Serial No.

461/12-13

eCircular

STRESSED ASSETS MGT Circular No. SAMG/SMT/21/12-13

All Branches / Controlling Authorities And Departmental Heads at Head Office

Date: 05 February 2013

NPA MANAGEMENT- SCHEME FOR ENGAGING RETIRED BANK OFFICERS AS ASSET MANAGEMENT CONSULTANTS (AMCs)

In order to augment the efforts of the operating staff in effecting recovery, the Executive Committee of the Board has approved a scheme for engaging the Retired Officers of the Bank (Officers retired under VRS and Exit Option also would be eligible, subject to fulfilling other criteria and Officers retired from SBI and other Associate Banks also may be considered where needed) as Asset Management Consultants (AMCs) for the purpose of recovery of NPAs of all branches/SARCs. 2. The guidelines on eligibility criteria, role, targets, remuneration, code of conduct, administrative control, eligibility criteria, the guidelines for empanelment process and other terms and conditions are mentioned at Para no. 1 to 7 in the Annexure A; implementation and monitoring, Code of conduct, other terms & conditions as well as Grievance Redressal Mechanism are furnished at Para numbers 8, 9 , 10 and 11 of the scheme in Annexure A. 3. Application format, draft letter of appointment, format of identity card and format of empanelment register are furnished in Annexure B, C, D and E respectively. 4. The following schedule may be followed for implementation of the scheme: i) Applications are to be invited/ obtained from the eligible retired officers of the Bank at Zonal Offices/RASMECCCs/SARC/ Regional Offices upto 28.02.2013. ii) The selection process by the Interview Committee consisting of the DGM and two AGMs of the Zone is to be completed by 07.03.2013. iii) The final appointment letters to the AMCs are to be issued by the GM(NW) by 11.03.2013 so that the recovery efforts commence immediately. iv) The list and details of the selected candidates are to be advised to SAMG, HO immediately for necessary noting by the appropriate authority.

The process of empanelment as mentioned above is not a onetime measure and should be done on an ongoing basis as and when need arises. Needless to state, the performance of the officials will need to be monitored very carefully as prescribed for in the instructions. Ravi Jha General Manager(SAMG)

Ann.-A NPA MANAGEMENT- SCHEME FOR ENGAGING RETIRED OFFICERS OF THE BANK AS ASSET MANAGEMENT CONSULTANTS (AMCs) ----------------------------------------------------------------------------------------------The detailed guidelines proposed are enlisted below: 1. Role of AMCs: Recovery of stressed assets/advances, which are in Sub-standard, Doubtful and Loss Asset category as well as AUCA and written off/dropped accounts that are specifically allocated to him/her. Making calls from his designated number registered with the concerned Regional Office to all these defaulters. Contacting the customer at the place of customers choice and in the absence of any specified place, at the place of customers residence. Obtaining recoveries by way of cheques. In case the customer wants to pay in cash, he can bring the customer to the nearest CBS branch and remit it directly to the borrowers account. Visits for recovery of loans with staff and also individually. Carrying out verification of assets and assisting in obtaining revival letters etc. Preparing notices/registered notices to be sent by RACPC/RASMECCS/SARCS/Branches. Ascertaining the details of PDC returns in the allocated accounts and making follow up calls. Maintain rapport with DRT, related offices of Govt. e.g., Revenue authorities for recovery. Gather market information and help in locating assets of defaulting borrowers/guarantors. Organise/Assist in organising Lok Adalats, Bank Adalats, recovery melas etc. Follow up with RTO/VO etc. for registration of charges. Create data base of mobile numbers/e-mail addresses which can be used for telecalling/SMSing by our branches as well as Asset Tracking Cells. 2. Eligibility Criteria The person desirous of appointment as AMC should have retired from the Banks service as officer (Officers retired under VRS and Exit Option also would be eligible, subject to fulfilling other criteria and Officers retired from SBI and other Associate Banks also may be considered where needed). No punishment/penalty was inflicted on him during the five years of his service in the Bank preceding his retirement. No case of CBI or any law enforcement agency is pending against him.

