BDP Final

CREDIT APPROVAL DISCRETIONARY POWERS
INDEX
SCHED ULE NO. INDEX INSTRUCTIONS General Instructions A- AGGREGATE EXPOSURE A-1 Aggregate Exposure Cap B- GENERAL FINANCE B-1 B-2 B-3 B-4 B-5 AGAINST PLEDGE Finance Against Pledge of Liquid Assets Finance Against Pledge of Gold Ornaments and Other Liquid Assets Finance Against Pledge of Goods / Produce / Stocks in Trade AGAINST HYPOTHECATION Finance Against Hypothecation of Assets with Tangible Secondary / Backup Security Finance Against Hypothecation of Assets with Backup Security as Personal Guarantees (Other then Mandatory Guarantee) AGAINST MORTGAGE Fixed Investment Finance Against Mortgage of Immoveable Property Including Fixed Assets Working Capital Finance Against Mortgage of Immoveable Property Including Fixed Assets AGAINST TRUST RECEIPT (TR) Finance Against Trust Receipt (TR) for local sale of goods / for release of raw material for processing Purchase of / Finance Against Bank Instruments (Pay Order / Drafts under collection of Scheduled Banks) C- TRADE FINANCE (IMPORT) OPENING OF Import LC Sight LCs With Secondary Security as Liquid Securities/Mortgage of Immovable Assets / Property And Without Secondary Security Usance LCs Against Liquid Securities as Secondary Security/Mortgage of Immovable Assets / Property. DELIVERY OF DOCUMENTS /GOODS - RETIREMENT OF BILLS Against FIM/TR - Finance Against Imported Merchandise / Trust Recipt Against Shipping Guarantee D- TRADE FINANCE (EXPORT) D-1 D-2 D-3 Purchase of Export Bills / Documents Drawn under LC Evidencing Shipment of Goods Negotiation /Discounting Finance Against Export Bills / Documents Drawn Under LC Evidencing Shipment of Goods (SIGHT AND USANCE ) Purchase of or Finance Against Export Bills / Documents Drawn Against Firm Contract Evidencing Shipment of Goods
Revised vide Instruction Circular No. 41/2011
SUBJECT
Page No
1 5 6 7 8 9 10 11 12
B-6 B-7 B-8 B-9
13 14 15 16
17
C-1 C-2 C-3 C-4
18 19 20 21 22 23 24 25
INDEX
E- TRADE FINANCE (INLAND) OPENING OF INLAND LC Sight LCs With Secondary Security as Liquid Securities/Mortgage of Immovable Assets / Properties And Without Secondary Security Usance LCs Against Liquid Securities as Secondary Security/Mortgage of Immovable assets / Properties. Purchase of Inland Bills / Documents Drawn under LC Evidencing Shipment of Goods (Negotiation /Discounting) F- GUARANTEES F-1 F-2 F-3 Issuance of Inland Guarantees Issuance of Guarantees Aginst Counterguarantee of Foreign Banks / Correspondence Issuance of Foreign Guarantees G- OTHERS G-1 G-2 Issuance of NOCs Letter of Intent / Earmarking / Interchageability of Limits or Sub Limits H- CONSUMER FINANACING H-1 H-2 H-3 Finance under Product programs viz., Advance Salary and Saibaan Finance (other than Product Program) Against Pledge of Liquid Securities and Gold Ornaments Finance (other than Product Program) Against Mortgage of Immoveable Property I- AGRICULTURE FINANACING I-1 I-2 Production Finance Development (Fixed Investment finance) J- RESTRUCTURING / RESCHEDULING / SETTLEMENT J-1 J-2 Rescheduling / Restructuring / Settlement / Write Off / Waiver Of Accounts Transferred To Asset Recovery Groups Head Office (Other Than J-2) Rescheduling / Restructuring / Settlement / Write Off / Waiver In Loans Of Up To Rs. 20 M SME /COMM Accounts & All Others Accounts Not Transferred To ARG 26
E-1 E-2 E-3
27 28 29
30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46
INSTRUCTIONS
GENERAL INSTRUCTIONS
S.NO INSTRUCTIONS Credit Approval Discretionary Powers as contained in the "Credit Approval Discretionary Powers Book" 1 shall be exercised within the parameters of SBP Prudential Regulations, Banking Laws, Companies Act, Credit Policy Manual, Recovery Policy, Consumer Policy, Agriculture Policy, Standard Procedures Manual and the Banks other Policies issued from time to time. 2 These powers are based on currently applicable SBP Regulations/Directives & Bank's Policies. Any subsequent change in SBP regulations/directives/Bank's policies shall supersede these powers. In addition to powers provided for individual security type, the cap on powers for 'Aggregate Credit Facilities (Funded + Non-Funded Per Party and Per Group' provided in Annexure-A-1) shall be strictly followed. In terms of Prudential Regulations, BOD shall not enjoy any credit approval ( including exceptions) authority for transactions / limits except for the following instances which shall invariably be approved by them: i) Approval of overall limit of inter-bank Placements for each financial institution as required under clause 'F' of Annexure 1 of Regulation R-1. Further as in such instances the lending bank is taking exposure, therefore approval for overall inter bank placement shall be obtained from its BOD. ii) The facilities to the persons mentioned in the Regulation G-2, which instances shall require the approval of the majority of the directors of the bank excluding the director concerned. 5 Security wise Powers contained in various schedules are based on the acceptable security criteria as advised in CPM and the Margins (on primary security) or Loan to Collateral Ratio (on secondary/ back-up security) as prescribed by Head Office and/or State Bank of Pakistan from time to time. The President may delegate powers higher / lower than those stipulated in this Book to an individual, GM / RH / Regional Committee( if any) or any authority by name due to business potential/ banking acumen or skill of the delegatee or any reason which he may deem fit. The powers so delegated will be exclusively used by that Individual or Committee comprising of members at the time of grant of this higher authority. In case of transfer of Individual / member from their respective assignment, the powers will cease to exist.
Business Discretionary Powers for products launched by Commercial & Retail Banking Group will be as prescribed in the respective product programs approved by the Board of Directors, prevailing powers are mentioned in the Schedule H-1of this book. Any change in these powers and powers for new products will be advised by Commercial & Retail Banking Group from time to time after obtaining approval from the competent authoirty and will be considered part of Credit Approval Discretionary Powers.
8 9
In case of joint authority, powers of higher grade executive will be applicable. While granting powers, Co-grantor approach has been followed except for Excess of Limit to be allowed in case of any exigency and earmarking / interchangeability of limits / sub-limits to be allowed by Group Chief CIBG in similar situations. Under co-grantor approach GC-CIBG/CRBG are required to jointly signoff loan applications with the GC-CMG and similar joint approvals at the counterparts in Regional Office / Branches.
Cont.P/2
S.NO INSTRUCTIONS 10 In exercise of Credit Approval Discretionary Powers jointly or as a member of Credit Committee or any other committee, all members will have joint and individual responsibility and accountability together with the processing and recommending individuals/committees. 11 The decision of joint authorities should preferably be unanimous or else by majority ( where more than two co-grantors are involved). In case of strong objection from any one authority the matter shall be referred to the next higher authority. In case facility amount exceeds Credit Approval Discretionary powers of a particular authority in credit approval hierarchy, then that authority shall become recommending authority to next higher authority with full responsibility. Accuracy of information and correctness of analysis leading to a particular decision will be the sole responsibility of the Branch Management (Branch Manager / Credit Officer and Relationship Manager). They will be accountable for any misleading and inaccurate information, analysis, presentation, statement or recommendation made by them. Similarly, if financing facility falls within the powers of higher authority then the subsequent analysis will be the responsibility of next recommending/approving authority/office. Any amendment subsequent to sanction shall be approved by the sanctioning authority, no matter the proposed amendment is to reduce the risk, subject to instructions on earmarking / changing sub-allocation of limits /forced conversion of non-fund based facility in to fund based facility given in CPM / or Schedules of this Book. Decline of a credit proposal by a higher authority can't be approved by a lower authority. however all field offices i.e. Branches and Regions are authorized to decline a credit proposal, if it is considered a riskier proposal on cogent reasons. Such a refusal should however be notified to the sponsors in writing quoting appropriate maintainable reasons so as to enable sponsors to remove those defects and satisfy the Bank. A record of all such cases declined will however be maintained for reference.
12
13
14
15
16 17
Seasonal Financing will also be governed under this Book of Powers. Credit Facilities approved by any sanctioning authority shall be subject to Pre-disbursement review, the responsibility of Credit Administration (CAD). The issues/powers not found included in this power book shall be referred to Head Office for necessary instructions / Guidance and till the time instructions are issued by the Head Office, such issues shall be disposed off as per procedure in vogue and existing practice. Commensurate with the requirements of the Regions / Branches and their business needs, powers can be restricted for specific Regions / Branches by Credit Management Group on the recommendation of Concerned Business Group(s). For programmed products, Group Chief C&RBG is authorized to curtail the powers of any of the field functionaries.
Cont.P/3
18
19
S.NO INSTRUCTIONS 20 During period of leave of a Regional Head(RH), the officiating/Acting RH will exercise credit Approval powers equal to the grade of RH on leave. However, he will not exercise powers delegated to the RH on leave by name. 21 Similarly during period of leave of a GM, the officiating/Acting GM will exercise credit Approval powers equal to the grade of GM on leave. However, he will not exercise powers delegated to the GM on leave by name. Any clarification regarding BDP if required will be sought from Policy & Procedure Wing, CMG through respective Business Group. Till the time separate schedules for Islamic Banking are issued, the same schedules as contained in this power book shall be used. In terms of Instruction Circular No 174/2010, as there is no independent Credit approval set up in Branches; hence sanctioning powers of Branch Manager to be restricted to only those modes of financing where Conflict of Interest is not an issue e.g., loans against liquid securities and lening on the basis of product program without any exception where risk analysis and mitigant are built in the program.
22
23
24
25
Since Branch Managers powers are currently suspended except those related with sanction of Advance Salary loans, financing against liquid security including Gold loans; and agriculture loans, as such powers for all other financing facilities as mentioned in various Schedules of this Book shall not be exercised at branch level till further instructions from Head Office. (Branches powers for Agri loans will remain intact).
26
Powers as contained in this power book shall be judiciously exercised by all the authorities in credits hierarchy in conformance with banks policies and applicable regulations. It must be noted that the powers delegated are limited and restricted to the amounts mentioned in the document of empowerment. Exercising powers in excess of the limits granted under the document of empowerment is against the spirit of decentralization and trust reposed by the management on field functionaries. It is emphasized that approval of credit facilities within the delegated powers is the most suitable course of action in the approval process. In case of urgency where acceptable business is likely to be lost to competitors due to delayed decision, field offices are allowed to obtain written approval through short memo /letter sent (via fax/ email) by documenting the need, justification as well as merit of the case. Where it is not possible to obtain written approval, then reference must invariably be made at least verbally/telephonically, but such approval shall be documented within 24 hours, failing which it should become void and shall be considered unauthorized and shall not be owned by the authorizing authority.
Cont.P/4
27
28
S.NO INSTRUCTIONS 29 In view of the significance of renewal, Regional Heads jointly with and GMs Credit are allowed to approve renewal in excess of their powers subject to compliance of conditions as mentioned in CPM.
30
In case of violation of Credit approval discretionary Powers and instructions provided in this book, Disciplinary action may be taken against the responsible staff as per staff service rule) the sanctioning authority at the Branch/ Regional office will immediately be removed from the post and will not be considered for the post in future and will be held responsible for the recovery of loan, if any. Field offices are not allowed to approve reduction in rate of mark-up and all such proposal irrespective of the amount shall be referred to Head Office for approval of competent authority. In case of restructuring and rescheduling of non-performing Loans approved by the Head Office, if terms and conditions of restructuring/rescheduling are satisfactory complied by the borrower and during the currency of the facility, borrower requests for another financing facility which merits consideration and total exposure is within the powers of Regional Office, then the same shall be approved by the Regional Office strictly in accordance with PRs notwithstanding the fact that rescheduling/restructuring was approved by Head Office. Earmarking of limits / interchangeability of limits sub-limits may be allowed subject to compliance of conditions as provided in Chapter No.14 of CPM and schedule of this Book. Drawings in excess of limit approved by any of the competent authority, may be allowed to the following extent by seeking prior written permission from the Group Chief Business individually for a fortnight or so but not exceeding 30 days in any case, provided that: i) The borrower is a banks valued and trust worthy client having track record of maintaining satisfactory conduct of account with no default or forced extension history ii) Acceptable business is likely to be lost to competitors, if EOL is not accommodated iii) The drawings are fully covered by the advance value of the approved securities, and the required percentage of collateral is also maintained iv) The limit sanctioned are not allowed to exceed as under:a) Limits upto Rs. 10.00 M .. Upto 10% of the limit b) Limits upto Rs. 35.00 M .. Upto 4.50% of the limit with a maximum of Rs. 1.000 M c) Limits beyond Rs. 35.00 M. Upto 4% of the limit with a maximum of Rs. 2.000 M v) EOL is not being allowed to a borrower for more than twice in one currency vi) The action of Group Chief will not require confirmation of action, rather should be reported to CMG on the same day. vii) Adjustment of EOL shall be followed up and its status on due date reported to respective Business Group Chief Business and Group Chief CMG
31
32
33
34
AGGREGATE EXPOSURE
SCHEDULE No: A-1 (MAX. AGGREGATE CREDIT FACILITIES (FUND AND NON FUND BASED FACILITIES PER PARTY / PER GROUP)
(Amount of Each Individual facility as well as Aggregate of the facilities per Party per Group should not exceed the amounts mentioned below) CUSTOMER TYPE WISE POWERS Finance Against Securities Clean Financing* Other Than Liquid
Fund Based Non Fund Based Total Fund Based Non Fund Based Total
L E V E L
Finance Against Liquid Securities AUTHORITY

