CREDIT POLICY SECTION
RISK MANAGEMENT WING
HEAD OFFICE: BANGALORE-560002
SERVICE CHARGES ON CREDIT RELATED TRANSACTIONS – NON PRIORITY ADVANCES (OTHER THAN
RETAIL LENDING SCHEMES) - COMMISSION AND OTHER CHARGES – REVISION W.E.F. 16.08.2013
I.
PROCESSING CHARGES ON WORKING CAPITAL LIMITS INCLUDING SHORT TERM LOANS
REPAYABLE WITHIN 12 MONTHS:
(i) Fund Based (FB) Facility
SLAB
Upto 50000/> 50000/- and upto 2 lakhs
> 2 lakhs
RATE
250/0.30% with a minimum of 500/300/- per lakh with a minimum of
600/- and Maximum of 20 lakhs in a
year
(ii) Non-Fund Based (NFB) facility
50% of charges applicable to Fund based Working capital limits with a maximum of Rs.20 lakhs
in a year.
Maximum processing charges for both FB and NFB facilities together not to exceed Rs.25 lakhs
in a year.
II. UPFRONT FEE ON TERM LOANS
SLAB
RATE
Upto 50000/Above 50000/- and upto Rs 2 lakhs
250/0.50% of the loan amount with a minimum
of 500/1.25% of the loan amount.
1.00% of the loan amount. Min. 6.25 lacs
0.80% of loan amount. Min 25 lacs and
Max. 50 lacs
Above 2 lakhs and upto Rs.5 Crore
Above 5 Crore upto 25 Crore
Above 25 crore
III. REVALIDATION OF SANCTIONS
SLAB
Upto Rs.1 crore
Above Rs.1 crore
RATE
0.50% of the limit with a maximum of Rs.15,000/- for
each revalidation
0.10% of the limit with a minimum of Rs.15000/- and
maximum Rs.1,25,000/- for each revalidation
IV. MODIFICATION OF SANCTION TERMS & CONDITIONS
SLAB
Above Rs.50 crores
RATE
Rs.1 lac for each modification*
1. Loans/Advances exclusively against government securities (Primary) - 0.10% of the loan
amount with a minimum of Rs 50/- and maximum of Rs 250/- .
2. Loan against third party deposits - as per schedule of charges in I above.
3. Substitution of shares / securities - Rs.100/- for each occasion.
V. ADHOC CREDIT FACILITY
1. The facility permitted for a period not exceeding 15/ 30 days
- No charges if cleared within 15/30days
- If not, @ 0.10% p.a on the amount of overdrawing allowed with a minimum of Rs 100/- and
maximum of Rs 5000/-.
- Such charges will not be collected for overdrawings/TOD in Savings Bank account.
2. The facility permitted for a period exceeding 15/ 30 days - normal processing charges as in 1
above for the period permitted.
VI. GODOWN CHARGES:
(a) In case of pledge transactions:
- Upto Rs.2 lacs
- Above Rs.2 lacs
(b)
-
Nil
Rs.100 per inspection
In case of other than pledge transactions:
SLAB
Limits Upto and inclusive of Rs 5000/Limits Above Rs 5000/- and upto and
inclusive of Rs 25000/Limits Above Rs 25000/- and upto and
inclusive of Rs 2 lakhs
Above Rs 2 lakhs
RATE
NIL
Rs 50/- per inspection with a maximum of
Rs.750/- per year
Actual expenses incurred with a minimum of
Rs 100/- per inspection and a maximum of Rs
1500/- per year
Actual expenses incurred with a minimum of
Rs 200/- per inspection, No maximum ceiling
VII. ISSUE OF PROJECT APPRAISAL CERTIFICATES:
Project Appraisal Certificates issued on behalf of our customers - Rs.10000/- per Certificate.
VIII.
DOCUMENTATION CHARGES
SLAB
CLEAN
Not over Rs.2.00 lac
Above Rs.2.00 lac
SECURED
Not over Rs. 2.00 lac
Above Rs. 2.00 lac
RATE
Nil
0.10% with a minimum of Rs. 500 and
maximum of Rs. 25,000
Nil
0.15% with a minimum of Rs.750 and
maximum of Rs.30,000
EQUITABLE MORTGAGE CHARGES (BOTH FOR ORIGINAL AND
EXTENSION OF MORTGAGES)
Less than Rs.1 crore
Nil
Rs.1 crore to Rs.10 crore Rs.20 per lac or part thereof - Max Rs.15000
Above Rs.10 crore
Rs.20000
Renewal of existing limits, without any change in terms and conditions of sanction, 50% of
applicable documentation charges is collected.
IX.
CHARGES FOR CANCELLATION OF BANK’S LIEN ON GOVERNMENT SECURITIES / LI POLICIES
ON CLOSURE OF THE LOAN:
1.
Within 1 month from the date of closure of loan at the rate of Rs.100/- per instrument +
OPE
2. If lien cancellation is sought after 1 month from the date of closure of loan charges will
be Rs 200/- per instrument + OPE.
