5 Group Concentration Limit Approval

This topic provides systematic instructions about the Limit Approval of the Group Concentration Limit Proposal.

In this stage, the Credit Approver must review the Group Concentration Limit proposed for the group entity and approve / reject the same.

Note:

In this chapter, only the procedure to approve Liability limit is explained. For field level explanation, refer the Initiation chapter.
  1. To acquire and edit the Group Concentration Limit approval task, from Home screen, click Tasks. Under Tasks, click Free Tasks.
    The Free Task page is displayed.

    Figure 5-1 Free Tasks


    Description of Figure 5-1 follows
    Description of "Figure 5-1 Free Tasks"

  2. Click Acquire & Edit in the required approval task. The Group Concentration Proposal Approval - Customer Summary page is displayed.
  3. View the Customer Summary and click Next. The Liability Details page is displayed.
    The Liability Details screen displays.

    Figure 5-3 Liability


    Description of Figure 5-3 follows
    Description of "Figure 5-3 Liability"

  4. Click the Hamburger icon in required record and select Edit.
    The Liability Details screen displays.

    Figure 5-4 Liability Details


    Description of Figure 5-4 follows
    Description of "Figure 5-4 Liability Details"

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

    Table 5-1 Liability Details

    Fields Description
    Requested Liability Amount Specify the liability amount requested by the entity.
    Return On Capital select the ratio calculated by dividing the after tax operating income by the average book-value of the invested capital.
    Probability Of Default Estimate of the likelihood that the entity will be unable to meet its debt obligations.
    Loss Given Default Amount of money a bank or other financial institution loses when a borrower defaults on a loan.
    Cash Cover Amount deposited by the entity in your bank.
    Total gross facility Displays the total gross facility.
    Total net facility Displays the total net facility.
    Next Review Date Select the review date.
    Requested Expiry Date Select the requested expiry date.

    Note:

    For more information on fields, refer Field Configuration Parameters
  5. Search and select the Approval Liability Currency.
  6. Propose the following amounts in Approval Liability Currency, based on details specified in the Amount section:
    • Approval Liability Amount
    • Approved Funded Sell Down
    • Approved Unfunded Sell Down

Dates

In this section, you can change the Next Review Date selected in the initiation / enrichment / review and recommendation stage and specify Approved Expiry Date for the liability.

  1. Click the calendar icon and select the Approved Expiry Date.
  2. Click Audit.
    The Audit screen displays.

    Figure 5-5 Audit


    Description of Figure 5-5 follows
    Description of "Figure 5-5 Audit"

  3. Click Save. The information is saved and displayed in the Liability Details page.
  4. Click Next to go to the Comments page.
  5. Post the Comments for this stage.
  6. Click Submit. The Policy Exception Summary / Business window appears based on Business Process Maintenance.
  7. Click the Checklist data segment.
  8. Select the required Outcome. The options available are Approve and Reject.
  9. Click Submit.

    If the Outcome is selected as Approve, the Group Concentration Limit proposal is moved to the Documentation stage.

    If the Outcome is selected as Reject, the Group Concentration Limit proposal is rejected.