured standard reports for each of the modules

as well as a consolidated risk profile which can be created at various dimensions

such as branch / region / zone / bank / group etc.

13.5 System should be flexible to configure ad – hoc reports in the manner and form

required by the bank at no extra cost to the bank.

13.6 It should support both regulatory as well as management reports such as risk

profiling of branch, region, zone, bank, group.

13.7

Reports should cover qualitative i.e. results of operational risk management

processes and quantitative i.e. capital calculation processes and combination of

them.

13.8

It should provide for a robust analytical framework through comparison of RCSA,

KRI and Loss Data results, capital consumption vis a vis risk experience, trend

analysis, comparison with peer banks etc.

13.9 It should provide facility to access, view, download and print the reports as per

user access rights.

13.10 Report should be downloadable in excel, word, pdf etc. file formats.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 137 of 250


13.11 Operational Risk Management and Measurement Reports should be generated

across multiple dimensions such as ORM capital across each business line etc.

13.12 System should facilitate an effective risk reporting system as per the Pillar III

disclosure requirements of RBI guidelines on AMA.






Note: The hardware and infrastructure sizing should be done with a user base of 1500 users for

ORMS with a scope of annual growth of 15 – 20% for next 7 years.





1 How many Implementation trainings (ORMS) have been undertaken by the

Bidder so far?

2 Please provide a brief description on the Training approach taken by the

Bidder.


3.1 Number of man‐days / duration for completion of training



3.4 Location


CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 138 of 250


3.6 Pre‐requisites / Preparations required before training

4 Please answer the following about the trainers in‐charge of conducting the

training on behalf of the Bidder for the Bank:

4.1 Median experience of all trainers with the Bidder who would be involved

with the Project

4.2 Median experience of all trainers involved with the Project, working /

training on the solution proposed by the Bidder


implementations


5.1 Name of the Bank where product was implemented and the training

conducted



5.4 Indicative rating [if any provided] Note: Please attach the feedback in a

separate document with proper cross‐referencing

6 Please specify the various modes through which the training will be

delivered? [e.g. Classroom training, Online self‐help training modules

within application / e‐learning modules, Quiz, etc.]






The methodology section should Adequately address the following stages of

the project:

1.1 Frequency and approach for periodic reporting on the progress of the project

and actual status vis‐ à‐vis scheduled status


CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 139 of 250




1.5 Building up of interfaces with various applications currently used by the

Bank




proposed solutions

2 Timelines






5.1. Project Name


5.3. Client Name

5.4. Client address




5.8. Man‐months effort

5.9. Project Size (No of branches, modules covered and any other relevant

details)




5.13. Role of the Bidder, whether complete end‐to‐end involvement or for a

particular module


forming part of the Operational Risk Project of the Client Bank, associated


CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 140 of 250

8. Functional Requirements for Market Risk

The Bank aims to migrate to the Internal Models Approach (IMA) for Market risk Management

as per Basel-II / RBI guidelines. This approach will allow the bank to use risk measures derived

from their own internal market risk management models. The solution should be able to

compute capital charge for losses in on-balance sheet and off-balance sheet positions arising

from movements in market prices. The IMA solution should also be able to perform back

testing, stress testing, calculate specific risk VaR and Incremental risk VaR requirements as per

Basel-II, Basel-III and RBI guidelines.

8.1 Functional Requirements for Market Risk under IMA


format specified in Annexure 11.4 Technical Bid Format sub section 11.4.9

8.1.1 Scenario Generation

Sr. No. Market Risk Functional Requirements

1 Set-up of Scenarios

1.1 support configurable shifts in at least the risk factors specified in Sub-Section8.6.1

: List of Risk Factors

1.2 configure differential shifts for subsets of positions within each risk factor, e.g., for

stress testing apply a 100% shift to current spread for AA Banks, 100 bps shift in

“XY” PSU Bond, 35% shift to BB Corporate bond spread, etc.

1.3 support application of a decision tree of business rules/ logic that should be

applied in selecting which shift is used, e.g., an “XY” PSU specific shift overrides a

generic PSU shift

1.4 allow user to select from a standard set of scenario parameters to generate a

scenario set

1.5 allow user to set appropriate time periods for the historical scenarios defined. The

user should be able to select start and end dates for historic price data download,

and alternatively specify a start or end date and a time period defined in business

days

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 141 of 250


1.6 allow user to map new/existing risk factors into existing/new scenario generation

models

1.7 support shift in other calculation parameters: change in the holding period to

reflect systemic market liquidity reduction, change in time horizon (number of

historic data points) for evaluation of risk parameters, spreads over benchmark

curves and between market curves., etc.

1.8 express shifts as: percentage, absolute and other custom defined formula (basis

point parallel shift, etc.)

1.9 model correlations between risk factors

1.10 capture non-linear behavior of options and other relevant products (e.g.,

mortgage-backed securities, tranched exposures or nth-to-default credit

derivatives)

1.11 provide flexibility in scenario building on idiosyncratic, portfolio-level or market-

wide shifts

1.12 allow user to relatively weight time series data, e.g., attach a higher importance to

recent historical observations (E.g., t-0 to t-60 days) than to observations further

back in history (E.g., t-400 to t-450 days), in the case of historical scenario analysis

1.13 name and save sets of standard scenarios for easy retrieval. E.g., A “2007-2009”

scenario that stores the configuration required to test today’s portfolio with 2007-

2009 prices.

1.14 regenerate time series based scenarios (E.g., dates for start and end of time series,

set of risk factors for which scenarios are to be generated, etc.)

1.15 generate (pseudo) random numbers based on a user-defined seed value for the

purpose of generation of scenarios. The number set should be uniformly

distributed, of sufficiently long periodicity and should not exhibit significant

correlation or clustering

1.16 configure pre-defined reports to run pre-defined scenarios and automatically run

the process to generate reports at set times (E.g., End-of-week, End-of-month)

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 142 of 250


1.17 allow user to effect changes in scenario generation models (in line with access

rights), including but not limited to:

set up new risk factors mapped into existing scenario generation models

set up new risk factors and incorporate into new scenario generation models

re-map existing risk factors to new scenario generation models

incorporate new scenario generation models in the system’s set of models

2 User Defined Scenarios

2.1 allow authorized users to alter standard scenario configurations available for use,

subject to access rights and audit trail

2.2 provide a list of scenarios to allow user to build composite scenarios

2.3 allow user to load standard scenario configuration parameters or user defined

scenarios, amend them and re-save with a new unique identifier, to allow quick

generation of scenarios. Such scenarios should be stored in the user’s profile

without affecting the master list of configured scenarios.

2.4 allow users to delete saved scenario configuration parameters for user defined

scenarios, according to permissions and subject to audit trail

2.5 allow import and export of scenario generation configuration from a consistent

standard format (XLS, CSV) file

3 Execution of Scenarios

3.1 allow users to 'force run' scenarios, working around errors and running as

completely as possible, then listing where errors occurred e.g. where a data issue

causes a number of scenarios to fail, the system generates the rest and lists the

failures, rather than stopping at the first failure. Accordingly, metrics of process

success and failure need to be defined in the system

3.2 run scenarios where multiple risk factors are changed/shocked simultaneously

based on user input to determine the combined effect on selected or bank-wide

portfolio

3.3 compute the results of thousands of simulations over hundreds of time-steps in a

reasonable amount of time (fast enough to allow intra-day computations)

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 143 of 250


3.4 raise exceptions in the event of a breach of stress testing limits

3.5 display results using drill down capabilities. E.g., the paths that led to breach

scenarios.

3.6 display graphic and tabular representation of scenarios and scenario results to

allow user to interpret results of the simulation and present the same in reports

3.7 allow export of scenario output data to file as well as export all data contained

within the system to standard formats (CSV, XLS, etc.)

4 Scenario Generation for VaR computation

4.1 Historical Simulation

4.1.1 support multiple historical “look back” periods (e.g. 300 days)

4.2 Monte Carlo Approach

4.2.1 provide flexibility in definition of stochastic processes (e.g. Geometric Brownian

Motion, Mean reversion etc.) for the risk factors/risk factor groups in the Monte

Carlo simulation

4.2.2 provide for variance-reduction techniques (E.g., common random numbers,

antithetic variates, control variates, importance sampling, stratified sampling) to

enhance precision of simulation results

4.2.3 display Monte Carlo simulation results leading to losses greater than a certain

amount (user definable) in order to provide a better understanding /

interpretation of the market conditions that could generate such losses

4.2.4 define the number of Monte Carlo risk factor scenarios to be simulated

4.3 Parametric/Variance-Covariance Approach

4.3.1 adjust the variance/covariance matrices using standard approaches (e.g.

Rebanato) to maintain positive semi-definiteness

4.3.2 allow user to set parameters to: incorporate volatilities and correlations data sets

from external source, calculate volatilities and correlations based upon selected

historical periods using industry standard methods (e.g. unweighted approach,

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 144 of 250


exponential weighted moving average approach)

4.3.3 calculate volatilities for risk factors using: relative price changes, absolute price

changes and logarithmic price changes

4.3.4 apply different volatility estimators and models: moving averages, exponential

with definition of Decay Factor, GARCH and Stochastic Volatility approaches

4.3.5 calculate undiversified / diversified VaR to allow for risk factors correlations

contribution

4.3.6 allow selection of type of interest rate sensitivities to be used (e.g. ”par” rates or

zero coupon rates)

8.1.2 Curve Generation


1 Yield Curve Generation

1.1 define multiple term structures, each made up of multiple tenor points, for a

satisfactory coverage of the various markets within a specific currency (libor, bond,

swap, etc.)

1.2 choose, assign, combine and link on the term structure the benchmark instruments

quoted on the market for various product types

1.3 allow user to view/modify the yield curve parameters and sources

2 Volatility Curve Generation

2.1 define multiple term structures, each made up of multiple tenor points, for a

satisfactory coverage of the various markets across all currencies, product types,

tenors and strikes to include the volatility smile effect and interest rate volatility

structures

2.2 choose, assign and incorporate benchmark instruments quoted on the market into

various tenor points of the term structure.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 145 of 250


2.3 bootstrap market volatilities to generate at a minimum, the following implied

forward volatility surfaces:

Implied swaption volatility surface

Implied caplet/floorlet volatility surface

Implied FX volatility surface

Implied bond option volatility

Implied equity index volatilities

3 Market Data Calibration

3.1 infer missing data points and create continuous curve values out of distinct data

points by bootstrapping of curves by appropriate methodology (E.g., linear,

constant, cubic spline).

3.2 upload pre-calculated values from external applications/ sources

3.3 link missing data points to suitable proxy data

3.4 provide error handling capabilities to identify missing data and substitute with data

points derived either from proxy sources or from interpolation

3.5 backfill new market data time series from other available time series sources

3.6 calculate correlations and volatilities based on historical data (unweighted moving

average and exponentially weighted moving average)

4 General Requirements

4.1 quote and use Bid, Mid and Offer rates using both real time feed and manual input

to generate term structure curves

4.2 generate discount yield curves and to estimate yield curves from forward rates, as

may be applicable for some instruments/ markets based on data availability

4.3 handle negative rates that the data points that constitute the term structure (E.g.,

Treasury rates for maturities) may take

4.4 provide basic graphical term structures analysis for better understanding of market

conditions

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 146 of 250

8.1.3 Valuation


1 provide multiple pricing mechanisms to value a wide array of products including,

but not limited to, the following:

Cash flow model (For all money market transactions, FX Forwards, FX Spot,

Forward Rate agreements, non-callable bonds, mortgage backed securities,

FX/Bond/Equity Index Futures, IR/CCY/FX/Basis Swaps)

Hull-white model (Callable bonds)

Black 1976 (IR Caps/Floors, Exchange traded options)

Garman-Kohlhagen (FX Options, Options on FX Futures)

Convexity adjustments (Interest rate futures)

Default intensity (Credit derivatives)

2 accommodate new instruments by allowing definition of new product types and

valuation characteristics (E.g., If RBI allows Banks to trade in a new instrument, the

user should be able to define the valuation methodology of the product)

3 configure and customize instrument parameters at the cash flow level

4 define a new instrument by inheriting the logic of its constituent instruments (E.g.,

If RBI allows Banks to trade in a new exotic instrument that can be broken down

into multiple constituent cash flows, the user should be able to define and link the

valuation methodology of the new instrument as an combination of the constituent

instrument valuation methodologies)

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 147 of 250


5 provide valuation methodologies for:

Foreign Exchange Models (spot and forwards): Net Present Value, Marked To

Market

Interest Rate Models and Indexes: Net Present Value, Discount Curve, Forward

Estimation Curve, Index Yield Curve, Calibration to market

Fixed Income / Securities: Marked To Market, NPV from any yield curve, Fixed

spread over any yield curve, Fixed spread over Benchmark Bond

Structured Fixed Income: Net present value

Commodity Models: Marked to Market, Calibrate to market

Equity Models: Marked To Market

Common optionality models as relevant to bank: Marked to Market, Binomial,

Trinomial, Monte Carlo, Black – Scholes (BS), Cox - Ingersoll – Ross, Hull – White,

Garman – Kohlhagen

6 perform valuations in line with RBI requirements, using methodologies and data

from other sources (E.g., FIMMDA for bond valuations, FEDAI for Forex valuations)

as necessary

7 allow user to define different valuation models for the purpose of CVA and MTM

calculations

8 perform calculations on real-time or based on user-established triggers, on a batch

basis

9 algorithmically generate (pseudo) random numbers, for use in Monte Carlo pricing

computations and scenario generation exercises

10 allow definition of combination of different valuation models for valuation of

instruments

11 store valuation model parameters (created within the valuation models, or

derived/imported from elsewhere) internally and map these to transactions and

exposures as required at the time of valuation

12 interface with most available external third party pricing systems E.g., valuation

tools with subscribed price feeds that may be used by the bank for price

information

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 148 of 250


13 display partial calculations results for reconciliation and model risk analysis (E.g.,

the user must be able to view intermediate steps in the pricing calculation that led

to the final result)

14 allow user to effect changes in pricing models (in line with access rights), including

but not limited to:

set up new instruments mapped to existing pricing models

set up new instruments and incorporate new pricing models

re-map existing instruments to new pricing models

incorporate new pricing models in the system’s set of models

8.1.4 P&L Vector


1 Profit & Loss Simulation

1.1 calculate P&L as part of the overnight risk measurement process.

1.2 calculate P&L intra-day (e.g. to support limit management for stress limits).

1.3 calculate P&L for a selection of risk factor shifts, based on the following

parameterization:

Selected positions/portfolios

Sensitivity/Taylor based

Revaluation grid based

Scenario Set

Selected hierarchy node

1.4 calculate P&L based on user defined scenarios, standard stress scenarios and

macroeconomic scenarios at the local & business unit level and at the global level.

1.5 allow user-defined scenarios to override-adjust historical pattern assumptions (e.g.

special events)

1.6 allow a scenario to be quickly 'test run' on a configurable set of records, for

example, the top 500 positions.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 149 of 250


1.7 decompose P&L into the constituent risk factors responsible for the net trade or

portfolio value change: IR Delta P&L, IR Gamma P&L, FX Vega P&L, IR Vega P&L, IR

Time Decay (Theta), Trade events , New trades, Amended trades, Void trades

1.8 display and report Profit & Loss attribution using drill down and graphic capabilities

1.9 provide option to include as well as exclude transaction costs such as brokerage

fees, commissions and other fees in the P&L attribution exercise

2 Sensitivity Analysis

2.1 aggregate sensitivities across Business Units by any available attribute (e.g.

counterparty, currency pair, currency, tenor etc.) according to a defined

aggregation hierarchy.

