1. INLAND LETTER OF CREDIT

1.1.

Opening Charges (per LC) (Charges are inclusive of Commitment Fees and Usance charges)

*Subject to minimum Rs. 1000/- per LC

Note:

Wherever internal rating is not applicable, commission shall be charged as applicable to “B2 rated account”.

The period is to be calculated from the date of opening LC to the last date of its validity + usance period of bill and part of a month should be construed as a completed month.

1.2.

Charges for Confirmation of LC

Normal charges as mentioned in para 1.1

1.3.

Revolving Letter of Credit

Normal charges as mentioned in para 1.1

1.4.

Advising of LC charges

0.10% subject to minimum of Rs. 1000/- and maximum of Rs. 5000/-

(Flat commission of Rs.500 for advising each amendment.)

1.5.

Charges for discrepant documents negotiated/ discounted by our bank under LC opened by our Bank or any other bank

Flat 0.30% subject to minimum of Rs. 3000/-

(If payment received and credited to beneficiary account)

1.6.

Attestation Charges for Certificates/ Commercial Invoices

Rs. 50/- per invoice Min. Rs. 100/- on each occasion;

1.7.

Clean Payment Received under LC

Rs. 500/- Flat

1.8.

Transfer Charges for Transferable LC

Rs. 1000/- Flat for each transfer

1.9.

Negotiating Charges For bills negotiated /discounted under L/C opened by our Bank or other bank

Rs. 1000/- plus interest per bill at the applicable rate of interest from the date of negotiation to the date of reimbursement of funds to the bank.

1.10.

Amendment Charges

1.11.

Charges for Letter of Credit based on Liquid Margin

1.12.

Postage / Out of Pocket Expenses

All out of pocket expenses such as postages, telegrams, telex, cable charges, fax etc. shall be collected from the beneficiary, unless otherwise specified.

2. INLAND BANK GUARANTEE

2.1.

Bank Guarantees

2.2.

Charges for Bank Guarantees based on Liquid Margin

2.3.

Refund on Cancellation of Guarantee

Ø Commission to be refunded will be for full unexpired quarters only.

Ø If an existing guarantee is extended for a specific period and the guarantee is being cancelled (after original tenure), commission will be refunded for full unexpired quarters

Ø If guarantee is invoked by the beneficiary, commission charged will not be refunded.

2.4.

Bank Guarantee Counter Guaranteed by Central Government / State Government / ECGC / Scheduled Commercial Bank having Minimum required Regulatory CRAR including CCB

50% of normal commission applicable on Bank Guarantee up to the extent of counter guarantee amount. Normal charges on guarantee amount not covered by counter guarantee.

2.5.

Commission for Stand by LC (SBLC)

Commission at par with Financial Bank Guarantee shall be charged.

3. PROCESSING FEE (EXCLUDING SCHEMATIC / RETAIL CREDIT / AGRICULTURE CREDIT)

3.1.

For Fund Based / Non Fund Based Working Capital Advances

(Fresh/ Renewal/ Enhancement)

*Expenses other than Processing Fees (i.e. CIC/CERSAI/Insurance etc.) shall be borne by the borrower.

Note-1:

· Unified Processing Fee includes all type of charges (i.e. CERSAI/Inspection/ Documentation/ NEC/ Valuation etc.). However Insurance/ State specific Stamp Duty charges on actual basis shall be borne by the borrower.

· Processing fee on setting up of limits for discounting of bills backed by ILCs of PSBs/ approved banks on standalone basis shall be charged @ 25% of the card rates applicable on working capital finance, subject to a minimum of Rs 500/-

No processing charges are to be levied in following cases:

· In case eligible Priority Sector Loans to SHGs / JLGs, the loan limits of Rs 10.00 lac is applicable per member of the SHGs / JLGs and not to the group as a whole.

· On setting up of limits for discounting of bills backed by bank’s own ILCs on standalone basis.

· Temporary Overdraft, Occasional Cheque / Bill Purchase (where no regular limit is there) & Withdrawal against uncleared Instruments / Cheque.

