Case Code : CLMISC010
Publication date : 2010
Teaching Note: Available
Subject : Miscellaneous
Industry : Banking
Length : 03 Pages
Price : Rs. 100
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Banking, Capital, Borrower’s constitution, Credit appraisal, Documentation, Credit Monitoring, Loan
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The case is meant for discussing the topic of the basic requirements of Lending. The case involves the pre-sanction credit process viz. appraisal and recommendation, assessment, and sanction. The case is aimed at triggering a discussion on the real life scenario in a bank by narrating the predicament of a banker, who in his eagerness to achieve the target for the branch, forgets to ensure some of the basic requirements of bank lending.
Questions for Discussion:
1. Should the bank consider the request of the company for an additional loan?
2. What are the repercussions if the additional loan is not considered?
3. Do you think the situation could have been managed better?
4. Is the bank responsible for the non take-off of the project?
5. Who should be held responsible for the loan becoming an NPA?
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