2.2 convert sensitivities from across Business Units to a common standard (e.g.

common tenor structure) for aggregation

2.3 identify which risk factor a portfolio/subset of portfolio is most sensitive to / which

risk factor movements would have the biggest impact on risk measures.

2.4 allow the user to reverse sensitivities (i.e. multiply by -1) for incorporation in

relevant risk measurement models.

3 Aggregation

3.1 aggregate the calculated values of each asset in each scenario to generate the P&L

Vector for each scenario

3.2 generate correlated scenarios so that the final aggregated value of the P&L vector

is logically internally consistent

3.3 tabulate and graphically represent results of the P&L vectors generated for each

scenario

3.4 drill-down and identify break-up valuation of each component in a selected

scenario

8.1.5 Risk Computations

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 150 of 250


1 support computation of all aspects of market risk covered in the Basel 2 Internal

Models approach, specified in Sub-Section 8.6.2 : List of Risk Measures

2 allow user to individually compute each measure of VaR as relevant to Basel 2 IMA:

Interest Rate Risk

General Market Risk

Specific Risk

Default Risk

Credit Migration Risk

Credit Spread Risk

Incremental Risk

Equity Price Risk

General Market Risk

Specific Risk

Exchange Rate Risk

3 Specific Risk

3.1 isolate spread risk, event and default risk for estimation of specific risk

3.2 report the amount of the incremental risk capital charge (IRC) not only with

confidence interval of 99.9 percent but also with confidence interval other than

99.9 percent as per RBI guidelines. It should be capable of generating and reporting

the default risk and credit migration risk separately

3.3 incorporate correlations between default and migration events in the IRC model

3.4 capture and measure Basis risk, i.e., identify material idiosyncratic differences

between similar but not identical positions (E.g., debt positions with different levels

of subordination and maturity mismatches). Capture significant basis risk which

may include mismatches between long and short positions by maturity or by the

issuer.

3.5 compute basis risks by product, seniority in the capital structure, internal or

external rating, maturity, vintage for offsetting positions as well as differences

between offsetting instruments, such as different payout triggers and procedures.

4 Stressed VaR

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 151 of 250


4.1 calculate and report the stressed Value at Risk (sVaR) as per RBI guidelines.

4.2 identify the stressed VaR time series window, i.e., the 250 day period that

generates the largest VaR from a defined historical period (e.g., 1 Jan 2005 to

reporting date)

4.3 apply user-specified past price points, correlation and movements on the current

portfolio

4.4 evaluate stressed VaR at both transaction and portfolio level using the same

methodologies as used to compute normal VaR

4.5 store historical stressed VaR results and utilize in capital computation

8.1.6 VaR Analytics


1 VaR Computation

1.1 calculate and report the total amount of the previous day interest rate risk VaR,

equity risk VaR, exchange risk VaR, commodity risk VaR, etc. for vanilla and

derivative instruments at different user-defined confidence intervals (E.g., 95%,

97.5%, 99%) for different user-defined holding periods

1.2 allow user to select products/deals/portfolios to be used in the VaR computation,

and compute VaR for the selected assets

1.3 calculate and report the 60 business-day average modeled VaR for all of the bank’s

portfolios

1.4 scale up the VaR to a higher number of days for both linear and non-linear products

using square root method

1.5 provide a breakdown of contribution to the overall VaR figure and compute the

distribution of VaR across various dimensions including:

Dealer wise VaR

Product wise VaR

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 152 of 250


Market wise VaR

Desk wise VaR

Currency wise VaR

Risk wise VaR

1.6 revalue selected portfolios and recompute VaR, stressed VaR, back testing on an

intra-day basis

1.7 perform real time intra-day computations without impacting end of day process

1.8 report intra-day market risk against limits established in the system

2 Marginal VaR

2.1 compute the VaR impact of removal of a position /set of positions to the VaR of a

user-defined portfolio without recalculating bank-wide VaR

3 Component VaR

3.1 provide a decomposition of the VaR contribution of different asset types

4 Incremental VaR

4.1 compute the VaR impact of addition of a position/ set of positions to the VaR of a

user-defined portfolio without recalculating bank-wide VaR

5 Expected Shortfall

5.1 report all data points beyond the VaR thresholds, compute the expected shortfall

as the average

5.2 allow user flexibility to define the weight of each data point beyond the VaR

threshold to compute a weighted shortfall value

5.3 compute and report the expected shortfall as a line item in VaR reports

8.1.7 Pre-deal Check


1 re-calculate risk measures based on the addition of new positions, or

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 153 of 250


amendment/removal of existing positions, prior to actual execution of trades

2 add /remove a position to a specified portfolio and calculate risk implications for

the added position using latest available scenarios and valuations

3 compute the effect of a new trade on risk metrics of a user-defined portfolio

without the need for an actual execution of trade

4 retain and retrieve computational and result information in a database distinct

from the main data warehouse

8.1.8 Limit Monitoring


1 report risk exposures against the following limits:

VaR limits

Gap/Tenor limits

Stop loss limits

Notional/Exposure/Product concentration limits

Net PV01/ Maximum cumulative PV01 limits

Interest rate vega/ cumulative IR vega limits

Greek limits: Gamma, delta, vega

Aggregate Gap Limits (Forex)

Intra-day Limits

Net Overnight Open Position

2 reports limit utilization against limits at various levels of hierarchy (E.g., book level,

desk level etc.)

3 report historical limit trends e.g. showing how a particular limit changes over time.

4 produce exception reporting related to compliance requirements, e.g. monitoring

authorization levels of individual traders' as the ability to trade certain products, or

within certain maturity limits, or the authorization for only buying bonds and not

selling

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 154 of 250

8.1.9 Back Testing


1 back test the dirty (including brokerage, commission, fees paid, capital gains taxes,

etc.) as well as clean (excluding aforementioned costs) P&L

2 maintain a history of P&L data value and allow users to view changes to P&L over

time

3 explain exceptions resulting from changes, modification or cancellation of trades

4 configure interval periods for comparing P&L and VaR

5 provision to test parameters by simulating VaR on historical portfolios and/or rates

6 support multiple regulatory regimes to allow multiple pricing and VaR

methodologies to be defined in the system simultaneously for different portfolios.

E.g., Historic 10-day VaR for Indian equities and Monte Carlo 5-day VaR for US

equities

7 store granular data (at the International Securities Identification Number level) for

at least ten years across all investment classes and derivatives

8 drill down and pinpoint specific securities, trades or portfolios that are contributing

to spikes and exceptions in the VaR figure

9 compute, aggregate and back test VaR across sub-portfolios. (E.g., for HFT

portfolio, for all assets denominated in USD, for central government securities

investments only etc.)

10 store information on the historical exceptions for a configurable period of time

11 classify the number of exceptions in green, yellow and red zones as defined by RBI

and report the same providing details on the exceptions

8.1.10 Stress Testing


CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 155 of 250


1 provide a standard set of ready scenarios to reflect the stresses experienced by

banks’ portfolios mainly in Indian markets except in the case of foreign operations

where the local stress periods would be applicable

2 capture the changes in parallel and non-parallel shifts in the spot rates, changes in

convexity of the curves, changes in basis, etc. and measure the impact of the same

at trade level and portfolio level.

3 support performing stress tests at multiple levels e.g. firm level, trading book level,

portfolio and sub portfolio levels

4 run both local and global scenario generation exercises independently for stress

and scenario testing, without interfering data or processes for end of day runs

5 support performance of reverse stress tests on specific market risk inputs, to

identify scenarios where market risk limits are breached or large losses are

incurred

6 compare stress testing results against the start position

7 allow performance of global (Consolidated) and local (E.g., London) stress tests

independently

8.1.11 Capital Charge Computation


1 Standardized Approach

1.1 capture all products, counterparty types, currency turnover information, exposure,

and classify/categorize them as per RBI guidelines on new capital adequacy

framework

1.2 allow business users to define/modify the customer type, product type etc., in line

with any regulatory guidelines.

1.3 facilitate application of appropriate risk weights for products (specific issues, short

term and long-term facilities, domestic and foreign currency facilities),

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 156 of 250


counterparties (claims on banks, corporate, multilateral agencies, sovereign, state

govt.) etc. as per RBI guidelines.

1.4 support modification of the rating and rating agency details

1.5 capture and compute capital for non-performing investments (NPIs) as per the

relevant regulatory prescriptions

1.6 simulate the effects of various scenarios on the Bank’s risk weighted assets

1.7 compare the current capital charge computations with previous quarters

1.8 calculate and report the capital charge on account of specific risk and on account of

general market risk under interest rate, equity and foreign exchange and gold

1.9 capture the rating to risk weight mapping and perform capital calculation as

prescribed by the host supervisor for the claims in the books of the overseas

branches

1.10 mark the securities as illiquid and calculate amount of reduction to be applied

under the Tier 1 capital as per the RBI guidelines

1.11 account for deductions from the tier I and tier II capital as per RBI guidelines, while

arriving at the capital charge. (for e.g. if capital is already deducted for investment

in subsidiary the same may not be considered for calculation of capital charge)

2 Internal Models Approach

2.1 compute capital charge for “on and off balance sheet items” under IMA

2.2 compute the capital charge on a daily basis

2.3 generate all balance sheet disclosures related to treasury operations

2.4 compute capital charge as relevant to each portfolio (HFT, AFS) in line with RBI

regulations

2.5

calculate and report the total VaR for the bank’s entire portfolios (such that all

trading positions are included) that are calculated for internal reporting without

recognition of correlation effects across those portfolios

2.6 capture the changes in parallel and non-parallel shifts in spot rates, changes in

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 157 of 250


convexity of curves, changes in basis etc.

2.7 calculate and report the capital charge on account of specific risk and on account of

general market risk under interest rate, equity and foreign exchange and gold

2.8

calculate and report the Total Capital charge for previous day, and during the

previous quarters under sub categories like interest rate, equity and foreign

exchange and should also calculate the total risk weighted assets and capital ratio

2.9 identify illiquid securities and accordingly report the amount of reduction to be

applied under tier 1 capital and mark the securities as illiquid

2.10 calculate the capital charge for investments in MFs

2.11 compute the “plus” or add-on factors based on back-testing exercises in line with

regulatory guidelines

2.12 provide flexibility of viewing the reports at aggregated or granular level

2.13 capable of accounting for deductions from Tier I and II capital

2.14 support a user configurable interface with which the business user can modify the

rating and Rating agency details

2.15 retain historical information on the capital charge on a daily basis

2.16

Provide capability for the allocation of capital to business units/ various portfolios,

Risk Adjusted Performance Measurement (RAPM) and Risk Adjusted Return on

Capital (RAROC)

8.1.12 Reporting Requirements


1 Aggregation and Drill Down Functionalities

1.1 aggregate / breakdown information at any level based on static information (i.e.

trades attributes). including but not limited to: currency, counterparty, instrument

type, book, trader, branch, regions, asset/liability type, zone, and user-definable

attributes

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 158 of 250


1.2 aggregate / breakdown information at any level based on dynamic information

(results categories) including but not limited to: NPV, delta, VaR. For e.g., the user

should be able to select all Indian equities which contribute a VaR of over INR

10,000. The securities present in this bucket are subject to change over time

1.3 display results in a multi-dimensional format ( e.g. excel pivot tables)

2 Report Customization

2.1 allow users to specify the exact layout of the required report including location of

fields, header, footer, page numbering, title etc.

2.2 allow users to define structures and fields of each report by selecting fields from

databases of their choice

2.3 provide a report writing wizard that provides users with step by step menus and

allows them to draw up reports in the required format (E.g., PDF, HTML, XLS)

2.4 allow users to present outputs from reports in the form of graphs, charts and other

graphical representations

2.5 sort data in reports

2.6 customize reports with user defined filters

2.7 customize reports with respect to time period considered, portfolios considered,

levels of granularity, etc.

3 Scheduling of Reports

3.1 generate pre-defined end-of-day, end-of week and end-of month reports

3.2 generate pre-defined reports with minimum user interference

3.3 define a schedule for reports and reports should be generated as per the frequency

defined by the Bank

3.4 allow defining the users to whom reports can be automatically sent

4 Archiving of Reports

4.1 archive historical reports

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 159 of 250


4.2 archive historical rates extracted from market information systems

5 Ad hoc Reporting

5.1 allow users to customize standard reports for their own profile (E.g., different

portfolio, specific time period, comparing with historic results), without affecting

reports generated by other users

5.2 allow users to configure what-if analysis to analyze the impact of new positions,

amendments to existing positions, unwinding positions, etc.

5.3 allow user to extract any data stored in the system (position data, price data,

rating-wise historic FIMMDA ZCYC spread information etc.) for graphing and

analysis


6.1 generate all regulatory reports required in appropriate regulatory formats

6.2 provide pre-configured internal reports in standardized templates, for effective

market risk management.

6.3 allow user to configure and generate new ad hoc reports and save report

configuration in user profile

6.4 retain historic report information to compare report outputs over a configurable

time period (E.g., previous day or previous month end)

6.5 distribute reports according to user-configurable distribution parameters, e.g.,

email to a generic inbox, save to a server location, etc.

8.1.13 Data Requirements


1 Market Data

1.1 Market Data Sourcing

1.1.1 capture price/volatility/spread data relating to a broad range of products from

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 160 of 250


different data providers, to allow the Bank to record its current and likely future

treasury activities accurately, including, but not limited to, the following:

Fixed Income Investments (Central Government Securities, State Government

Securities, Other Approved/SLR Securities, Treasury Bills, Cash Management Bills,

Corporate Debt, Commercial Paper, Certificates of Deposit)

Stock Investments (Equity, Preference Shares and Mutual Funds)

Lending and Borrowing Operations (Repo Transactions, Reverse Repo Transactions,

Interbank Lending Operations, Central Bank Lending Operations, Call Money,

Notice Money, Refinancing operations - NABARD, SIDBI)

Over-the-counter and Exchange traded Derivatives (Exchange Traded Futures, IR/Fx

Swaps, Credit Derivatives, Cross currency swaps, Fx Options, Interest Rate Options,

Forward Rate Agreements)

1.1.2 allow addition of new market data sources. E.g., configure the system to obtain

equity price information from Bloomberg rather than Reuters

1.1.3 source time stamped market data (e.g., Open/ High/ Low/ Close) across multiple

markets, taking to account varying business hours

1.1.4 allow user to configure intraday timings for sourcing market data

1.1.5 allow user to configure change in market data source as either temporary or

permanent

1.1.6 allow user to configure alternative data source in case of failure of primary source

system (E.g., BSE prices when the NSE price feed suffers disruption)

1.1.7 obtain information from external sources on historic values of various risk factors

(E.g., equity index and individual equity prices, forex prices, commodity prices,

spreads over benchmark curves for Bank/PSU/FI/Corporate rated bonds, etc.)

relevant to market risk computations. Historic data for the last 5years should be

available.

1.1.8 configurable data sourcing timings for users in different time zones, e.g., London

branch should be able to download FTSE closing prices at the end of day, and head

office should be able to value London portfolio at the start of Indian business day

1.1.9 allow modification of input price/curve data as required by the pricing model, e.g.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 161 of 250


transforming quarterly quotes into monthly prices

2 Static & Reference Data

2.1 Static Data Sourcing

2.1.1 source reference data from relevant sources including:

Instrument reference data for (past, current and future) traded products. (E.g.,

Bloomberg/Reuters/FIMMDA ticker, Index constituents, etc.)

