12 Limit Configuration

In this stage, the bank user further fine tunes the facility by creating a detailed limit structure, setting restrictions in place, etc. and submits the proposal for further action. Post this stage the details of the liability, facility, collateral and covenants gets recorded in the back office system.

The following table provides high level overview about the Limit Configuration stage.

Table 12-1 Limit Configuration stage

Information available for user Activities that can be performed by user
  • View the party summary
    • Liabilities requested, proposed, and approved
    • Facilities requested, proposed, and approved
    • Collateral Offered
    • Covenants stipulated
    • T&C stipulated
    • Financials
    • Rating
    • Demographic details
  • View the credit evaluation scores and details
  • View the legal evaluation score and details
  • View the risk evaluation score and details
  • View comments added in previous stages
  • Configure the facilities approved
    • Create sublines
    • Update Collateral details
  • Capture the restrictions related to
    • Currency
    • Party
    • Branch
    • Product
    • Exposure
  • Add comments
  • Hand off to ELCM

Steps to configure limit

  1. In OBCFPM, navigate to Tasks > Free Tasks.
    The Free Tasks page is displayed.

    Figure 12-1 Free Tasks


    Description of Figure 12-1 follows
    Description of "Figure 12-1 Free Tasks"

  2. Acquire & Edit the required Limit Configuration task. The Credit Origination - Limit Configuration page summarizing the proposal is displayed.

Viewing Summary:

Figure 12-2 Summary


Description of Figure 12-2 follows
Description of "Figure 12-2 Summary"

Figure 12-3 Summary


Description of Figure 12-3 follows
Description of "Figure 12-3 Summary"

Figure 12-4 Summary


Description of Figure 12-4 follows
Description of "Figure 12-4 Summary"

Figure 12-5 Summary


Description of Figure 12-5 follows
Description of "Figure 12-5 Summary"

  1. To view the sector and industry information, click Industry icon in Party Information section.
    The Industry Details window is displayed.

    Figure 12-6 Industry Details


    Description of Figure 12-6 follows
    Description of "Figure 12-6 Industry Details"

  2. Click Close, to exit the Industry Details window.
  3. To view the overview of the party, click the Entity Overview icon in Party Information section.
    The Entity Overview window is displayed.

    Figure 12-7 Entity Overview


    Description of Figure 12-7 follows
    Description of "Figure 12-7 Entity Overview"

  4. To change the layout of the Entity Overview, click Layout icon at the top right corner.
    The Layout window is displayed.

    Figure 12-8 Layout


    Description of Figure 12-8 follows
    Description of "Figure 12-8 Layout"

  5. Select the required layout. Entity Overview is changed to the selected layout as shown below.

    Figure 12-9 Entity Overview


    Description of Figure 12-9 follows
    Description of "Figure 12-9 Entity Overview"

    For field level information on Entity Overview screen refer the table below.

    Table 12-2 Entity Overview

    Fields/ Icons Description
    Close To exit Entity Overview window, click Close.

    In Party Information section, the count of Share Holders, Contractors, Guarantors, and Bankers is displayed.

    Count numbers To view the detailed information about the Share Holders, Contractors, Guarantors, and Bankers, click the respective count numbers.
    Layout icon To change the layout of Facility Summary, Collateral Summary, Existing Facilities held with Other Bank, Pricing, Covenants, and Conditions in Summary page, click the Layout icon and select the required layout.

    By default, Financial Profile of the party and financial Projections for the party are listed for 3 years.

    Financial Profile To view Financial Profile and Projections for five years, select Previous 5 years option from the Show results for drop-down list.
    View all To view detailed information about Financial Profile and Projection, click View all in the respective sections.
  6. After reviewing the Summary, click Next.
    The Limit Configuration page is displayed.

