Andhra Bank
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One Time Settlement Schemes:

 
I. Simplified OTS Scheme – Small Loans upto Rs.3.00 lakhs – Doubtful/Loss accounts outstanding as at the end of the previous quarter.
 
II.Special OTS Scheme – All NPA/TWO accounts classified as Doubtful & Loss Category as at the end of previous quarter with Real Account Balances of above Rs.3.00 lakhs and upto Rs.7.50 lakhs.
 
III. New  OTS Scheme –All NPA/TWO accounts classified as Doubtful & Loss Category as at the end of previous quarter with Real Account Balances of above Rs.7.50 lakhs and upto Rs.15.00 lakhs.
 
IV. MSME OTS Scheme – All MSME NPA / TWO accounts classified as Doubtful & Loss Category as at the end of previous quarter with Real Account balance of above Rs.15.00 lakhs.
 
I. Simplified OTS Scheme – TWO & NPA a/cs (Small Loans) classified as “Doubtful & Loss” as at the end of previous quarter with Real Account Balance upto Rs.3.00 lakhs. The eligibility as per Borrower – Operative period upto 30.04.2018.

Settlement Formula 

Date of NPA Minimum Amount to be recovered

Doubtful – 1 as on previous quarter

Minimum 50 % of Real A/c Balance

Doubtful – 2 as on previous quarter

Minimum 50 % of Real A/c Balance

Doubtful – 3 as on previous quarter

Minimum 30 % of Real A/c Balance

Loss/TWO – as on previous quarter

Minimum 30 % of Real A/c Balance


II.Special OTS Scheme –All NPA/TWO accounts classified as Doubtful & Loss Category as at the end of previous quarter with Real Account Balances of above Rs.3.00 lakhs and upto Rs.7.50 lakhs - The eligibility as per Borrower - Operative period upto 30.04.2018.

Settlement Formula 

Date of NPA Minimum Amount to be recovered

Doubtful – 1 as on previous quarter

Minimum 75 % of Real A/c Balance

Doubtful – 2 as on previous quarter

Minimum 60 % of Real A/c Balance

Doubtful – 3 as on previous quarter

Minimum 50 % of Real A/c Balance

Loss/TWO – as on previous quarter

Minimum 40 % of Real A/c Balance

III New OTS Scheme - All NPA/TWO accounts classified as Doubtful & Loss Category as at the end of previous quarter with Real Account Balances of above Rs.7.50 lakhs and upto Rs.15.00 lakhs. The eligibility as per Borrower - Operative period upto 30.04.2018.

Settlement Formula 

Date of NPA Minimum Amount to be recovered

Doubtful – 1 as on previous quarter

Minimum 80 % of Real A/c Balance

Doubtful – 2 as on previous quarter

Minimum 65 % of Real A/c Balance

Doubtful – 3 as on previous quarter

Minimum 55 % of Real A/c Balance

Loss/TWO – as on previous quarter

Minimum 45 % of Real A/c Balance

Note – If any ECGC/CGTMSE claim is settled and appropriated to the loan account, the same has to be added to the minimum recoverable amount arrived as above.

After settlement of account under the scheme, if the branch receives any fee reimbursement/claim settlement, the same shall be taken to the P&L account, subject to intimation to the Next Higher Authority. An undertaking to this effect should be obtained from the Borrower at the time of entering into settlement of account.

IV MSME OTS Scheme - All NPA/TWO accounts classified as Doubtful & Loss Category as at the end of previous quarter with Real Account Balances of above Rs.15.00 lakhs. Operative period upto 30.04.2018.

SETTLEMENT FORMULA MSME OTS Scheme

MSME account of above Rs.15.00 lakh which are not backed by securities or Realizable value of the security is less than Real Balance of account:

Date of NPA Minimum Amount to be recovered

After 31.03.2016 & Doubtful/Loss at the end of previous quarter

95% of amount in default

01.04.15 – 31.03.16

90% of amount in default

01.04.13 – 31.03.15

80% of amount in default

01.04.11 – 31.03.13

70% of amount in default

On or before 31.03.11

55% of amount in default

A/cs Tech Write Off

45% of amount in default

 
  
 
Amount in Default = Real A/c balance as on date of NPA Plus Legal Expenses incurred Plus Other debits Less: Recoveries in the a/c after date of NPA & Sale proceeds kept in sundries etc., except ECGC/CGTMSE claim. (If any ECGC/CGTMSE Claims was received and credited to account, such amount should be added to the minimum amount to be recovered).
Note:
In case the settlement amount as arrived above is in negative for accounts not backed by collateral security a minimum of 10% of the current Real Balance shall be the settlement Amount.

          5).The Settlement formula for accounts backed by tangible securities would be higher of the (a) or (b) below:
  1. NPV of available securities as mentioned below.
  2. OR

  3. Settlement Formula as shown in Table above
 
 
Higher of the following two: 
 
Net Present Value of the Realisable value of the securities to be calculated as under:
  • Assessed Fair Market value discounted generally at BR + 4% for 3 years of the Fair Market Value of the secured properties. However, in case of practical impediments in realization of assets, such as locational disadvantages, adverse conditions having bearing on marketability, the FMV of the security may be discounted for 5 years. Such cases has to be justified with valid and sufficient reasons in the note.
  • Assessed Fair Market value discounted at BR+4% for 5 years in case of Agriculture Properties.
  • In case of machinery, if the unit is running/ Operating condition, Assessed Fair Market value to be discounted at BR+ 4% for 3 years. However, the same may be discounted for 5 years in case the unit is closed.
  • The discounted rate for calculation of NPV is to be arrived as applicable in case of CCCP with modifications from time to time.

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