Internal Desk/Book hierarchy data

Product hierarchy data (e.g. relationship of asset classes, instruments and sub-

products

Counterparty data including a standardized, organization-wide counterparty

hierarchy

Calendar / business day conventions

Static data values (e.g. country codes, currency codes etc.)

2.1.2 allow definition of new reference data types and modification of pre-defined data

types (E.g., addition of a new level in the product hierarchy)

2.1.3 allow sources of reference data to be changed, and the reference data should have

an attribute identifying data source

2.1.4 support all types of day count basis including 30/360, Actual/360, Actual/365,

Actual/Actual, 30E/360

2.1.5 support International Swaps and Derivatives Association (ISDA) -defined business

day conventions such as following, modified following, preceding, next month, this

month, average of the month etc.

2.1.6 support user defined reprising to input changes in asset prices that do not flow

from data feeds

2.2 Holiday Calendars

2.2.1 load calendar schedules from external sources including but not limited to SWIFT,

International Holiday schedule and Bloomberg holiday schedule etc.

2.2.2 allow users to set calendar schedules through interfaces/ patch updates

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 162 of 250


2.2.3 allow configuration of multiple holiday tables for each currency and country

2.2.4 allow users to input calendar schedules at least 7 years forward

2.2.5 edit and override global calendar and holiday tables

2.2.6 flag trades executed on a global holiday through exception messages and exception

reports

2.2.7 define settlement instructions based on emergency holidays

2.2.8 model cash flows and interest accruals based on holiday calendar and standard day

roll conventions

3 Position Data

3.1 retrieve position data from treasury system to perform valuations

3.2 allow user to create, save and load portfolios of bank’s position in various

instruments/ currencies

3.3 automatically recalculate the trade or portfolio value if (relevant) market rate

changes are detected

3.4 allow user, based on access rights, to create portfolios across all dimensions (E.g.,

Bank-wide, HFT/AFS/HTM, Trading Book, Commodity, Risk factor, individual

position, Trader, currency, delivery location, Trade type, Time bucket, etc.)

3.5 support different types of portfolio revaluation methodologies: marginal, full, no

recalculation, manual, timed (i.e. every 10 minutes, batch), etc., or any portfolio-

wise combination of the same.

3.6 provide various options to value the Bank’s investment portfolio: current market

rates, freeze current market rates (snapshot), etc.

3.7 facility to specify if portfolio should be loaded as of a specific date in the past

3.8 select Position / Price / Liquidation methodology for aggregated positions: Average

Cost, LIFO, FIFO, Max Profit, Least Profit, User defined

3.9 display information at trade and portfolio levels

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 163 of 250


3.10 display valuation results using drill down capabilities (e.g. Local Currency, Base

Currency, Reference Currency)

3.11 display portfolio results, where possible, by a user definable maturity grid

3.12 bucket portfolio open positions into the maturity grid using industry standard

methodologies: Previous Bucket Point, Following Bucket Point, Proportional ,

Nearest, Delta Equivalent, Proprietary, etc.

3.13 create, name, save and load portfolio ‘views’ as result of the previous choices

3.14 provide Hedge Effectiveness Testing and Portfolio Optimization functionalities. I.e.,

the system should be able to compute the effectiveness of hedges as well as to

determine the optimal portfolio composition given various constraints (E.g.,

minimum/maximum investments in certain assets)

4 Data Upload

4.1 time stamp and record data source for each data upload

4.2 allow user to decide the frequency and mode of data upload, e.g., timed update or

continuous update

4.3 upload position, rate and valuation information of the investment portfolios of

local as well as overseas branches to allow consolidated reporting

5 Data Overrides and Adjustments

5.1 allow users to apply adjustments to address erroneous values via single point

changes or mass updates

5.2 log data corrections and communicate the same to relevant upstream/

downstream systems

5.3 maintain an audit trail of data changes made by users

5.4 allow reversal of changes made based on access rights given to different levels of

users

6 Data Validation

6.1 validate user entered data at the time of data sourcing, preferably by field input

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 164 of 250


controls, e.g., format of input, date checks, etc.

6.2 support configurable data checks on consistency and integrity of all data inputs

(market data obtained from different data providers, position data from treasury

systems, etc.). The checks should be configurable on single data points as well as

on groups of data, e.g., curves

6.3 support validation of uploaded data by means of business rules with configurable

parameters

6.4 ensure that there are effective checks and controls to ensure that transactions are

not loaded multiple times in the host system, i.e., duplication checks

6.5 perform data validation to reconcile position data in the treasury system with

market risk system

7 Data Storage and Archival

7.1 store on a daily basis the following information:

Position and transaction data at a granular level present in the Bank’s portfolio

Market data (yield curves, volatility curves, Fx Spot and Forward prices , FX

volatilities)

Market prices (for quoted instruments) and book value for instruments that are not

traded often

Net Present Values(NPV), MTM and Greeks at transaction and aggregated levels

Value-at-Risk at transaction and aggregated levels

Scenario Results at transaction and aggregated levels

Profit & Loss results at transaction and aggregated levels

7.2 import historical market prices files from external vendors for volatilities and

correlations calculations for transactions on new markets

7.3 import historical position information either directly from existing systems or in the

form of data upload files to allow easy system migration, generation of historical

results and also to mitigate the impact of incorrect data uploads

7.4 store historical market rates information through automatic end-of-day procedures

and historical results for at least 10 years

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 165 of 250


7.5 store the complete set of data used as input to calculations performed by the

system

7.6 allow users to view complete data snapshot of any previous business day

7.7 support storage of all current and historical position, market and reference data on

a daily basis, and allow users to view the complete set of data for any given day

7.8 store system-generated data points (e.g. interpolated values), with configurable

flags determining whether or not data is stored

7.9 transform data from source format to a standard format for storage/ archival

7.10 provide data mining functionalities (e.g. identifying from a set of historical data the

worst one month/quarter/year)

7.11 support archiving of data that are beyond a specified time horizon

7.12 export data to secondary storage device without down-time

7.13 support data retrieval from the specified archives. The archival and retrieval

programs should facilitate easier analysis of old data.

7.14 in-built Data warehousing capabilities or standard interface with Data warehousing

solutions

8 Data Quality and Statistics

8.1 provide an analysis of data quality, i.e., completeness and accuracy of inbound /

outbound data feeds and reporting on key data quality metrics

8.2 provide a tool for automatic verification and validation of uploaded data with

appropriate measure of correction

8.1.14 Model Validation


1 provide an independent set of valuation methodologies to independently assess

the models used to price each asset in the Bank’s investment portfolio

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 166 of 250


2 allow user to run sample test cases in both the primary as well as independent

secondary pricing modules

3 compare primary and secondary model outputs and enable user to identify areas of

divergence

8.1.15 Miscellaneous Requirements


1 track and account for the necessary range of traded and non-traded currencies that

can be configured by the user

2 convert between currencies without manual intervention to the home currency

3 support multiple organizational levels and relationships

4 permit entry of free format text (especially in case where the dealer wants to

provide additional settlement instructions during deal entry, dealer notes etc., and

that information has to be recorded in the risk management system.)

8.2 Functional Requirements for ALM System

The Bank intends to strengthen its ALM system processes by complying with all ALM DGA

requirements by RBI. This includes both RSA (risk sensitive assets) and RSL (risk sensitive

liabilities) and domestic/ overseas operations.



8.2.1 Computation Requirements

Sr. No. ALM Functional Requirements

1 generate cash flows for rate sensitive assets and liabilities with or without

embedded optionality, by utilizing market or internal data, or by means of

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 167 of 250


behavioral analysis as appropriate.

2

bucket each rate sensitive on- and off-balance sheet asset and liability in line with

extant RBI guidelines for SLS, Interest Rate Sensitivity – TGA and Interest Rate

Sensitivity – DGA. Also allow user to define custom buckets for additional analysis.

3

compute coupon, yield for each bucket and the macaulay duration, modified

duration and modified convexity as applicable to each on- and off-balance sheet

asset and liability in line with RBI guidelines on DGA computation, incorporating

data from market sources as well as bank internal sources

4

evaluate the bank’s position with respect to various duration, maturity-mismatch

and any other limits established in the system by the Bank to monitor ALM

position across geographies, portfolios and jurisdictions

5 generate automated threshold alerts and drill-down reports on any breaches of

limits established in the system

6 allow bank to define new products, new coupon/yield computation logic and new

bucketing rules without extensive rework and recoding

8.2.2 Behavioral Analysis


1

allow user to configure behavioral analysis using RBI guidelines, trend analysis,

historic data and user inputs for at least the following assets and liabilities with no

contractual maturity, from the perspectives of SLS and IRS reporting:

Current and Savings Bank Deposits

Overdue Deposits

Term Deposits

Bills Payable

Cash Credit and Overdraft (CC/OD)

Prepayment of Term Loans

Un-availed Portion of CC/OD/WCDL

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 168 of 250


Devolvement of LCs/Guarantees.

2

provide a choice of statistical models to analyze behavior of assets and liabilities,

including but not limited to, the following:

Drawdown analysis

Rollover analysis

Prepayment/Early redemption analysis

Past due analysis

3

back test behavioral analysis assumptions by means of industry standard tests

(Conditional coverage tests, unconditional coverage tests, duration tests, etc.), in

order to assess accuracy of expected behavior.

4 compare and tabulate expected versus actual historic behavior and enable an

analysis of reasons for deviation, if any

5 allow user to tweak behavioral study assumptions and provide estimates of

changed behavior to enable accurate recalibration

8.2.3 Liquidity Risk Monitoring


1 Liquidity Risk

1.1

monitor daily risk positions through cash flow gaps and maximum cumulative

outflow measurements. Intra-day bank liquidity position and currency-wise open

position reporting included in this requirement.

1.2

generate and monitor all ratios relevant to liquidity, including but not limited to,

the following:

Liquidity Coverage Ratio and Net Stable Funding Ratio in line with RBI guidelines

on Basel III implementation

Market Value of unencumbered High Quality Liquid Assets (HQLA) required for the

bank to meet regulatory liquidity coverage ratio requirements

Actual vis-à-vis regulatory levels of CRR and SLR

Regulatory monitoring ratios:

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 169 of 250


(Volatile liabilities – Temporary Assets)/(Earning Assets – Temporary Assets)

Core deposits/Total assets

(Loans + mandatory SLR + mandatory CRR + Fixed Assets)/Total Assets

(Loans + mandatory SLR + mandatory CRR + Fixed Assets)/Core Deposits

Temporary Assets/ Total Assets

Temporary Assets/ Volatile Liabilities

Volatile Liabilities/Total Assets

Impact of stress scenarios such as drying up of funding sources, increased market

volatility, bank-run, etc. on the bank’s liquidity position

Utilization against contingency plan triggers and limits

Any other ratio required by the Bank from the perspective of stock approach

liquidity management (Swapped Fund Ratio, Credit Deposit Ratio, Loan losses to

net loans, etc.)

1.3

allow user to configure liquidity ratios and trigger/limit levels through a graphic

user interface, defining the numerator and denominator out of bank balance

sheet inputs

1.4 provide an overall consolidated view of the total market liquidity risk faced by the

Bank by virtue of its current portfolio

2 Liquidity Stress Testing

2.1

possess a robust stress testing engine to simulate systemic and specific events

including but not limited to, the following

Deterioration in firm’s credit rating

Run-off of non-contractual liabilities using statistical approaches

Periods of combinations of sudden and prolonged market volatility

Greater than expected drawdown of non-fund based exposures

2.2 should be capable of analyzing the impact of concentration of funds by source,

borrowers and currency to identify significant sources of market liquidity stress

8.2.4 Scenario Analysis

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 170 of 250


1 produce budgetary and customer scenarios defined by type of contract.

2 scenario-dependent projections of future earnings, balance, market values, yields,

cash-flows, etc.

3 measure earnings effects, future liquidity risk, and product-inherent optionality

risk

4 allow user to simulate new business, by defining volume projections, instrument

characteristics, price rate models, and maturity schedules

5 perform income simulation: Future Earnings and capital requirements.

6

provide a robust cash flow engine as part of the system that supports at least, but

not limited to, the following:

Conventional amortization (EMI)

Annuity payments with fixed maturity

Annuity payments with variable annuity

Principal only

Balloon/Bullet/Staggered payments

Amortization for floating rate instruments

Customized (user-supplied) amortization schedules

Negative amortization

NPAs and Restructured accounts

Instruments such as Bonds, Swaps, Repos, Reverse Repos, CDS, futures, options

(cash-flow, swap, cap/floor) and forward rate agreements

Instruments without embedded optionality (E.g., CASA deposits)

Off-balance sheet assets and liabilities without defined maturities (E.g., LCs, LGs)

7

model instrument / account level prepayment assumptions by, but not limited to,

the following methods:

By specifying a constant flat percentage of the current balance

By specifying prepayment rates based on either age, term or rate characteristics

By specifying mathematical relationships between prepayment rates & bank

lending rates/spreads over base rate

By incorporating seasonality adjustment factors based on past experience for

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 171 of 250


prepayments

8

support the choice of at least the following term structure models (including no-

arbitrage models):

Merton

Vasicek

Ho & Lee

Extended Vasicek

8.2.5 Data Requirements


1 Market Data

1.1 Market Data Sourcing

1.1.1 capture price/volatility/spread data relating to a broad range of products from

different data providers, to allow the Bank to record its current and likely future

treasury activities accurately, including, but not limited to, the following:

Fixed Income Investments (Central Government Securities, State Government

Securities, Other Approved/SLR Securities, Treasury Bills, Cash Management Bills,

Corporate Debt, Commercial Paper, Certificates of Deposit)

Stock Investments (Equity, Preference Shares and Mutual Funds)

Lending and Borrowing Operations (Repo Transactions, Reverse Repo

Transactions, Interbank Lending Operations, Central Bank Lending Operations, Call

Money, Notice Money, Refinancing operations - NABARD, SIDBI)

Over-the-counter and Exchange traded Derivatives (Exchange Traded Futures,

IR/Fx Swaps, Credit Derivatives, Cross currency swaps, Fx Options, Interest Rate

Options, Forward Rate Agreements)

1.1.2 allow addition of new market data sources. E.g., configure the system to obtain

equity price information from Bloomberg rather than Reuters

1.1.3 source time stamped market data (e.g., Open/ High/ Low/ Close) across multiple

markets, taking to account varying business hours

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 172 of 250


1.1.4 allow user to configure intraday timings for sourcing market data

1.1.5 allow user to configure change in market data source as either temporary or

permanent

1.1.6 allow user to configure alternative data source in case of failure of primary source

system (E.g., BSE prices when the NSE price feed suffers disruption)

1.1.7 obtain information from external sources on historic values of various risk factors

(E.g., equity index and individual equity prices, forex prices, commodity prices,

spreads over benchmark curves for Bank/PSU/FI/Corporate rated bonds, etc.)

relevant to market risk computations. Historic data for the last 5years should be

available.

1.1.8 configurable data sourcing timings for users in different time zones, e.g., London

branch should be able to download FTSE closing prices at the end of day, and head

office should be able to value London portfolio at the start of Indian business day

1.1.9 allow modification of input price/curve data as required by the pricing model, e.g.

transforming quarterly quotes into monthly prices

2 Static & Reference Data

2.1 Static Data Sourcing

2.1.1 source reference data from relevant sources including:

Instrument reference data for (past, current and future) traded products. (E.g.,

Bloomberg/Reuters/FIMMDA ticker, Index constituents, etc.)

Internal Desk/Book hierarchy data

Product hierarchy data (e.g. relationship of asset classes, instruments and sub-

products

Counterparty data including a standardized, organization-wide counterparty

hierarchy

Calendar / business day conventions

Static data values (e.g. country codes, currency codes etc.)