    Configuring Limit:

    Figure 12-10 Limit Configuration


    Description of Figure 12-10 follows
    Description of "Figure 12-10 Limit Configuration"

  7. In Action, select Edit.
    The Facility details screen displays.

    Figure 12-11 Facility Details


    Description of Figure 12-11 follows
    Description of "Figure 12-11 Facility Details"

    For more information on fields, refer to the field description table below.

    Table 12-3 Facility

    Fields Description
    Branch Displays the branch number.
    Line Code Specify the unique line code.
    Line Serial Number Displays the unique line serial number.
    Parent Facility ID Search the Facility ID from the list.
    Facility Type Select the facility type. The available options are:
    • Funded
    • Non Funded
    Cascade Specifies whether certain attributes are inherited from the parent facility.
    Facility Category Search the Facility category from the list.
    Facility Description Specify the description.
    Project ID Search the project ID from the list.
    Class Code Search the class code from the list.
    Committment Status Select the committment status. The available options are:
    • Committed
    • Uncommitted
    Drop Line Limits Select the toggle to indicate if limits should drop or reduce over time.
    Currency Search the currency from the list.
    Requested Amount Displays the requested amount.
    Probability of Default Specify the default probability.
    Loan Given Default Specify the default loan.
    Facility Risk Rating Specify the facility risk rating.
    Proposed Amount Displays the proposed amount.
    Approved Amount Displays the approved amount.
    Day Light Limit Specify the day light limit.
    Shadow Limit Specify the shadow limit.
    Day Light Overdraft Limit Specify day light overdraft limit.
    Limit Amount Basis Specify the basis on which the limit was sanctioned.
    Bulk Payment Specifies whether repayments can be made as lump-sum amounts.
    Internal Remarks Specify the remarks, if any.
    Line Start Date Select Date for Line Start Date.
    Line Expiry Date Click Select Date and select date for Line Expiry Date.
    Renewal Date Click Renewal Date and select date for Renewal Date.
    Maintenance Value Date Click Maintenance Value Date and select date for Maintenance Value Date.
    Drawing Power Backend Enable Drawing Power Backed, if required.
    Revolving Line Enable Revolving Line, if required.
    Is Non Revolving Special Line Enable Is Non Revolving Special Line, if required.
    Unadvised Enable Unadvised, if required.
    Available Displays the current Available status of the line.
    Availability Period Specify the Availability Period for the facility.
    Limit Status Select Limit Status from the drop-down list. The options are:
    • Active
    • Closed
    • Frozen
    Next Review Date Select Date for Next Review Date.
    Review Frequency Select Review Frequency from the drop-down list. The options are:
    • Half yearly
    • Monthly
    • Quarterly
    • Yearly
    Utilization Tracking Select Utilization Tracking from the drop-down list. The options are:
    • Local
    • Global
    Exception Tansaction Amount Specify the transaction amount.
    Netting Required Select the option from the available list.
    Exception Branch Percentage Specify the exception breach percentage.
  8. Click Next in the Limit Configuration screen. The Comments page is displayed.

    Figure 12-12 Comments


    Description of Figure 12-12 follows
    Description of "Figure 12-12 Comments"

    Post comments, if required. The posted comment is displayed below the Comments box section.

  9. Click Submit.
    The Policy exceptions window is displayed.

    Figure 12-13 Policy Exceptions


    Description of Figure 12-13 follows
    Description of "Figure 12-13 Policy Exceptions"

    By default, Policy Exceptions are displayed for both the party and its child party.

  10. To view the policy exception detail specific to party or child party, select the party from the drop-down list at top left corner.
  11. Click the Business data segment.
  12. Click the Checklist data segment.

    Figure 12-15 Checklist


    Description of Figure 12-15 follows
    Description of "Figure 12-15 Checklist"

    For field level information on Checklist screen refer the table below.

    Table 12-4 Checklist

    Fields/ Icons Description
    Outcome Select Outcome as Proceed if additional information is not required. Else, select Outcome as Additional Info.
    Submit Click Submit. The proposal is moved to the Handoff stage.

    Note:

    For information on Write up data segment, refer Write Up section.