Fund Based BOARD OF DIRECTORS CREDIT COMMITTEE GROUP CHIEF (Credit Mgt & Business Group Jointly) EVP REGIONAL HEAD (Jointly with GM Credit) SVP 150.00 300.00 Non Fund Based
Total
H E A D
O F F I C E
Unlimited (within Regulatory Parameters)
Unlimited (Within Regulatory Parameters)
300.00
400.00
700.00
200.00
400.00
600.00
Nil
Nil
Nil
R E G I O N A L
O F F I C E
200.00
350.00
550.00
150.00
300.00
450.00
Nil
Nil
Nil
450.00
100.00
200.00
300.00
Nil
Nil
Nil
B R A N C H
SVP BRANCH VP MANAGER (Jointly with Credit AVP Manager, where available) OGI
30.00 25.00 15.00 10.00
60.00 50.00 30.00 15.00
90.00 75.00 45.00 25.00
25.00 15.00 10.00 5.00
50.00 30.00 20.00 10.00
75.00 45.00 30.00 15.00
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
C O N D I T I O N S
Funded facilities include Running Finance, Term Finance, Packing Finance,Bills of exchange whether to be retired from borrower's own resources or through Trust Receipt, Finance against Imported Merchandise, Retail and Consumer Finance as well as Agriculture Finance 1 all modes of Islamic products/financing and investment instruments.etc, and all financing products introduced by the Bank or SBP. Under Non Fund Based aggregate of all contingent liabilities will be taken, that is, facilities where no funds are provided to customers upon sanction of the respective credit lines rather Bank undertakes to provide funds where if the client fails to discharge his obligation, 2 and include opening of Import / inland LCs both Sight and Usance, issuance of Bank Guarantee,Shipping Guarantees etc Individual limits should conform to the powers set for the respective security, type of facility, as given in schedule, as well as the above 3 powers 4 *For clean Agriculture financing, powers given in Schedule I-1 (at page 42) will be applicable
Page No: 6
GENERAL FINANCE
SCHEDULE No: B-1 (FINANCE AGAINST PLEDGE OF LIQUID SECURITIES)