3.

His age should not exceed 65 years at the time of initial engagement. The engagement would be initially for a period of 1 year and subject to review after every 6 months (1st review after 6 months after engagement), the contract may be renewed by two more years, subject to continued good performance and physical fitness of the official. AMCs will have to be residents of the city, where they are willing to work. Empanelment Process Applications will be invited/obtained from the eligible ex-employees of our bank. The notice for engagement may be displayed/published giving 15 days time for receipt of applications. Selection of candidates will be done through an interview by a committee comprising DGM of the respective module and two AGMs. The selection done is to be confirmed by the General Manager (Network) and the final empanelment be reported to SAMG for updating the records. General Manager (NW) will be the authority for empanelment as well as depanelment, in case of unsatisfactory performance, by giving one months notice.

4.

Allotment of Accounts: The allotment of accounts/branches and entrustment of work will be carried out as under: Each AMC is to be allotted specified branches to avoid overlapping. The Controlling Authority will communicate the same to the AMC as well as to SAMG, HO. The accounts tentatively eligible for entrustment, shall be selected by the concerned Branch and the Controlling Authority after further scrutiny, will deliver the final list of such accounts to the AMC against acknowledgement. The entrustment of accounts may be without any restriction/cap on the outstanding balance in NPA/AUC accounts. However, accounts above Rs.10 lacs to be entrusted with the approval of DGM only, which will be based upon the past record, potential and capability of the AMCs. The allotment/entrustment once made would be valid for a period of 12 months and it is to be reviewed by the Controlling Authority once in 3 months for removal of or continuance of the allotment to the AMC. Fresh entrustment of accounts and rollover of entrustments in required cases have to be ensured every month. Targets: The following monthly targets will be given to AMCs : Allocation of at least 30 accounts (NPA, AUCA, as well as written off accounts) with total outstandings of at least Rs.1.00 crore (No maximum ceiling in number of accounts or amount). The AMCs will be required to effect cash recoveries of not less than Rs.3 lac every month, spread over the allocated accounts. Unfulfilled targets of one month may be carried forward to the next month within a quarter, but quarterly targets (minimum `9 lacs ) are to be achieved.

5.

6.

Remuneration : A fixed monthly payment of Rs.3,000/- towards meeting the out of pocket expenses viz., telephone charges, conveyance etc.

A. B.

In addition to this, the AMC will be paid variable remuneration based on cash recoveries effected as under: 5% of the actual cash recovery upto Rs. 5 lacs. For cash recovery in excess of Rs. 5 lacs the remuneration would be `25,000/-+ 4% of the amount exceeding Rs.5 lacs. The recovery effected in accounts entrusted to AMCs, as a result of efforts made by AMCs by way of their persuading/effecting recoveries through or with the help of Revenue officials are also eligible for computation of remuneration.

7.

Administrative control: AMCs will operate under the control of an AGM (Controller) of Region, who will monitor targets and performance. The performance will be reviewed continuously and Bank will have the right to terminate the services with the approval of GM(RNW). AGM, Region will maintain AMCs Empanelment Register and entries made in the register should be authenticated by him. Remuneration will be paid by the Regional Office by debit to a special Suspense Account, the balance of which may be transferred to ZO every month to be accounted for in the Charges Account. The claims for remunerations submitted by AMCs on approval by DGM of the Zone are to be noted by GM (NW). The payment of remuneration is to be ensured within 15 days from the date of submission of the claim by the AMC. A monthly report to be submitted by the AMCs to the concerned Branch(es) with a copy to the AGM(Controller) detailing the allocated accounts and amount of recovery effected by AMCs. Contract of AMC may be renewed at the end of the initial period of one year for a further period of 6 months each time, based on performance review. Zones must exercise due care to ensure de-listing of unproductive AMCs.

8.