X. CHARGES FOR COPY OF DOCUMENTS:
Charges if copy of documents is for Rs 1000/- + Actual photocopying charges
submission to any statutory authority
Charges if presence of bank official is Rs 2000/- + Actual photocopying charges
required along with the documents for + OPE
obtention of photo copies.
XI. CONSORTIUM ADVANCES/JOINT LENDING ARRANGEMENT
Lead Bank fee:
Wherever we are the leaders in a consortium/Joint Lending Arrangement (JLA), the lead bank
fee is collected on the total assessed fund and non fund based working capital credit limits on
annual basis.
Upto Rs.10 crores
> Rs.10 crore to Rs. 50 crore
> Rs.50 crore
0.30% subject to a maximum of Rs.3.00 lacs
0.25% subject to a minimum of Rs.3.00 lacs and
maximum of Rs.12.50 lacs
0.20% subject to a minimum of Rs.12.50 lacs and
maximum of Rs 50 lacs
XII. COMMITMENT CHARGES
1% p.a. on the committed line of credit and / or unutilized / unavailed sanctioned WC limits
or ST limit of Rs.10 crore and above for both WC and TL.
XIII.GUARANTEES- COMMISSION
Nature of BG
Performance Guarantee
Commission
Minimum Commission - Rs.500/- Upto Rs.5 Crore – 2.25% p.a. (With Minimum Margin of
25%)
- Above 5 Crore Upto 10 Crore - 2.00% p.a. (With
Minimum Margin of 25%)
- Above 10 Crore -1.30% p.a. (With Minimum Margin of
15%)
Other than Performance
Guarantee
Note :
Minimum Commission for 3 months irrespective of amount.
Minimum Commission - Rs.500/-
Guarantee secured by
100% margin
Advising of Inland BGs
through SFMS
Bank Guarantees favouring
NSE / BSE / NCDEX on
behalf of Stocks and Share
Brokers
Upto Rs.5 Crore – 2.50% p.a. (With Minimum Margin of
25%)
Above `5 Crore Upto `10 Crore -2.25% p.a. (With
Minimum Margin of 25%)
Above `10 Crore - 1.50% p.a. (With Minimum Margin of
15%)
Note :
Minimum Commission for 3 months irrespective of amount
` 500 (Minimum) + 25% of the normal commission as
above.
0.20% of the amount of BG with a minimum of Rs. 300/and max Rs. 2000/Advising of Amendment – Flat charges of Rs. 500/Base commission of Rs.1000/- + 1.75 %p.a.
XIV.
OTHERS
1
2
Letter of
Undertaking
Letter of Comfort
As applicable to Financial Guarantees (Refer Para A
above
For amount less than Rs.10 Crore - 0.05% of the
amount with a minimum of `1000 and maximum of
Rs. 25000/.
3
Letter of Guarantee
For amount of ` 10 crore & above Rs. 50000/- flat.
0.10% of the amount with a minimum of Rs.5000/and maximum of Rs.75000/-
Note: All charges are excluding the Service Tax
XV. DELIVERY ORDER/GUARANTEE/INDEMNITY
Delivery order/Guarantee/Indemnity favouring Railways/ Transport Companies/ other
carriers to take delivery of the goods received under our LC - Rs 200/- per guarantee/delivery
order besides other incidental expenses like postage
XVI. CAPABILITY CERTIFICATE:
1. Rs.1/- per Rs.1000/- with a minimum of Rs.100/- & maximum of Rs.500/- per certificate
2. Additional capability certificate in respect of the same student for applying to other
Universities / same university within 12 months from the issue of original capability
certificate: Rs 50/- per certificate.
XVII. SOLVENCY CERTIFICATE:
0.10% with a minimum of Rs 500/- and maximum of Rs.25000/- per certificate.
XVIII. COMMERCIAL PAPER
Nature of transaction
Issuing/Paying Agent
Allotment/redemption
transactions:
and
sale/
Charges
0.50% (flat charges of face
value of CP issue)
purchase
CSDL
NSDL
a. Account maintenance
b. Transaction charges - per security Sale/Purchase
c. Request for dematerialization - per request
Rs.1000 pa
Rs. 300
Rs. 400 pa
Rs. 350
Rs. 50
Rs. 50
XIX.INLAND LETTERS OF CREDIT
01
02
Minimum Charge
Commitment + Usance Charges
Rs 300/- per LC
Commitment + Usance Charges
LC Upto 5 Crore
2.40% p.a.
Above Rs 5 crore to Rs10 Crore 2.00% p.a.
Above Rs 10 Crore
1.75% p.a.
Minimum charges - 0.60% or 1000/- whichever is
higher. (Above charges are inclusive of commitment and
usance charges)
03
04
Amendment Charges
Revolving LCs
The period is calculated from the date of opening LC to
the last date of its validity + Usance period of bill. For
sight LCs, one month period is reckoned over and above
the last date of LC validity. Part of a month construed as
a completed month.
i) For enhancement of amount of LC/Period: Usance,
Commitment charges or both as the case may be subject
to a minimum commission of Rs.500/-.
ii) Other amendments - Flat commission of Rs.500/-.
