Chapter 4

 

Bhagwad Gita Chapter 4,

Children dont learn what parents says, Children learn by observing what parents do.

Example, A guardain who gives more time to friend instead of family.. Later the child also does the same.

CHANGES IN SOCIAL ENVIRONMENT

 WE ARE BLAMIMG, SOCIAL ENVIRONMENT HAS BEEN NEGATIVELY CHANGED , BUT WHO IS RESPONSIBLE FOR PRESENT ENVIRONMENT. WHO ARE THE COMPONENTS OF THIS ENVIRONMENT...

Individual Judgement

The parameters of Individual Judgement towards other depends on your belief and values. How much rigid you are , your view to judge other people is much higer.( You are more rigid )

Example. If a person drinks wine, he takes easy if other also drink but if he don't drinks, he takes wine also an important parameter to judge other. ( Here you are flexible if you drink and you are rigid towards other if you dont drink).

Departmentalization and Structure for Credit Department.

 

Departmentalization and Structure for Credit Department

Departmentalization is defined as a process that groups activities into different departments. These departments are created so that tasks can be performed by specialization within the organization.

Departmentalization also refers to an organization’s formal structure that includes several departments and positions and their respective relationship with each other.

Every organisation as per the nature, objectives, as per their available resources creates their department. Regarding to bank, various bank have created their own department.

Every organisation  used their own model in various departments. Departmentalization is a continuous process. As per the nature of organisation, its needs and as per the change in the environment, Structure, Authority Responsibility departmentalization model gets change. Regarding to Risk Department following Departmentalization model can be used for efficient process.

                                                          Structure of Risk Department

 

 

 

 

 Details explanation

1.      At First RO will prepare CA and shall be forwarded for review to BM. After proper correction of CA and giving proper recommendation BM will forward CA to Risk Analyst or Credit Manager.

2.      As bank has set their own standard upto which limit file has to be forwarded to credit manager/ line manger directly and upto which file has to be forwarded to risk. ( Example in some bank, file is send to risk department from 2 crore and above. Below it direct credit manager review file. While in some bank, all file is  is send to risk)

a.      File Send to Credit Manager: - Loan amount in lower size, ADC Product, Time extension, Full loan settlement can be direct send to Credit Manager from Branch.

b.      File send to Risk Department: - File of Funded and Non funded Loan (New or renew, enhancement) can be send from Branch . Limit can be set from which Limit file has to forward to Risk. If File is reviewed by RA than it shall be forwarded to credit Manager or Senior Risk Analyst.

Note :- In Risk Department , RA shall be segregated as per ( Retail , SME, Corporate , Project Finance). RA which has been segregated for Retail will only review Retail file, RA which has been segregated to SME will only review SME File.

 

3.      File Send to Senior Risk Analyst :- File of large size or complicated in nature or within some amount ( where secondary REC is not there or loan above 5 crore). Loan given on basis of Primary collateral or on the basis of PG , should be again reviewed by Senior Risk Analyst. If file is reviewed than it shall be forwarded to Credit Manager.

4.      File Send to Credit Manager :- Credit Authority ( Limit) should be provided to Credit Manager. Credit Manager shall be different for  Retail, SME, Corporate and Project Finance. As per the Limit provided, Authority Delegation Credit Manager shall review or approved File and If the file which are not in their limit . It shall be forwarded to Head of Department.

Note :- If Credit Manager feel discomfort in proposal or felt any dought on file/ Business/ party. Credit Manager Can Communicate with Province Head to review Business / REC. In this Province head have to give their view for the unit/ party with written memo.

Province Head Delegation :-  Approving authority of ADC Product , time extension of loan 5 Million, approval of special memo ( Professional loan of school teacher as per approved memo, Army loan, Microfinance subsidy loan, can also be given). 

5.      Head of Department :- As per the nature of File ( Consumer, SME, Corporate, Project finance), Department will be assign. Authority and various deviation can be provided to them. As per the assign Authority CA shall be Approved from Head of Department. Further as if approval need from higher authority it shall be forwarded to DCEO, CEO and Board.

6.      DCEO, CEO and Board :- As per the assign authority file will be approved.

 Conclusion: -

 Departmentalization facilitated to maintain coordination, communication and control among all the mechanisms of the organisation. It creates separate units with some independent responsibilities to departmental manager who in term improve their working efficiency and effectiveness.  The above model presented can provide, 

Specialization of Work and synergy effect in process with accuracy:- As Department is segregated and work is assign differently for each department.  Each individual ( RA, line Manager) shall be specialized in their task and if an individual gets specialized in their task, there shall be synergy effect in process ( fast process with more accuracy).

 

Date :- 11.05.2022

Time: 11.24 pm.

Anamnagar- Kathmandu

By :- Krishna Raj Bhatta