Circular 78

HO Retail Lendins Depa ment- Centroli.ed MSM E A d Renn Ctuu! t Ce|MARG tC n No7 8 d, 30.01 .
2020
Now, it has been decided lo roll out CenMARG across lhe Bank lor speciried Metro,
U1ban, Semi-Urban and Rural branches lrom O1'r February 2020. LOS is being made
'Live'lor all lhese branches across the Bank.
lnitially, following four Retail credit products will be rolled out through LOS across the Bank
in 697 (586+111) selected branches:
S No. Products Sanctioning Authority

1 PSB Apna Ghar CenMARG
2 PSB Apna Vahan Cen[/ARG
3 PSB Education Loan CenMABG
4 PSB Personal Loan Branch/Zone
ln future, based on the development ol credit products in LOS, other Retail & MSME
products will also be covered and processed through LOS. Whenever these products are
added in LOS, separate intimation will be sent to all the branches / ollices.
This Master Circular supersedes all previous guidelines and encompasses all the
instructions issued regarding CenMARG.
The updated and consolidated operational guidelines ol CenMARG (t{;frr4) are

enclosed to serve as one point reference. All concerned are advised to note lhe said
guidelines for strict compliance.
Abdul Muieeb
(Asstt. Gen. Manager)
Page 2 of 2l
HO Retail Lending Department- Centralized MSME And Retail Group (CenMARG)-Cir. No78 dt.30.01.2020
The Centralized Processing Centre works through Hub and Spoke model with CenMARG
as sanctioning center and Regional Hubs to act as a supporting structure between
branches and CenMARG. The structural and operational guidelines of CenMARG (स माग)
are as under:
1. Objective:
CenMARG has been setup with the following objectives:
To ensure qualitative improvement in credit appraisal/ sanctioning.

To maintain high standards of assets quality.
Uniform appraisal standards & Documentation.
To reduce credit sanction turnaround time (TAT).
Transparency & compliance.
To segregate sourcing of proposals and credit decisions.
Risk Mitigation through integrated software (LOS) and multilevel processing.
The definition, structure and role of Base Branch, Regional Hub and CenMARG in the set
up are explained below:
2. Base Branch:
a. Definition:
Any branch performing routine banking activities which is either linked to any
Regional Hub or standalone will be known as base branch.
b. Structure:
Structure of the Base Branch will remain the same and it will keep performing
normal business operations except sanctions of credit facilities under the products
as mentioned further in the note.
Page 3 of 21
c. Role:
The role of the Base Branch would be as under:
i. Lead management:
a. Marketing of Bank’s credit products.
b. Lead generation and sourcing of loan proposals.
c. Managing Online/Offline Loan applications.
d. Organizing Retail/MSME Loan Campaigns/Camps.
ii. Lead Processing:

a. Evaluation of loan proposal through personal discussion and interaction with
the applicant.
b. Loan application complete in all aspect, signed by borrower and guarantor,
to be obtained.
c. KYC verifications to be done.
d. Branch to generate primary Credit Report (CIC Report).
e. Upon being satisfied with the KYC, Credit Report and pre sanction due
diligence, borrower/loan details to be fed in LOS.
f. Scanned images of loan application and copies of all related documents to
be uploaded in LOS. Loan proposal to be recommended and forwarded to
CenMARG through LOS for further processing.
g. For PSB Apna Vahan, complete proposal with DDA Report to be submitted
to CenMARG.
h. For PSB Education Loan, complete proposal with DDA Report to be
submitted to CenMARG for loan upto Rs.7.50 lacs, where property is not
offered as collateral security.
i. For PSB Education Loans beyond Rs.7.50 lacs or otherwise where
property is offered as collateral security and PSB Apna Ghar, In-principal
approval will be accorded by CenMARG to Regional Hub and Base Branch
for proceeding further in the loan.
j. For any permission/deviation/concession which can be permitted by higher
authorities as per Bank guidelines, while feeding the data in LOS, the Branch
Manager shall recommend the same in LOS along proper justification.
Page 4 of 21
k. Pre-sanction visit / inspection of the property to be mortgaged / Residence /

