Policy & rules
"Drawing power shall be computed monthly on paid stock net of a 25% margin and book debts up to 90 days net of a 40% margin, less creditors for stock. Sanctioned limits shall not exceed assessed drawing power except where a specific, time-bound relaxation is approved by an authority not below Regional Credit Head, and the relaxation is recorded as a deviation. Where two sources assert materially different turnover, both shall be recorded and the source relied upon shall be stated with reasons."
"For fund-based working capital limits exceeding ₹25 crore, a minimum current ratio of 1.20 shall be maintained, computed on audited figures for the latest completed financial year. A ratio between 1.10 and 1.20 may be accepted with a covenant to restore, approved by Regional Credit Head."
"Drawing power shall be computed monthly on paid stock net of a 25% margin and book debts up to 90 days net of a 40% margin, less creditors for stock. Sanctioned limits shall not exceed assessed drawing power except where a specific, time-bound relaxation is approved by an authority not below Regional Credit Head, and the relaxation is recorded as a deviation. Where two sources assert materially different turnover, both shall be recorded and the source relied upon shall be stated with reasons."
Added the requirement to record both turnover sources and state the source relied upon.
Book-debt ageing tightened from 120 to 90 days.
Original formulation with a 20% stock margin.
| Product | Band | Low risk | Moderate risk | Elevated risk | High risk |
|---|---|---|---|---|---|
| Working capital — fund based | Up to ₹5 cr | Branch Manager | Branch Manager | Chief Manager — Credit Admin | Regional Credit Head — West |
| Working capital — fund based | ₹5 cr to ₹15 cr | Chief Manager — Credit Admin | Chief Manager — Credit Admin | Regional Credit Head — West | Credit Committee |
| Working capital — fund based | ₹15 cr to ₹35 cr | Regional Credit Head — West | Regional Credit Head — West | Regional Credit Head — West | Credit Committee |
| Working capital — fund based | Above ₹35 cr | Regional Credit Head — West | Credit Committee | Credit Committee | Board Credit Committee |
| Term loan | Up to ₹10 cr | Chief Manager — Credit Admin | Chief Manager — Credit Admin | Regional Credit Head — West | Credit Committee |
| Term loan | Above ₹10 cr | Regional Credit Head — West | Credit Committee | Credit Committee | Board Credit Committee |
| Trade — LC issuance | Up to USD 5,00,000 | Trade Finance Checker | Trade Finance Checker | Head — Trade Operations | Credit Committee |
| Trade — discrepancy waiver | Any | Head — Trade Operations | Head — Trade Operations | Credit Committee | Credit Committee |
| KYC — high-risk onboarding | Any | Compliance Officer | Compliance Officer | Principal Officer | Principal Officer |