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SERVICE CHARGES – ADVANCES RELATED SERVICES (PROPOSED TO BE REVISED W.E.F. 01/11/2015)

(C&I and SME SEGMENTS)

 

Sr. No.

Item

Proposed Charges

(Incl of Service Tax

1

Loan Processing Charges (To be charged on adhoc limits also) (Applicable also to loans under consortium arrangement)

 

 

Fund Based + Non-fund based limits:

Up to Rs. 25,000/-

Nil

Above Rs. 25,000/- but up to Rs. 2 lac

Rs 630/-

 

Above Rs. 2 lac

0.40% of loan

Amount. Max of Rs. 36.64 lac.

For Externally rated borrowers: (Applicable to consortium Advances also)

For ‘AAA’ & ‘AA’

rated borrowers

0.23%   of    the loan        amount with a max           of Rs.18.32 lac.

For  ‘A’ rated borrowers

0.29% of the loan

amount with a maximum of

Rs. 24.05 lac

 

Note- Operating functionaries are advised to note that the existing Service Tax Rate  is 14.00% w.e.f. 01.06.2015. In case of any change in Service Tax  by Government of India, please note to calculate and recover the revised Service Charges accordingly.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Existing Instructions

Proposed  Instructions

Please read the following stipulation in conjunction with the aforesaid charges structure

·         No processing charge to be recovered on loans against our own deposits, Govt. securities NSCs, KVPs, and IVPs etc.

·         25% of processing fees or Rs. 1 lac flat, whichever is lower to be recovered up-front for limits up to Rs. 100 crs, above which a flat Rs. 5 lacs will be recovered up-front. Full processing fee may be recovered at the time of actual disbursement and initial fee adjusted from this fee.

·         Processing charges are not applicable for term loans as upfront fee will be recovered.

·         The charges are to be recovered at the time of initial processing as well as each renewal.

·         Where account could not be renewed in time due to delayed  submission of data by the borrower, the charge is to be recovered for continuing the advance.

·         In respect of PMRY/SGSY and other Govt. sponsored schemes, recovery of service charges will be in accordance with the terms of the scheme

·         No processing charge to be recovered on loans against our own deposits, Govt. securities NSCs, KVPs, and IVPs etc.

·         30% of applicable processing fees or Rs.1.00 Lac flat, along with ST, whichever is higher has to be recovered up-front for limits up to Rs. 100 crs, above which a flat Rs.5.50 lacs along with ST will be recovered up-front. Full processing fee along with ST has to be recovered at the time of conveying sanction, after adjusting the amount already recovered.

·         Processing charges are not applicable for term loans as upfront fee will be recovered.

·         The charges are to be recovered at the time of initial processing as well as for each renewal.

·         Where account could not be renewed in time due to delayed submission of data by the borrower, the charges are  to be recovered on the renewal anniversary date for continuing the advance.

·         In respect of PMRY/SGSY and other Govt. sponsored schemes, recovery of service charges will be in accordance with the terms of the scheme.

 

 

Note- Operating functionaries are advised to note that the existing Service Tax Rate  is 14.00% w.e.f. 01.06.2015. In case of any change in Service Tax  by Government of India, please note to calculate and recover the revised Service Charges accordingly.

 

 

 

 

 

 

 

 

Sr. No.

Item

Proposed  Charges

(Incl of Service Tax

2

Upfront Fee

 

Term Loans to all Micro Enterprise units under MSME Act

Nil

Term Loans above Rs. 2 lac but up to Rs. 5 cr (Other than Micro Units)

1.489% of loan amount.

Term Loans above Rs. 5 cr but up to Rs. 25 cr

1.260%  of loan

Amount. Min Rs.8.01 lac.

Term Loans above

Rs. 25 cr

1.031% of loan

Amount. Min. Rs. 34.35 lac.

For Externally rated borrowers:

 

‘AAA’, ‘AA’ rated borrowers

 

 

‘A’ rated borrowers

0.687% of the loan amount. Min. Rs.3.43 lac.                                                

0.802% of the loan amount Min. Rs.4.01 lac

For schemes where

Refinance is obtained

As specified by Refinancing Agency along with ST

 

 

 

Sr. No.

Item

Proposed Charges

(Incl of Service Tax

3

Project Appraisal fee:

On the Project cost

% of Project Cost                       (Rs. in lacs)

%

Min.

Max.

Up to Rs.25 cr.