*Defence Saving Certificates, Special Saving Certificates, Pakistan Investment Bonds, Federal Investment Bonds, Prize Bonds, Bank's own deposits (TDRs, FDRs, Foreign Currency & Local Currency Accounts under Lien) and any other similar Certificates issued by GOP or NBP. Personal Guarantees as per Prudential Regulations and CPM.
PRIMARY SECURITY
PLEDGE OF LIQUID SECURITIES
TYPES
SECONDARY SECURITY
LEVEL
AUTHORITY
BOARD OF DIRECTORS CREDIT COMMITTEE GROUP CHIEF (Credit Mgt & Business Group Jointly)
Public Sector Enterprises
POWERS (CUSTOMER TYPE WISE) Limited Partner ship Soleproprietorship Companies Firms /Individual**
Unlimited (within Regulatory Parameters)
HEAD OFFICE

300.00 200.00 150.00 25.00 20.00 10.00 Nil 300.00 150.00 125.00 30.00 25.00 15.00 10.00 150.00 125.00 100.00 20.00 15.00 10.00 4.00 80.00 60.00 50.00 10.00 7.50 5.00 2.00
REGIONAL OFFICE
REGIONAL HEAD (Jointly with GM Credit)
EVP SVP SVP
BRANCH
BRANCH MANAGER (Jointly with Credit Manager, where available)
VP AVP OGI
1 CONDITIONS
*Above powers are only for the type of liquid securities mention in the box.Other forms of Liquid Securities as included in the definition of Liquid security in PRs are covered separately on page 9 of this booklet.
2 **Refers to individual carrying on a business ( Trade/ Service or manufacturing) as defined in Section 3.3.1 of CPM 3 Other banks' deposit Certificates will be allowed subject to conditions mentioned in CPM.
Revised vide Instruction circular No. 41/2011
Page No: 8
SCHEDULE No: B-2 (FINANCE AGAINST PLEDGE OF GOLD ORNAMENTS & OTHER LIQUID SECURITIES)
Pledge of Gold ornaments PLEDGE OF GOLD PRIMARY SECURITY ORNAMENTS AND OTHER LIQUID SECURITIES SECONDARY SECURITY TYPES Pledge of Shares, NIT Units, NAFA** Certificates, TFCs etc as per PRs Personal Guarantees as per Prudential Regulations and CPM
L E V E L O F F I C E
AUTHORITY
POWERS (CUSTOMER AND SECURITY TYPE WISE) Shares, NIT Units, NAFA Certificates, TFCs, Against Gold Ornaments Assignment of Life Insurance Policies Partner ship Soleproprietors Public Sector Limited hip /Individuals Enterprises Companies Firms Partner ship Firms Soleproprieto rship /Individual*
Unlimited (Within Regulatory Parameters) Unlimited (Within Regulatory Parameters)

50.00 35.00 Nil 35.00 30.00 20.00
H E A D
R E G I O N A L
O F F I C E
EVP REGIONAL HEAD (Jointly with GM Credit) SVP
40.00
30.00
Nil
30.00
26.00
15.00
35.00
25.00
Nil
25.00
20.00
10.00
Following powers are not For TFCs
B R A N C H
C O N D I T I O N S
SVP BRANCH MANAGER (Jointly with Credit Manager, where posted) VP AVP OGI
10.00 5.00 2.50 1.00
5.00 2.50 1.00 0.50
Nil Nil Nil Nil
5.00 2.50 Nil Nil
3.50 1.50 Nil Nil
1.50 0.50 Nil Nil
1 *Refers to individual carrying on a business ( Trade/ Service or manufacturing) as defined in Section 3.3.1 of CPM. Gold Ornaments are treated as liquid security only for SME, Agriculture & Consumer Financing; as such above powers for Gold ornaments 2 are applicable to only SME financing. Similar request from Commercial borrower shall be referred to Head Office irrespective of the amount. 3 **NAFA certificates include NAFA Cash Funds Certificates and NAFA Government Securities Liquid Fund Unit (NGSFL) and any other certificate which Head Office may approve and circulate as acceptable security.
4 Above powers against TFCs are applicable only for those TFCs which meet the criteria required under SBP PRs & in CPM Chapter 10.
Page No: 9
SCHEDULE No: B-3 FINANCE AGAINST PLEDGE OF GOODS/PRODUCE /STOCKS IN TRADE

PLEDGE OF GOODS / PRIMARY SECURITY PRODUCE / STOCKS IN TRADE) SECONDARY SECURITY TYPES Wheat, Cotton, Rice, Paddy, Sugar, Pulses, Manufactured Goods, Industrial Raw Materials, Finished Products, Spare Parts, Industrial Consumables, etc** As per CPM/ Seasonal Policies
LEVEL
AUTHORITY
POWERS (CUSTOMER TYPE WISE) Public Sector Limited Partner ship Soleproprietorship Enterprises Companies /Individual* Firms Unlimited (Within Regulatory Parameters) Unlimited (Within Regulatory Parameters)
100.00 Nil Nil 200.00 100.00 80.00 125.00 75.00 50.00 100.00 50.00 30.00
HEAD OFFICE
REGIONAL OFFICE
EVP SVP
In terms of Circular 174/2010, following powers will stand ceased till further instructions. SVP BRANCH MANAGER (Jointly with Credit Manager, where posted) VP AVP OGI Nil Nil Nil Nil 20.00 15.00 Nil Nil 15.00 10.00 Nil Nil 5.00 3.00 Nil Nil
BRANCH
1 *Refers to individual carrying on a business ( Trade/ Service or manufacturing) as defined in Section 3.3.1 of CPM. CONDITIONS Above Powers will be exercised by Branch Managers of Category II and III only, subject to prevalent restriction on branch's credit approval powers. **Finance will be granted against standard and easily realizable / marketable goods not liable to quick deterioration. If 3 inevitable to accept pledge of perishable items then it will be allowed by one step higher authority / CC whichever is applicable; subject to fulfillment of collateral and other conditions advised in CPM. 2
Page No: 10
SCHEDULE No: B-4 (FINANCE AGAINST HYPOTHECATION OF ASSETS WITH ANY TANGIBLE SECONDARY SECURITY
Stocks in trade, stocks in process**, stores spares*** HYPOTHECATION OF GOODS AND MACH. & RECEIVABLES) SECONDARY SECURITY TYPES Receivables / book debts Machinery Required to be collateraly secured by any Tangible security viz., mortgage of immovable properties / fixed assets; pledge of liquid securities etc
PRIMARY SECURITY
LEVEL
AUTHORITY
POWERS (CUSTOMER TYPE WISE) Limited Partner ship Soleproprietorship Companies Firms /Individual*