2.1.2 allow definition of new reference data types and modification of pre-defined data

types (E.g., addition of a new level in the product hierarchy)

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 173 of 250


2.1.3 allow sources of reference data to be changed, and the reference data should

have an attribute identifying data source

2.1.4 support all types of day count basis including 30/360, Actual/360, Actual/365,

Actual/Actual, 30E/360

2.1.5 support International Swaps and Derivatives Association (ISDA) -defined business

day conventions such as following, modified following, preceding, next month, this

month, average of the month etc.

2.1.6 support user defined reprising to input changes in asset prices that do not flow

from data feeds

2.2 Holiday Calendars

2.2.1 load calendar schedules from external sources including but not limited to SWIFT,

International Holiday schedule and Bloomberg holiday schedule etc.

2.2.2 allow users to set calendar schedules through interfaces/ patch updates

2.2.3 allow configuration of multiple holiday tables for each currency and country

2.2.4 allow users to input calendar schedules at least 7 years forward

2.2.5 edit and override global calendar and holiday tables

2.2.6 flag trades executed on a global holiday through exception messages and

exception reports

2.2.7 define settlement instructions based on emergency holidays

2.2.8 model cash flows and interest accruals based on holiday calendar and standard

day roll conventions

3 Position Data

3.1 retrieve position data from treasury system to perform valuations

3.2 allow user to create, save and load portfolios of bank’s position in various

instruments/ currencies

3.3 automatically recalculate the trade or portfolio value if (relevant) market rate

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 174 of 250


changes are detected

3.4 allow user, based on access rights, to create portfolios across all dimensions (E.g.,

Bank-wide, HFT/AFS/HTM, Trading Book, Commodity, Risk factor, individual

position, Trader, currency, delivery location, Trade type, Time bucket, etc.)

3.5 support different types of portfolio revaluation methodologies: marginal, full, no

recalculation, manual, timed (i.e. every 10 minutes, batch), etc., or any portfolio-

wise combination of the same.

3.6 provide various options to value the Bank’s investment portfolio: current market

rates, freeze current market rates (snapshot), etc.

3.7 facility to specify if portfolio should be loaded as of a specific date in the past

3.8 select Position / Price / Liquidation methodology for aggregated positions:

Average Cost, LIFO, FIFO, Max Profit, Least Profit, User defined

3.9 display information at trade and portfolio levels

3.10 display valuation results using drill down capabilities (e.g. Local Currency, Base

Currency, Reference Currency)

3.11 display portfolio results, where possible, by a user definable maturity grid

3.12 bucket portfolio open positions into the maturity grid using industry standard

methodologies: Previous Bucket Point, Following Bucket Point, Proportional ,

Nearest, Delta Equivalent, Proprietary, etc.

3.13 create, name, save and load portfolio ‘views’ as result of the previous choices

3.14 provide Hedge Effectiveness Testing and Portfolio Optimization functionalities.

I.e., the system should be able to compute the effectiveness of hedges as well as

to determine the optimal portfolio composition given various constraints (E.g.,

minimum/maximum investments in certain assets)

4 Data Upload

4.1 time stamp and record data source for each data upload

4.2 allow user to decide the frequency and mode of data upload, e.g., timed update or

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 175 of 250


continuous update

4.3 upload position, rate and valuation information of the investment portfolios of

local as well as overseas branches to allow consolidated reporting

5 Data Overrides and Adjustments

5.1 allow users to apply adjustments to address erroneous values via single point

changes or mass updates

5.2 log data corrections and communicate the same to relevant upstream/

downstream systems

5.3 maintain an audit trail of data changes made by users

5.4 allow reversal of changes made based on access rights given to different levels of

users

6 Data Validation

6.1 validate user entered data at the time of data sourcing, preferably by field input

controls, e.g., format of input, date checks, etc.

6.2 support configurable data checks on consistency and integrity of all data inputs

(market data obtained from different data providers, position data from treasury

systems, etc.). The checks should be configurable on single data points as well as

on groups of data, e.g., curves

6.3 support validation of uploaded data by means of business rules with configurable

parameters

6.4 ensure that there are effective checks and controls to ensure that transactions are

not loaded multiple times in the host system, i.e., duplication checks

6.5 perform data validation to reconcile position data in the treasury system with

market risk system

7 Data Storage and Archival

7.1 store on a daily basis the following information:

Position and transaction data at a granular level present in the Bank’s portfolio

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 176 of 250


Market data (yield curves, volatility curves, Fx Spot and Forward prices , FX

volatilities)

Market prices (for quoted instruments) and book value for instruments that are

not traded often

Net Present Values(NPV), MTM and Greeks at transaction and aggregated levels

Value-at-Risk at transaction and aggregated levels

Scenario Results at transaction and aggregated levels

Profit & Loss results at transaction and aggregated levels

7.2 import historical market prices files from external vendors for volatilities and

correlations calculations for transactions on new markets

7.3 import historical position information either directly from existing systems or in

the form of data upload files to allow easy system migration, generation of

historical results and also to mitigate the impact of incorrect data uploads

7.4 store historical market rates information through automatic end-of-day

procedures and historical results for at least 10 years

7.5 store the complete set of data used as input to calculations performed by the

system

7.6 allow users to view complete data snapshot of any previous business day

7.7 support storage of all current and historical position, market and reference data

on a daily basis, and allow users to view the complete set of data for any given day

7.8 store system-generated data points (e.g. interpolated values), with configurable

flags determining whether or not data is stored

7.9 transform data from source format to a standard format for storage/ archival

7.10 provide data mining functionalities (e.g. identifying from a set of historical data

the worst one month/quarter/year)

7.11 support archiving of data that are beyond a specified time horizon

7.12 export data to secondary storage device without down-time

7.13 support data retrieval from the specified archives. The archival and retrieval

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 177 of 250


programs should facilitate easier analysis of old data.

7.14 in-built Data warehousing capabilities or standard interface with Data

warehousing solutions

8 Data Quality and Statistics

8.1 provide an analysis of data quality, i.e., completeness and accuracy of inbound /

outbound data feeds and reporting on key data quality metrics

8.2 provide a tool for automatic verification and validation of uploaded data with

appropriate measure of correction

8.2.6 Reporting Requirements


1 Aggregation and Drill-down Capabilities

1.1 record information to identify various dimensions of ALM reporting from the

perspective of aggregation, including, but not limited to:

1.1.1 multiple jurisdictions: To roll solution out across multiple legal jurisdictions

1.1.2

multiple currencies: To handle all currencies the Bank has rate-sensitive exposure

to. The system should also be able to convert all currencies to the Bank’s reporting

currency (INR) using FEDAI spot rates

1.1.3 multiple departments: To allow rule-based access to different departments as

required

1.1.4 multiple products and product categories: To handle all risk sensitive assets and

liabilities that may be present in the Bank’s portfolio

1.2 allow rule-based aggregation to identify exposures across each dimension above

1.3

drill-down from the interest rate sensitivity, structural liquidity and any other

analysis to a granular level (E.g., Product level, portfolio level, geography level,

etc.)

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 178 of 250


2 Reporting and Analysis

2.1 reporting should be compliant with regulatory requirements

2.2 predict possible business volumes, maturity patterns, etc. utilizing historical data

and simulation

2.3 report at any level of detail (drill down and aggregate)

2.4 build customizable hierarchical roll up structure

2.5 provide graphical representation of reports as appropriate

2.6 report across product, account, and business unit

perform the following analysis:-

Interest Rate Risk in the Banking Book and Trading Book: Interest Rate Sensitivity

Analysis – Traditional Gap Analysis and Duration Gap Analysis

Structural Liquidity Analysis

Re-pricing balance sheet/gap analysis

Cash flow balance sheet

Breakup of cash flow and balance sheet into deterministic (contractual assets and

liabilities) and dynamic (non-contractual assets and liabilities)

Market value balance sheet (present values)

Value effect: economic value sensitivity

key rate duration

Scenario analysis (parallel shifts, non-parallel shifts)

Trend analysis

Static profitability analysis: yield report

Effective yields

Market Value Sensitivity (MVS)

Market Value of Equity (MVE)

NII and NIM analysis

Behavioral analysis for rate sensitivities with embedded optionality

2.7

generate standard reports for following:

RBI mandated Structural liquidity reports:

Domestic Currency – Indian Operations

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 179 of 250


Foreign Currency – Indian Operations

Combined Indian Operations – Domestic and Foreign Currency

Overseas branch Operations – Country-Wise

Consolidated Bank Operations

RBI mandated Interest Rate Sensitivity reports to monitor Interest Rate Risk in the

Banking Book and Trading Book:

Traditional (Static) Gap Analysis

Duration (Dynamic) Gap Analysis

RBI mandated Short Term Dynamic Liquidity Statement

Currency-wise mismatch reports

Cash flow projections

Bucket-wise mismatch reports

Variance analysis

Mark to market reports

Net Interest Income reports

Economic Value of Equity Analysis

Product/ Account Level Profitability Analysis

Line of Business Level Profitability Analysis

FTP Division of spread analysis, by lending, funding and interest rate risk spreads

Total Organizational Level Profitability Analysis

Cost of Fund by Product/Account

Net Interest Margin Analysis

Key early warning/risk indicators

Status of contingent funding sources

Interest Rate Risk Analysis/Reporting

Value at Risk Analysis and Reporting

Earnings at Risk Analysis and Reporting

Market Value - deterministic and stochastic

Scenario Income reports

Gaps statement based on contractual maturity

2.8 provide querying facilities to build own queries

3 Report Customization

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 180 of 250


3.1 provide a user-configurable ALM dashboard

3.2 provide user-definable time buckets

3.3 provide user-definable chart of accounts, classification, sub-classification, maturity

buckets, reference rates, yield curves, currencies etc.

3.4 Ratio Builder, which allows users to define any number of categories and ratios

3.5 support custom report designing

3.6 allow users to specify the exact layout of the required report including location of

fields, header, footer, page numbering, title etc.

3.7 allow users to define structures and fields of each report by selecting fields from

databases of their choice

3.8 provide a report writing wizard that provides users with step by step menus and

allows them to draw up reports in the required format

3.9 allow users to present outputs from reports in the form of graphs, charts and

other graphical representations

3.10 allow for sorting of data in reports

3.11 isolate and report errors and exceptions

3.12 allow user defined filters

3.13 customize reports with respect to time period considered, portfolios considered,

levels of granularity, etc.

4 Scheduling of Reports

4.1 generate pre-defined end-of-day, end-of week and end-of month reports

4.2 generate pre-defined reports with minimum user interference

4.3 define a schedule for reports and reports should be generated as per the

frequency defined by the Bank

4.4 allow defining the users to whom reports can be automatically sent

5 Archiving of Reports

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 181 of 250


5.1 archive historical reports

5.2 archive historical rates extracted from market information systems

6 Ad hoc Reporting

6.1 allow users to customize standard reports for their own profile (E.g., different

portfolio, specific time period, comparing with historic results), without affecting

reports generated by other users

6.2 allow users to configure what-if analysis to analyze the impact of new positions,

amendments to existing positions, unwinding positions, etc.


7.1 generate all regulatory reports required in appropriate regulatory formats

7.2 provide pre-configured internal reports in standardized templates, for effective

market risk management.

7.3 allow user to configure and generate new ad hoc reports and save report

configuration in user profile

7.4 retain historic report information to compare report outputs over a configurable

time period (E.g., previous day or previous month end)

7.5 distribute reports according to user-configurable distribution parameters, e.g.,

email to a generic inbox, save to a server location, etc.

8.2.7 FTP Requirements


1

provide distinct modules to approach FTP, enabling the user to define the interest

rate environment, interface with the bank systems for information on the product

portfolio, establish costing rules at a desired level of granularity, analyze the cost

of source and use of funds and generate appropriate end user reports

2 provide flexibility to choose from multiple FTP methodologies (Cost of funds/ Net

Funding/Pooled Funding/Matched Maturity)

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 182 of 250


3

generate the Base FTP curve for each use and source of fund on the underlying

account or transaction attributes at the time of origin at a granular account-level

using matched maturity methodologies such as bullet, cash flow and weighted

average life funding

4

generate the base FTP curve by combination of multiple yield curves for different

maturities, as a combination of:

Treasury rates

Funds pool

Bank cost of funds

Target borrowing rate

Swap curves

CD rates

LIBOR/MIBOR

5

view FTP rates across at multiple granularities:

product

business unit

branch

Bank/ entity

6 analyze profitability at various levels by generating the economic value and the

corresponding FTP rates

7

calculate liquidity cost for:

on-balance sheet assets consuming liquidity based on tenor at origination date

and on marginal cost.

contingent liquidity risk (cost of holding stand-by liquidity buffer to cover

unexpected liquidity needs and cost of roll-over risk)

other categories of possible liquidity risk exposure (E.g., country risk cost due to

extension of funding to clients in non-fungible currencies)

8

calculate, assign / allocate FTP costs, behavioral models or pricing assumptions

based on the following:

Basis risk

Liquidity risk

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 183 of 250


Funding rates (Base Government ZCYC rate/ LIBOR/MIBOR)

Fixed rate structural funding cost

Option cost

On-balance sheet and off-balance sheet products

9 project and price undrawn off-balance sheet items, including contingent

commitments, by means of stress and scenario testing

10 quantify impact due to change in FTP rates, methodologies, behavioral models,

volumes, changes in key stress assumptions, etc.










1

How many Implementation trainings (MRMS and ALMS) have been undertaken by

the Bidder so far?



3.1 Number of man-days / duration for completion of training



CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 184 of 250


3.4 Location


3.6 Pre-requisites / Preparations required before training

4

Please answer the following about the trainers in-charge of conducting the training

on behalf of the Bidder for the Bank:

4.1

Median experience of all trainers with the Bidder who would be involved with the

Project

4.2

Median experience of all trainers involved with the Project, working / training on the

solution proposed by the Bidder

5

Please provide a sample training response and feedback from previous

implementations





5.4

Indicative rating [if any provided] Note: Please attach the feedback in a separate

document with proper cross-referencing

6

Please specify the various modes through which the training will be delivered? [e.g.

Classroom training, Online self-help training modules within application / e-

learning modules, Quiz, etc.]







CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 185 of 250


project:










proposed solutions

2 Timelines






5.1. Project Name


5.3. Client Name

5.4. Client address




5.8. Man‐months effort

5.9. Project Size (No of branches, modules covered and any other relevant details)




5.13. Role of the Bidder, whether complete end‐to‐end involvement or for a particular

module


CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 186 of 250


forming part of the Market Risk and ALM Project of the Client Bank, associated


8.6 Additional Information for Market Risk

8.6.1 List of Risk Factors

The table below represents risk factors required to calculate market risk measures relevant to

Bank portfolio. This list is a baseline for the design phase, but a key requirement will be the

ability to incorporate additional risk factors as required.