Business unit of the applicant:
For loan proposal up to Rs 50 Lakhs: Incharge and an Officer of

Base Branch will conduct the visit/inspection. In case of single officer
branches like Ultra Small Branches, Branch In-charge will conduct the
visit/inspection. Pre-Sanction report will be submitted/ uploaded by
Base Branch in LOS.
For loan proposals of above Rs 50 Lakhs:
i. Category ‘A’ Branches i.e. Linked Branches: Pre-sanction

visit/inspection to be conducted by Incharge/Officer of Base
Branch along with one Official from Regional Hub. The joint pre-
sanction visit/Inspection is to be conducted once CenMARG
confirm about the eligibility/MPBF of the credit proposals. Visit/
Inspection report to be submitted/ uploaded in LOS by Regional
Hub in this case.
ii. Category ‘B’ Branches i.e. Standalone Branches: Pre-
sanction visit/inspection to be conducted by Incharge and an
Officer of Base Branch. Pre-Sanction report will be submitted/
uploaded by Base Branch in LOS.
During the pre-sanction inspection/visit, besides conducting other

due diligence, it is to be ensured that the property proposed to be
mortgaged and its boundaries are clearly identifiable. Property is
mortgageable and SERFAESI is applicable.
l. Liaison with the applicant for producing original property documents for
verification by the empanelled Advocate, deputed by Regional Hub for legal
scrutiny and opinion.
m. To ensure that sufficient amount is held in the operative SB/CA account of

the loan applicant for payment of fees to External Service Providers i.e.
Page 5 of 21
Valuer, Advocate, DDA etc. and CIBIL, CERSAI charges and Processing
Fee as per bank norms.
n. For cases falling under the powers of HO, Base Branch to forward and
recommend the loan proposal to CenMARG through LOS for further
processing/onward submission to competent authority.
iii. Post-Sanction activities:

a. Upon receipt of the Sanction intimation from CenMARG, convey the sanction
term sheet to the borrower.
b. Compliance of Sanction Term Sheet.
c. Loan Document to be executed by borrowers and guarantors as per Bank
guidelines.
d. Vetting of loan documents executed, as per Bank guidelines.
e. The original loan documents and security documents to be kept at the Base
Branch.
f. Confirmation on compliance of Sanction terms and execution of loan
documentation to be sent to the Regional Hub.
g. After opening of Loan account by CenMARG, disbursement of loan to be
done by the Base Branch in compliance of terms and conditions stipulated in
the sanction letter.
h. CERSAI Registration.
i. Periodic Post sanction visits/ Inspection of the property/ assets created from
the Bank’s finance.
j. Post-disbursal follow up and supervision of the loan account and prompt
recovery of interest and installment.
k. Carry out Recovery procedures in case of NPAs.
Page 6 of 21
3. Regional HUB:
A. Definition:
Regional Hub will be cluster-based which may be set-up at ZO and/or at any
specified location, and act as a link between the Base Branch and CenMARG. Each
Hub will cater to specific number of branches, whether linked or stand alone.
Regional HUB would act as a liaison and due diligence centre with no sanctioning
powers. It will perform the duties connected to valuation of property(ies), legal
scrutiny, due-diligence and to ensure timeline for submission of these reports and
replies to observations raised by CenMARG. Besides the above, it will also conduct
vetting of Legal Opinion Report, confirmation to the effect that various reports such
as Legal Opinion Report, Valuation Report and External Due Diligence Report are
as per bank guidelines, formats and local laws.
Administrative Control: The respective Zonal Office would have complete

