While joining a new branch from an investment loan officer the branch manager thought that the officer did not properly check this officer.
Because he will have full investment department. So he asked the new officer some questions.
Manager: What did you do in a section in the previous branch?
Officer: Sir I used to work on Investment Loan.
♦ Manager: Good. Say goodbye to a customer to invest in the process?
Officer: Sir, it is usually processed in 5 steps. The steps are:
1. Induction of the Client. (KYC, Belief, Values, Attitude, Life Style)
2. Application Process
3. Approval & Sanction
4. Documentation and
♦ Manager: Do you have any other work after disbursement?
Officer: sorry sir, there are two more jobs. That work was shot
Monitoring, Supervision & Follow up and
2. Recovery & Settlement.
♦ Manager: Well, what is the induction of the client again?
♦ Officer: Sir, Know About Client Contact or Client
♦ Manager: What do you know about 5C for Client Selection?
Officer: Yes Sir, 5C is
4. Condition and
Again in case of Project Finance, 7-M is followed. They are
6. Mortgage and
7. Man Power
♦ Manager: What is Collateral Security?
♦ Officer: Collateral Security is collateral security.
♦ Manager: Client’s Personal Security is a type of security?
Officer: Sir, this is Primary Security.
♦ Manager: What do you mean by documenting?
♦ Officer: Sir, Documentation: Accepting a document or document from the investor in accordance with the law.
♦ Manager: What are some types of documents?
♦ Officer is of two types. That is
1. Charge document and
2. Mortgage Documents
♦ Manager: Well what are the Charge Documents?
Officer: Through this Documents legal rights are established on investment, such as DP Note, Acceptance of Sanction Advice, Agreement etc.
♦ Manager: Do you know about Pari Passu Charge?
Officer: Mr. Sir, I know, when multiple banks or financial institutions jointly invest in a customer against a security the right of banks will be established on the security which will be in agreement.
♦ Manager: Do you know what is Provision?
♦ Officer: Provision that tells the money that is kept against unauthorized or classified loans.
♦ Manager: Is there any provision for unclassified investment?
Officer: Yes, sir.
♦ Manager: Off Balance Sheet Exposure How much provision do you have to keep?
Officer: Sir, 1% is to be kept in Provision.
♦ Manager: What is Off Balance Sheet Items?
Officer: Sir, all the items are not mentioned in the Balance Sheet, such as Bills for Collection, Irrevocable Letter of Credit.
♦ Manager: How many investors are divided on the basis of risk?
Officer: Sir, it is usually divided into 8 sections
5. Special Mention
6. Sub Standard
7. Doubtful and
8. Bad & Loss
♦ Manager: How much score do you need to be good on IRG?
Officer: Sir, 85 Above.
♦ Manager: What is the mechanism to invest in Islami Bank?
♦ Officer: Three mechanism such as
2. Share and
3. Ijarah Mechanism
♦ Manager: What kind of investment do Ijarah mechanism do?
♦ Officers offer three types of investments, such as:
1: Permanent property rental
2: Hire Purchase and
3: Hire Purchase under Sirkatul Milk.
♦ Manager: What will be the Procedure of HPSM?
♦ Officer: In this case the bank and the bank will jointly invest in worship, if the property is utilized, the customer will pay the bank’s capital and the rent in installment, the ownership of the customer will increase and the ownership of the bank will be reduced, at one point the subscriber will be entitled to full property ownership.
Manager: What is the difference between Hire Purchase and HPSM?
♦ Officer: Hire Purchase The ownership of the customer is not accepted until the full payment is made but the HPSM will get the same amount as the customer pays.
♦ Manager: What is Non Performing Asset?
♦ Officer: NPI or NPA tells the person who does not receive any income from Asset or Investment
♦ Manager: Nonperforming Investment’s Element no
♦ Officer: Eleperts of nonperforming investment are:
1. Unclassified Overdue
2. Classifieds Investment
3. Unclassified Reschedule Investment and
4. Written of Investment
♦ Manager: What is Written of Investment?
♦ Officer: Investment that will be classified as Bad Loss for 5 years and against which 100% Provision is kept Written off Investment
♦ Manager: When is Reschedule?
Officer: Sometimes due to some good customer circumstances and due to business downturn, overdue in spite of their reluctance, it is called Reschedule to re-invest with additional security to continue such business.
♦ Manager: How can the maximum number of reschedule be done?
Officer: Three times.
Manager: For Term Investment, how much will Dwon Payment take from the customer for the first time?