Risk Factor Dimensions

Interest Rate

Zero Coupon Interest Rate Per currency per tenor

Bond Swap Spreads Per currency per tenor

Cross Currency Basis Swap Spreads Per currency pair per tenor

Tenor Basis Spreads Per currency per tenor

Cross Currency Basis Spreads Per currency pair per tenor

Government Bond Prices Per currency per tenor

T-Bills Per currency per tenor

Futures Contracts Per tenor

OIS Rates Spread over Benchmark curve

Certificate of Deposit Rates Per tenor

Repo Curve Per currency per tenor

Par Swap Curve

Base Rate Curve Per currency per tenor

Funding Curves Per currency per tenor

Cash Futures Spreads Per currency per tenor

Equity

Equity Spot Prices

Equity Forward Prices Per tenor

Equity Index Prices

Equity Index Forward Prices Per tenor

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 187 of 250

Risk Factor Dimensions

FX

FX Spot Prices Per currency

Forward FX Rates Per currency per tenor

Commodities (Precious Metals)

Spot Prices

Forward Curves Per tenor

Inflation

Zero Rates

Market Rates

Implied Volatility

IR Option Expiry and Swap Maturity Matrix

FX Option Per underlying price per tenor

FX Option Smile/Skew Delta10, Delta25

Commodities (Precious Metals) Per underlying price per tenor

Credit Spread

CDS Spreads and Recovery Rates Per Issuer, currency, seniority, name,

rating and industry

CDS Indices Per underlying price per tenor

Bond Z Spreads Per underlying price per tenor

Historic Correlation

Inflation Per currency

X-Ccy Correlations Per currency pair per tenor

IR Domestic Per currency per tenor

IR Foreign Per currency per tenor

IR Domestic – FX Per currency per tenor

IR Foreign – FX Per currency per tenor

8.6.2 List of Risk Measures

The table below represents risk measures relevant to Bank portfolio. This list is a baseline for

the design phase, but a key requirement will be the ability to incorporate additional risk

measures as required.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 188 of 250

Risk Measures

Sensitivity Calculations

IR

IR PV01

Duration

Modified Duration

IR Option Greeks*

Basis Risk

Credit CS01

Bond Z-Spread PV01

FX

NOOP – Net Spot

NOOP – Net Forward

NOOP – Delta Equivalent

FX Option Greeks*

FX Smile – Risk Reversals

FX Smile – Butterfly

VaR

Standard VaR

Incremental VaR

Marginal VaR

Conditional VaR (Expected Shortfall)

Stressed VaR

Stressed P&L

NII (Net Interest Income) Sensitivity

* Delta, Vega and other higher order terms e.g. Gamma, X-Gamma, Vol-Gamma, Vanna

9. Integrated Capital Computation & Reporting Module

As the capital computation for credit risk, operational risk and market risk will be done by

separate system / application, the bank needs a module to extract and collate the individual

capital calculations and report the integrated capital of the Bank (solo) and group level.

9.1 Functional Requirements



CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 189 of 250


1 Reporting

1.1 A reporting Tool with a presentation layer

1.2 An ETL tool for extraction of capital computed from the three respective systems

(CRMS, ORMS and MRMS)

2 Data Model

The solution should

2.1 provide a single data model to serve as a single repository for all the Market Risk,

Credit Risk, Operational Risk, ALM and FTP Solutions

2.2 provide a Physical Data Model

2.3 provide the ability to perform data transformation

2.4 provide the ability to execute the calculation of each of the concerned applications

directly from the Data Model

2.5 provide a single framework for the definition of calculation runs across all

applications (Market Risk, Credit Risk, Operational Risk, ALM, FTP)

2.6 Provide a single mechanism for batch execution across applications

2.7 provide the ability to trace data calculations across the applications










1 How many Implementation trainings (Integrated Capital Computation & Reporting

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 190 of 250


Module) have been undertaken by the Bidder so far?



3.1 Number of man-days / duration for completion of training



3.4 Location


3.6 Pre-requisites / Preparations required before training

4 Please answer the following about the trainers in-charge of conducting the training

on behalf of the Bidder for the Bank:

4.1 Median experience of all trainers with the Bidder who would be involved with the

Project

4.2 Median experience of all trainers involved with the Project, working / training on the

solution proposed by the Bidder


implementations





5.4 Indicative rating [if any provided] Note: Please attach the feedback in a separate

document with proper cross-referencing

6 Please specify the various modes through which the training will be delivered? [e.g.

Classroom training, Online self-help training modules within application / e-

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 191 of 250


learning modules, Quiz, etc.]




Sr.

No.

Requirements



project:










proposed solutions

2 Timelines






5.1 Project Name

5.2 Project Location

5.3 Client Name

5.4 Client address

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 192 of 250

Sr.

No.

Requirements

5.5 Client contact/reference person(s)

5.6 Project started (month/year)

5.7 Project elapsed time – months

5.8 Man‐months effort

5.9 Project Size (No of branches, modules covered and any other relevant details)

5.10 Name of senior project staff

5.11 Nature of the Project

5.12 Project Management Methodology used

5.13 Role of the Bidder, whether complete end‐to‐end involvement or for a particular

module

5.14 Project detail (Broad detail – information about all activities handled, modules

forming part of the Project on Integrated Capital Computation and Reporting

Module of the Client Bank, associated activities, time lines activity‐wise and

module‐ wise may be detailed.)

10. Technical Specifications across all systems/ risk solutions

Following are the technical specifications required across all systems and risk solutions provided

under the EWIRM Solution.



Sr. No. Technical Requirements

1.0 Audit Requirements

1.1 store market rates, yield curve rates, assumptions made and maintain audit trail

1.2 generate a detailed audit trail on a daily basis for the following minimum

features: attempted unauthorized logins, time of login and logout, change of

passwords, change of parameters, data modifications

1.3 maintain the audit trail with details like user name, date and time details of the

changes made

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 193 of 250


1.4 support drill down of the audit trail to granular levels and track users across

each activity

1.5 time stamp transactions with user ID along with details of modification, previous

value, etc. Changes should be able to be rolled back to a previous state.

1.6 generate audit trail that includes details of databases accessed and modified by

the users

1.7 store and track all system events, including corrections and cancellations

1.8 allow deal amendments only with relevant audit trail details

1.9 generate error log in case of missing and/or erroneous data

1.10 archive audit log files

1.11 System should be able to

o create customized rules to validate and audit operational processes

o understand and refine mission-critical processes by logging exceptions

and violations

2.0 Edit Check

2.1 perform logical edit checks on all input fields

2.2 provide intelligible edit error messaging to assist correction and re-entry of data

2.3 reject entries that cause edit errors

2.4 provide ability to over-ride edited errors

3.0 User Interface

3.1 provide access to reporting and system functionalities through a web-based

application without the Bank requiring no additional software installation

3.2 provide consistent and user-friendly interfaces to access the information via a

GUI

3.3 provide users with a single point of access, to access all functionality available to

their user account through a single entry point

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 194 of 250


3.4 generate error messages based on pre-defined parameters

3.5 provide online and offline context-sensitive help

3.6 allow users to print reports directly from the system

3.7 interface with mail box of the users to generate notifications and auto-mailers

3.8 provide metrics on the success of processes, and flag where processing

exceptions occur e.g. via output / error logs. It should also provide in-process

and post-process performance statistics where possible e.g. time remaining to

complete, time taken to complete etc.

3.9 generate reports as per the Automated Data Flow (ADF) requirements of the

bank.

3.10 The tool should allow the analysis / explorations / reports to be pushed for

offline viewing to mobile devices

4.0 Intranet Enablement

4.1 provide user access through the intranet and remote access to authorized users

5.0 System Availability

5.1 system outage time due to events such as server down, application down etc.

should not exceed the minimum tolerable downtime defined by the bank for the

application.

5.2 operate with a 98.5% minimum availability for business users during hours of

business for each time zone. The system should be available if all functions are

running at 100% functionality and not impaired.

5.3 overnight reports generated by end-of-day processing should be ready at a time

agreed in the system SLAs on business days for each time zone

5.4 In the case of a system failure with no loss of data, restore to an operational

state within 120 minutes if within standard hours of service as defined in the

SLA.

5.5 In the case of a system failure and the loss of data integrity, restore to an

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 195 of 250


operational state with the most recently backed up data within an acceptable

timeframe as defined in the SLA.

5.6 In the case of a system failure mid-processing, resume all processes at an interim

point if possible and reasonable and if resulting in significant re-processing

computation time savings.

6.0 Scalability

6.1 scalable in such a way that an increase in the required number of risk factors /

scenarios / time steps can be satisfied by a proportional increase in the

hardware resources. The system must be able to handle predicted business

volume and product range growth by introducing a proportional increase in the

hardware resources.

6.2 System should offer horizontal scalability apart from vertical scalability

7.0 Flexibility

7.1 allow for changes to be made to existing methodologies (e.g. reconfigure

models, change process steps in models etc.) and allow for the addition of new

methodologies via the necessary support intervention.

7.2 Allow users to add, remove or amend data feeds, without requiring a change to

the system itself.

8.0 Performance

8.1 allow all available users (i.e. up to the number of user licenses) to run ad-hoc

reports simultaneously. The system should be able to handle simultaneous

requests from up to 4 times the number of normally logged on users (i.e. scaling

factor of 4x).

8.2 support prioritization functionality to ensure standard processes have sufficient

resources to run within required timelines without being affected by ad hoc user

requests

8.3 support the capture of, make available data related to and be able to report on

performance metrics sufficient to meet required performance reporting

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 196 of 250


regulations, if any. Alerts should be configurable around these generated

metrics. Examples of performance metrics include standard report calculation

times day on day and user load vs. ad-hoc report generation times

8.4 support intra-day feeds of data from external system(s) with resultant

downstream calculations and processes completed as quickly as possible and

practical

9.0 Disaster Recovery

9.1 support disaster recovery procedures to 'cutover' from a primary site to a

secondary site

9.2 resume processing using the disaster recovery secondary site within 24 hours

9.3 Performance requirements of the secondary disaster recovery site, when

activated, should exactly match those of the primary site

10.0 Overall System Architecture

10.1 Extract, transform and load data from all source systems

10.2 modular architecture – separate modules of the system should run

independently

10.3 platform independent

10.4 functionalities should be menu driven

10.5 provide facilities to filter, sort and assimilate data

11.0 Help Facility

11.1 provide simple and interactive dialogues to obtain the desired information e.g.

help facility

11.2 provide help facility which are context sensitive at field, screen etc.

11.3 provide context sensitive help to guide users to form the reports required by

them

11.4 help facility should explain probable causes of errors and possible solutions

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 197 of 250


12.0 Compatibility

12.1 perform queries against database irrespective of the technology/solution to be

implemented

12.2 store and retrieve data from existing systems and databases

12.3 provide an application programming interface to access outside programs

13.0 Interfacing with Information Feeds

13.1 interface with other solutions for receiving inputs and sending outputs, such as

automated information pricing feeds including but not limited to: Reuters,

Bloomberg, Negotiated Dealing System, National Stock Exchange, Moneyline

Telerate, RTGS, CDSL, NSDL, Legacy banking applications used by the bank,

EFT/SEFT, SWIFT, ECS, CRISMAC system, Credit risk rating system, Risk

management software, Data warehousing package, Inter-branch accounting

system, Liquidity management system, PDO/ CCIL, NDS-OM, FX Clear, NEFT,

SFMS, FIMMDA, AMFI, STP-GATE/ FTP, other existing system

13.2 accept inputs through a web-based interface

13.3 interface with accounting modules/systems in place at the bank

14.0 Manual Inputs

14.1 Incorporate customizable templates and Built-in data entry form for the cases

which are not captured through any other business application

15.0 File Import and Export Functionality

15.1 have a flat file import and export functionality to import and export transaction

data and static data in the following formats but not limited to: Microsoft Excel

Format (.XLS), Web Page (.HTML), Comma separated values (.CSV), Text file

(.TXT), Microsoft Word (.DOC), Adobe Reader (.PDF), ASCII (Flat File), Extended

Markup Language (XML),

16.0 Reconciliation

16.1 reconcile treasury transactions with electronically received holding statements

from custodians on a daily basis

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 198 of 250


16.2 reconcile GL balances with the aggregate account data to identify internal

inconsistency of the uploaded data

17.0 Batch Processing

17.1 receive and send transactions information in batch mode

18.0 Security

18.1 Security Management

18.1.1 allow users to be controlled by a specific administrator

18.1.2 permit access only through password verification, with a mechanism to generate

unique user ids

18.1.3 allow upgrades and patches to be uploaded only through the system upgrade

path and not to the run-time system

18.1.4 support addition of features only through a properly revised upgrade and data

migration method

18.1.5 provide or restrict access privileges based upon hierarchy and multiple criteria

18.1.6 provide role based access for front, middle and back office that can be defined

by the user

18.1.7 allow for setting of each user profile

18.1.8 synchronize the user id and password with network user id and password

18.1.9 databases should have database locking features in the situation that there are

multiple access and updates on the same record

18.1.10 provide unique identity for each user

18.1.11 support bank defined password expiry period

18.1.12 support password encryption

18.1.13 automatically lock user account after three successive erroneous tries

18.1.14 support granting/preventing access to data via a user administration GUI

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 199 of 250


18.1.15 isolate and report errors and exceptions

18.1.16 supports creation, deletion and modification of users, upgrades of users and

data access rights based on aspects of the user profiles (e.g., organizational unit,

grade, location, role)

18.1.17 support generation of lists of users, groups, logins and related system

permissions

18.1.18 support authorization configuration such as level of access to data e.g.

read/view data, print data, write/modify data, delete data etc.

18.1.19 enforce access control over who can change standard report configuration, and

maintain an audit trail of changes

18.1.20 check if a user is authorized to view the reports or data he/she has requested

and return appropriate error messages if access is denied

18.1.21 roll out formal changes to standardized reports for all users automatically

18.1.22 Blacklisting and immediate locking of accounts in case of identified security

breaches

18.2 Passwords

18.2.1 force change of password after a defined period of time (in days)

18.2.2 ensure that the password is at least 8 characters long and should be a

combination of alpha-numeric characters

18.2.3 allow access to users only through screens

18.2.4 maintain password history up to last 12 passwords

18.3 Auto Logout

18.3.1 logout users on user defined idle time

19.0 System Backup

19.1 provide day-end back-up process functionalities

19.2 back-up should be possible in external media editable/ non-editable (CD, tapes,

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 200 of 250


DVD) for off-site storage

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 201 of 250

11. Annexure

11.1 Undertaking from Bidder

Note: This Undertaking from the Bidder should be on the letterhead of the Bidder and should be

signed by an authorized person.

Date:

To,

General Manager,

Risk Management Wing,

Canara Bank Head Office,

112, J C Road

Bangalore - 560002

Dear Sir/ Madam,

We have sized the proposed Hardware, Database and Application licenses based on the terms

defined in the RFP. However, if the same fails to achieve the required performance as defined,

we agree to supply additional hardware, database licenses, software licenses and support to

meet the performance requirements as defined in the RFP at no incremental cost to the Bank.

Yours faithfully,

(Name of Authorized Signatory)

(Designation)

Duly authorized to sign Bid for and on behalf of

_________________________________

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 202 of 250

11.2 Eligibility Criteria Format

The Bidder must satisfy all the criteria mentioned in Section 4.3 Eligibility Criteria and submit the

same in the following format

Sr. No. Eligibility Criteria Compliance

(Yes/ No)


CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 203 of 250

11.3 Cover Letter for Technical Bid

Note: This cover letter for Technical Bid from the Bidder should be on the letterhead of the

Bidder and should be signed by an authorized person.

Date:

To,

General Manager,


Canara Bank Head Office,

112, J. C Road,

Bangalore - 560002

Sub: Response Solution to Implement Enterprise-wide Integrated Risk Management

Architecture under Basel II and Basel III.

Ref: Your Ref: ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Dear Sir/ Madam,

Having examined the Bidding Documents, the receipt of which is hereby duly acknowledged,

we, the undersigned, offer to supply and deliver the Solution to Implement Enterprise-wide

Integrated Risk Management Architecture under Basel II and Basel III, in conformity with the

said Bidding documents.