administrative control over the Regional HUB.
B. Role:
The roles and responsibilities of the Regional Hub are as under:
To conduct joint visit/inspection with the officials of Base Branch (For
credit facilities of Rs.50 Lakhs and above) for Category A Branches i.e.
Linked Branches.
Ensure timely submission of replies by Branches to the observations
raised by CenMARG.
Vetting of Legal Scrutiny Report.
Ensure that the Legal Scrutiny Report, Valuation report and External
Due Diligence report are as per Bank specified formats and adheres to
local laws.
Liaison with Base Branch for compliance of Terms and Conditions of the
sanction.
To ensure smooth workflow and quick turnaround time by advocates,
Valuers, Due Diligence Agencies.
Page 7 of 21
C. Functions:
Regional Hub will perform following functions:
i. Pre sanction:
a. Facilitating Legal Opinion Report, Valuation Report and External Due
Diligence Report from the empanelled Advocates, Valuers and external
Due Diligence Agencies on receipt of In-Principal sanction from
CenMARG for all applicable credit facilities where property is offered as
either Primary or Collateral Security.
b. Vetting of Legal Opinion Report.
c. Confirmation that the valuation report & DDA reports are as per bank’s
format and theses reports adhere to all local laws.
d. To carry out Joint Pre-sanction visit / inspection of the property to be
mortgaged / Residence / Business unit of the applicant with the Branch In-
charge/Officer of the Base Branch for loan proposals of Rs 50 Lakhs or
above for Category A Branches i.e Linked Branches.
e. Ensure timely submission of replies by Branches to the observations raised
by CenMARG.
f. Follow up with all external service providers to ensure timelines for
submission of reports.
g. Only unconditional Legal Opinion Report to be submitted to CenMARG for
further processing. If any conditions are mentioned in Legal Opinion Report,
the same to be complied/followed up before sending the report to
CenMARG.
h. To follow up with the Base Branch for payment of Fees and Other charges
payable, as stipulated by the Bank, to all the external service providers.
For standalone branches, functions of Regional Hub will remain the same
except waiver to conduct joint pre-sanction visit/inspection for credit
proposals above Rs. 50.00 lacs by an official from Regional Hub also.
Page 8 of 21
ii. Post sanction:

a. To ensure vetting of loan documents from empanelled advocate as per Bank
guidelines is done at Branch level.
b. To ensure sanction terms and conditions are duly complied with by the Base
Branch.
c. To confirm to CenMARG about compliance of pre-disbursement sanction
conditions and execution of loan documentation at Branch level.
d. To get the loan account opened through CenMARG for disbursement.
4. CenMARG:
A. Definition:
CenMARG will act as a backend office and appraise all proposals sourced by
Branches. It will have separate discretionary lending powers to sanction credit
proposals through committee system. The committees at CenMARG will be
competent authority to take final decision on proposal as per their discretionary
lending power for respective credit product.
B. Structure:
CenMARG is divided into three functional units:
Processing Team
Legal Team
Credit Risk & Compliance Team.
CenMARG Head:
Scale V/VI
Processing Credit Risk &

Team Legal Team Compliance Team
Page 9 of 21
Functional Autonomy: CenMARG would function as a separate ‘Business

Unit’ and would have distinct Branch Code, Sanctioning Authority Codes and
Finacle SOL ID.
Administrative Control: Head Office Priority Sector Department would have

complete administrative control over CenMARG.
Job profile of Staff working at CenMARG: Job profile of staff working at

CenMARG will be treated working at a Zonal Office:
Scale V/VI (AGM/DGM) – CenMARG Head Zonal Manager

Scale V (Asstt. Gen. Manager)
Scale IV (Chief Manager)
Scale III (Senior Manager) ZO experience
Scale II (Manager)
Scale I (Officer)
Committee Structure: Sanctioning committees at CenMARG shall be as

under:
• Chief Manger level (CMCC)
• AGM level (AGMCC)
• DGM level (DGMCC)
Proposals falling beyond the discretionary lending power of DGM level committee shall be
forwarded by CenMARG to appropriate/competent sanctioning authority at Head office.
C. Role:
The roles and responsibilities of the different functional units of CenMARG are as
under:
i. Processing team:
a. Preliminary scrutiny of proposal for initial viability check and assessment of
MPBF etc.
b. Seeking information/reports from Regional Hub to complete the proposal.
Page 10 of 21
c. Finalize the appraisal and put up the proposal to respective committee to