50.00 Nil Nil 100.00 75.00 50.00 70.00 35.00 25.00 40.00 20.00 15.00
HEAD OFFICE
REGIONAL OFFICE
EVP SVP
In terms of Circular 174/2010, following powers will stand ceased till further instructions. SVP Nil Nil Nil Nil 15.00 10.00 Nil Nil 5.00 2.50 Nil Nil 2.50 1.00 Nil Nil
BRANCH
BRANCH MANAGER (Jointly with Credit Manager, where posted )
VP AVP OGI
1 *Refers to individual carrying on a business ( Trade/ Service or manufacturing) as defined in Section 3.3.1 of CPM. CONDITIONS **Unless otherwise restricted in any specific Policy for example Seasonal Policy or any one time instruction issued by the Bank. 3 ***Stores and Spares should not to be more than 20 % of the total hypothecated assets. 2
Page No: 11
SCHEDULE No: B-5 (FINANCE AGAINST HYPOTHECATION OF ASSETS WITHOUT ANY TANGIBLE SECONDARY SECURITY)
Stocks in trade including stocks in process** Receivables / book debts Machinery Personal guarantees good for the amount involved
PRIMARY SECURITY
HYPOTHECATION OF GOODS AND MACH. & RECEIVABLES)
TYPES SECONDARY SECURITY
LEVEL
AUTHORITY
POWERS (CUSTOMER TYPE WISE)*** Public Sector Limited Partner ship Soleproprietorship Enterprises Companies Firms /Individual* Unlimited (Within Regulatory Parameters) Unlimited (Within Regulatory Parameters)
100.00 Nil Nil 75.00 Nil Nil NIL Nil Nil Nil Nil Nil
HEAD OFFICE
REGIONAL OFFICE
Nil Nil
In terms of Circular 174/2010, following powers will stand ceased till further instructions. SVP Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
BRANCH
BRANCH MANAGER (Jointly with Credit Manager, where posted)
VP AVP OGI
1 *Refers to individual carrying on a business ( Trade/ Service or manufacturing) as defined in Section 3.3.1 of CPM. CONDITIONS **Unless otherwise restricted in any specific Policy for example Seasonal Policy or any one time instruction issued by the Bank. ***The above powers shall be exercised to extend loans only to credit worthy borrowers having undoubted integrity and 3 net worth commensurating with the loan amount. 4 Hyp charge shall be duly registered with SECP in case of limited Companies. 2
Page No: 12
SCHEDULE No: B-6 (FIXED INVESTMENT FINANCE AGAINST MORTGAGE OF IMMOVABLE PROPERTIES INCLUDING FIXED ASSETS
1. Fixed Assets of a business entity PRIMARY SECURITY MORTGAGE OF IMMOVABLE PROPERTIES INCLUDING FIXED ASSETS TYPES SECONDARY SECURITY 2. Immoveable properties Personal guarantees as per CPM
POWERS (CUSTOMER TYPE WISE) LEVEL AUTHORITY Public Sector Enterprises Limited Companies Partner ship Firms Soleproprietors hip /Individual*

Nil Nil Nil 200.00 90.00 80.00 150.00 60.00 50.00 100.00 40.00 30.00
HEAD OFFICE
REGIONAL OFFICE
REGIONAL HEAD** (Jointly with GM Credit)
EVP SVP
In terms of Circular 174/2010, following powers will stand ceased till further instructions. SVP Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
BRANCH
VP AVP OGI
1 *Refers to individual carrying on a business ( Trade/ Service or manufacturing) as defined in Section 3.3.1 of CPM. CONDITIONS 2 **Powers of authorities at Regional Office are valid only for tenor of loans up to 7 years including grace period. 3 Branch Managers' powers, when allowed, shall be limited for loans of tenor up to 5 years including grace period.
Page No: 13
SCHEDULE No: B-7

(WC FINANCE AGAINST MORTGAGE OF IMMOVABLE PROPERTIES INCLUDING FIXED ASSETS
MORTGAGE OF PRIMARY SECURITY IMMOVABLE PROPERTIES INCLUDING FIXED ASSETS SECONDARY SECURITY Borrowing entity's own fixed assets or Other than borrowing entity's fixed assets ( both commercial or Industrial) not categorized INELIGIBLE Residential properties not categorized INELIGIBLE Hyp of stocks, receivables , current assets To secure working capital finance where pledge / hyp of stocks is not possible
TYPES
LEVEL
AUTHORITY
CUSTOMER TYPE Limited Partner ship Companies Firms
Soleproprietorship /Individuals*
HEAD OFFICE
Nil Nil Nil
30.00 25.00 20.00
25.00 20.00 15.00
20.00 15.00 10.00
REGIONAL OFFICE
EVP SVP
In terms of Circular 174/2010, following powers will stand ceased till further instructions. SVP Nil Nil Nil Nil 7.50 2.50 Nil Nil 5.00 1.50 Nil Nil 2.50 1.00 Nil Nil
BRANCH
VP AVP OGI
1 *Refers to individual carrying on a business ( Trade/ Service or manufacturing) as defined in Section 3.3.1 of CPM. 2 CONDITIONS 3 **Finance will be granted against eligible immovable properties subject to fulfillment of standards / conditions advised in CPM and subject to SBP restrictions, if any, and clean up requirement as per approved Terms & Conditions. Margins on primary security and Loan to Collateral Ratio on secondary/back-up security to be maintained as prescribed by Head Office and/or State Bank of Pakistan from time to time.
4 Facility shall be allowed to those business concerns where nature of business doesn't permit hyp/ pledge of stocks.
Page No: 14
SCHEDULE No: B-8

(FINANCE AGAINST TRUST RECEIPT)
For local sale of goods TYPES PRIMARY SECURITY TRUST RECEIPT SECONDARY SECURITY For release of raw material for processing TO BE ESSENTIALLY SECURED BY ANY TANGIBLE SECURITY
LEVEL
AUTHORITY
POWERS CUSTOMER TYPE WISE Limited Partner ship Soleproprietorship Companies Firms /Individuals*

20.00 Nil Nil 20.00 10.00 8.00 15.00 7.50 5.00 10.00 5.00 3.00
HEAD OFFICE
REGIONAL OFFICE
EVP SVP
In terms of Circular 174/2010, following powers will stand ceased till further instructions. SVP BRANCH MANAGER (Jointly with Credit Manager, where posted) VP AVP OGI Nil Nil Nil Nil 2.00 1.50 Nil Nil 1.50 1.00 Nil Nil 0.75 0.50 Nil Nil
BRANCHES
1 *Refers to individual carrying on a business ( Trade/ Service or manufacturing) as defined in Section 3.3.1 of CPM CONDITIONS 2 3 Above powers may be exercised up to 10% more in cases where borrower's track record is satisfactory i-e timely payment of markup ( within 30 days of becoming due, absence of any shortage history, no overdue of BEs etc) Margins as required on finances against pledge of goods should be maintained; additionally on collateral obtained loan to collateral ratio as prescribed for the respective collateral shall be maintained.
Page No: 15
SCHEDULE No: B-9

PURCHASE OF / FINANCE AGAINST BANK INSTRUMENTS (PAYMENT ORDERS / DRAFTS) UNDER COLLECTION ( OF SCHEDULED BANKS) (These powers are freezed till further instructions)
TYPE PRIMARY SECURITY PAYMENT ORDER/DRAFT COLLATERAL /CONDITIONS Negotiable Personal guarantee
CUSTOMER TYPE LEVEL AUTHORITY

Public Sector Enterprises Partner ship Firms Soleproprietorship / Individuals*
Ltd Cos.
H E A D
O F F I C E
BOARD OF DIRECTORS CREDIT COMMITTEE GROUP CHIEF (Credit Mgt & Business Group Jointly) 25.00
Unlimited (Within Regulatory Parameters) Unlimited (Within Regulatory Parameters) 20.00 15.00 10.00
R E G I O N A L
O F F I C E
20.00
15.00
10.00
7.50
15.00
10.00
7.50
5.00
B R A N C H E S C O N D I T 1
In terms of Circular 174/2010, following powers will stand ceased till further instructions. SVP BRANCH MANAGER VP AVP OGI Nil Nil Nil Nil 7.50 5.00 Nil Nil 5.00 2.50 Nil Nil 2.50 1.00 Nil Nil
I O N S
*Refers to individual carrying on a business ( Trade/ Service or manufacturing) as defined in Section 3.3.1 of CPM 2 Above powers are freeze till further instructions. The facility may be extended only to the Bank's valued and trust worthy customers who maintain satisfactorily 3 conducted accounts. 4 At any point of time total outstanding number of such instruments shall not exceed 2.
Page No: 16
TRADE FINANCE (IMPORT)
SCHEDULE No: C-1 (IMPORT LETTER OF CREDITS - SIGHT )