Implementation & Monitoring AMCs shall be put to a short duration 3/6 days training at our Staff Training Centres or any other place before they commence working (the mandatory training of 100 hours required for Recovery Agents is applicable to those who are drawn from the market and is not applicable to retired bank employees who have adequate experience in dealing tactfully with the customers). Necessary powers may be vested with Chief General Manager for permitting deviations or exceptions with regard to the criteria on empanelment during the period of implementation.

The modalities of the scheme may be reviewed and suitably modified after one year of implementation. 9. Code of Conduct: The AMCs must agree to abide by this code prior to undertaking recovery operations on behalf of the bank. Any AMCs violating the code will be black listed and will not be considered for renewal of contract. Telephone contact with the borrowers/defaulters may be limited between 8 AM to 8 PM and from the mobile/telephone no. registered with Regional Office.. Will keep conversation limited to business.

 10.

Would resort to only permissible activities during the course of recovery and will avoid demeanor that will suggest criminal intimidation or threat of violence Will not accept any kind of gift or bribe. Must be dressed appropriately. Decorum and decency will be maintained. Other Terms & Conditions AMCs are empanelled as service providers and will be on contract basis. There will not be any employer employee relationship. Their successors or assigns will have no right to claim any employment or benefit of employment what so ever from the Bank. A suitable contract agreement drawn by Law Dept. with necessary clauses to include other roles and also the clause of secrecy will be obtained. This agreement will also include a clause stating that the AMC will not further engage employee/agents/consultants etc. to carry out the work assigned to him by the Bank. The contract can be terminated from either side with a notice period of one month. No payment other than the stipulated remuneration will be made to them in the form of salary/allowances/out of pocket expenses/conveyance etc. An identity card shall be issued to the AMC, clearly stating therein the validity period. AMCs should not use the Banks name or logo on their signboards, nameplates, visiting cards, stationery etc. AMCs shall not be entrusted with any financial/administrative/passing powers. AMCs shall not be given access to Banks Core Banking Platform/intranet etc. AMCs will not be provided any office or office space for their purpose. They will have to arrange for their work place at their own cost and maintenance expenses.

Although the role is primarily recovery of NPAs, they may be entrusted with any advances related work, as per need of the Bank viz., procuring copies of insurance, registration certificates in respect of vehicle loans, KYC verification etc. 11. Grievance Redressal Mechanism: All disputes/issues arising out of AMCs functioning will be referred to GM(SAMG) and these along with the references, if any, made by AMCs directly to HO will be disposed off within a period of 15 days from the date of receipt of such reference.

ANNEXURE B APPLICATION FORMAT TO__________________________ ___________________________ ___________________________ ___________________________ PASTE (not staple) A RECENT PASSPORT SIZE PHOTOGRAPH HERE AND SIGN ACROSS IT IN FULL Sir, WITH DATE APPLICATION FOR THE POST OF ASSET MANAGEMENT CONSULTANT ON (Please hold with you CONTRACT BASIS IN STATE BANK OF PATIALA two copies of the sameI submit With reference to your Advertisement/ Notice / Communication dated: ____________ herewith my application for the post of Asset Management Consultant in State Bank of Patiala. I have read about the role, remuneration and brief terms & conditions relating to the post and advise that they are acceptable to me. 1. Full Name : Shri/Smt/Kum (In Block Letters, as per degree certificate)

2. Fathers/Husbands Name: 3. P.F. Index No. while in service: 4. Date of retirement (DD/MM/YYYY) 5. Grade/Scale from which retired: 6. Name and Code no. of Branch/Office from where retired: 7. Name and Code no. of Branch where from receiving Pension:

-28. Candidates address where he/she normally resides/will reside where from he/she will perform his/her duties after selection. (IN BLOCK LETTERS)

Dist: State: PIN Code Phone with STD Mobile No:

9. Date of Birth (DD/MM/YYYY) Age as on 01.02.2013 Years

Months 10. Category (SC/ST/OBC/GEN): 11. Educational Qualification: 12. Last 3 assignment held, covering minimum 5 years: Assignment From To Office/Branch 13. Credit Exposure, if any: 14. Declaration: I hereby declare that i) I retired from the Banks service on attaining superannuation and not under Voluntary Retirement Scheme or Exit Option Scheme. ii) No punishment/penalty was inflicted on me during five years of my service in the Bank preceding my retirement. iii) No case of CBI or any other Law Enforcement Agency is pending against me. I further declare that all statements made in this application are true, complete and correct to the best of my knowledge and belief. I understand that in the event of information being found untrue and incorrect at any stage of my not satisfying any of the eligibility criteria according to State Bank of Patiala, my candidature is liable to be cancelled. Place: Signature: Date: Name of Officer:

ANNEXURE-C Format of Identity Card for SBP Asset Management Consultant (Identity Card must be laminated) Front Side IDENTITY CARD ASSET MANAGEMENT CONSULTANT (EMPANELLED WITH SBP, ZO/RO ) Valid Till (date in bold letters)
Latest stamp size NAME (Full namePhotograph in BOLD CAPITAL Letters)

Back Side AMC No: (Year/Running No. as per AMC Register) Signature of Card Holder Telephone No. of the Card Holder:Issued by State Bank of Patiala, Zonal Office .. Full Address of ZO/RO:-

Telephone No. of RASMECCC/SARC/ZO/RO:Date of Issue:-

ANNEXURE D (Draft of the letter to be addressed to the selected Assets Management Consultants) Ref: Date: To, Mr. / Ms. Dear Sir/Madam, ASSETS MANAGEMENT CONSULTANTS EMPANELMENT With reference to your application dated .. we are pleased to empanel you as an Assets Management Consultant on the terms and conditions laid down in this letter. 2. As Assets Management Consultant, you will be utilized by the Branches/ SARC/ RACPC/ RASMECCC / ZO/ RO on contract basis and will be working under the control of AGM (Controller) of the Region who will monitor the targets and your performance. You will be i) Responsible for recovery of advances, which are in Sub-Standard for more than 6 months old and Doubtful and Loss Asset category, as well as AUCA and dropped/written off accounts, which are specifically allocated to you. ii) Making calls from your designated number registered with this office to all defaulters. iii) Preparing and sending notices/registered notices. iv) Maintaining the details of PDC returned and make follow up calls. v) Contacting the customers at the place of his/her choice and in the absence of any specified place, at the place of his/her residence. vi) Obtaining recoveries by way of cheques. In case the customer wants to pay in cash, you can bring the customer to the nearest CBS branch and remit it directly to the borrowers account. vii) Carry out survey and verification of assets and assist in obtaining revival letters from borrowers. viii) Maintain rapport with DRT, Revenue and other related offices of government for recovery. ix) Gather market information and help in location of assets for attachment and enforcement of Execution Proceedings. x) Maintain close contact with opinion leaders in the area and use their influence in getting overdue recovered. xi) Maintain liaison with Enforcement Agencies and monitor the performance of recovery agents used by agencies. xii) In respect of chronic defaulters organize Lok Adalats, Bank Adalats, Recovery Melas or similar meetings for groups of borrowers. xiii) Follow up with RTO for registration of our charge in case of vehicle finance. xiv) Create data base with mobile nos. and e-mail address which can be used for telecalling or SMS-ing. 3. In discharging these duties, you must work with the sole aim of regularizing the accounts on default without any let up and must see that the relationship of the customer with the bank should not get spoiled at any point of time. As AMC you are also subject to the Model Code Conduct prescribed for Recovery Agents as indicated below and you must agree to abide by this code prior to undertaking recovery operations on behalf of the bank. Violation of the code will make you black listed and you will not be considered for renewal of contract. i) Telephone contact may be limited between 8 AM to 8 PM. ii) Will talk in language, which is most comfortable to the borrower. iii) Will keep conversation limited to business. iv) Will avoid demeanor that will suggest criminal intimidation or threat of violence. v) Will not accept any kind of gift or bribe. vi) Must appropriately be dressed. Decorum and decency will be maintained.

vii) Would resort to only permissible activities during the course of recovery. 4. BUSINESS TARGETS/ REMUNERATION i) The following monthly targets will be given to you :

Allocation of at least 30 accounts (NPA, AUCA, as well as written off accounts) with total outstandings of at least Rs.1.00 crore (No maximum ceiling in number of accounts or amount). You will be required to effect cash recoveries of not less than Rs.3 lac every month, spread over the allocated accounts. Unfulfilled targets of one month may be carried forward to the next month within a quarter, but quarterly targets (minimum Rs.9 lacs ) are to be achieved.