· LC/BG issued against 100% margin in the shape of Cash/FDR/other liquid securities, where no regular limit is required to be set up/the regular limit of the borrower has already been exhausted.

· Advances against Deposits / Specified securities (LIP / NSCs / Shares / Other Paper Securities etc.) other than Retail Schemes.

Consortium Advances

As decided in Consortium meeting or leader bank.

Enhancement

As per normal rates mentioned above in para 3.1 and pro rata for the relevant period so as to coincide with the expiry date of original limit.

3.2.

ADHOC Sanction

· 150% of normal charges mentioned above in para 3.1 on the amount of Adhoc are to be charged on pro-rata basis for the period for which the Adhoc Sanction has been permitted to the borrowers.

· In case of adhoc working capital limits, the processing charges shall be recovered proportionately for the adhoc limits sanctioned (both fund based and non fund based) for the period of such limits, irrespective of the financial year.

3.3.

Review of Limits/ Extension of validity of sanction / Short review

The below charges shall be applicable in accounts which are not renewed before expiry of sanction and extension in validity is permitted upto 180 days from the expiry of validity of sanction.

Note:

1. The above clause shall be part of process note and sanction letter.

2. Prorata charges for the period extended shall be levied.

3. The above charges shall be applicable for extension in validity of sanction due to non-submission of complete renewal paper or any other reason on part of the borrower.

3.4.

Recovery of Process Fee

*Recovery of process fee should not be insisted upfront in following cases and collected on conveying sanction:

o MUDRA /MSME loan up to Rs.10/- Lakh

o Loan under Government Sponsored Scheme

· Upfront fee recovered shall be forfeited after giving due notice to the borrower, In following cases

a. The loan proposal is declined.

b. The credit facilities sanctioned are not availed by the customer within a period of 6 months.

· Recovery in Accounts:

ü In case of Exiting account, Process fee /upfront fee is to be recovered in the month of April (max. up to 31st May) for the entire year.

ü In case of Fresh sanction / Enhancement, charges be recovered proportionately for the remaining period of financial year.

In case of gap between expiry date of original facility and its actual renewal with or without enhancement

· In case the facility is being permitted for availment, Processing Charges from the date of expiry of Limit to the date of actual renewal (with or without enhancement) as per prescribed rate should be levied on pro-rata basis.
· In case the facility is being kept in abeyance during the period, no charges are to be levied.

Process Fee /Upfront Fee for Conveying NBG Approval

If the proposal is approved in NBG meeting, charges of Rs.2 lakh should be recovered by branch from the customer while conveying NBG approval and if:

a) Regular proposal is sanctioned and the limit has been availed/ disbursed, the recovered amount of Rs.2 lakh should be adjusted towards upfront /processing fee.
b) Regular proposal has been sanctioned but the limit is not disbursed the amount of Rs.2 lakh should not be refunded.
c) Regular proposal is not presented within 6 months amount of Rs.2 lakh should not be refunded.
d) Regular proposal is declined, 50% of the amount i.e. Rs.1 lakh should be refunded.

· Such charges should be conveyed to the customer before placing the proposal in NBG. In case of syndication assignments, the pricing is not to be disclosed, till mandate is received.
· Amount of Rs.2 lakh to be adjusted while recovering balance 50% of processing /upfront fee at the time of disbursement.

4. UPFRONT FEE FOR FRESH TERM LOANS / REVIEW OF TERM LOANS

4.1.

Upfront Fee - Term Loans (Including DPG)

*Expenses other than Upfront fee (i.e. CIC/ CERSAI/ Insurance etc.) shall be borne by the borrower.

Upfront fee is to be levied in the same way as processing charges are recovered in stages mentioned at para 3.5 above.