take credit decision.
ii. Credit Risk & Compliance Team:

a. Pre-sanction
i. Credit rating of the loan proposal.
ii. Checking of CRILIC, Wilful Default, RBI Defaulter List, CERSAI and
CIBIL Mortgage Check.
b. Post-sanction
i. Get confirmation from respective Regional Hub for compliance of
Sanction Terms and execution of Loan documents.
ii. Opening of the loan account and transfer to base branch.
iii. Legal Team:

To prepare customized loan documents, convert these documents into non-
editable formats and forward the same to branches for execution as per the
terms and conditions of the sanction.
Besides the above, CenMARG will also have a Scale-II/I IT Official for addressing any
IT related issues.
D. Functions:
a. CenMARG to be result oriented with a clear vision to foster Retail and MSME
growth.
b. Scrutiny of proposal for viability check and assessment of MPBF / Quantum
of Finance by carrying out analysis and verifications of documents submitted
by the Branch and mandatory reports i.e CIBIL Mortgage Check report,
CERSAI report, CRILIC, CFR, Wilful defaulter etc.
c. In case of any variation i.e. downward computation of MPBF / Quantum of
Finance against the loan requested amount, before proceeding for further
processing, written confirmation/Fresh Application to be obtained from the
applicant through the Base Branch.
d. Seeking additional information, if any, from Regional Hub to complete the
proposal.
Page 11 of 21
e. If prima-facie eligible, transmit in-principal sanction on proposal to Regional

Hub to proceed for Legal Opinion, Valuation, External Due Diligence etc.
f. Receiving all required reports/data/documents from Regional Hub/Base
Branch to complete final appraisal.
g. Credit risk rating.
h. Proposal to be put up to appropriate sanction committee to take credit
decision on the loan application.
a. If considered viable, proposal will be sanctioned in LOS.
b. If considered not viable, proposal will be dropped/rejected in LOS.
i. Preparation of sanction term sheet and loan documents.
j. Sanction letter to be prepared mentioning all relevant terms and conditions. It
should clearly convey instructions regarding pre-disbursement formalities to
be carried out at the branch.
k. Converting loan documents into non-editable format and same will be
reflected in LOS for print at Base Branch.
l. On confirmation of execution of documents and compliance of sanction
terms from Regional Hub, CenMARG to open and transfer the loan account
to the Base Branch.
5. Coverage of Branches:
The roll-out of CenMARG has been planned in a phased manner. HO Retail

Lending department will identify Regional Hubs across the Bank in stages and link
all the branches which are situated in contiguous area. All the Metro, Urban, Semi-
Urban, Rural, IBDs, IFBs, Personal Banking etc. will be covered under the ambit of
CenMARG in phases. However, Corporate Banking Branches (CBBs) will be out of
the ambit of CenMARG. These branches will keep functioning as per the present
system.
The branches which are either out of the ambit of CenMARG or not covered
under CenMARG in this phase, will continue to use their discretionary lending
powers. Credit proposals beyond their discretionary lending powers will be
submitted to ZO/HO as the case may be. Further, for the credit products
Page 12 of 21
which, as of now, are not covered by CenMARG in LOS, branches will

continue to use their discretionary lending powers.
Branches under ZO Delhi-1 & ZO Delhi-2 will continue to submit credit

proposals related to PSB Vyapar, PSB Mortgage and PSB SME Liquid Plus, in
physical mode to CenMARG, as being already done by these branches.
Branches will be covered by CenMARG though following structure:
A. Linked Branches: Branches situated in contiguous area of Regional Hub.
B. Standalone Branches: Scattered branches (distant branches) of zone

which cannot be linked with Regional Hub.
Regional Hub will cover two set of branches and perform duties accordingly.
List of branches along with respective Regional Hubs, to be covered by

