Non Performing Assets

In this course you will learn about on Performing Assets & Banking Procedures. You will learn in detail about Mortgages, Documentation, Management of NPAs etc.

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 1h 32m | 14 Videos | 90417 Views |   Beginner

Through this course you will be learning What are the different types of mortgages and how are they different from one another? What is the efficacy of the mortgage to safeguard the interest of the banks and the most common form of Mortgage prevalent in banks What are the rights to the mortgagor and mortgagee ? How a mortgaged property is transferred back to the borrower after liequidation of the loan.? The difference between Assignment, Lien and set off and how banks are creating these on various securities offered by borrowers against the loans ?
The difference between Assignment, Lien and set off and how banks are creating these on various securities offered by borrowers against the loans ? What are the duties of banks as regard to disposal of balance amount, after liquidation of the loans etc. How a bank decides the lending terms ? How the quantum of the loan and margin are fixed ? The need of taking douments such as Loan application, Balance Sheets, Income and Tax and Wealth Tax assessments for business loans. Compliance of KYC rules, the relevant documents such as admission letter from the University, Hostel fees for Education loan and the letter from the Builder, seller in case of Home loans etc. What are the common documents taken by banks for execution before disbursement. Requirement of execution of correct Demand Promissory Note with required stamping as per the Indian Stamps Act, 1889. The need of taking other agreements and important forms by banks to erase any suspicion by court. The requirement of incorporation of rate of interest on the DP note. Need of correct set of documents, its stamping, filling, execution, and compliance of legal formalities. Keeping the documents alive and safe preservation of the documents are of prime importance for the banker to present the documents in time in a Court of law, in case of default, to win the case. What activities banks have to follow once the loan is disbursed, Close monitoring of the account as regards to diversification of funds if any, submission of stock statements, its scrutiny and calculation of drawing power etc. The lead bank’s duty to inform the D.P. to all other member banks. Need of iInspection of securities by the bank officials and joint inspection of stocks in case of consortium account, exclusion of unpaid stock and stocks for which payment has been received. Relation of credits in the account with sales etc. Lodging of PDC in case of Term Loan / Personal Loan account, efficacy of standing instructions to debit the borrowers account towards repayment of loan. Requirement of banks to ensure close monitoring of the account for not turning into NPA. What is an NPA account ? Definition and symptoms of an account to turn into NPA. Need of close monitoring and immediate action on seeing the red signal in the account. Need of monitoring the status of Return cheques, interview with the customer and issuance of recall letter in case of need. Effect of NPA accounts on profitability of a bank and slow erosion of capital and surplus of the bank in case of high NPAs. What are Standard Assets, Sub-standard assets, Sub-Standard assets and Loss assets? Diferent features of those and How an asset is determined as Loss Asset. How the banks manage their NPAs? The features of Debt restructuring and other recovering options such as One Time Settlement. When will a bank write of their NPA account. The usage of wordings and communication with the borrowers and the need of keeping the confidentiality of their borrower with regard to their NPA status, RBI’s approach to Debt restructuring and recovery process.