Banking Related Links:
www.bankall.org
www.bankbankerbanking-bd.com
www.bankersdirectory.org
Malpractices in Credit
1. Over valuation in Collateral:
At present various inspection company valuation the proposed collateral security Taking the undue facility the inspection company make over valuation. Besides bank officials make valuation near about the inspection company by the pressure of the top level management.
2. Concealment of facts:
3. Evil nexus of Bankers with customers
4. Overestimation of project revenue
5. Unnecessary delay in the process of sanction of loans
6. Ignoring account status of customers-cash flow
7. Misreporting over customers integrity
8. Negligence in scrutinizing loan proposal
9. Overestimation of project cost
10. Improper assessment of working capital
11. Inappropriate selection of borrower
12. Improper site selection
IRREGULARITIES OF DURING SANCTION
A) Over/Under financing
B) Undue influence
C) Inadequate security.
D) Unrealistic repayment period
IRREGULARITIES DURING DOCUMENTATION
1) Keeping documents blank
2) Under stamping
3) Non-observance of system
4) Absence of required papers/ documents and original title deeds
5) Wrong particulars
6) Lack of witness
7) Required files/ registers not maintained
8) Additions, alteration.cutting, over-writing, erasing in documents
IRREGULARITIES DURING DISBURSEMENT
1) Prior disbursement before proper documentation
2) Deviation from loan disbursement schedule
3) Change of original implementation plan
4) Unusual delay in disbursement
5) Disbursement of working capital loan before commercial operation
6) No proper end use verification of already disburse installment
7) Project completion report prepared improperly
PLEDGE
1) Acceptance of goods-unauthorized/unrecorded
2) Creation of false pledge
3) Acceptance of heterogeneous goods
4) Goods delivered without drawing power
5) Stock report not verified by authorized person
6) Insurance does not cover full stock
MORTGAGE
1) Proper title not assessed
2) Valuation
3) Location