the CenMARG with effect from 01st February 2020 is enclosed as per
Annexure-I.
VSAT Branches
Presently there are 129 branches on VSAT connectivity and LOS cannot be
rolled out in these branches due to their slow connectivity. As such, these
branches will continue to use their discretionary lending powers and credit
proposals beyond their discretionary lending powers will be submitted to
ZO/HO, as the case may be (except BO Dindarpur, Delhi (D1322). These
branches will not be covered under CenMARG as of now. However, as soon as
their connectivity is upgraded, these will be linked to CenMARG through LOS.
BO Dindarpur, Delhi (D1322) will continue to submit its proposals to

CenMARG for the specified products, in physical offline mode, till the up-
gradation of its network connectivity.
Authority to link/delink branches

CenMARG is authorized to link/delink branches from Regional Hubs and
change category of branches i.e. ‘A’ to ‘B’ and vice versa on the
recommendations of the respective Zonal Office.
Page 13 of 21
6. Coverage of Products:
Following Retail and MSME credit products will come under the ambit of CenMARG:
i. PSB Apna Ghar

ii. PSB Apna Ghar Top-Up
iii. PSB Apna Vahan
iv. PSB Education Loan
v. PSB Mortgage Loan
vi. PSB Vyapar Loan
vii. PSB SME Liquid Plus
viii. PSB Contractor Plus
ix. PSB Commercial Vehicle Loan
x. PSB Sukhmoney for Senior Citizens (Reverse Mortgage)
xi. PSB Doctor Special Loan
xii. MSME Loans (except the above structured products) above Rs 10.00 Lakhs
Exceptions: Branches are authorized to sanction MSME loans upto Rs. 10 lakhs (except
the above structured products) as per their discretionary lending powers.
In this phase, the following four Retail Credit products are being rolled out through
LOS across the Bank from 01st February 2020, in selected branches as given in the
Annexure-1:
S No. Products Sanctioning Authority

1 PSB Apna Ghar CenMARG
2 PSB Apna Vahan CenMARG
3 PSB Education Loan CenMARG
4 PSB Personal Loan Branch/Zone**
**Though PSB Personal Loan is also covered under LOS but it will be sanctioned at
Branch level/ Zonal Office level as per discretionary lending powers.
Additionally, Branches under ZO Delhi-1 & ZO Delhi-2 will continue to submit credit
proposals related to PSB Vyapar, PSB Mortgage and PSB SME Liquid Plus, in
physical mode to CenMARG, as already being done by these branches.
Page 14 of 21
Based on the development of other Retail and MSME credit products in LOS,
Branches will be intimated from time to time as & when such products are covered
and processed through LOS.
7. Role of Zonal Office:
a. Administrative control of Regional Hub under its jurisdiction.

b. Posting of sufficient staff to Regional Hub based on proposal flow and
number of branches.
c. Performance review of all service providers.
d. Conduct Marketing campaigns/Camps etc.
e. Tie-up with the builders and approval of Housing projects.
f. Tie-up with Vehicle dealers.
g. Post sanction follows up.
8. Credit Committees at CenMARG:
Credit Committees set up at CenMARG at various levels are as under:
Composition of Credit Committee

Retail Loans (personal
Name of the segment – as per the
S No. MSME Loans above Rs.50
committee discretionary lending powers
lakh
of the committees) & MSME
Loans upto Rs.50 lakh
Members in the committee - 4 Members in the committee - 4
Chairperson: Respective Chief Chairperson: Respective Chief

Manager Manager
Chief Manager
Level Credit Other members: Other members:
1 Two Chief Managers (other Two Chief Managers (other than
Committee
(CMCC) than Chairperson) Chairperson)
Convener: Processing officer. Convener: Processing officer.