We undertake, if our Bid is accepted, to deliver, install and commission the Solution in

accordance with the Requirements specified within the RFP for Solution to Implement

Enterprise-wide Integrated Risk Management Architecture under Basel II and Basel III.

If our Bid is accepted, we will obtain performance guarantee of a bank for a sum equivalent to

10 percent of the Contract Price for the due performance of the Contract, in the form

prescribed by the Bank.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 204 of 250

We agree to abide by the Bid and the rates quoted therein for the orders awarded by the Bank

up to the period prescribed in the Bid, which shall remain binding upon us.

Until a formal contract is prepared and executed, this Bid, together with your written

acceptance thereof and your notification of award, shall constitute a binding Contract between

us.

We undertake that, in competing for (and, if the award is made to us, in executing) the above

contract, we will strictly observe the laws against fraud and corruption in force in India namely

“Prevention of Corruption Act 1988”.

We understand that you are not bound to accept the lowest or any Bid you may receive.

Dated this ....... day of ............................ 2013

_________________________________ ________________________________

(Signature) (Name) (In the capacity of)


_________________________________

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 205 of 250

11.4 Technical Bid Format

11.4.1 Credit Risk Management – Functional Requirements

The functional requirements specified in Section 6.1.1 Functional Requirements for Credit Risk

under IRB and Section 6.1.2 Functional Requirements for LOS has to be submitted in the

following format. The instructions for filling column no. 3 - S/A/C/U is furnished in section 4.4.2

Technical Bid Evaluation Criteria.

Sr. No. Credit Risk Functional Requirements S/A/C/U Remarks if Any

11.4.2 Credit Risk Management – Hardware Requirements

The Bidder must specify complete details of Hardware and other systems required for

successful implementation of the offered Solution, in the following format.

Sr.

No.

Module/ Item Module Description Requirement Quantity

Note:

1 Cost of ETL tools as part of proposed solution should be borne by bidder 2 Please mention Make / Model (if any), type and number of processors, Memory, bus speed,

hard disk & Operating System number of users, license type, version etc. 3 Detailed Bill of Materials (Line item wise mentioning technical specifications) to be

submitted for all the above modules 4 Detailed Technical sheets of the above modules to be submitted 5 Bidder to also provide detailed specifications for replication methodology for DR site

11.4.3 Credit Risk Management – Training Requirements

Please provide descriptive responses to the requirements specified in section 6.3 Training

Requirements for Credit Risk Management.

Sr. No. Requirements Response

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 206 of 250

11.4.4 Credit Risk Management – Project Management Methodology

Please provide descriptive responses to the requirements mentioned in section 6.4 project

management methodology for Credit Risk management.


11.4.5 Operational Risk Management- Functional Requirement

The functional requirements specified in Section 7.1 Functional Requirements for Operational

Risk has to be submitted in the following format. The instructions for filling column no. 3 -

S/A/C/U is furnished in section 4.4.2 Technical Bid Evaluation Criteria.


S/A/C/U Remarks If Any

11.4.6 Operational Risk Management - Hardware Requirements




Note:

1. Cost of ETL tools as part of proposed solution should be borne by bidder 2. Please mention Make / Model (if any), type and number of processors, Memory, bus speed,

hard disk & Operating System number of users, license type, version etc. 3. Detailed Bill of Materials (Line item wise mentioning technical specifications) to be

submitted for all the above modules 4. Detailed Technical sheets of the above modules to be submitted 5. Bidder to also provide detailed specifications for replication methodology for DR site

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 207 of 250

11.4.7 Operational Risk Management – Training Requirements


Requirements for Operational Risk Management.


11.4.8 Operational Risk Management – Project Management Methodology


management methodology for Operational Risk Management.


11.4.9 Market Risk Management - Functional Requirement

The functional requirements specified in Section 8.1 and Functional Requirements for Market

Risk under IMA and Section 8.2 Functional Requirements for ALM System has to be submitted in

the following format. The instructions for filling column no. 3 - S/A/C/U is furnished in section

4.4.2 Technical Bid Evaluation Criteria.

Sr. No. Market Risk Functional Requirements S/A/C/U Remarks If Any

11.4.10 Market Risk Management - Hardware Requirements




Note: 1 Cost of ETL tools as part of proposed solution should be borne by bidder

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 208 of 250

2 Please mention Make / Model (if any), type and number of processors, Memory, bus speed,

hard disk & Operating System number of users, license type, version etc. 3 Detailed Bill of Materials (Line item wise mentioning technical specifications) to be

submitted for all the above modules 4 Detailed Technical sheets of the above modules to be submitted 5 Bidder to also provide detailed specifications for replication methodology for DR site

11.4.11 Market Risk Management – Training Requirements


Requirements for Market Risk Management.


11.4.12 Market Risk Management – Project Management Methodology


management methodology for Market Risk management.


11.4.13 Integrated Capital Computation & Reporting Module - Functional Requirements

The functional requirements specified in Section 9.1 Integrated Capital Computation &

Reporting Module has to be submitted in the following format. The instructions for filling

column no. 3 - S/A/C/U is furnished in section 4.4.2 Technical Bid Evaluation Criteria.

Sr. No.

Integrated Capital Computation and Reporting Module Functional Requirements

S/A/C/U Remarks If Any

11.4.14 Integrated Capital Computation & Reporting Module - Hardware Requirements



CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 209 of 250


Note:

1. Cost of ETL tools as part of proposed solution should be borne by bidder 2. Please mention Make / Model (if any), type and number of processors, Memory, bus speed,

hard disk & Operating System number of users, license type, version etc. 3. Detailed Bill of Materials (Line item wise mentioning technical specifications) to be

submitted for all the above modules 4. Detailed Technical sheets of the above modules to be submitted 5. Bidder to also provide detailed specifications for replication methodology for DR site

11.4.15 Integrated Capital Computation & Reporting Module – Training Requirements


Requirements for Integrated Capital Computation & Reporting Module.


11.4.16 Integrated Capital Computation & Reporting Module – Project Management

Methodology


management methodology for Integrated Capital Computation & Reporting Module.


11.4.17 Technical Specifications across all systems/ risk solutions

The requirements specified in Section 10 Technical Specifications have to be submitted in the

following format. The instructions for filling column no. 3 - S/A/C/U is furnished in section 4.4.2

Technical Bid Evaluation Criteria.

Sr. No. Technical Specifications S/A/C/U Remarks if Any

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 210 of 250

11.4.18 Hardware & Infrastructure Configurations for the Proposed Solution (Credit Risk,

Operational Risk, Market Risk, LOS, ALM and Integrated Capital Computation and

Reporting Module)

Configuration for the hardware and other infrastructure components required for the proposed

solution should be provided in the table below. It is important for the bidder to provide the

details with a view for seven years. It should also provide the details for the deployment of each

component in a phased manner aligned with the expected volume growth.

Sr. No. Components Proposed Configuration Justification

11.4.19 Additional Details - for CRMS, MRMS, ORMS, ALM, LOS & Integrated Capital &

Reporting Module

The Bidder should provide responses to following questions as part of the technical bid:

1. What is the hardware configuration required for optimal running of the software? Please

provide the configuration for 5‐year scalability.

2. What is the current version and release date of the installed product?

3. Details of major enhancements planned.

4. What is the road map of your product for the next 3 to 5 years?

5. What is the next scheduled major release?

6. Describe the integration details and mechanism between the solution components if solution

is modular type

7. Provide a copy of any benchmarking studies performed on your product(s). Please provide

layouts that depict the environment producing these results.

8. Provide details of the product's scalability in order to

Increase Workload

Better Performance

Add more Users

Improve Network connectivity

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 211 of 250

9. Describe the integration capabilities of your system to integrate with external Systems. The

system should interface with other solutions for receiving inputs and sending outputs, such as

automated information pricing feeds including but not limited to:

• Reuters

• Negotiated Dealing System

• Flexcube

• Legacy banking applications used by the Bank

• CRISIL System

• Other Risk Management Software

• Data warehousing package

• Liquidity Management System

• Any other existing system

10. The integration should be through exposed APIs and not through change in code. Are there

standard API's available for integration with external systems?

11. Data transfer from external system from/to your solution should be automated. Please

describe in detail the capability of your system

12. Please describe the problem reporting and resolution mechanism that would be used if Bank

identifies a problem or change request with the system

13. What is maximum response time in case of problem/ help required?

14. Is the Hotline support inclusive in the annual maintenance charge?

15. If charged on a per‐call basis, please provide cost."

16. What amount of training is included with the acquisition of the proposed systems, in terms of

number of people type of course/agenda and number of man‐days

17. Please specify the details of the training course

• Cost if any

• Location

• Duration

• Frequency of offering

• Prerequisites

• Training description

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 212 of 250

Signature of Bidder: __________________

Name: _____________________________

Business Address: ____________________

Place:

Date:

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 213 of 250

11.5 Cover Letter for Commercial Bid

Note: This Cover Letter for Commercial Bid from the Bidder should be on the letterhead of the

Bidder and should be signed by an authorized person.

Date:

To,

General Manager


Canara Bank Head Office, 112, J. C Road

Bangalore - 560002

Sub: Procurement of Enterprise Wide Integrated Risk Management Solution under Basel II

/Basel III

Ref: Your Ref: ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Having examined the Bidding Documents, the receipt of which is hereby duly acknowledged, we,

the undersigned, offer to supply & deliver the Solution to Implement Enterprise Wide Integrated

Risk Management Solution under Basel II and Basel III, inconformity with the said Bidding

documents for the sum of ...................………….. (Total amount in words and figures) or such other sums as may be ascertained in accordance with

the Schedule of Prices (Part I and Part II) attached herewith and made part of this Proposal.

We undertake, if our Proposal is accepted, to deliver, install and commission the system, in

accordance with Requirements specified within the RFP for Solution to Implement Enterprise-

wide Integrated Risk Management Architecture under Basel II and Basel III .

We agree to abide by the Proposal and the rates quoted therein for the orders awarded by the

Bank.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 214 of 250

Until a formal contract is prepared and executed, this bid, together with your written acceptance

thereof and your notification of award, shall constitute a binding Contract between us.

We undertake that, in competing for (and, if the award is made to us, in executing) the above

contract, we will strictly observe the laws against fraud and corruption in force in India namely

“Prevention of Corruption Act 1988”.

We understand that you are not bound to accept the lowest or any Proposal you may receive.

Dated this ....... day of ............................ 2013

_________________________________ ________________________________ (Signature) (Name) (In the capacity of)

Duly authorized to sign Proposal for and on behalf of _________________________________

Enclosed:

1. Part I – Commercial Bid – Enterprise Wide Integrated Risk Management Solution: Credit Risk

Solution, Operational Risk Solution, Market Risk Solution and Integrated Capital Computation

and Reporting Module

2. Part II – Schedule for Annual Maintenance Cost (AMC) and Annual Technical Support (ATS)

and Warranty Period

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 215 of 250

11.6 Commercial Bid (Bill of Material) Format

11.6.1 Part I – Commercial Bid Format – Enterprise Wide Integrated Risk Management Solution:

Credit Risk Solution, Operational Risk Solution, Market Risk Solution and Integrated

Capital Computation and Reporting Module(Amount in INR Lakhs)

Sr.

No

.

Item Description No.

of

Units

(A)

Unit

Pric

e (B)

Sub-

Total

Price

(A*B)

Total Price

including

Taxes (Sales

Tax/VAT/Servi

ce Tax)

Total

Price

includin

g Taxes

&

Octroi)

Tota

l

Pric

e

A Software (for both DC& DR

Site)

1 Credit Risk Management

System

2 Loan Origination System

3 Operational Risk

Management System

4 Market Risk Management

System

5 Asset Liability Management

System

6 Integrated Capital

Computation and Reporting

Module

7 Middleware (if any)

8 Third Party Utilities (if any)

9 Software/tools for SLA

monitoring

Sub Total A

B RDBMS & environmental

Software (for both DC & DR)

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 216 of 250

Sr.

No

.


of

Units

(A)

Unit

Pric

e (B)

Sub-

Total

Price

(A*B)

Total Price

including

Taxes (Sales

Tax/VAT/Servi

ce Tax)

Total

Price

includin

g Taxes

&

Octroi)

Tota

l

Pric

e

1 Database Software License

Sub Total B

C Hardware (including for both

DC & DR Site)

1 Servers

2 Operating System

3 Storage (SAN)

4 Rack with KVM switch, power

supply, Network & security

requirements, switches,

routers, etc.

5 Hardware required for SLA

Monitoring

Sub Total C

D Implementation, System

Integration, Training

Integration of new systems

with existing systems

Sub Total (A+B+C+D)

E AMC & ATS cost as per Part II

F Facilities Management (both

at DC & DR)

Total Project Cost

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 217 of 250

Sr.

No

.


of

Units

(A)

Unit

Pric

e (B)

Sub-

Total

Price

(A*B)

Total Price

including

Taxes (Sales

Tax/VAT/Servi

ce Tax)

Total

Price

includin

g Taxes

&

Octroi)

Tota

l

Pric

e

(A+B+C+D+E+F)

Total Project Cost (in words)

Rs………………………………..

Important Notes:

The detailed specifications of all software and the required hardware modules, components are

to be attached separately in the Technical Bid (Annexure 11.3 Technical Bid Format), supported

by Technical Literature/ Product Catalogues/ Brochures, etc. This is Mandatory.

1. All estimation to be done for both DC & DR

2. Bidder to clearly provide in the solution the training requirements – # of batches, participants

in each batch, how much time, type of training ‐ (functional or technical) and Incorporate

them in the pricing

3. AMC & ATS charges to be given in the format prescribed below in Part II.

4. Price quoted should be inclusive of all costs, out of pocket expenses, duties, levies, taxes and

all other applicable charges including sales tax/VAT, service tax, road tax, Octroi etc. as

applicable in respective State and should be inclusive of any changes in currency or tax

structure.

5. TDS will be deducted separately.

6. In case of discrepancy between figures and words, the amount in words shall prevail.

7. No increase in costs, duties, levies, taxes, charges, etc., irrespective of reasons (including

exchange rate fluctuations, etc.) whatsoever, shall be admissible during the currency of the

Contract.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 218 of 250

8. All user licenses for operating system, database, application etc. should be as per Technical

and Functional Requirements

Signature of Bidder‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Name ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Business address ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Place:

Date:

Part II – Schedule for Annual Maintenance Cost (AMC) and Annual Technical Support (ATS) and

Warranty Period

Sr.

No.

Description Quantity Cost Taxes (at

present)

Total

1 Solution for Risk

Estimation for

1.1 Credit Risk

Management System

1.2 Loan Origination

System

1.3 Operational Risk

Management System

1.4 Market Risk

Management System

1.5 Asset Liability

Management System

1.6 Integrated Capital

Computation and

Reporting Module

2 Server

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 219 of 250

Sr.

No.


present)

Total

2.1 Database Server – DC

site

2.2 Application Server –

DC site

2.3 Web Server - DC site

2.4 Database Server – DR

site


DR site

2.6 Web Server – DR site

2.7 Database Server –

UAT /Training


UAT /Training

2.9 Web Server - UAT

/Training

2.10 Any other (Please

specify)

3 Operating System

3.1 OS for Database

Server – DC site

3.2 OS for Application

Server – DC site

3.3 OS for Web Server –

DC site

3.4 OS for Database

Server – DR site


Server – DR site


DR site

3.7 OS for Database

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 220 of 250

Sr.