A suitable undertaking in this regard (As per Annexure-II) is to be obtained from the prospective borrower at the time of receiving the loan application

Note:

i) Wherever internal rating is not applicable, effective rate shall be in the range of “A4 to B2”
ii) Upfront fee is to be recovered as a onetime fee. Where financing is in participation with financial institutions,upfront fee be levied/shared in line with those charged by financial institutions.

a) For advances where capital outlay of the project does not exceed Rs.2 lac, no charges be levied.
b) Where capital outlay of the project exceeds Rs.2 lac branches may charge evaluation fee once-and-for-all (in lieu of processing fee) @ 0.60% of the capital outlay of the project. The evaluation fee covers the cost relating to pre-sanction, inspection/visit fee, legal fee for examination of title deeds, encumbrance certificate fee etc. However, expenses relating to follow up of utilization in the form of post-sanction, supervision etc., branches may charge out of pocket expenses in addition to evaluation.”

iv) Upfront fee in case of term loan under ‘Standup India’ is linked to disbursement and shall be recovered proportionately at every stage of disbursement.

4.2.

Annual Review Charges for Term Loan

5. COMMITMENT CHARGES

5.1.

Fund Based and Non-Fund Based Limit

A. FOR FB + NFB LIMITS OF ABOVE Rs.1.00 CRORE:

Commitment charges shall not be levied in cases where existing/ prospective borrowers have executed documents containing the required clause for unconditional cancellation (UCC) of limits. Operative limit if fixed on the basis of QIS-I form, shall be reckoned for calculating the commitment charges.

In case of partly drawn Term Loan, commitment charges to be levied irrespective of the fact whether the borrower has executed the necessary documents containing unconditional cancellable limit clause or not.

For Fund Based Limit including Term Loans:

For Non-fund Based Limit:

Unutilized portion in case of industries financed under monthly cash budget should be arrived at with reference to average utilization during the month and the monthly operative limit.

B. FUND BASED WORKING CAPITAL LIMIT OF Rs.150 CRORE AND ABOVE FROM THE BANKING SYSTEM:

For Fund Based Limit including Term Loans:

For Non-fund Based Limit:

NFB Facilities of the above class of borrowers will be subjected to Commitment Charges as detailed at A above.

#All unrated claims on Corporates, AFCs and NBFC-IFCs having aggregate exposure from banking system of more than INR 100 Crore which were rated earlier and subsequently have become unrated will attract a risk weight of 150%. This higher risk weight will also be applicable on all unrated claims on corporates having aggregate exposure of more than Rs. 200 crore from the banking system with effect from FY 2019-20 onwards.

Note:

a) Consortium Advances

Charges as decided in Consortium meeting or leader bank.

The quantum of charge should accordingly be determined by each member bank with reference to the operative/sanctioned limit allocated to it.

b) In Multiple Banking Arrangements

The charge should be determined by each bank based on the limits sanctioned by it.

c) For Term Loan

i) Where the draw down is made in stages as approved by the bank, the commitment charges shall be computed on the undrawn portion reckoned with respect to the relative draw down limit fixed for the period and not with reference to the total limit.

ii) ii. In case of partly drawn term loans where no specific draw-down schedule has been prescribed/ borrower has not adhered to the specific draw-down schedule, the commitment charges at aforesaid rates shall be levied on delayed draw-down beyond 2 months.

d) Commitment charges are to be recovered on quarterly basis

5.2.

Exempted Cases for Levying Commitment Charges

a) FB + NFB limits of Rs.1 Crore and below

b) Working capital limits sanctioned to sick / weak units/ Export Credit

c) Credit limits granted to commercial banks, financial institutions and co-operative banks including land development banks.

d) Inland bill limits extended by way of bills purchased / discounted or overdraft / cash credit limit / sub-limit against bills for collection.

6. DOCUMENTATION CHARGES

6.1.

Documentation Charges Including Priority Sector Advance (Fund Based)/ (Non-Fund Based)

*Documentation charges are covered in unified process charges.

Ø In case of enhancement of the facility, Documentation Charges shall be levied on enhanced portion only.
Ø Renewal/Review of limits: NIL
Ø Retail/Schematic Lending: As per scheme
Ø Loan Against 100% Liquid Securities (i.e. Bank’s own deposit/ NSC/ LIP etc.): NIL

Consortium Advances

Documentation charges shall be applicable in line with Consortium.

Documentation charges on Adhoc

At par of normal documentation charges.