(ii) You will be given fixed remuneration plus commission on recoveries as under: A Fixed monthly remuneration towards meeting the out of pocket expenses viz., telephone charges, conveyance etc. Variable remuneration for cash recoveries upto Rs.5 lac in a month For cash recovery in excess of Rs.5 lacs in a month the remuneration would be Rs.3,000/-

B C

@ 5% of the cash recovery

Rs.25,000/-+ 4% of the amount exceeding `5 lacs

The remuneration will be paid by the Regional Office by crediting your bank account or through account payee cheque within 15 days from the date from the date of submission of the claim by the AMC. You will not be eligible for any remuneration in the case of customers who have directly approached the Bank on their own. Taxes, if any, applicable on the fees will have to be borne by you and the tax will be deducted at source from the payable fees as per rules applicable from time to time. 5. You will submit a monthly report to the concerned Branch(es) with a copy to the AGM(Controller) detailing the allocated accounts and amount of recovery effected during the month. 6. Since you are a retired employee of the bank, we trust you have adequate experience in dealing with the customers tactfully in recovery of our dues. However the AGM (SARC/ RACPC/ RASMECCC/ ZO/ RO) will arrange for a short briefing to you on NPAs, recovery methods and code of conduct for recovery. 7. Please note that the Bank will not provide any office or office space to you for this purpose. You will have to arrange for your work place at your own cost and maintenance expenses. 8. Your empanelment with Bank is as a service provider only and it does not create any employer-employee relationship. You, your successors or assigns, will have no right to claim any employment or benefit of employment whatsoever from the Bank. 9. Please note that your empanelment will be initially for a period of 1 year and subject to review after every 6 months(1st review after 6 months after engagement), the contract may be renewed by two more years, subject to your continued good performance and physical fitness. The contract may be terminated by either party by giving one months notice. It can also be terminated by the Bank at any time if your performance is found contrary to the Banks instructions or if you are found to perform any action detrimental to Banks interest. In the event of premature termination/expiry of your empanelment you will have to immediately surrender the identity card issued by the Bank to this office. Extension of your engagement with the Bank will depend on your performance in the activity/services allotted to you and necessity of your services to the Bank. The performance will be reviewed continuously and Bank will have the right to terminate the services with the approval of GM (RNW) after giving a notice of 1 month.

10. DGM(SAMG), HO, Patiala shall be the final deciding authority for resolution of any dispute/clarification regarding payment of fee, terms of empanelment etc. and the decision taken by him shall be final and binding on you. 11. In token of your having accepted the offer on the terms and conditions stipulated, please return the duplicate copy of this letter duly acknowledged within fifteen working days from the date of this letter. Yours faithfully, DGM (ZO) / AGM (RO) I have read and understood the Contents of this letter. I accept the terms and conditions laid down for my empanelment as SBP Asset Management Consultant. I enclose my resume containing my residential address, contact number and bank account details for your information and record. Signature of the AMC Name in full: Date: Place:

AMC EMPANELMENT REGISTER Date Financial Year of empanelment AMC No. Name of AMC Address of AMC AMC Contact No. Date upto which empanelment is valid Recovery received during empanelment Commission paid to AMC during empanelment Annexure E Date of renewal/termination of empanelment (In case of renewal please make a fresh entry in the register. Original Financial Year of Empanelment and AMC No. to be retained at the time of renewal of live empanelment). Renewal Termination Date Whether ICard surrendered?

No. of cases

Amt. (Rs.in lacs)