All items except those restricted by SBP / CPM and conditions mentioned below Opening LC for import of machinery is not allowed at Regional Office/ Branch level LC to be Irrevocable Any tangible collateral No sight LC without collateral to be opened on behalf of clients rated 3 and 4 (5 or 6 as per new rating sheet) at Regional Office / Branch level
TYPE PRIMARY SECURITY
DOCUMENTS OF TITLE TO GOODS IMPORTED
SECONDARY SECURITY
CASH MARGIN As per guidance given in CPM SEC means secondary security
CUSTOMER TYPE WISE POWERS

SIGHT LC WITH LIQ SEC SECURITY (A) SIGHT LC WITH MORTG SEC SECURITY (B) Ltd Cos. P/ship Firms SP ship or Indiv.*
LEVEL
AUTHORITY
SIGHT LC WITHOUT SEC SECURITY** (C )

PSEs Ltd Cos. P/ship Firms SP/ ship or Indiv.*
PSEs
Ltd Cos.
P/ship S P/ship PSEs Firms or Indiv.*
H E A D
O F F I C E
BOARD OF DIRECTORS CREDIT COMMITTEE GROUP CHIEF (Credit Mgt & 400.00 Business Group Jointly)
400.00
350.00
300.00
300.00
300.00
250.00
150.00
150.00 150.00
125.00
75.00
R E G I O N A L
O F F I C E
250.0
350.00
250.00
100.00
Nil
250.00
175.00
125.00
Nil
75.00
50.00
25.00
200.00
300.00
200.00
75.00
Nil
200.00
150.00
100.00
Nil
50.00
35.00
20.00
B R A N C H E S
In terms of Circular 174/2010, Branch's powers stand ceased except the following against LIQUID SECURITIES. SVP VP AVP OGI 35.00 25.00 Nil Nil 60.00 50.00 30.00 Nil 35.00 25.00 15.00 Nil 15.00 10.00 5.00 nil
In terms of Circular 174/2010, following powers will stand ceased till further instructions. Nil Nil Nil Nil 25.00 20.00 Nil Nil 10.00 5.00 Nil Nil 5.00 2.50 Nil Nil Nil Nil Nil Nil 10.00 5.00 Nil Nil 5.00 2.50 Nil Nil 2.50 1.00 Nil Nil
1 Secondary security here means other than goods imported.

C O N D I T I O N S
In case of opening LCs collaterally secured against the types of Liquid Securities covered under Schedule B-2, powers mentioned under section A in the 2 above table shall stand reduced to half. However above powers of branches and Regional Office will not apply to LCs to be secured against TFCs and Shares; instead will fall within the powers of authority at two steps higher tier. 3 **Above powers specified for Sight LCs without collateral are only for opening LCs on behalf of clients of rating up to 4 as per new rating sheet. 4 Above powers pertain to LCs purporting import of easily realizable / marketable goods / not liable to quick deterioration; otherwise it will be allowed by one step higher authority but not below Head Office if not backed by " Liquid securities covered in Schedule B-1".
5 *Refers to individual carryin g on a business (Trader.Service or manufacturing) as defined in Section 3.3.1 of CPM. 6 Above powers are subject to compliance of directives advised in CPM, UCP, FE Manual and other directives issued by OBG/FI 7 LC involving import of machinery shall be approved by the Head Office Only.
Page No: 18 Revised vide Instruction Circular No. 41/2011
SCHEDULE No: C-2 (IMPORT LETTER OF CREDITS - USANCE )

TYPE PRIMARY SECURITY DOCUMENTS OF TITLE TO GOODS IMPORTED SECONDARY SECURITY All items except those restricted by SBP / CPM and compliance of Conditions mentioned below LC for import of machinery not allowed at Regional Office and Branch level LC to be Irrevocable Collateral here means any tangible collateral No LC without collateral to be allowed by Group Chief /Regional Office / Branch, subject to condition 6 below
CUSTOMER TYPE WISE POWERS LEVEL AUTHORITY Up To 120 Days With Sec Security Liquid Up To 120 Days With Sec Security Immovable Securities (A) Securities (B)
PSEs BOARD OF DIRECTORS CREDIT COMMITTEE GROUP CHIEF (Credit Mgt & Business Group Jointly) Ltd Cos. P/ship Firms SP/ ship or Indiv.* PSEs Ltd Cos. P/ship Firms SP/ship or Indiv.*
H E A D
O F F I C E
400.00
360.00
315.00
270.00
200.00
200.00
150.00
100.00
R O E F G F I L I O C N E A B R A N C H E S
Nil
315.00
225.00
90.00
Nil
175.00
125.00
75.00
Nil
270.00
180.00
70.00
Nil
150.00
100.00
50.00
In terms of Circular 174/2010, Branch's powers stand ceased In terms of Circular 174/2010, following powers will except the following against LIQUID SECURITIES. stand ceased till further instructions. SVP VP AVP OGI Nil Nil Nil Nil 60.00 50.00 30.00 Nil 50.00 25.00 15.00 Nil 20.00 10.00 5.00 Nil Nil Nil Nil Nil 20.00 10.00 Nil Nil 10.00 5.00 Nil Nil 5.00 2.50 Nil Nil
1 Secondary security here means other than goods imported 2 Above powers are only for LCs up to 120 days Tenor, LCs of longer tenor shall be referred to CC 3 Branches / RO / Group Chiefs are not empowered to open Usance LC without Collateral C O N D I T I O N S In case of opening LCs collaterally secured against the types of Liquid Securities covered under Schedule B-2, powers mentioned under 4 section A in the above table shall stand reduced to half. However above powers of branches and Regional Office will not apply to LCs to be secured against TFCs / Shares; instead will fall within the powers of authority at two steps higher tier. 5 **Above powers pertain to LCs purporting import of easily realizable / marketable goods / not liable to quick deterioration; otherwise it will be allowed by one step higher authority but not below Head Office if not backed by " Liquid securities covered in Schedule B-1"
In case of non-availability of collateral security against Usance LC, imported goods shall be kept under Banks pledge and opening of such 6 LCs shall ONLY be allowed to borrowers of risk rating upto 4 (new raing sheet) by the authorities at Head Office by exercising pledge powers. 7 *Refers to individual carrying on a business (Trader.Service or manufacturing) as defined in Section 3.3.1 of CPM 8 Above powers are subject to compliance of directives advised in CPM, UCP, FE Manual and other directives issued by OBG/FI
9 Usance LC involving import of machinery shall only be approved by the Head Office
Revised vide Instruction Circular No. 41/2011 Page No: 19
SCHEDULE No: C-3

(DELIVERY / RETIREMENT OF IMPORT DOCS. UNDER LETTER OF CREDITS )
PRIMARY SECURITY TRUST RECEIPT / PLEDGE OF IMPORTED MERCHANDISE TYPE SECONDARY SECURITY Any tangible security other than goods being imported as under
CUSTOMER TYPE WISE POWERS FIM LEVEL AUTHORITY

