General overview on approval process :

A Credit Line Proposal is prepared for every borrower. If the credit facility is a revolving short-term facility, then the facility will be renewed every year and a new credit line proposal will be prepared annually to provide the basis for the renewal. If the facility is medium-term then an annual review of the facility will be required. However, in cases where the Bank has decided to adjust the facility up or down, a revised credit line proposal will be prepares whenever the need to adjust the facility has been agreed between the borrower, the branch Manager and the Head Office Credit Division.

The credit line proposal originates in the branch and is completed by officer dealing with advances after the branch Manager has interviewed the borrower. The branch Manager and the credit officer both sign the credit line proposal when it has been completed to their satisfaction. Other additional information is also prepared to support statements made in the credit line proposal and the whole “package” is either preserved on the customer file at the branch if the advance is within the branch Manager’s sanctioning authority, or if it is beyond his authority, a copy of the “package” is sent to H.O. The package normally contains the following papers, in addition to the Credit Line Proposal :

• the spread sheet
• copy of the latest audited accounts, if available
• the credit report
• copies of any other relevant correspondence with the customer.

The credit Line Proposals which are sanctioned within the branch Manager’s discretionary powers a copy of the proposal is to be sent to HO Credit Division and Loan Administration Monitoring Division for information. HO ensures that the credit line is within the Bank’s policy and fulfils all other conditions. He Credit Line Proposal which requires approval of the Managing Director or the Executive Committee of the Board will be sent to Head Office Credit Division with recommendation of the Branch Manager. After review, the Head Office Credit Division prepares a brief for each credit line and presents it to the Head Office Credit Committee.

If the amount is not within the powers of the Managing Director and falls under purview of the Executive Committee of the Board, the Committee will add its recommendations and the proposal is sent to the Executive Committee of the Board for approval as a memo of the Managing Director.