While opening a Revolving LC Usance charge:
As per the rates specified in (2) above reckoned on the
maximum amount of drawings permitted.
Commitment Charges :
As specified in (2) above from the date of opening to the
last date of its validity
(Minimum Commission of Rs.750).
On Reinstatement:
Usance Charges + Commitment charges (as per (2) above
on the reinstated amount
(Min Commission of Rs.1000 on each reinstatement)
05
Advising Charges
0.20% with a min of Rs.300/- and max of Rs 2000/-.
Advising of Amendment – Flat charges of Rs.500/-
06
Confirmation Charges
0.25% p.m. for the period of validity & Usance on the
LC amount.
07
08
09
10
11
Negotiating Charges
Bills upto Rs 2.50 lakhs - @ 0.50% with a minimum of
Rs.250/Bills over Rs 2.50 lakhs - @ 0.30% with a minimum of
Rs.1500/- and maximum of Rs 10000/Charges for giving guarantee 0.30% with a minimum of Rs.150/-.
for discrepant documents
Charges for accepting bills 0.30% with a minimum of Rs.150/-.
under LCs
Charges for retirement of bills 0.30% with a minimum of Rs.500/- and maximum of Rs
under LCs
25000/-.
Charges for non-payment and 0.10% with a minimum of Rs.150/- per day
non-acceptance of bills on
presentation/ on due date
Note: All charges are excluding the Service Tax
XX. OUT OF POCKET EXPENSES:
All out of pocket expenses towards postages, couriers, telexes, cables shall be collected from the
beneficiary of LC unless otherwise specified
XXI.CLEAN PAYMENTS RECEIVED UNDER LETTERS OF CREDIT:
A flat charge of Rs.200/- will be levied by the beneficiary’s bank for receiving clean payment and
crediting beneficiary’s account.
XXII. CERTIFICATES:
- Attestation of commercial invoice at the time of negotiation/collection Free of charge
- Attestation of invoices on a subsequent occasion - Rs.25/- per invoice with a minimum of Rs.50/will be levied on each occasion
XXIII. Immediate credit of cheques upto Rs.15000/i) In the case of outstation cheques - usual commission and postage charges will be collected at
the time of instant credit to the account
ii) In the case of local cheques, for each cheque commission of Rs.10/- will be collected.
XXIV. QOS/ HOS
1% penal interest for delayed/ non-submission
XXV. PRE-PAYMENT PENALTY FOR TERM LOANS
- 2% on the outstanding liability wherever the borrower makes request for transfer of his loan
account to other banks/ FIs.
- Pre-closure of the loan by the borrower not involving the transfer of accounts to other banks
/ FIs, no penalty will be levied.
XXVI. DELAY IN SUBMISSION OF AUDITED BALANCE SHEET
Penal interest of 2% on the outstanding liability if the Audited financial statement is not submitted
before 31st October of every year or within a fortnight from the date of adoption of the accounts
of the company whichever is earlier. This shall not be applicable to PSUs/ Government
organisations and those organisations statutorily exempted from audit.
PROVISIONS APPLICABLE TO PROCESSING CHARGES:
1. Processing charges is collected upfront at the time of initial processing of the proposal, as also
at each renewal / enhancement of limit / additional limit / extension of credit limits / Adhoc
limits.
2. The amount-collected as processing charges will be refunded if the proposal is turned down by
the Bank. However, the amount so collected will not be refunded if the borrower fails to avail
the loan/limit sanctioned or to comply with the Bank’s requirement in furnishing necessary
information/documents.
3. In the cases when different types of credit facilities are sanctioned to the same party, if the
credit proposal is processed at one time, the maximum processing charges as mentioned under
1 above is applicable. However, if the proposals are submitted and processed at different points
of time, the ceiling is applicable for each processing separately will apply.
4. For enhancements/ modifications before the date of renewal, processing charges will be
collected for the enhanced portion, prorata for the period for which enhancement is permitted.
5. In case of extension of credit limits, pro-rata processing charges will be collected for the
extended period.
6. In case of Working capital limits permitted for a period of more than one year, the processing
charges will be collected on yearly basis.
7. In the case of parties availing agricultural and non-agricultural limits/loans both the limits are
clubbed and the applicable charges mentioned above are collected.
8. All expenses actually incurred for servicing the borrowal accounts such as inspection, presanction and post-sanction visits, recovery visits, insurance, valuation charges payable to
approved valuers in respect of land, building, plant, machinery, vehicles, sending notices, legal
charges etc. are collected from the borrower.
9. Commitment charges are applicable to borrowers (Limited companies only) with sanctioned
limits (Fund based, Non-fund based or combination thereof including Term loan) of Rs.10 crore
and above from the Bank. The limit sanctioned / committed line of credit shall be availed within
a period of 3 months from the date of sanction, or else, commitment charges will be collected
from the date of sanction till its availment.
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