PSEs Ltd Cos. P/ ship Firms SP/ ship or Indiv.* PSEs Ltd Cos. P/ship Firms S P/ship PSEs or Indiv.* Ltd Cos. P/ship S P/ship Firms or Indiv.*
TR WITH LIQUID COLLATERAL
TR WITH IMMOV. COLLATERAL
H E A D
O F F I C E
400.00
200.00
125.00
100.00
350.00 300.00
150.00
80.00
50.00 30.00
25.00
20.00
R E G I O N A L
O F F I C E
Nil
100.00
75.00
50.00
Nil
150.00
125.00
65.00
Nil
15.00
10.00
8.00
Nil
80.00
50.00
30.00
Nil
125.00
100.00
50.00
Nil
10.00
8.00
7.00
B R A N C H E S
In terms of Circular 174/2010, following powers will stand ceased till further instructions. BRANCH MANAGER (Jointly with Credit Manager, where posted)
In terms of Circular 174/2010, Branch's In terms of Circular 174/2010, powers stand ceased except the following powers will stand ceased following against LIQUID till further instructions. SECURITIES. Nil Nil Nil Nil 30.00 25.00 15.00 10.00 20.00 15.00 10.00 4.00 10.00 7.00 5.00 2.00 Nil Nil Nil Nil 3.00 2.00 Nil Nil 2.00 1.00 Nil Nil 1.00 1.00 Nil Nil
SVP VP AVP OGI
NIL NIL NIL NIL
20.00 15.00 30.00 15.00
15.00 20.00 Nil Nil
5.00 3.00 Nil Nil
1 2 C O N D I T I O N S
*Refers to individual carrying on a business ( Trade/ Service or manufacturing) as defined in Section 3.3.1 of CPM Above powers will be applicable on Forced FIM instances also subject to note as mentioned at S. No. 3 below. In case of allowing TR collaterally secured against Other Liquid Securities covered under Schedule B-2, powers mentioned under section for liquid security in the above table shall stand reduced to half. However above powers of branches and Regional Office will not apply to TRs to be collaterally secured against TFCs and Shares; instead such instances will fall within the powers of authority at two steps higher tier. **For sanctioning FIM limit, above powers are applicable in instances where import of easily realizable/marketable goods/not liable to quick deterioration is involved. However under Forced FIM (where it is inevitable to accept pledge of already imported items ) situation if the goods involved are not easily realizable/marketable and liable to quick deterioration, then FIM will be allowed by one step higher authority but not below Head Office unless it is backed by Liquid Security mentioned in Schedule B-1, subject to fulfillment of collateral and other conditions advised in CPM. Margins as required on finances against pledge of goods should be maintained. And on collateral obtained, loan to collateral ratio as prescribed for the respective collateral shall be maintained. Above powers are subject to compliance of directives advised in CPM, UCP, FE Manual and other directives issued by OBG/FI.
5 6
Page No: 20
SCHEDULE No: C-4 (ISSUANCE OF SHIPPING GUARANTEE)

COUNTER GUARANTEE OF OUR IMPORTER TYPE SECONDARY SECURITY Fixed period Guty /no roll over Must be secured as mentioned at conditions No. 2
PRIMARY SECURITY
CUSTOMER TYPE WISE POWERS 100 % CASH PAYMENT LEVEL AUTHORITY

PSEs Ltd Cos. Partner ship Firms Sole Proprietorship or Individual*
H E A D
O F F I C E
400.00
400.00
350.00
300.00
R E G I O N A L
O F F I C E
250.0
350.00
250.00
100.00
200.00
300.00
200.00
75.00
B R A N C H E S
SVP BRANCH MANAGER (Jointly with Credit Manager, where posted) VP AVP OGI
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
1
CONDITIONS
* Refers to individual carrying on a business ( Trade/ Service or manufacturing) as defined in Section 3.3.1 of CPM
Above powers are subject to prior obtaining of 100% cash margin as well as recovery of cost of insurance and bank charges.
Page No: 21
TRADE FINANCE (EXPORT)
SCHEDULE No: D-1

PURCHASE OF EXPORT BILLS DRAWN UNDER LC ACCOMPANIED BY DOCUMENTS EVIDENCING SHIPMENT OF GOODS (NEGOTIATION / DISCOUNTING)
TYPE COLLATERAL /CONDITIONS Export Bills / Documents drawn under First class bank ( i-e among 500 top banks) LC and undiscrepant documents Discounting to be allowed after receiving acceptance** Tangible collateral is mandatory if documents are discrepant
PRIMARY
Documents of Title to Goods / SECURITY lien on LC
CUSTOMER TYPE NEGOTIATION OF BILLS DRAWN ON DISCOUNTING OF BILLS DRAWN ON DA DP BASIS BASIS LEVEL AUTHORITY
Public Sector Ltd Cos. Enterprises Partner Soleproprieto Public Sector rship / ship Enterprises Individuals* Firms Ltd Cos. Partner Soleproprieto rship / ship Firms Individuals*
H E A D
O F F I C E
BOARD OF DIRECTORS CREDIT COMMITTEE GROUP CHIEF (Credit Mgt & Business Group Jointly) 50.00 50.00
Unlimited (Within Regulatory Parameters) Unlimited (Within Regulatory Parameters) 30.00 25.00 40.00 40.00 25.00 20.00
R E G I O N A L
O F F I C E
40.00
40.00
25.00
20.00
35.0
35.00
20.00
15.00
35.00
35.00
20.00
15.00
30.0
30.00
15.00
10.00
B R A N C H E S
In terms of Circular 174/2010, following powers will stand ceased till further instructions, unless secured against liquid securities BRANCH MANAGER (Jointly with Credit Manager, where posted) SVP VP AVP OGI 10.00 7.50 5.00 Nil 10.00 7.50 5.00 Nil 7.50 5.00 2.00 Nil 5.00 2.50 1.00 Nil 10.00 5.00 Nil Nil 10.00 5.00 Nil Nil 5.00 2.50 Nil Nil 2.50 1.00 Nil Nil
C O N D I T I O N S
1 Above stipulated powers of negociation /discounting are for undiscrepant export documents drawn strictly as per LC Terms 2 Further above powers are applicable for bills drawn under first class banks (i.e. among top 500 banks) 3 *Refers to individual carrying on a business ( Trade/ Service or manufacturing) as defined in Section 3.3.1 of CPM **Discounting shall only be allowed against bills accepted by the buyer / buyer's bank, however, discounting without acceptance can be allowed 4 only subject to compliance of conditions as mentioned in Chapter No.4 of CPM. 5 Usance Export LCs beyond 120 days will require approval by one step higher authority. 6 Any power related to FIs is subject to prior clearance from FI Division 7
Export Bills are to be negotiated / discounted by the authorized branches only and subject to compliance of directives advised in FE Manual, CPM, UCP and other directives issued by OBG/FI
Page No: 23
(FINANCE AGAINST EXPORT BILLS DRAWN AGAINST LCs )

PRIMARY Documents of Title to Goods SECURITY to Goods TYPE COLLATERAL CONDITIONS Sight as well as Usance bills drawn under first 500 banks Tangible security as per CPM
SCHEDULE No: D-2
CUSTOMER TYPE SIGHT BILLS LEVEL AUTHORITY

Public Sector Ltd Cos Enterprises Partner ship Firms Public Soleproprieto Sector rship / Individuals* Enterprises
USANCE
Partner Soleproprieto rship / ship Firms Individuals*
Ltd cos.
H E A D
O F F I C E
50.00
50.00
30.00
25.00
40.00
40.00
25.00
20.00
R E G I O N A L
O F F I C E
40.00
40.00
25.00
20.00
35.00
35.00
20.00
15.00
35.00
35.00
20.00
15.00
35.00
35.00
20.00
15.00
B R A N C H E S
In terms of Circular 174/2010, following powers will stand ceased till further instructions, unless secured against liquid securities BRANCH MANAGER (Jointly with Credit Manager, where posted) SVP VP AVP OGI 10.00 7.50 NIL NIL 10.00 7.50 Nil Nil 7.50 5.00 Nil Nil 5.00 2.50 Nil Nil 10.00 7.50 Nil Nil 10.00 5.00 Nil Nil 5.00 2.50 Nil Nil 2.50 1.00 Nil Nil
C O N D I T I O N S
1 Usance LCS beyond 120 days will require approval by one step higher authority 2 These powers are for export documents drawn strictly as per LC Terms and drawn against top 500 banks and subject to allowing finanace strictly in compliance with directives advised in CPM, UCP, FE Manual and other directives issued by OBG/FI from time to time.
3 Any power related to FIs is subject to prior clearance from FI Division. 4 *Refers to individual carrying on a business ( Trade/ Service or manufacturing) as defined in Section 3.3.1 of CPM 5 For allowing finance against Bills drawn against Firm contract above powers will be reduced to half
Page No: 24
SCHEDULE No: D-3