1.26

12.59

32.06

Above Rs.25 cr. but up

to Rs.50 cr.

0.97

32.06

45.80

Above Rs.50 cr. but up

to Rs.100 cr.

0.63

45.83

62.97

Above Rs.100 crore

@

62.97

@

 

 

4

Lead Bank Fees

Flat fee of Rs. 11.45 lacs for initial processing and for any additional processing Rs 2.29 lac per instance to be recovered.

Note- Operating functionaries are advised to note that the existing Service Tax Rate  is

14.00% w.e.f. 01.06.2015. In case of any change in Service Tax  by Government of India, please note to calculate and recover the revised Service Charges accordingly.

 

 

 

 

 

 

 

Sr. No.

Item

Proposed  Charges

(Incl of Service Tax

5

Revalidation of Sanctions ***

 

a)Working Capital

a) 57.25 % of the applicable Processing charges.

b)Term Loan

b) 57.25% of the applicable Upfront fees.

*** Not applicable for revalidation of pricing approvals

 

6

Pre-payment charges

(Other than ‘P’ Segment)

2.29% of the pre-paid amount (loans prepaid from own resources will not  attract prepayment/ pre closure charges).

No charges will be levied if credit facility is sanctioned in Individual name.  4.25%  to be charged on the pre-paid amount in case of take over of loans.

7

Allocation of limits

For allocation

of limits to each branch. (To be recovered by

Controlling

branch.)

Rs. 28625/- p.a.

No charges to be levied in case advances are moved from one business unit/ vertical to another at Bank’s instance.

Note- Operating functionaries are advised to note that the existing Service Tax Rate  is 14.00% w.e.f. 01.06.2015. In case of any change in Service Tax  by Government of India, please note to calculate and recover the revised Service Charges accordingly.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sr. No.

Item

Proposed  Charges

(Incl of Service Tax

 

8

Equitable Mortgage

(SME & C&I only)

 

Per borrowing

entity with FB

limits of upto

Rs. 10 lac

 

Minimum of  Rs.5725.00 #

Above Rs.10

lac but upto

Rs. 5 crore

 

Minimum of  Rs.22900.00#

Above Rs. 5

crore

Minimum of  Rs.57250.00#

 

 

 

 

# Above charges are applicable for a maximum of 5 recitals only. Beyond 5 recitals, Rs 5725/- per recital to be recovered.

i) The charges are applicable for extension of mortgage for enhancement and for substitution of title deeds also.

ii) The charge specified is applicable per instance irrespective of the number of title deeds.

iii) The charge is applicable for extension of equitable mortgage recorded in favour of other lenders also.

iv) Once the maximum charges for one slab stands recovered, no equitable mortgage charges to be recovered for the further renewal/enhancement  till the new slab starts. However, while there is a substitution of title deeds, charges shall be recovered a fresh.

 

 

Note- Operating functionaries are advised to note that the existing Service Tax Rate  is 14.00% w.e.f. 01.06.2015. In case of any change in Service Tax  by Government of India, please note to calculate and recover the revised Service Charges accordingly.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sr. No.

Item

Proposed Charges

(Incl of Service Tax

9

Issuing Commercial

Paper and Paying

Agency Commission

0.23 % p.a

10

Commitment Charges:

Working Capital (WC)

For all fund-based  limits irrespective of size of the loan. (Exemptions (WC) - Limits to Sick/Weak Units, Export Credit, Purchase / Discounting of Bills, Against Bills for Collection, Commercial Banks / FIs/ Co-Op Banks / LDBs, Pre – sanctioned Lines of Credit) For units having internal credit rating (CRA) of SB10 and worse or external credit rating (ECR) of

worse than BBB- (i.e

BB+ & worse) the

commitment charges

will not be waived.

i) If the average

utilization is

more than 75%

No charges.

ii) If the average

utilization is

between 50- 75%

0.28% p.a. to be recovered on entire unutilized portion on a quarterly basis.

iii)If the average

utilization is less than 50%

0.57% p.a. on entire unutilized portion on a quarterly basis.

iv)In case of

Standby Line of Credit (WC) - (To be levied half yearly)

1.14% p.a on unutilized portion of limit during the Half Year, to be recovered at the end of Half Year.

11

Term Loans:

( Irrespective of having

WC limits)

1.43% p.a for delayed draw down beyond 2 months.