No.


present)

Total

Server -

UAT/Training


Server –

UAT/Training


UAT/Training


specify)

4 RDBMS

4.1 RDBMS for Database

Server – DC site


Server – DR site


Server -

UAT/Training

4.4 Others (if any, please

specify)

5 Storage System

5.1 Disk Storage System

(SAN)

5.2 Tape Backup


specify)

6 42u Server Rack with

Sliding TFT

Monitor and 8 Port

KVM Switch

(Analog/Digital) along

with necessary

Accessories

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 221 of 250

Sr.

No.


present)

Total

7 Layer 3 Switch

8 Layer 2 Manage

switch

9 Lease Line Modem

10 Lease line with backup

from another

service provider

11 Any other (Please

specify)

Total AMC/ATS Cost

Signature of Bidder‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Name ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Business address ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Place:

Date:

*The AMC Price should be valid for 5 years.

11.6.2 Part I – Masked Commercial Bid Format – Credit Risk Solution, Operational Risk

Solution, Market Risk Solution and Integrated Capital Computation and Reporting

Module

Note: The masked commercial bid has to be submitted along with the Technical Bid

Sr.

No.


of

Units

(A)

Unit

Price

(B)

Sub-

Total

Price

(A*B)

Total Price

including Taxes

(Sales

Tax/VAT/Service

Tax)

Total

Price

including

Taxes &

Octroi)

Total

Price

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 222 of 250

A Software (for both DC&

DR Site)

1 Credit Risk Management

System

X X X X X

2 Loan Origination System X X X X X

3 Operational Risk

Management System

X X X X X

4 Market Risk

Management System

X X X X X

5 Asset Liability

Management System

X X X X X

6 Integrated Capital

Computation and

Reporting Module

X X X X X

5 Middleware (if any) X X X X X

6 Third Party Utilities (if

any)

X X X X X

7 Software/tools for SLA

monitoring

X X X X X

Sub Total A

B RDBMS & environmental

Software (for both DC &

DR)

1 Database Software

License

Sub Total B X X X X X

C Hardware (including for

both DC & DR Site)

1 Servers X X X X X

2 Operating System X X X X X

3 Storage (SAN) X X X X X

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 223 of 250

4 Rack with KVM switch,

power supply, Network &

security requirements,

switches, routers, etc.

X X X X X

5 Hardware required for

SLA Monitoring

X X X X X

Sub Total C X X X X X

D Implementation, System

Integration, Training

X X X X X

Integration of new

systems with existing

systems

X X X X X

Sub Total (A+B+C+D) X X X X X

E AMC & ATS cost as per

Part II

X X X X X

F Facilities Management

(both at DC & DR)

X X X X X

Total Project Cost

(A+B+C+D+E+F)

X X X X X

Total Project Cost (in

words)

Rs………………………………..

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 224 of 250

11.7 Bid Offer Covering Letter

Note: This Bid Offer Covering letter should be on the letterhead of the Bidder and should be

signed by an authorized person.

Date:

To,

General Manager


Canara Bank Head Office, 112, J. C Road

Bangalore - 560002

Dear Sir/ Madam,

Subject: Response to RFP for Solution to Implement of Enterprise Wide Integrated Risk

Management Architecture under Basel II and Basel III

1. With reference to the RFP, having examined and understood the instructions, terms and

conditions forming part of the RFP, we hereby enclose our offer for the implementation

of Enterprise Wide Integrated Risk Management Solution: Credit Risk Management

Solution, Operational Risk Management Solution, Market Risk Management Solution,

Loan Origination System, Asset Liability Management System and Integrated Capital

Computation and Reporting Module for Advanced Approach under Basel II and Basel III.

2. We acknowledge having received the following addenda to the bid document:

Addendum No. Dated

3. We agree and undertake that if our proposal is accepted, we shall provide the services

comprised in the contract within the timeframe specified, starting from the date of

receipt of notification of award from Canara Bank.

4. We understand that the Bank is not bound to accept the offer and that the Bank has the

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 225 of 250

right to reject the offer without assigning any reasons whatsoever.

5. If the software, hardware, licenses sizing provided falls short of the projected growth rate

for the duration of the project as mentioned in the RFP, we will provide the additional

required software, hardware, licenses, etc. free of cost to the Bank.

6. We confirm that the offer is in conformity with the terms and conditions as mentioned in

RFP and it shall remain valid for 6 months from the last date of the acceptance of this bid.

7. The details of the Bid Cost / EMD are as follows:

Particulars DD No. / Pay Order

No

Issuing Bank Amount

Bid Cost

EMD

Yours faithfully,


(Designation)


_________________________________

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 226 of 250

11.8 Reference Site Details

The reference sites submitted must be necessarily of those banks where the proposed Bidder/

OEM’s product has been awarded the contract in the last five years prior to the last date for

submission of bids at Canara bank. For those references where the offered solution is accepted

but implementation is not started, the acceptance should be valid as on the last date for

submission of bids at Canara Bank.

Please provide reference details in the format defined below:

Particulars Response

Name of the Bank/ Financial Institution

Country of Operation

Address of the Organization

Annual Turnover of the Organization for the Financial

Year 2011‐12

Date of commencement of Project

Date of completion of Project

Scope of Work for Solution

OEM partner for the project

Number of users and the geographical spread of the

implementation

Average Team size on site for project implementation (SI

& OEM Team)

Contact Details from the Bank/Financial Institution for

reference

o Name of the Contact Person

o Designation

o Phone Number/e-mail

Note:

i. The bidder has to submit a consent letter for conducting a reference site visit by the Canara

Bank project evaluation team. The letter has to be on the letter head of the Bank/Financial

Institution.

ii. The cost for the reference site visit shall be borne by the Bidder

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 227 of 250

11.9 Particulars of Bidder

11.9.1 Profile of Bidder

Requirement Response

Name of Bidder

Registered Office Location with Address

Controlling Office Location with Address

Date of incorporation & date of commencement of

business

Major changes in Management in last 3 years

(details to be provided)

Names of Banker/s

Names and Designations of the persons authorized

to make Commitments to the Bank (attach a copy of

the board resolution authorizing the person to

make commitments)

Telephone and Fax Numbers of Contact Persons

E-mail addresses of Contact Persons

11.9.2 Financial Position of Bidder for last 3 financial years (in `̀̀̀Crores)

Particulars 2009-10 2010-11 2011-12

Paid up capital

Tangible Net Worth (excluding revaluation reserve)

Total Outside Liabilities/Tangible

Net Worth

Net Sales of the Company

Out of the above Net Sales, Net Sales from Services

Gross Profit

Net Profit (Profit After Tax)

Growth in Operations (%)

Growth in Profitability (%)

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 228 of 250

11.9.3 Profile of OEM


Name of OEM

Registered Office Location with Address

Controlling Office Location with Address

Date of incorporation & date of commencement of

business

Major changes in Management in last 3 years

(details to be provided)

Names of Banker/s

Names and Designations of the persons authorized

to make Commitments to the Bank (attach a copy of

the board resolution authorizing the person to

make commitments)

Telephone and Fax Numbers of Contact Persons

E-mail addresses of Contact Persons

Note - to be furnished for each OEM forming part of the Bid

11.9.4 Financial Position of OEM for last 3 financial years (in `̀̀̀Crores)

Particulars 2009-10 2010-11 2011-12

Paid up capital

Tangible Net Worth (excluding revaluation reserve)

Total Outside Liabilities/Tangible

Net Worth

Net Sales of the Company

Out of the above Net Sales, Net Sales from Services

Gross Profit

Net Profit (Profit After Tax)

Growth in Operations (%)

Growth in Profitability (%)

Note - to be furnished for each OEM forming part of the Bid

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 229 of 250

11.9.5 Project Details


Estimated work plan and time schedules for

providing services for this project

Details of inputs, infrastructure

requirements required by the bidder to

execute this project.

Detail of the bidder’s proposed

methodology / approach for providing

services to the Bank with specific reference

to the scope of work.

Details of deliverables, the bidder proposes

with specific reference to the scope of

work.

Track record of supporting the proposed

software solutions after implementation

and warranty completion including

adequacy of the training programs and

knowledge transfer to the client(s).

11.9.6 Effort Estimate and Elapsed Time

Activities

Elapsed

Time

Effort

in

Man

Days

Number of

Team

Members

who will be

deployed

Remarks

Implementation Strategy & Plan

Installation and Commissioning of

Software

UAT and UAT Sign-off

Migration to Production Environment

Training

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 230 of 250

Activities

Elapsed

Time

Effort

in

Man

Days

Number of

Team

Members

who will be

deployed

Remarks

Implementation and Project

Documentation

Note: Enclose

1. copies of Audited Balance Sheets and P&L statements along with enclosures for last 3

financial years

2. Provisional financial statements as on 31.03.2013 along with summary as per above

format 3. copies of Articles of association and Memorandum of Association

4. copies of certificate of incorporation/certificate of commencement of business

5. copies of certificates of accreditation from ISO, SEI, CMM etc. as applicable

Place: Date: Signature:

Name & Designation: Business Address:

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 231 of 250

11.10 Past Experience Details

11.10.1 List of major customers where the proposed CRMS, ORMS, MRMS, LOS, ALMS and

Integrated Capital Computation Module solution have been implemented/under

implementation in India and their reference details

Sr.

No.

Name and

complete

Postal

Address of

the

Customer

Brief Scope

of work

(specify the

size of the

bank, the

approaches

supported

etc.)

OEM

Partner

for the

project

Attach

reference

Letter

Contact

Details

(Name,

Designation,

Phone,

Email)

Project Status

(Completed/

Under

Implementation,

Start Date, End

Date)

(Enclose necessary documentary proof such as reference letter)


Integrated Capital Computation Module have been implemented/under implementation

Outside India and their references

Sr.

No.

Name and

complete

Postal

Address of

the

Customer

Brief Scope

of work

(specify the

size of the

bank, the

approaches

supported

etc.)

OEM

Partner

for the

project

Attach

reference

Letter

Contact

Details

(Name,

Designation,

Phone,

Email)

Project Status

(Completed/

Under

Implementation,

Start Date, End

Date)

(Enclose necessary documentary proof such as reference letter)


CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 232 of 250

Integrated Capital Computation Module have been implemented/under implementation

by the Bidder and OEM together and their references

Sr.

No.

Name and

complete

Postal

Address of

the

Customer

Brief Scope

of work

(specify the

size of the

bank, the

approaches

supported

etc.)

OEM

Partner

for the

project

Attach

reference

Letter

Contact

Details

(Name,

Designation,

Phone,

Email)

Project Status

(Completed/

Under

Implementation,

Start Date, End

Date)

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 233 of 250

11.11 Performance Bank Guarantee Format

Bank Guarantee No.

Bank Guarantee Amount

Expiry Date

Claim Period

Account

GUARANTEE FOR PERFORMANCE OF CONTRACT/AGREEMENT

THIS GUARANTEE AGREEMENT executed at ________ day of_____________ Two

Thousand Ten

BY:

______________________ Bank, a body corporate constituted under _______________,

having its Registered Office/ Head Office at ______________, and a Branch Office

at_____________________________________________________ (hereinafter referred

to as “the Guarantor”, which expression shall, unless it be repugnant to the subject,

meaning or context thereof, be deemed to mean and include its successors and assigns)

IN FAVOUR OF:

Canara Bank, a body corporate, established under the Banking Companies (Acquisition

and Transfer of Undertakings) Act 1970 and having its Registered Office at 112, J. C. Road

Bangalore 560002 (hereinafter referred to as “Bank” which expression shall unless it be

repugnant to the subject, meaning or context thereof, be deemed to mean and include

its successors and assigns),

WHEREAS Bank had called for the bids for providing risk solutions for implementing

Enterprise Wide Integrated Risk Management Architecture under Basel II and III for

the Bank and its Group Entities and for the purposes M/s……………………… have been

appointed as the Vendor (hereinafter referred to as "Vendor") and accordingly has

entered into Contract / Agreement on ……….. (Agreement) with Bank subject to the

terms and conditions contained in the said documents and the Vendor has duly confirmed

the same.

AND WHEREAS pursuant to the Bid Documents, the Agreement, and the other related

documents (hereinafter collectively referred to as “the said documents”, the Bank has

agreed to avail from M/s……………………. and M/s……………………………. has agreed to

provide to the Bank, the Services / Systems / IRMA, more particularly described in the

Schedule/Annexure to the said documents (hereinafter collectively referred to as “the

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 234 of 250

Purchases”), subject to payment of the contract price as stated in the said documents and

also subject to the terms, conditions, covenants, provisions and stipulations contained the

said documents.

AND WHEREAS the Vendor has duly signed the said documents.

AND WHEREAS in terms of the said documents, inter alia, the Vendor is required to

procure an unconditional and irrevocable performance Bank guarantee, in favor of

the Bank, from a Bank acceptable to the Bank for a sum of

Rs…………………(Rupees…………………………………………………….. Only) being ---% of the total

contract value for the faithful observance and performance by the Vendor of the terms,

conditions, covenants, stipulations, provisions of the Agreement /the said documents.

AND WHEREAS at the request of the Vendor, the Guarantor has agreed to issue the

guarantee in favor of the Bank for a sum of Rs.……………………….

(Rupees………………………………………………..Only) being the --% of the total Contract value

AND WHEREAS at the request of the Vendor, the Guarantor has agreed to guarantee the

Bank that the Vendor shall faithfully observe and perform the terms of the said documents

NOW THEREFORE THIS AGREEMENT WITNESSETH AS FOLLOWS:

In consideration of the above premises, the Guarantor hereby unconditionally, absolutely

and irrevocably guarantees to the Bank as follows:

(1) The guarantor hereby agree and guarantee that the Vendor shall faithfully observe

and perform all the terms and conditions stipulated in the Contract/Agreement and the said

documents.

(2) The Guarantor hereby guarantees and undertakes to pay, on demand and without

demur, reservation, contest, recourse or protest or without any reference to the

Vendor, to the Bank at its office at Bangalore forthwith, and all monies payable by

the vendor to the extent of Rs.………………………………………. against any loss, costs,

damages, etc. suffered by the Bank

on account of default of the vendor in the faithful observance and performance of

the terms, conditions, covenants, stipulations, provisions of the Agreement / said

documents, without any demur, reservation, contest, recourse or protest or without any

reference to the Vendor. Any such demand or claim made by the Bank, on the

Guarantor shall be final, conclusive and binding

notwithstanding any difference or any dispute between the Bank and the Vendor or any

dispute between the Bank and the Vendor pending before any Court, Tribunal,

Arbitrator, or any other authority.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 235 of 250

(3) The Guarantor agrees and undertakes not to revoke this Guarantee during the currency

of these presents, without the previous written consent of the Bank and further agrees

that the Guarantee herein contained shall continue to be enforceable until and unless it is

discharged earlier by the Bank, in writing.

(4) The Bank shall be the sole judge to decide whether the Vendor has failed to perform

the terms of the Agreement / said documents for providing the Services by the Vendor

to the Bank, and on account of the said failure what amount has become payable by the

Vendor to the Bank under this Guarantee. The decision of the Bank in this behalf shall be

final, conclusive and binding on the Guarantor and the Guarantor shall not be entitled to

demand the Bank to establish its claim under this Guarantee but shall pay the sums

demanded without any objection, whatsoever.

(5) To give effect to this guarantee, the Guarantor will be deemed to be the Principal

Debtor to the Bank.

(6) The liability of the Guarantor, under this Guarantee shall not be affected by

(a) any change in the constitution or winding up of the Vendor or any absorption, merger or

(b) amalgamation of the Vendor with any other company, corporation or concern; or

(c) any change in the management of the Vendor or takeover of the management of the

Vendor by the Government or by any other authority; or

(d) acquisition or rationalization of the Vendor and/or of any of its undertaking(s) pursuant

to any law; or

(e) any change in the constitution of Bank / Vendor; or

(f) any change in the setup of the Guarantor which may be by way of change in the

constitution,

(g) winding up, voluntary or otherwise, absorption, merger or amalgamation or

otherwise; or the absence or deficiency of powers on the part of the Guarantor to give

Guarantees and/or Indemnities or any irregularity in the exercise of such powers.