Quorum: 2 members including Quorum: 3 members including
Chairperson Chairperson
Page 15 of 21
Composition of Credit Committee

Retail Loans (personal
Name of the segment – as per the
S No. MSME Loans above Rs.50
committee discretionary lending powers
lakh
of the committees) & MSME
Loans upto Rs.50 lakh
Members in the committee - 5 Members in the committee – 5
Chairperson: Respective AGM Chairperson: Respective AGM
Other members: Other members:
Assistant General
One AGM (other than One AGM (other than
Manager Level
2 chairperson) chairperson)
Credit Committee
Two Chief Managers Two Chief Managers
(AGMCC)
Convener: Processing officer Convener: Processing officer
Quorum: 3 members including
Quorum: 4 members including
Chairperson
Chairperson
Members in the committee - 5 Members in the committee - 5

Chairperson: DGM Chairperson: DGM
Other members: Other members:
Deputy General Two AGMs Two AGMs
Manager Level AGM of HO Retail Lending AGM of HO Retail Lending
3
Credit Committee One Chief Manager One Chief Manager
(DGMCC)
Convener: Respective Chief Convener: Respective Chief
Manager Manager
Quorum: 4 members including Quorum: 4 members including
Chairperson. Chairperson.
Page 16 of 21
9. Discretionary lending powers:

Sanctioning committee at CenMARG shall exercise the following discretionary lending
powers under the respective products:
Rupees in Lakhs
CM Level AGM level DGM level
S.No. Products
Committee Committee Committee
1 PSB Apna Ghar 200 300 400
2 PSB Apna Ghar -Top-up 20 20 20
3 PSB Apna Vahan 50 100 200
4 PSB Education loan 50 100 200
PSB Mortgage TL 200 300 500
5
Loan OD 200 300 500
TL/WCTL 200 300 500
6 PSB Vyapar Loan
OD 200 300 500
PSB SME Liquid TL 200 300 500
7
Plus OD 200 200 200
TL 200 300 500
OD 200 300 600
BG 100 200 500
PSB Contractor Aggregate
8 400 700 1100
Plus for all three
Flexi Term
loan (in
25 50 100
addition to
above)
9 PSB Commercial Vehicle 100 200 200
10 PSB Sukhmoney 100 100 100
11 PSB Doctor Plus (TL+OD) 200 300 500
TL 200 300 600
12 MSME Loan OD/CC 200 300 600
BG & LC 100 200 300
MSME loan covered under
13 200 200 200
CGTMSE
Page 17 of 21
Group Advance:
Delegation of lending powers of committees for Individual and Group Borrowers
(Including FB & NFB):
Committee Headed by Delegation of lending power
(Amt Rs in Lakhs)
Individual Group
1. Chief Manager 500 1000
2. AGM 800 1600
3. DGM 1200 2400
10. General Aspects related to CenMARG:

a. Loan Proposals falling beyond the power of CenMARG:
Loan Proposals falling beyond the delegated powers of CenMARG shall be duly
processed by CenMARG as per above modalities. CenMARG shall recommend
and submit the Process Note to the appropriate HO Level Committee for taking
decision.
b. Inspection of CenMARG: To be conducted once in a year by HO Inspection

Department.
c. Review of credit facilities:
All the credit proposals, including the credit facilities sanctioned by
CenMARG, to be reviewed by Base Branch/ZO/HO, within their discretionary
powers, as the case may be.
d. Renewal of credit facilities:

i. Existing credit facilities
All existing credit facilities (other than the facilities sanctioned by
CenMARG) to be renewed by Base Branch/ZO/HO, within their
discretionary powers, as the case may be.
ii. Fresh credit facilities sanctioned by CenMARG

Renewal of all such credit facilities to be done by CenMARG.
BM will renew MSME credit facilities within the threshold limit (up to Rs.10
Lakhs) as per their discretionary lending powers.
Page 18 of 21
e. Proposals related to Enhancement of credit facilities