 

 

Note- Operating functionaries are advised to note that the existing Service Tax Rate  is 14.00% w.e.f. 01.06.2015. In case of any change in Service Tax or  by Government of India, please note to calculate and recover the revised Service Charges accordingly.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sr. No.

Item

Proposed Charges

(Incl of Service Tax

12

Inspection

Charges

* within

same

Municipal

Limits.

i) Loans Upto Rs. 25,000/-

Nil

ii) Over Rs. 25,000/- but up to Rs. 2 lacs

Rs. 687/- p.a

 

 

iii) Above Rs 2 lacs but upto Rs. 1 crore

Rs. 315.00 per lac p.a.

Min. Rs 687/-  p.a

Max.Rs. 17175/- p.a

iv) Above Rs. 1 crore but upto Rs. 5 crores

Rs.125.95 per lac p.a. Min. Rs 17175/- p.a Max.Rs. 28,625/- p.a.

 

For Outstation units

 

 

Actual expenses along with ST thereon  @ 14.5% + Rs 11,450/- subject to a minimum of Rs. 28,625/- p.a.

Above Rs. 5 crores ( for Both

i.e within same Municipal

Limit and Outstation)

Actual expenses along with ST thereon  @ 14.5% + Rs 11,450/- subject to a minimum of Rs. 34,350/- p.a.

Note: - For Working Capital Limits such as Cash Credit/EPC Limits etc., recovery of inspection charges should be levied in one account only. All other instructions remain unchanged

 

 

*Actual expenses covers amount spent on transport + TA, DA & Hotel expenses etc. if any.

Note- Operating functionaries are advised to note that the existing Service Tax Rate  is 14.00% w.e.f. 01.06.2015. In case of any change in Service Tax or  by Government of India, please note to calculate and recover the revised Service Charges accordingly.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sr. No.

Item

Proposed Charges

(Incl of Service Tax)

13

Documentation

Charges For

Large Corporat

es (Limits

above Rs.100

Cr)

A

Modification of Standard documents viz. CF1, CF2, CF3, etc.

Flat fee of

Rs.125,950.00

B

Drafting documents for special purposes, eg. Registered Mortgage, Corporate Loans, Post Merger Documents, Hypothecation Documents for Fixed Assets or Current

Assets alone etc.

Rs.257,625.00 per document.

 

 

C

Drafting of documents

for syndicated Term Loans

Flat fee of Rs.17.17 lac

D

Memorandum of Entry

for Creation of Equitable Mortgage and Drafting of Declaration by the

Company regarding

Deposit of Title Deeds

(no specific documents

are available)

Flat fee of

Rs. 1,25,950/-      (In this case, EM Charges will not be  Recovered separately)

For Other

Customers

 

A

For loans above Rs. 1

crore & upto Rs. 5 cr

Flat fee of Rs.12,595/-

B

For loans above  Rs. 5 cr

 

Flat fee of Rs.25,190/-

Note- Operating functionaries are advised to note that the existing Service Tax Rate  is 14.00% w.e.f. 01.06.2015. In case of any change in Service Tax or  by Government of India, please note to calculate and recover the revised Service Charges accordingly.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sr. No.

Item

Proposed  Charges (Excl of Service Tax

14

i) Inland BG Charges #

Performance Guarantees as well as

Financial Guarantees

Minimum Commission

Rs. 684/-

Upto Rs.5 cr.

2.51% p.a.

Upto Rs.5 cr. & upto Rs. 10 cr.

2.17 % p.a. 

Min Rs.12.54 Lac

Above Rs. 10 cr.

1.82 % p.a.

Min Rs.21.66 Lac

# For BGs with 100% cash margin – 25% of the applicable charges to be recovered.

# BG Charges will be recovered in multiple of months for the actual period of BG liability outstanding in Bank’s books, with a minimum period of one month. For this purpose, broken days in a month will be treated as full month for recovery of commission.

# Commission on issue of Advance Payment Guarantee should be 20 % higher than the normal charges.

ii) For refund of commission for the Unexpired period of

Guarantee

Discretion will be with DGM

(Module)

Discretion will be with GM of the Network.

15

Letters of Comfort (LOC)

Backed by 100% discharge of liability (viz., cash margin, Sanctioned Term Loan, Guarantee of First Class bank, 100% lien on drawing power)

0.63% p.a.

 

Others

2.52%

 

Minimum charge for One (1) months will be recovered.

