Dear Friends,


Welcome to this second phase program for grooming credit officers. Congratulations for being a part of it. This program is designed at the behest of Dr. Fareed Ahmad, ED and Mr. J.P. Nayak, GM –HR who have decided to create a pool of credit professionals. We thank them for their foresight.


Then what is unique to this batch of participants? You should join us in building competency in handling credit in the bank. You should be able to create a competitive differentiator by mobilizing high quality credit and improve the risk adjusted return to add to the profitability of the bank.


In order to fulfill such long-term business objective of the bank, your role will be important to continue learning taking these training inputs as starting point.  We can only ignite passion for the profession but to sustain it is your responsibility for which we can help you but such determination to become professionally competent credit officers rests with you.


Please remember that credit is not a standalone function. It calls for integrated 360 degree competency in (i) Originating credit – pre-sanction appraisal techniques, using market intelligence to test viability of the project, articulating terms of sanction of credit visualizing and fixing realistic repayment schedule linked to the cash flows from the underlying activity, adopting risk adjusted pricing strategy, (ii) processing documentation, legal vetting and compliance, noting of liens, mortgages, stamping of documents, execution and prompt recording with CERSAI and with all concerned authorities. (iii) Ensuring timely disbursement and conducting site inspection to verify the end use of funds. Ensuring Installation of equipment as per project, insurance, fire safety and to see commencement of operation of the unit. (iv) More important is to keep a track of loan account operations – movement of rating, risk weight and observing red flagging and taking follow up action at SMA 0, SMA1 and SMA2, if needed to ensuring that the accounts do not slip. (v) Enforcing normal recovery as per terms of sanction and inspection of units from time to time as a systemic control. (vi) In case, the unit is in genuine trouble, the credit experts should be able to hand hold because, some times the assumptions on which we lend may not exactly happen that way. Our purpose is not to allow closure of units to recover but to see how best the unit can be saved and still be able to protect bank’s interest. Recalling and closing of unit should always be the last resort. (vii) As credit risk experts we should also be acquainted with the legal knowledge to enforce recovery of loans, in case of slippage of loan account due to circumstances beyond the control of the bank. The point I want to emphasize is, credit risk management is a comprehensive process involving the entire cycle of asset creation and recovery.


Building such comprehensive knowledge and competency will need following initiatives from your side:


To begin with, you should have high receptivity towards training inputs with rapt attention in the classroom.

You should be able to improve your knowledge retention capacity.

Involve yourself completely while getting training inputs in the classroom.

Make use of experts who will handle sessions to clarify your doubts.

Discuss and share knowledge on the listed topics while you are in hostel rooms to make your learning more intense. Use websites, speeches of RBI/Bank executives.

Supplement your knowledge by reading lot of literature and developments in the areas of credit and credit risk management.

Study bank’s own loan, recovery and OTS policy and related guidelines.

Update your knowledge by reading related master circulars of RBI.

Complete some certification programs in the areas of credit risk management, rating assessment, market intelligence, data analytics and how to use technology to keep track of your knowledge.

Interact, discuss and share knowledge in every forum and create a networking among you to keep track of developments.


My anxiety is that this kind of learning opportunity does not come in the career of every bank officer. Hence you should use it to enrich your competency and keep continuity in learning to remain competent to handle credit and manage the corresponding risk which is very challenging responsibility. But we have full confidence in your ability to purse the credit risk management profession to make Punjab and Sind Bank proud of you.


Wish you a great learning and all the best in your career.


Dr. K. Srinivasa Rao



Opening remarks of Director, NIBSCOM for the Second Phase program to groom credit officers of Punjab and Sind Bank