QUARTERLY MONITORING SYSTEM

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• QUARTERLY MONITORING SYSTEM-
• e- LEARNING MODULE

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CONTENTS
WHAT IS QUARTERLY MONITORING SYSTEM
TWO SYSTEMS OF MONITORING
QUARTERLY REVIEW SHEET SYSTEM
QUARTERLY MANAGEMENT SYSTEM
APPLICABILITY
PROCEDURE FOR SUBMISSION OF QRS/QMS
NEXT
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FORMS OF QMS I
FORMS QMS II
EXEMPTIONS
CONSORTIUM ACCOUNTS
QUARTERLY INFORMATION SYSTEM
RELATED CIRCULARS
BACK
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QMS

• QMS is a system of supervision
• to effectively monitor the borrowal accounts
• by obtaining all the critical information in
  respect of their conduct,
• On a periodical basis
• It enables the sanctioning authority to form an
  opinion about conduct/position of the account and
  operational/financial performance of the unit.

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QMS

• Quarterly Review Sheet for loans upto Rs.1 Crore
• Quarterly Management System for loans above Rs.1
  Crore

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QUARTERLY REVIEW SHEET

• For the borrowers enjoying credit facilities
  below Rs. 20 lacs, the Quarterly Review Sheets
  shall be prepared as per format given at the
  Annexure I
• For the borrowers enjoying credit facilities of
  Rs. 20 lacs above, the Quarterly Review Sheets
  to be prepared as per the format at Annexure II

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QUARTERLY REVIEW SHEET

• No review sheet is however, to be submitted in
  respect of the following casesi) Advances to
  the members of staff in respect of housing loan,
  conveyance loan, consumer loan and festival
  loanii) Advances against insurance
  policiesiii) Advances against bank's own
  depositsiv) Protested Advances/sick/rehabilitate
  d accounts. (In such cases instructions issued by
  Protested Advances Division and Industrial
  Rehabilitation Deptt., HO should be followed)

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QUARTERLY REVIEW SHEET

• No Review sheet is required to be prepared for
  for the following
• i) Advances to small borrower(s) upto
  Rs.25000/-ii) Advances against life policies,
  govt. securities units of UTIiii) Advances to
  members of staffiv) Advances against shares

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QUARTERLY REVIEW SHEET

• v) Advances against depositsvi) Advances
  against bullion and jewelleryvii) Protested
  Advances/sick/rehabilitated accounts (In such
  cases instructions issued by Protested Advances
  Division and Industrial Rehabilitation Deptt., HO
  should be followed)

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Other Documents

• all the borrowers availing facilities under the
  vested powers of RM / CM and above are to submit
  accounts within 6 weeks from the date of close of
  the financial year.
• In case the audited accounts cannot be submitted
  during this period, provisional accounts should
  invariably be obtained and
• subsequently on receipt of audited accounts it
  should be ensured that there is no substantial
  adverse variation between the provisional and the
  audited accounts.

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RO/ZO/HO Power Accounts

• to obtain provisional/audited accounts in case of
  borrowers enjoying credit facilities under their
  vested powers and analyse the same vis-à-vis the
  projections accepted for the year.
• to also initiate corrective steps in cases where
  there are deterioration in performance of the
  borrowers.

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Procedure to be adopted for submission of Review
Sheets

• i) The Review Sheet will be separately submitted
  for each borrowal account, as on the last day of
  the quarter ending March, June, September and
  December within 15 days from the close of the
  quarter to which it relatesii) In case of
  accounts with limits sanctioned at Head office,
  it will be prepared in quadruplicate. The
  original will be sent to Head Office with a copy
  each to concerned Zonal Office Regional Office
  and the last one will be retained at Branch

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Procedure to be adopted for submission of Review
Sheets

• iii) In case of accounts with limits sanctioned
  at Zonal Office it will be prepared in triplicate
  and the original will be sent to Zonal Office
  with one copy to Regional Office and the last one
  will be retained at Branchiv) In case of
  accounts with limits sanctioned at Regional
  Office, it will be prepared in duplicate and the
  original will be sent to Regional Office and the
  second copy will be retained at Branch

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QMS

• It consists of two sets of formats namely QMS I
  and QMS II
• The System provides different set of formats for
  following categories of borrowers
• General category
• Traders/Merchant Exporters

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Time for submission

• QMS-I, is to be submitted on quarterly basis
  within six weeks from the close of the quarter to
  which it relates and
• QMS-II is to be submitted on half yearly basis
  within 2 months from the close of the half year
  to which it relates.

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Time for submission

• QMS forms alongwith observations and comments of
  branch officials be submitted to sanctioning
  office and all intervening offices within the
  period specified.

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APPLICABILITY

• All accounts with FBWC facilities of Rs.1 crore
  and above from the entire banking system.
• In accounts where borrower is enjoying credit
  facilities (FB NFB) under Multiple Banking
  arrangement and availing only NFB facilities of
  Rs.1 crore above from our Bank
• If financial/performance guarantee, ILC/FLC is
  sanctioned on standalone basis for
  fulfillment/specific performance of commitments
  for project implementation (new/existing).

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APPLICABILITY

• In cases where borrowers are enjoying only NFB
  facilities of Rs.1 crore above and do not
  require working capital assistance in normal
  course of business requirement from any Bank/FI
• where borrower is enjoying both FB NFB
  facilities from our Bank and aggregate limits put
  together exceed Rs.1 crore and where FBWC limits
  availed from our bank being less than Rs.1 crore.
  
• Term Loan accounts with limit of gtRs.1 crore and
  upto Rs.25 crore alongwith simplified pert chart
  as per LA 77/07.

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EXEMPTIONS

• The borrowers in Tea Industry are exempted from
  the purview of QMS.
• However, Cash Flow Statement to be obtained
  showing month wise actuals vis-à-vis projections
  and Stock Statements on monthly basis.
• Physical inspection of stocks should be conducted
  by the Officers/ Agricultural Officers and stocks
  be checked with Excise Register.

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EXEMPTIONS

• In case of borrowers engaged in Leasing Hire
  Purchase/Sugar Industry/ Film Industry/Service
  Sector the existing Cash Budget System and
  formats to be obtained.

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Consortium Accounts

• Where we are a member of consortium, monitoring
  system, as adopted by Lead Bank, may be followed.
  
• However, where we are the Lead bank, the
  Monitoring System, as applicable in our bank, may
  be followed.

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Quarterly Information System

• For all borrowal accounts availing fund based
  working capital credit limits of Rs.5 crore
  above from our bank,
• Quarterly Information System (QIS) Form-I may be
  obtained for fixing up of quarterly operative
  limits in addition to the QMS Forms.
• The QIS Form-I is to be submitted in the week
  preceding the commencement of the quarter to
  which it relates.

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RELATED CIRCULARS

• LA CIRCULAR NO.67/02
• LA CIRCULAR NO. 32/03
• LA CIRCULAR NO.38/04
• LA CIRCULAR NO.17/05
• LA CIRCULAR NO.108/05
• LA CIRCULAR NO.77/07
• LA CIRCULAR NO.174/07