7. INSPECTION / SUPERVISION CHARGES(The revised charges shall be applicable from quarter ended September, 2023 onwards)

7.1.

Inspection/ Supervision Charges

Consortium Advances

As per decision taken in consortium meeting. However, if there is no decision in consortium meeting in respect of Inspection Charges, charges to be levied as per para above.

Note:

1. Actual conveyance and out of pocket expenses to be reimbursed to visiting official through TA bill and the same shall be recovered from borrowal account (except NPA accounts).
2. In case of NPA account the charges shall be debited from respective charges general and also be recorded in memorandum.
3. To be recovered per borrower entity, irrespective of number of facilities.

8. LEAD BANK CHARGES

8.1.

Lead Bank Charges where our Bank Is the Leader Bank Under Consortium

· Normal charges, as applicable for accounts under Consortium Lead Bank Charge as mentioned above shall be recovered at the time of renew/review of facility.

9. TECHNO-ECONOMIC VIABILITY (TEV) STUDY CHARGES

9.1.

When TEV study is strictly carried out for our bank’s internal use and TEV report is not shared with customer

Conducted by bank officials
– Rs. 0.10% of project loan amount subject to minimum Rs. 50000
Maximum fee for the Project Loan amount above Rs. 400 Crore: Rs. 250 Lakh

TEV study by Consultant
– Consultant fee + Rs. 15000/-

9.2.

When TEV study is carried out internally and TEV report is shared with customer

Conducted by bank officials :- 0.15% of project loan amount subject to minimum Rs. 50000/-
Maximum fee for the Project Loan amount above Rs. 400 Crore: Rs. 250 Lakh

By consultant— Consultant fee + Rs. 15000

9.3.

TEV Vetting Charges

Charges for vetting of TEV study shall be 50% of applicable TEV appraisal charges as mentioned above.

9.4.

Waiver of TEV Study

Wherever TEV study is waived by the competent authority
Upto Project cost Rs.5 cr. – Nil
Above Rs. 5 cr. – Rs.50000

10. OTHER SERVICE CHARGES

10.1.

Purchase / Discount of Bills / Cheques / Drafts

In addition to above charges, discount / interest* at applicable rate plus out of pocket expenses if any will be charged.

*For Borrowal Accounts – Rate of interest applicable for WC advance to the respective borrower.

For Non-Borrowal Accounts – Rate of Interest applicable to Clean OD.

10.2.

Charges for Amendments / Modifications of Accepted Sanction Terms

• The charges prescribed for change in accepted terms & conditions, shall be 0.05% of loan amount (Minimum Rs 5,000/- and Maximum Rs 10,00,000/-).
• These charges shall be applicable in case of amendment in terms and conditions sought by the borrower, except in CDR/restructuring cases. However, these charges should be settled before processing of papers so that repetitive requests to HO are avoided.

Note:Change in ROI not to be considered as amendment in terms and conditions for the purpose of levying amendment charges

10.3.

Revalidation of Sanction

50% of applicable Process Fee; subject to Max Rs.2.50 Lakh

10.4.

Issuance of NOC for All Types i.e., Ceding First / Second Charge / Other Purpose

0.05% of limit, Min. Rs. 2000/- Max. Rs. 50,000/-

However, the same shall not be applicable to consortium banking arrangement.

10.5.

Issuance of Solvency Certificate

(Non Commercial / Commercial)

0.10% of certificate amount with a minimum of Rs.1000/- and maximum Rs.25000/-.

Note: Any additional certificate issued within a period of 3 months of issuance of 1st solvency certificate, only 50% of the applicable charges shall be levied.

10.6.

Issuance of Any Other Certificate i.e. No Dues, Balance Confirmation, Maintenance of Account, etc. on Behalf of Our Clients as well as Clients Referred by Other Banks Other than for Govt. Sponsored Schemes

As per Non Credit Related Service Charges

10.7.

Fee For Opening / Operating TRA / ESCROW Account

10.8.

Charges for of Copy of Documents for Submission to Any Statutory Authority to the Borrower

10.9.

