5 Approval

This topic provides systematic instructions about the Approval of the FI Credit Proposal Initiation.

In this stage, the higher officials such as the head of credit department in the bank must review and approve the proposal, if the proposal meets the approval criteria set by the bank.

Only approval steps are provided in this chapter. Refer Credit Initiation chapter for field level explanation on all the data segments in this stage.

To approve the facility, perform the following steps:

  1. From Home screen, click Tasks. Under Tasks, click Free Tasks.
    The Free Tasks screen is displayed.

    Figure 5-1 Free Tasks

    Description of Figure 5-1 follows
    Description of "Figure 5-1 Free Tasks"
  2. Click Acquire & Edit the required Approval task.
    The Approval - FI Summary screen is displayed.

    Figure 5-2 FI Summary

    Description of Figure 5-2 follows
    Description of "Figure 5-2 FI Summary"
  3. Navigate to the Funding Requirement page by clicking Next.

    Figure 5-3 Funding Requirement

    Description of Figure 5-3 follows
    Description of "Figure 5-3 Funding Requirement"
  4. Click the action icon in the required facility record and select Edit.
    The Funding Requirement - Facility Details window is displayed.

    Figure 5-4 Funding requirement - Facility Details


    Description of Figure 5-4 follows
    Description of "Figure 5-4 Funding requirement - Facility Details"

    Table 5-1 Basic Info

    Fields Description
    Branch Search and Select Branch from list of Branch Code.
    Line Code Enter Line Code for the facility.
    Line Serial Number Line Serial Number will be defaulted to 1 and you cannot modify line serial number.
    Parent Facility ID Search and Select Parent Facility ID and enter the following fields:
    • Facility ID
    • Facility Description
    • Line Code
    • Line Serial
    Facility Type Select Facility Type from the below checklist. The options are:
    • Funded
    • Non Funded
    Facility Category Search and Select Facility Category from list of Category Code.
    Facility Description Enter Facility Description for the facility.
    Project Id Search and Select Project Id from list of Category Code.
    Class Code Search and Select Class Code from list of Category Code.
    Commitment Status Select Commitment Status from the below checklist. The options are:
    • Committed
    • Uncommitted
    Secured Click Secured option and select Cascade check box, if required.
    Revaluation Required Select Revaluation Required option, if required.
    Rate Agreement Required Select Rate Agreement Required option, if required.
    Drop Line Limits Switch to indicate, if the facility limit drops over time based on a schedule.

    Table 5-2 Sanction

    Fields Description
    Currency Search and select Currency in which the facility has to be offered.
    Requested Amount Specify the amount requested by the party in Requested Amount field.
    Probability of Default Enter Probability of Default. Select Decrement and Increment drop-down list option on right to increase or decrease the probability.
    Loss Given Default Enter Loss Given Default. Select Decrement and Increment drop-down list option on right to increase or decrease the loss given.
    Facility Risk Rating Enter Facility Risk Rating. Select Decrement and Increment drop-down list option on right to increase or decrease the facility risk rating.
    RAROC Enter RAROC. Select Decrement and Increment drop-down list option on right to increase or decrease the RAROC.
    Day Light Limit Enter Day Light Limit for the facility.
    Shadow Limit Click Shadow Limit check box to select Shadow Limit.
    Limit Amount Basis Select Limit Amount Basis from the below drop-down list. The options are:
    • Limit Amount
    • Limit Amount + Collateral Contribution
    • Minimum of Limit Amount or Collateral
    Bulk Payment Click Bulk Payment check box to select Bulk Payment.
    Internal Remarks Enter Internal Remarks, if required.

    Table 5-3 Availability

    Fields Description
    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 Backed 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.

    Table 5-4 Limit Review

    Fields Description
    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

    Table 5-5 Utilization

    Fields Description
    Utilization Tracking Select Utilization Tracking from the drop-down list. The options are:
    • Local
    • Global

    Table 5-6 Exception

    Fields Description
    Exception Transaction Amount Enter Exception Transaction Amount for the facility.
    Netting Required Select Netting Required, if required.
    Exception Breach Percentage Enter Exception Breach Percentage. Select Decrement and Increment drop-down list option on right to increase or decrease the exception breach percentage.
  5. Click the search icon in the Approval Liability Currency field and select the currency in which the liability has to be created.

    Note:

    Approved Liability Currency and Requested Liability Currency can be different.
  6. Specify the Approval Liability Amount, Approved Funded Sell Down, and Approved Unfunded Sell Down in corresponding field.
  7. Click the calendar icon and select the Approved Expiry Date for liability.
  8. Click Save. The approval details are saved.
  9. In the Funding Requirement page, click the hamburger icon in the required facility and select Edit.
    The Facility Details screen is displayed.

    Figure 5-5 Facility Details

    Description of Figure 5-5 follows
    Description of "Figure 5-5 Facility Details"

    For information on fields in the Facility Details Details screen, refer the below table.

    Table 5-7 Facility Details

    Fields Description
    Approved Amount Specify the Approved Amount and click Save.
    Close Click Close to exit the Facility Details window.
    Next In the Funding Requirement page, click Next to go to the Comments page.
    Post Post comments, if required.
    Submit Click Submit. The Policy Exception window appears.
    Checklist Click the Checklist data segment and select the Outcome as Approve.
    Submit Click Submit. The proposal is sent to the Draft Generation stage.

    To reject the facility, perform the above steps by specifying Approval Liability Amount and Approved Amount as zero and selecting the Outcome as Reject.