Base Branch to forward all proposals of renewal-cum-enhancement to
CenMARG for further processing and taking credit decisions. After sanction of
renewal-cum-enhancement by CenMARG, renewal of all such credit facilities,
after enhancement, to be done by CenMARG.
Further, in case of existing proposals (not sanctioned by CenMARG)
CenMARG to consider renewal-cum-enhancement of only those proposals
which are received within 12 months from the date of previous renewal/
sanction. In case the proposals are received after the said stipulated time
schedule, Branch/ZO will first renew the credit facilities and then submit to
CenMARG for enhancement.
f. Apart from exemptions given under Master Circular on External Due Diligence
vide HO Credit Monitoring & Policy department circular no.1710/2017-18 dated
31.05.2017, Loan proposals of following category shall be exempted from
conducting external due diligence (DDA) for the credit proposals to be
appraised by CenMARG through LOS :
i. Ex-employees of the Bank.
ii. Staff guaranteed accounts.
iii. Borrowers whose due diligence already conducted by the DDA.
iv. Existing borrower having good track record (to the satisfaction of branch
manager) with minimum 12 months with our Bank.
v. PSB Sukhmoney (Reverse Mortgage)
vi. PSB Apna Ghar – Top-up
vii. Borrowers whose salary account maintained with our Bank.
Zonal Manager is authorized to allow waiver of external due diligence report on case to
case basis as per guidelines given in the above said Master Circular on DDA.
11. General guidelines
A. Applicant’s Interface with Base Branch:

a. Applicant can apply for loan either through online mode or submit offline application
along with all the required documents at the Base Branch only.
Page 19 of 21
b. Applicant will interact with the Base Branch and complete all KYC norms and to
provide all the document which are required to process the credit proposal.
c. Applicant to be intimated regarding the terms and conditions of the sanction which
he/she/they need to comply.
d. Applicant to report at the Base Branch for the execution of Loan Documents.
e. Applicant to submit all original Documents as per sanction terms at base Branch.
B. Applicant’s Interface with Regional Hub:

For linked branches-. Regional Hub to conduct joint visit/inspection with the Base
Branch officials (For Category “A” Branches i.e. Linked branches and for proposed
credit facilities of Rs.50 Lakhs or more)
C. Bank’s internal risk based rating

Credit Rating of the borrower shall be an intrinsic part of appraisal system i.e. credit
rating of all loans & advances above Rs.2 Lakhs is to be done (except exempted
categories) irrespective of the fact whether rate of interest on such type of loan/
advance is linked with credit rating or not. This exercise will improve the credit
quality and is essential for calculating capital charge under advanced approaches of
Regulatory norms (Basel III Norms).
Credit Rating Sanctioning Authority

PSB-1 to PSB-5 Respective Sanctioning Authority
PSB-6 Next Authority.
Credit approval Committees at Head Office headed by ED
PSB-7
&above (as per respective discretionary lending powers).
Based on the internal credit rating of accounts, the frequency of review/renewal of

borrowal accounts shall be as under:-
Credit Rating Periodicity of review of Frequency of renewal/ review

Credit Rating of borrowal accounts
PSB1 to PSB5 Yearly Yearly
Review – Half Yearly
PSB6 to PSB 7 Half Yearly
Renewal –Yearly
Page 20 of 21
D. Withdrawal of discretionary lending powers:

The discretionary lending powers of the branches, RLCs and ZOs for PSB
Apna Ghar, PSB Apna Vahan and PSB Education Loan will stand withdrawn
after the working hours on 31st January 2020 for all the branches covered in
this phase as given in Annexure-1. From 01st February 2020, all the credit
proposals related to PSB Apna Ghar, PSB Apna Vahan and PSB Education
Loan will be sanctioned by CenMARG for all such branches. However, all the
credit facilities related to above products which are already sanctioned by
Branches/RLCs/ZOs by 31st January 2020, are allowed to be disbursed
subsequently by the branches, without any reference to CenMARG.
Further, for PSB Personal Loan, branches & zones will continue to have the
same discretionary lending powers which they were having earlier. However,
from 1st February 2020, they will be required to sanction PSB Personal Loan
through LOS only.
E. Roles and Responsibilities of External Service Providers (ESPs):