PURCHASE OF EXPORT BILLS ACCOMPANIED BY DOCUMENTS DRAWN UNDER FIRM CONTRACT EVIDENCING SHIPMENT OF GOODS WITH COLLATERAL
Title of Documents to PRIMARY Goods under firm SECURITY contract TYPE Export Documents / Bills drawn under Firm contract COLLATERAL Tangible Collateral is mandatory CONDITIONS
CUSTOMER TYPE BILLS DRAWN ON DP BASIS BILLS DRAWN ON DA BASIS LEVEL AUTHORITY
Public Sector Enterprises Limited Partner Companies ship Firms SolepropriePublic Sector Limited torship / Enterprise Companies Individuals Partner ship Firms Soleproprietorship /Individuals
BOARD OF DIRECTORS H E A D O F F I C E CREDIT COMMITTEE
GROUP CHIEF (Credit Mgt & Business Group Jointly)
40.00
40.00
20.00
10.00
30.00
30.00
20.00
10.00
R O E F G F I L I O C N E A B R A N C H E S
CONDITIONS
35.00
35.00
15.00
5.00
25.00
25.00
10.00
5.00
30.00
30.00
10.00
5.00
25.00
25.00
10.00
5.00
Nil BRANCH MANAGER (Jointly with Credit Manager, where posted) Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
1 2 3
Purchase of export bills drawn against Firm Contract must be backed by tangible/immovable property. Purchase without collateral security shall be approved by the competent authority at Head Office only. Above powers are subject to compliance of directives advised in CPM, UCP, FE Manual and other directives issued by OBG/FI
Page No: 25
TRADE FINANCE (INLAND)
SCHEDULE No: E-1 (INLAND LETTER OF CREDITS - SIGHT )

All items except those restricted by SBP / CPM and compliance of Conditions mentioned below LC for purchase of machinery not allowed at Regional Office and Branch level LC to be Irrevocable Any tangible collateral
TYPE PRIMARY SECURITY Documents of Title to Goods SECONDARY SECURITY
CUSTOMER TYPE WISE POWERS

SIGHT LC WITH LIQ SECURITY (A) SIGHT LC WITH MORTG SECURITY (B) P/ship Firms SP ship or Indiv.*
LEVEL
AUTHORITY
PSEs Ltd Cos. P/ship Firms S P/ship or Indiv.* PSEs Ltd Cos.
H E A D
O F F I C E
250
250.00
200.00
150.00
150.00
125.00
100.00
75.00
R E G I O N A L
O F F I C E
200.00
200.00
125.00
100.00
Nil
100.00
75.00
50.00
150.00
150.00
100.00
75.00
Nil
75.00
50.00
35.00
B R A N C H E S
In terms of Circular 174/2010, Branch's powers stand ceased except the following against LIQUID SECURITIES. SVP VP AVP OGI 50 Nil Nil Nil 50.00 35.00 20.00 Nil 25.00 20.00 10.00 Nil 15.00 10.00 5.00 Nil
In terms of Circular 174/2010, following powers will stand ceased till further instructions. Nil Nil Nil Nil 25.00 12.00 Nil Nil 15.00 7.50 Nil Nil 10.00 5.00 Nil Nil
C O N D I T I O N S
1 Secondary security here means other than goods purchased under LC In case of opening LCs collaterally secured against the types of Liquid Securities covered under Schedule B-2, powers mentioned under section A 2 in the above table shall stand reduced to half. However above powers of branches and Regional Office will not apply to LCs to be secured against TFCs / Shares; instead will fall within the powers of authority at two steps higher tier. Above powers pertain to LCs purporting import of easily realizable / marketable goods / not liable to quick deterioration & does not require 3 special storage conditions; otherwise it will be allowed by one step higher authority but not below Head Office if not backed by " Liquid securities covered in Schedule B-1" 4 *Refers to individual carryin g on a business (Trader.Service or manufacturing) as defined in Section 3.3.1 of CPM 5 LC involving purchase of machinery shall be approved by the Head Office Only
Page No: 27
SCHEDULE No: E-2 (INLAND LETTER OF CREDITS - USANCE )

PRIMARY Documents of Title to SECURITY Goods TYPE All items except those restricted by SBP / CPM / Conditions mentioned below LC for import of machinery not allowed at Regional Office and Branch level LC to be Irrevocable No LC without collateral to be allowed by Group Chief /Regional Office / Branch
SECONDARY SECURITY
CUSTOMER TYPE WISE POWERS LEVEL AUTHORITY Up To 120 Days With Sec Security as Liquid Securities (A)
PSEs BOARD OF DIRECTORS CREDIT COMMITTEE GROUP CHIEF (Credit Mgt & Business Group Jointly) Ltd Cos. P/ship Firms SP/ ship or Indiv.*
Up To 120 Days With Sec Security as Immovable Securities (B)

PSEs Ltd Cos. P/ship Firms SP/ship or Indiv.*
H E A D
O F F I C E
250.00
250.00
175.00
150.00
125.00
125.00
100.00
50.00
R E G I O N A L
O F F I C E
200.00
200.00
125.00
100.00
75.00
75.00
50.00
25.00
150.00
150.00
100.00
75.00
50.00
50.00
35.00
20.00
B R A N C H E S
In terms of Circular 174/2010, Branch's powers In terms of Circular 174/2010, following powers will stand ceased except the following against LIQUID stand ceased till further instructions. SECURITIES. SVP VP AVP OGI 50.00 35.00 Nil Nil 50.00 35.00 20.00 Nil 25.00 20.00 10.00 Nil 15.00 10.00 5.00 nil Nil Nil Nil Nil 10.00 7.50 Nil Nil 7.50 5.00 Nil Nil 5.00 2.50 Nil Nil
1 Secondary security here means other than goods imported C O N D I T I O N S 2 Above powers are only for LCs up to 120 days Tenor, LCs of longer tenor shall be referred to CC 3 Branches / RO / Group Chiefs not empowered to open Usance LC without Collateral Powers for opening LCs collaterally secured against the types of Liquid Securities covered under Schedule B-2 shall stand reduced to half of the powers mentioned in the section (A) of the above table. However above powers of branches and Regional Office will not apply to 4 LCs to be secured against TFCs / Shares; instead will fall within the powers of authority at two steps higher tier. Above powers pertain to LCs purporting purchase of easily realizable / marketable goods / not liable to quick deterioration; otherwise it 5 will be allowed by one step higher authority but not below Head Office if not backed by " Liquid securities covered in Schedule B.1" 6 *Refers to individual carryin g on a business (Trader.Service or manufacturing) as defined in Section 3.3.1 of CPM 7 Usance LC involving purchase of machinery shall be approved by the Head Office Only.
Page No: 28
SCHEDULE No: E-3

