Internship Presentation

Term-IV
Strategic Solutions Group
(SSG)
Mentor: Sharad Agrawal (JGM)
Rahul Mishra
Supervisor: Rajesh Narnolia
(CM II)

Enroll
No.P301414CMG453
BAN ID: BAN64456

November 26, 2015

Content
Wholesale Banking Group (WBG)
ICICI Performance Highlights & Loan Portfolios
About Strategic Solutions Group (SSG)
Resolution Methodologies
Specific Activities and work done
Conclusion

Wholesale Banking Group

(WBG)

ICICI Performance Highlights

Advances increased by 15.2% year-on-year to Rs. 3,997.38
billion at June 30, 2015
Retail advances growth at 24.5% year-on-year at June 30,
2015
Overall domestic loan growth at 17.4%
Period-end CASA ratio at 44.1% at June 30, 2015 compared
to 43.0% at June 30, 2014
Net NPA ratio at 1.40% at June 30, 2015 , June 30, 2014:
0.87%)

Composition of loan book (Y-oY)

About SSG
Improving

asset quality and closely

monitoring exposures under stress.
Proactive action whenever required to
minimize the provisions and the losses
to the Bank.
Various
mechanisms are used for
recovery of money-

Restructuring

One Time Settlement

Reduction of exposure

Sale of assets to Asset Reconstruction Companies

(ARCs) etc.

Corporate Debt Restructuring (CDR)

Special Debt Restructuring (SDR)

Resolution Methodologies
Corrective Action Plan (CAP) under Joint

Lender Forum (JLF)

Rectification
Restructuring
Recovery
Settlement
Legal Recourse
Assignment of Debt
Strategic Debt Restructuring (SDR)

Strategy Framework for

Resolution

NPA
NPA

High

Negotiated Exit

Restructuring

Enforcement

SDR

Mgmt
quality

AUW
AUW

Lo
w

Low

Viability

Hig
h

Restructuring

A restructured account is one where the bank, for economic or

legal reasons relating to the borrower's financial difficulty,
grants to the borrower concessions that the bank would not
otherwise consider.

Normally

involves

modification

of

terms

of

the

advances/securities, may include alteration of repayment

period/repayable amount/ the amount of instalments/rate of
interest (due to reasons other than competitive reasons). The
aim is to preserve economic value of viable assets.

Lenders sign Inter Creditor Agreement (ICA) and lender and

borrower sign Debtor Credit Agreement (DCA). JLF can refer
the

borrower

to

Corporate

Debt

Restructuring

(CDR)

mechanism or restructure independently of it.

Restructuring

under

CDR

is

non-statutory,

voluntary

mechanism for restructuring.

9

CDR provides benefit of collective bargaining and equal terms

Recovery

When rectification are not seen as feasible, recovery is

resorted to.

The JLF may decide the best recovery process to be

followed, among the various legal and other options
available, to extract optimum results.

10

Settlement

Option normally explored in the case of borrowers with

lesser exposure, or when borrower is unviable for
restructuring,

or

recovery

through

legal

recourse

seems remote.

The criteria for deciding on the settlement amount

would

depend

on

the

existing

operations

of

the

company, future prospects, value of security available

to the bank and Present Value (PV) of returns.

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Legal Recourse

This option is explored when the promoter is not cooperating,

or

where

there

are

instances

of

diversion/fraud, or when the company has ceased

operations.

The expected PV of returns through the legal route to

be assessed against any settlement offer to decide on
the further course of action.

Information about promoter and promoter assets/ other

engagements help while resorting to legal recourse.

The various means of legal recourse include Debt

Recovery Tribunals (DRT), SARFAESI, civil recovery suit,
Section 138 of the Negotiable Instruments Act, or by
declaring the borrower as a wilful defaulter.

12

SDR

Gives lenders the right to convert their outstanding loans into

a majority equity stake if the borrower fails to meet conditions
stipulated under the restructuring package.

This option must be incorporated at the time of initial

restructuring.

The decision on invoking the SDR should be taken within 30

days from the above review of the account.

Post the conversion, all lenders under the JLF must collectively
hold 51% or more of the equity shares issued by the company

The JLF must approve the SDR conversion package within 90

days from the date of deciding to undertake SDR, and this
conversion should be completed within a period of 90 days
from the date of approval of the SDR package by the JLF.

13

Specific Activities

14

One Pagers

CMA

Credit Note

Power Point Presentation

Cover Note

Express Renewal Note

CMA

Provides a basis for financial analysis of a company

Excel sheet consisting of several worksheets, with Profit and

Loss Account and Balance Sheet (with projections), Working
Capital Assessment, Cash Flow Statement, etc.

Key Financial Parameters is an important sheet, which

automatically calculates 48 ratios which give an insight into
the businesss operations

Some of the major parameters are:

Total Operating Income (TOI): Total Operating Income (TOI)

growth or de-growth can be used to determine demand
supply

scenario

for

the

companys

products/services.

Generally it should be looked into in conjunction with order

book of the company.

15

EBITDA margin: It should be compared for change over the

years and in comparison with peers

CMA (continued)

Some of the major parameters are:

Interest:

Compare

Y-o-Y

change.

If

increasing

significantly, it can mean more debt taken during

the year, capitalized interest now debited to P&L, or
large depreciation of rupee, if there are larger
foreign currency loans

Exposure to group companies: Details have to be

sought regarding proper valuation, and if it was
done

out

of

additional

equity

or

additional

borrowings.

DSCR: The higher, the better

Guarantees: How much obligation can fall due on

the parent, and whether the guaranteed amounts

16

are self-sustaining?

Credit Note

It is an exhaustive document, providing a detailed

description of the proposal.

It

contains

compliances,

details

of

business

assistance,

ROE,

description,

pending
financial

performance, proposal, and recommendations, etc. and

also contains several annexures for project details,
CMA Form V (for calculating maximum permissible bank
finance), ROE calculator, security cover, etc.

I was involved in the preparation of credit note for the

subsidiary of a real estate company to be presented to
the Credit Committee (CC)

I was also involved in the preparation of a cover note

and PPT for the same proposal

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Express Renewal Note

Express renewal note is moved to renew

the clients limits for a period of three
months.

I was involved in the preparation of an

express renewal note for the subsidiary
of an offshore service provider offering
support services to oil exploration and
production (E&P) companies.

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Specific Activities
One Pagers for 100 Companies

This contains background of the company, their

present status and management details.

It also contains financial details of the company

i.e. TOI, PAT, Debt etc.

Prepared

One

pagers

for

approx.

100

companies and analyze other key details of

those companies.
Adobe Acrobat
Document

19

Microsoft Excel
Worksheet

Companies Analysis

Microsoft Excel
Worksheet

20

Specific Activities
CMA

Provides a basis for financial analysis of a

company

Excel sheet consisting of several worksheets,

with Profit and Loss Account and Balance Sheet
(with projections), Working Capital Assessment,
Cash Flow Statement, etc.

Key Financial Parameters is an important

sheet, which automatically calculates 48 ratios
which

give

an

insight

Microsoft Excel
97-2003 Worksheet
operations

21

into

the

businesss

Thank

you