The Regional Hubs would be assisted by the following ESPs for operational matters:
a. External Due Diligence Agency
b. Empanelled Valuer
c. Empanelled Advocate
• The respective ZOs to empanel and mark sufficient number of ESPs to the
Regional Hubs/Branches.
• The Regional Hub to allocate work assignments to ESPs on rotational basis.
• ESPs to strictly adhere to the stipulated timeline for submission of report.
• ESPs in no case shall canvass any loan proposal.
• ESPs not to interfere influence the processing of loan.
• Regional Hubs to submit the performance report of the ESPs to their respective
ZO.
*************************
Page 21 of 21

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Circular 78

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HO Retail Lendins Depa ment- Centroli.ed MSM E A d Renn Ctuu! t Ce|MARG tC n No7 8 d, 30.01 .

S No. Products Sanctioning Authority

The updated and consolidated operational guidelines ol CenMARG (t{;frr4) are

CenMARG has been setup with the following objectives:

To ensure qualitative improvement in credit appraisal/ sanctioning.

ii. Lead Processing:

k. Pre-sanction visit / inspection of the property to be mortgaged / Residence /

For loan proposal up to Rs 50 Lakhs: Incharge and an Officer of

For loan proposals of above Rs 50 Lakhs:

i. Category ‘A’ Branches i.e. Linked Branches: Pre-sanction

During the pre-sanction inspection/visit, besides conducting other

m. To ensure that sufficient amount is held in the operative SB/CA account of

iii. Post-Sanction activities:

Administrative Control: The respective Zonal Office would have complete

ii. Post sanction:

Processing Credit Risk &

Functional Autonomy: CenMARG would function as a separate ‘Business

Administrative Control: Head Office Priority Sector Department would have

Job profile of Staff working at CenMARG: Job profile of staff working at

Scale V/VI (AGM/DGM) – CenMARG Head Zonal Manager

Committee Structure: Sanctioning committees at CenMARG shall be as

c. Finalize the appraisal and put up the proposal to respective committee to

ii. Credit Risk & Compliance Team:

iii. Legal Team:

e. If prima-facie eligible, transmit in-principal sanction on proposal to Regional

The roll-out of CenMARG has been planned in a phased manner. HO Retail

which, as of now, are not covered by CenMARG in LOS, branches will

Branches under ZO Delhi-1 & ZO Delhi-2 will continue to submit credit

Branches will be covered by CenMARG though following structure:

A. Linked Branches: Branches situated in contiguous area of Regional Hub.

B. Standalone Branches: Scattered branches (distant branches) of zone

List of branches along with respective Regional Hubs, to be covered by

BO Dindarpur, Delhi (D1322) will continue to submit its proposals to

Authority to link/delink branches

i. PSB Apna Ghar

S No. Products Sanctioning Authority

7. Role of Zonal Office:

a. Administrative control of Regional Hub under its jurisdiction.

8. Credit Committees at CenMARG:

Credit Committees set up at CenMARG at various levels are as under:

Composition of Credit Committee

Chairperson: Respective Chief Chairperson: Respective Chief

Convener: Processing officer. Convener: Processing officer.

Composition of Credit Committee

Members in the committee - 5 Members in the committee - 5

9. Discretionary lending powers:

10. General Aspects related to CenMARG:

b. Inspection of CenMARG: To be conducted once in a year by HO Inspection

d. Renewal of credit facilities:

ii. Fresh credit facilities sanctioned by CenMARG

e. Proposals related to Enhancement of credit facilities

11. General guidelines

A. Applicant’s Interface with Base Branch:

B. Applicant’s Interface with Regional Hub:

C. Bank’s internal risk based rating

Credit Rating Sanctioning Authority

Based on the internal credit rating of accounts, the frequency of review/renewal of

Credit Rating Periodicity of review of Frequency of renewal/ review

D. Withdrawal of discretionary lending powers:

E. Roles and Responsibilities of External Service Providers (ESPs):

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