 

Note- Operating functionaries are advised to note that the existing Service Tax Rate  is 14.00% w.e.f. 01.06.2015. In case of any change in Service Tax or  by Government of India, please note to calculate and recover the revised Service Charges accordingly.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sr. No.

Item

Proposed Charges

(Incl of Service Tax

16

Exercise of

Swing Option

@ 0.023% of amount involved, subject to a minimum of Rs.1145/- and a maximum of Rs.5725/-.

(No authority has been vested with discretion to reduce this service charge)

17

Inland LCs#

(i) Opening Charges* ( per LC) (Thesecharges are inclusive of commitment fees and usance charges)

i) LC upto Rs. 5 crores

2.29% p.a.

ii) From Rs.5 crores to Rs.10 crores

2.06 % p.a.

Min Rs.11.45 Lac

iii)Above Rs. 10 crores

1.72% p.a.

Min Rs.20.61 Lac

Minimum Charges 0.744% or Rs.2290/- whichever is higher

Note:

# In respect of LC and BG Charges, for high value customers (i.e. for all customers of CB and MCG and decided by GM (RNW) customer-wise schedule of Service Charges shall be prepared and enclosed to the loan proposal. In other words, there will be a Rate Card for every sanction with company-wise rate to be approved by the respective Sanctioning  Authority.

* For LCs with 100% cash margin, 25% of the regular charges to be recovered.

* For letters of credit established through Internet Module of Exim Bills, 90% of the regular charges to be recovered.

* LC Charges will be recovered in multiple of months for the actual period of LC liability outstanding in Bank’s books, with a minimum period of one month. For this purpose, broken month will be treated as full month for recovery of commission.

 

 

Note- Operating functionaries are advised to note that the existing Service Tax Rate  is 14.00% w.e.f. 01.06.2015. In case of any change in Service Tax or  by Government of India, please note to calculate and recover the revised Service Charges accordingly.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sr. No.

Item

Proposed Charges

(Incl of Service Tax

 

ii) Increasing Value of Credit

LC opening charges for the increased amount + ST @ 14.5% thereon to be recovered. Minimum charge of Rs. 573/-

iii) Extension of

Period (Including

Revolving LCs)

LC Opening Charges for the period it will be extended + ST @ 14.5 % thereon to be recovered.

Minimum- Rs. 5725/-

 

iv) Revolving LCs

Same as per LC Opening charges [Item (i) above]. Minimum Rs. 500/-

 

v) Other

amendments

apart from

extension in

period or

increase in

value of LC

Flat commission of Rs. 573/- on each amendment.

 

vi) Transferable

Letters of Credit

Rs. 1145/- per transfer except when the name of the beneficiary is changed under instructions from opening Bank.

 

 

 

Note- Operating functionaries are advised to note that the existing Service Tax Rate  is 14.00% w.e.f. 01.06.2015. In case of any change in Service Tax or  by Government of India, please note to calculate and recover the revised Service Charges accordingly.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sr. No.

Item

Proposed Charges

(Incl of Service Tax

 

vii) Advising of LCs

Flat Rs. 2290/- per instance

viii) Advising of

Amendments

Rs. 859/- per advice / instance

ix) Adding

Confirmation

As applicable to LC opening charges.

x) Acceptance

Charges

An acceptance charge of 0.40% on the bill amount with a minimum of Rs.1145/-

Acceptance charges are not applicable to Bills lodged which are drawn under branch’s own LC, provided such bills are in conformity with the terms of LC. Acceptance charges are to be recovered in respect of discrepant bills drawn even under the LC opened by same branch which are required to be presented to the drawee for his acceptance.

xi) Retirement of

Bills under Inland LC

0.34% of the bill amount with max. of Rs. 34,350/-

 

Note- Operating functionaries are advised to note that the existing Service Tax Rate  is 14.00% w.e.f. 01.06.2015. In case of any change in Service Tax or  by Government of India, please note to calculate and recover the revised Service Charges accordingly.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sr. No.