(7) This Bank guarantee shall be valid up to……………………….

(8) Notwithstanding anything contained in this Guarantee, the Guarantor hereby agrees

and undertakes to extend the validity period of this guarantee for a further period as

may be requested by the Bank, from time to time.

(9) This guarantee shall be binding upon us and successors -in -interest and shall be

irrevocable.

(10) For all purposes connected with this Guarantee and in respect of all disputes and

differences under or in respect of these presents or arising there from the courts of

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 236 of 250

Bangalore city where the Bank has its Registered Office shall alone have jurisdiction to

the exclusion of all other courts.

(11) Notwithstanding anything contained herein above

I. Our liability under this Bank Guarantee shall not exceed Rs ……………. (Rupees

……………………….. only)

II. This Bank Guarantee shall be valid up to…………….

III. We are liable to pay the guaranteed amount or any part thereof under this Bank

Guarantee only and only if you serve on us a written claim or demand on or before

………………… ( mention validity period + claim period)

IN WITNESS WHEREOF the Guarantor has caused these presents to be executed on the

day, month and year first herein above written as hereinafter appearing.

SIGNED AND DELIVERED BY

the within named Guarantor,

______________________,

by the hand of Shri.__________, its authorized official.

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 237 of 250

11.12 Manufacturers’ / Producers’ Authorization Form

Note: This letter of authority should be on the letterhead of all the original equipment

manufacturers and should be signed by an authorized person and having the power of attorney

to bind the manufacturer.

No. Date:

To:

General Manager,

Risk Management Wing, Canara Bank Head Office,

112, J. C Road

Bangalore - 560002

Dear Sir/ Madam,

Sub: Solution to Implement Enterprise-wide Integrated Risk Management Architecture under

Basel II & III

We who are established and reputable manufacturers/producers of ________________________ having factories / development facilities at (address of factory /

facility) do hereby authorize M/s ___________________ (Name and address of Agent) to submit

a Bid, and sign the contract with you against the above Bid Invitation.

We hereby extend our full guarantee and warranty for the Solution, Products and services

offered by the above firm against this Bid Invitation.

We also undertake to provide any or all of the following materials, notifications, and information

pertaining to the Products manufactured or distributed by the Bidder:

a) Such Products as the Bank may opt to purchase from the Bidder, provided, that this option

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 238 of 250

shall not relieve the Bidder of any warranty obligations under the Contract; and b) in the event of termination of production of such Products:

i. advance notification to the Bank of the pending termination, in sufficient time to permit

the Bank to procure needed requirements; and ii. Following such termination, furnishing at no cost to the Bank, the blueprints, design

documents, operations manuals, standards, source codes and specifications of the

Products, if requested.

We duly authorize the said firm to act on our behalf in fulfilling all installations, Technical support

and maintenance obligations required by the contract.

Yours faithfully,


(Designation) (Name of Producers)

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 239 of 250

11.13 Implementation Team Profile

11.13.1 Implementation Capability of the Bidder


Current strength of employees in the bidder’s

organization with experience on the proposed product(s)

Current strength of employees in the bidder’s

organization with experience in similar projects

Certifications possessed by the Bidder in connection with

the quality of internal processes and services delivered/

methodology used in delivery

• Organization’s Competence for the Assignment:

• No. of Risk Management Professionals

• Proven track record and in-house technology skills for

supporting software by way of Availability of Quality

certificates (ISO / SEI/ CMM etc.)

11.13.2 Team Profile (SI & OEM)


Name of each Member on the Project Implementation

Team (Starting with Engagement Manager and Overall

Person responsible for the project)

Designation and Role

Area of Expertise (Subject Matter Expert)

• Credit Risk

• Market Risk

• Operational Risk

• LOS

• ALM

• FTP

• Capital Computation

Role of Team Member – onsite or offsite. If onsite then

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 240 of 250


no. of man days expected to spend onsite during the

implementation period

Organization Name (Bidder has to specify if the member

is a part of the Bidder’s organization or OEM’s

organization)

Professional Qualifications

Risk Management Experience with the bidding firm/OEM

in terms of areas and no of years of expertise

Risk Management Experience with other companies firm

in terms of areas and no of years of expertise (Mention if

he/she has worked with banks earlier)

IT Implementation and Project Management Expertise

with the bidding firm/ OEM in terms of years and areas of

expertise

IT Implementation and Project Management Expertise

with other companies in terms of years and areas of

expertise

Certifications and Accreditations including Membership

of any professional body

Details of similar projects handled with details of client,

representing which organization, role of the member

team or team leader etc. in India and Internationally

Experience of the resource in the implementation of the

Proposed solution offered in this Bid

Note:

• Include details of team members who will be involved in the project.

• Experience refers to the experience of the employee on either exactly the same product /

set of products being proposed or on similar projects.

• Proposed team structure with count, profile and skills to be provider by bidder along with

proposed solutions profile, #, skills) etc. to be provided in RFP response

• The bidder/OEM has to clearly define the role of each team member who will be a part of

the implementation project team. Once the team member has been committed by the

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 241 of 250

Bidder/OEM, the change of team members is subject to clause mentioned in section 5.14

Substitution of Team Members

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 242 of 250

11.14 Important Project Timelines

Project Milestone Timelines

Period for agreeing on terms of contract

and finalizing the terms of contract from the

date of communication of award of the

award of the contract and sharing of terms

of contract by the Bank

21 days

Period within which the successful Bidder

should sign the contract after agreeing on

the terms of the Contract

7 days

Period within which Performance Security

or amendment thereto is to be submitted

by the successful Bidder upon signing of the

contract

21 days (grace period of 4 days)

Project Period 7 Years

• Implementation Period – 1 Year

• Warranty – 1 Year

• AMC – 5 years

Timeline for delivery of hardware from the

date of signing of contract

6 weeks

Period for the entire solution to be ready

for commissioning after the award of

contract.

9 Months

(part of implementation period

mentioned above)

Trainings On request

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 243 of 250

11.15 List of Existing Applications

11.15.1 Details of Application/Software Packages being used by the Bank

SL.

No.

Name of Application/Software Package Name of the Group

/ Section

Deployed at

1 Home Loan Subvention Retail Banking

Division

Head Office

Facilities

Management

2 Credit Monitoring Format Credit

Administrative Wing

Head Office

Facilities

Management

3 Credit Sanction Reporting System Prime Corporate

Credit wing

Head Office

Facilities

Management

4 LAS - Loan Against Shares Credit Statistics

Section, RM Wing

Head Office

Facilities

Management

5 Package for Incident Reporting Operational Risk

Management

Department, RM

Wing

Head Office

Facilities

Management

6 Package for Monitoring Special Watch List

Accounts

Credit

Administrative Wing

Head Office

Facilities

Management

7 Central Scheme of Interest Subsidy on

Education Loan - Member Banks

Priority Credit Wing Data Centre,

DIT

8 Bad Debt Write Off Balance Sheet and

Central Accounts

section

Head Office

Facilities

Management

9 Sector Wise Credit Credit Statistics

Section, RM Wing

Head Office

Facilities

Management

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 244 of 250

SL.

No.


/ Section

Deployed at

10 Flash (PSR-1) Package for MIP Section, HO and

MIPD Sections at ROs and COs

Management

Information

&planning

Head Office

Facilities

Management

11 Willful Defaulters & Defaulters List Recovery Wing Head Office

Facilities

Management

12 SWL (Special Watch List) Credit

Administrative Wing

Head Office

Facilities

Management

13 Package for Business Line Mapping RM Wing Head Office

Facilities

Management

14 Web Based MPL Package (Monthly

Profitability Statement)

Balance Sheet and

Central Accounts

Section

Head Office

Facilities

Management

15 Web based CIBIL Package (Credit Information

Bureau (India) Limited)

Recovery Wing Head Office

Facilities

Management

16 Continuous & Concurrent Audit Package Inspection wing Data Centre,

DIT

17 OPR Incident reporting & Monitoring

(Operational Risk)

RM WING Head Office

Facilities

Management

18 RCA2 (Return on Capital Adequacy) RM WING Head Office

Facilities

Management

19 ADF (Web-based Centralized application for

Automated Data Flow of RBI returns)

MIS & Research

Governance Section

Head Office

Facilities

Management

20 GEFU Utility (in lieu of the Excel Formats

provided to branches for GEFU upload in CBS)

IT Development Head Office

Facilities

Management

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 245 of 250

SL.

No.


/ Section

Deployed at

21 CAB (Web based Centralized application for

tracking Claims against bank)

IT Development Head Office

Facilities

Management

22 Financial Supply Chain Management Financial Supply

Chain Management

DC & DR

Centre

23 Maintenance of Data Bases Data Centre

Management

Data Centre,

DIT

24 Data correction scripts in Databases Data Centre

Management

Data Centre,

DIT

25 Change Management requests Data Centre

Management

Data Centre,

DIT

26 System Patch at DC & DRC Data Centre

Management

Data Centre,

DIT

27 Incident reports Data Centre

Management

Data Centre,

DIT

28 Antivirus Report of Servers Data Centre

Management

Data Centre,

DIT

29 New Branch creations Data Centre

Management

SMS

30 User creations in CBS Data Centre

Management

SMS

31 Holiday marking in CBS Data Centre

Management

SMS

32 Module for Prime Minister’s Relief Fund Government

Business

Management

GROUP

DC,DRC

33 ADF(Automatic Data Flow) Application

package

Facilitates

Management Group

Data Centre,

DIT

34 Credit monitoring format ,Foreign Business

Turn Over, Portfolio Investment Scheme,

Business line mapping

Facilitates

Management Group

Data Centre,

DIT

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 246 of 250

SL.

No.


/ Section

Deployed at

35 Premises data management system,

housekeeping return-online, Package for PPA

section, RCA2.

Facilitates

Management Group

Data Centre,

DIT

36 Credit Sanction reporting system Facilitates

Management Group

Data Centre,

DIT

37 Search engine for CBS customers, Home Loan

subvention, Service tax, Willful defaulter list.

Facilitates

Management Group

Data Centre,

DIT

38 Inspection wing branch application package Facilitates

Management Group

Data Centre,

DIT

39 Credit monitoring format ,Portfolio

Investment Scheme

Facilitates

Management Group

HOEDP

40 MIP Package, Basel-II Package, Loan against

share Package, PSR-II Package, Incident

reporting package, Sector wise gross credit

package,26QAA Package, Sick industry

rehabilitation Package, Monthly profitability

statement Package, security Package,

Customer service section Package, Advance

statement Package, Priority credit statement

Package, PRR75/77/78 Package, Chiefs

Package, ICI Package, NPA Package, PSR67

AND PSR71 package schemas.

Facilitates

Management Group

HOEDP Server

Room

41 Credit sanction reporting system, FBTO Facilitates

Management Group

Data Centre,

DIT

42 SWL A/C Monitoring, Search engine for CBS

customers, SWL, FIG Tracker, Package for PPA

Section, CHIP system.

Facilitates

Management Group

Data Centre,

DIT

43 Bad debt write off, Unclaimed deposits. Facilitates

Management Group

HOEDP

44 ADF Database Facilitates

Management Group

Data Centre,

DIT

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 247 of 250

SL.

No.


/ Section

Deployed at

45 Flash package, Business line mapping package

for RM wing

Facilitates

Management Group

Data Centre,

DIT

46 OLD LEAVE DATA Facilitates

Management Group

Head Office

Electronic

Data

Processing

47 Datacap – Kondor+ Treasury Applications :

Front & Mid Office

Facilities

Management Group:

Disaster Recovery

Treasury

DC and DRC

Treasury

48 Datacap – Flexcube Treasury

Applications(Back Office)

Facilities

Management Group:

Disaster Recovery

Treasury

DC and DRC

Treasury

49 Datacap – Business Objects : Integrated

Treasury

Facilities

Management Group:

Disaster Recovery

Treasury

DC and DRC

Treasury

50 Automatic Lending Processing System Flexcubes Web based

package.

51 REMEDY APPLICATION CBS Helpdesk Data Centre,

DIT

11.15.2 Details of Application/Software Packages being used by Group Entities

Sl.

No

Name of the Group Entity Name of the Software Brief Description

1 Can Fin Homes Ltd IBS package Covering modules to handle

Home loans, deposits,

financial accounts

Credents ALM package

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 248 of 250

Sl.

No


3 Canara Bank Securities Ltd Trade Any Where Online Trading Platform

Back Office : Lidha Didha Import of trade data and

processing of contract notes

plus office accounting

Avaya Software Call Centre

4 Can Bank Financial

Services Limited

TALLY ACCOUNTS

5 Can Bank Venture Capital

Fund Limited

Windows Server 2008

Standard Edition

Server Operating System

Windows XP Professional Operating System

Windows 7 Professional Operating System

MS Office 2003 & MS

Office 2010

Application like MS Word,

MS Excel, PowerPoint,

Outlook Express, MS

Outlook

Tally 9.0 ERP Accounting Software

EINTERACT 1.0 Email Messaging Solution–

Corporate email ids. Service

providers are Netcore

Solutions Pvt Ltd

Adobe Acrobat 8

Professional

To view, create, manage

files and securing of

important documents.

Symantec End Protection –

Small Business Edition

Symantec Anti Virus

Software

7 Can Bank Factors Limited E-FACTORING(CANBANK

FACTORING SYSTEM)

Software is developed using

Oracle 10g Data base as

back end platform and

Visual basic and ASP as front

end. It is integrated

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 249 of 250

Sl.

No


software linking our

branches with Registered

office.

FOLKLORE - PAYROLL

PACKAGE

DELPHI software developed

on Oracle and ASP. Used for

salary processing of

company staff.

8 Canbank Computer

services Ltd

TALLY ACCOUNTS

9 Canara Robeco Asset

Management Co. Ltd.

V-connect – HR Portal

Cloud base application

from Adrenalin

Used for Attendance,

expense claim, Travel,

Reimbursement, Leave

management, & Company

policy document for

employee reference.

Employee Trade system To manage details of insider

trade – Tracking investment

of employees.

SUN – Accounting ERP AMC accounting

Bloomberg AIM Used by from office and

back office to manage day

to day investment business.

CRISIL Bond Valuation –

Third party Database

Used by Front office for

Bond valuation

10 Kerala Gramin Bank Finacle Finacle 7.0.18

11 Pragathi Gramin Bank Finacle Finacle 7.0.18

CANARA BANK

(HO: Bangalore)





RFP NO. RMW/01/2013-14 dated 10/07/2013

Page 250 of 250

11.16 Data Center and Disaster Recovery Site of Group Entities

Sl.

No

Name of the Group Entity Data Center Disaster Recovery

Centre

1 Can Fin Homes Ltd Bangalore Chennai

2 Canara Bank Securities Limited Mumbai No Separate DR Site.

Back Up is stored in

a locker hired from

another bank in

Moscow.

3 Can Bank Venture Capital Fund

Limited

Bangalore Bangalore

4 Can Bank Factors Limited Bangalore Bangalore

5 Can Bank Computer Services

Limited

Bangalore Off Site Storage in

Bangalore

6 Canara Robeco Asset

Management Company Limited

Mumbai Bangalore

7 Kerala Gramin Bank Bangalore Mumbai

8 Pragathi Gramin Bank Bangalore Mumbai

End of Document