Providing Credit Information / Opinion Including Introduction in case of Borrowal Accounts if Provided on Request of the Borrower

Rs.1000/- per occasion

10.10.

Registration of Power of Attorney

As per Non Credit Related Service Charges

10.11.

Handling Charges

Wherever full waiver of Processing fee or Upfront fee is permitted, ‘Handling Charges’ @ Rs.15 per Lakh or part thereof, subject to maximum of Rs.1 Lakh are to be recovered from borrowers availing limits of Rs.1 Crore & above, separately in lieu of Processing fee & Upfront fee.

10.12.

Loan / Debt Syndication and Project Appraisal Charges

10.13.

Fee for Underwriting Assignments

@ 0.25% of the total debt be recovered at the time of conveying our sanction. This fee is to be recovered over & above the syndication fee of 0.50% of total debt as mentioned above.

10.14.

Additional Jobs / Responsibilities on Behalf of Lender Banks, in respect of All Term Loans Sanctioned under Consortium / Syndication / Multiple Banking Arrangement, Involving Total Term Loan Component of Rs.5 Cr and Above

Further, in cases, where both the assignments i.e. Project monitoring and Security Creation are handled by our bank as a package, charges/fee be recovered, as stipulated above subject to maximum of Rs.10 Lakh as a package deal, in the first year, in such cases. Subsequently, Project Implementation & Monitoring fee be recovered on annual basis till completion of the project.

10.15.

Pre-Payment / Fore Closure of Loan in Case of Take Over i.e. Loan is Prepaid by the Non-Individual Borrower for Shifting to Other Bank / FI

Pre-payment charges shall be applicable @2% of the pre-paid outstanding amount in case of Term Loans only & not to other facilities such as Non Fund based, Working Capital Limits, Overdrafts etc.

However, no prepayment charges are to be levied in the following cases:

10.17.

Concession Amount to be Recovered in Case of Takeover of the Account

In case of account is being taken over by the other bank/FI, in addition to levying pre-payment charges, all the concession/relaxation/waiver in the service charge, ROI etc. granted since last sanction/review/renewal of the facility or sanction accepted by the borrower with such clause, whichever is earlier, in the account shall be withdrawn and respective amount shall be recovered from the borrower. The same clause shall invariably be incorporated in the sanction letter & acceptance of borrower in this regard shall be obtained & kept on record.

11. MISCELLANEOUS EXPENSES

11.1.

Out of Pocket Expenses

All out of pocket expenses such as Registration / Modification /Satisfaction of charges with RoC, postages, telegrams, telex, cable charges, fax etc. shall be collected from the beneficiary, unless otherwise specified.

11.2.

Credit Information Report (CIC) Charges

(i.e. TU CIBIL, CRIF HighMark, Experian, Equifax)

Priority Sector Loans up to Rs.25000/-: No Charges shall be recovered

11.3.

NeSL Charges

As per NeSL guidelines

Available at www.nesl.co.in (NeSL Home Page -> IU Services -> Fee Structure)

11.4.

CERSAI Charges

11.5.

Legal Opinion / NEC Charges

*Plus actual out of pocket expenses to be recovered from borrower.

11.6.

Valuation Fee

*Includes Property/Fixed Assets/Plant & Machinery etc.

Note: For the purpose of calculating the valuation fees also, realizable value shall be considered.

11.7.

Levy of Cash Order / Draft / RTGS / NEFT Charges While Disbursing Term Loan

While issuing instruments for remittance of funds directly in favour of supplier, for disbursement of term loan, no charges are to be recovered for issuance of Cash Order/Draft/RTGS/ NEFT/other mode.

0.10% of interchangeable amount subject to minimum Rs. 2,000/- and maximum Rs. 5,00,000/-

0.10% of the total loan amount* subject to minimum Rs. 5,000/- and maximum. Rs. 10,00,000/-

*The loan amount shall mean the total outstanding amount/sanctioned limit whichever is higher. However, in case of fully disbursed term loans where there is no scope for re-drawal, the loan amount shall mean the total outstanding amount.

12. AGRICULTURE CREDIT- SERVICE CHARGES

12.1

12.2