Item

Proposed Charges

(Incl of Service Tax

 

xii) Non-payment/

non-acceptance of Demand/ Usance Bills of exchange on

presentation/ on due date

0.229% of bill amount. Minimum  Rs. 1145/-

xiii) Out of Pocket

Expenses

No out of pocket expenses such as

postage, telegrams, telex, cable

charges shall be collected from the

beneficiary unless and otherwise

specified

 

xiv) Guaranteeing

Discrepancy in Documents  negotiated

under LCs

If payment is  received under reserve and credited to beneficiary’s  account - 0.30% of the amount of bill with a Min of Rs.2000/-

 

xv) Clean Payment received under LC

Flat charge of Rs.1145/-

 

xvi) Attestation of Commercial Invoice

subsequent to Negotiation

Rs.143.00 per invoice. Min. Rs.1145/- on each occasion

Note- Operating functionaries are advised to note that the existing Service Tax Rate  is 14.00% w.e.f. 01.06.2015. In case of any change in Service Tax or  by Government of India, please note to calculate and recover the revised Service Charges accordingly.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sr. No.

Item

Revised  Charges (Incl of Service Tax)

18

Recovery of Service Charges for services other than Sanction of credit facilities

Charges to be recovered in addition to processing fee even if approval is sought in the regular proposal

i) Interchangeability between Limits

0.02% of the limit, minimum

Rs. 4,000/- max. Rs. 80,000/-

 

ii) Ceding of Charge on Assets

0.02% of the limit, minimum

Rs. 4,000/- max. Rs80,000/-

 

iii) Approval for Mergers & Acquisitions

0.10% of the limit, minimum

Rs.10,000/- max. Rs.150,000/-

 

iv) Rephasement of Loans/Deferment in Loan Installments

0.10% of the limit, minimum Rs. 10,000/- max. Rs.1,50,000/-

 

v) Substitution of Collateral Security/

Personal Guarantees

0.04% of the limit, minimum

Rs. 4,000/- max. Rs 1,00,000/-

 

vi) Release of Personal Guarantee / Collateral Security

0.06% of the limit, minimum

Rs. 10,000/- max Rs. 1,20,000/-

 

vii) a) Change in Terms and Conditions/  Change in Project/ Items of Machinery

0.06% of the limit, minimum

Rs. 4,000/- max Rs. 2.28 Lacs

vii) b) PFSBU Proposals) Change in Terms and Conditions/  Change in Project/ Items of Machinery

0.02% of the limit, minimum

Rs. 4,000/- max Rs. 10 Lacs per proposal

 

vii) Other Miscellaneous

Approvals

0.06% of the limit, minimum

Rs. 4,000/- max Rs. 1.14 Lacs

 

Note- Operating functionaries are advised to note that the existing Service Tax Rate  is 14.00% w.e.f. 01.06.2015. In case of any change in Service Tax or  by Government of India, please note to calculate and recover the revised Service Charges accordingly.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sr. No.

Item

Proposed Charges

(Incl of Service Tax

19

a) Bills (Demand)

i) Interest @ 50 paise per Rs.100/- + collection charges as applicable + ST @ 14.5% on collection charges + out of pocket expenses + ST @ 14.5 % on out of pocket expenses.

 

ii) Bills paid beyond transit period of 13 days: Interest @ BR + 8.25 % p.a. for delayed period beyond stipulated transit period.

 

iii)  Bills returned unpaid : Interest @  BR + 8.25 %  p.a. from the date of purchase after adjusting the amount already recovered @ 50 paise per Rs 100/-

For Demand Bills under LCs, Negotiation Charges to be levied instead of Collection Charges.

Note- Operating functionaries are advised to note that the existing Service Tax Rate  is 14.00% w.e.f. 01.06.2015. In case of any change in Service Tax or  by Government of India, please note to calculate and recover the revised Service Charges accordingly.

 

Sr. No.

Item

Proposed  Charges

(Incl of Service Tax

 

b) Discounting of Bills

(Usance)*

Bills under SBP / First Class Banks’ LCs Bills up to 3 months Bills exceeding 3 months but upto 6 months Bills exceeding 6 months but upto one year. Bills exceeding 1 year and up to 3 years

The rates are reviewed at

regular intervals based on

the liquidity position of the

Bank, market conditions

and are advised from

time to time.

c) Bills under LCs issued by Non-First Class Banks

Discount at Interest Rate as applicable to Cash Credit + Negotiation Charges + ST @ 14.5 % thereon + out of Pocket expenses + ST @ 14.5% thereon.

d) Non-LC bills

Discount at Interest Rate as applicable to Cash Credit + Collection Charges +ST @ 14.5 % thereon +   out of Pocket expenses + ST @ 14.5 % thereon.

* The rates stipulated against bills under SBP / First Class Banks’ LCs are applicable only for the Discounting of Bills which fully conform to LC terms.