PURCHASE OF INLAND BILLS DRAWN UNDER INLAND LC ACCOMPANIED BY DOCUMENTS EVIDENCING SHIPMENT OF GOODS (NEGOTIATION / DISCOUNTING)
Un-discrepant Bills / Documents drawn under banks of meeting the criteria to be advised by FI Wing, HO. LC to be Irrevocable Discounting to be allowed after receiving acceptance Tangible collateral is mandatory if documents are discrepant**
PRIMARY
SECURITY
Documents of Title to Goods lien on LC
TYPE COLLATERAL /CONDITIONS
CUSTOMER TYPE NEGOTIATION OF BILLS DRAWN ON DISCOUNTING OF BILLS DRAWN ON DP BASIS DA BASIS LEVEL AUTHORITY
Public Sector Ltd Cos. Enterprises Partner Solepropriet Public Sector orship / ship Enterprises Individl* Firms Ltd Cos. Partner Solepropriet orship / ship Individl* Firms
H E A D
O F F I C E
BOARD OF DIRECTORS CREDIT COMMITTEE GROUP CHIEF (Credit Mgt & Business Group Jointly) 50.00 50.00
Unlimited (Within Regulatory Parameters) Unlimited (Within Regulatory Parameters) 35.00 30.00 35.00 35.00 25.00 15.00
R E G I O N A L
O F F I C E
35.00
35.00
25.00
20.00
25.00
25.00
15.00
10.00
30.00
30.00
20.00
13.00
20.00
20.00
10.00
10.00
B R A N C H E S
In terms of Circular 174/2010, following powers will stand ceased till further instructions, unless secured against liquid securities BRANCH MANAGER (Jointly with Credit Manager, where posted) SVP VP AVP OGI 10.00 5.00 Nil Nil 10.00 5.00 Nil Nil 6.00 4.00 Nil Nil 2.50 2.00 Nil Nil 5.00 3.00 Nil Nil 5.00 3.00 Nil Nil 2.50 1.50 Nil Nil 2.50 1.50 Nil Nil
1 Above stipulated powers are for clean documents (i.e. un-discrepant documents drawn strictly as per LC Terms) C O N D I T I O N S 2 Further above powers are applicable against bills drawn on banks meeting the criteria to be advised by FI Wing, HO. 3 **Negotiation without collateral security shall be approved by the competent authority at Head Office only. 4 Discounting shall only be allowed against bills accepted by the buyer's bank . 5 Docs drawn under Usance LCS beyond 120 days will require approval by one step higher authority. 6 Before exercising above power prior clearance from FI Division will have to be obtained 7 *Refers to individual carryin g on a business (Trader.Service or manufacturing) as defined in Section 3.3.1 of CPM 8
Bills are to be negotiated / discounted by the authorized branches only and subject to compliance of directives advised in CPM and other directives issued by FI from time to time.
Page No: 29
GUARANTEES
SCHEDULE No: F-1

(INLAND BANK GUARANTEE )
Counter guarantee of the
PRIMARY SECURITY
applicant on whose behalf guarantee is issued
TYPE SECONDARY SECURITY
Fixed period guarantee Counter guarantees should at minimum be 100% backed by any tangible security either entirely by cash margin or by a combination of cash margin and security as mentioned in CPM.
CUSTOMER TYPE WISE POWERS L E V E L 100 % secured against cash 50 % secured against cash and /or liquid securities and /or liquid securities AUTHORITY
PSEs Ltd Cos. Partner-ship Firms SoleP/ship or Indiv* PSEs Ltd Cos. P/ship Firms S P/ship or Indiv* PSEs Ltd Cos. Partnership Firms SoleP/ship or Indiv* PSEs Ltd Cos. Partnership Firms SoleP/ship or Indiv*
25 % secured against cash and / or liquid securities
Below 25% secured against liquid securities
BOARD OF DIRECTORS H E A D O F F I C E CREDIT COMMITTEE GROUP CHIEF (Credit Mgt & Business Group Jointly)
400.00
400.00
350.00
Nil
300.00
250.00
200.00
200.00
150.00
Nil
100.00
75.00
R E G I O N A L
O F F I C E
350.00
350.00
300.00
200.00
200.00
100.00
100.00
100.00
75.00
Nil
75.00
50.00
300.00
300.00
250.00
100.00
100.00
75.00
75.00
75.00
50.00
Nil
50.00
35.00
B R A N C H E S
BRANCH MANAGER Jointly SVP with Credit Manager, where VP posted AVP OGI
In terms of Circular 174/2010, Branch's powers stand ceased except the following against LIQUID SECURITIES. 60.00 50.00 NIL NIL 60.00 50.00 30.00 15.00 50.00 40.00 25.00 10.00
In terms of Circular 174/2010, following powers will stand ceased till further instructions.
25.00 15.00 Nil Nil
25.00 15.00 10.00 Nil
15.00 10.00 5.00 Nil
20.00 15.00 Nil Nil
20.00 15.00 Nil Nil
10.00 7.50 NIL NIL
Nil Nil Nil Nil
15.00 10.00 NIL NIL
5.00 2.50 NIL NIL
C O N D I T I O N S
1 Besides Cash, liquid securities as mentioned in Schedule B-1 may be treated as cash margins 2 *Refers to individual carrying on a business ( Trade/ Service or manufacturing) as defined in Section 3.3.1 of CPM Above powers relate to approval of guarantees on at least minimum cash margin / back up security ratio as advised in CPM (chapter5); guarantees to be issued at 3 lower than such stipulated margins shall be approved from Head Office 4 Above powers relate to guarantees whose validity is one year. In all other cases prior approval from Head Office must be obtained unless guarantee is fully backed up by cash / Liquid securities
5 Above powers are applicabe for issuance of guarantees on the standardized formt and in all other cases insturctins as given in CPM will be followed. 6 Guarantee issued in favor of Collecter of Custom Department shall be backed by 100% cash margin In case of revocation of guarantee, approval of payment of claim and creation of Forced DF to be obtained from approving authority within 24 hours. However, for 7 cases approved by the Credit Committee, approval to be obtained from Group Chief, CMG jointly with respective Business Group Chief, however Credit Committee to be notified of the same. 8 Guarantees required to be issued by marking lien on DP/ Advance Value will require prior approval from Head Office
Page No: 31
SCHEDULE No: F-2 (GUARANTEE AGAINST FOREIGN BANK / CORRESPONDENT'S COUNTER GUTY)
PRIMARY SECURITY
Counter guarantee of the Foreign Bank / Correspondent on whose behalf guarantee is issued
TYPE SECONDARY SECURITY
BID BOND / PERFORMANCE BOND / ADVANCE PAYMENT / WARRANTY ETC.
US $ IN Million
FOREIGN CORRESPONDENT RANKING & PERIOD WISE POWERS L E V E L First 100 Banks AUTHORITY 101-200 Banks 201-300 Banks 301-500
501 - 1000*
Max Max Max Max Max Max Amt of Max Amt of Max Amt of Max Amt of Max Amt of Exposure Exposure Exposure Exposure Exposure single single single single single to each to each to each to each to each transaction transaction transaction transaction transaction bank bank bank bank bank Unlimited (Within Regulatory Parameters) Unlimited (Within Regulatory Parameters)
BOARD OF DIRECTORS O F F I C E CREDIT COMMITTEE GROUP CHIEF (Credit Mgt & Overseas Jointly) GROUP CHIEF (Credit Mgt & Business Group Jointly)
H E A D
15.00
25.00
12.00
20.00
10.00
16.00
8.00
13.00
6.00
10.00
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
R E G I O N A L
O F F I C E
1.00
4.00
0.75
3.00
0.50
2.00
0.05
0.75
Nil
Nil
1.00
4.00
0.75
3.00
0.50
2.00
0.05
0.75
Nil
Nil
B R A N C H
SVP BRANCH MANAGER Jointly with Credit Manager, where posted VP AVP OGI
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
CONDITIONS
1 2 3 4
Any power related to FIs is subject to prior clearance from FI Division. Above powers are subject to compliance of SBP PRs, FE manual and all other relevant laws and regulations. Above powers below the level of Overseas / Head Office are for guarantees involving period up to one year *All cases involving Banks of rating beyond 1000 shall be referred to Credit Committee for approval
Page No: 32
SCHEDULE No: F-3 (FOREIGN BANK GUARANTEE )

Counterguarantee of the
PRIMARY SECURITY
applicant on whose behalf guarantee is issued
TYPE Fixed period guarantee SECONDARY Counter guarantees should at minimum be 100% backed by any tangible SECURITY security either entirely by cash margin or by a combination of cash margin and security as mentioned in CPM.
CUSTOMER TYPE WISE POWERS L E V E L 100 % secured against cash and /or liquid securities AUTHORITY
PSEs Ltd Cos. P/ship Firms S PSEs P/ship or Indiv* Ltd Cos. P/ship Firms S P/ship PSEs or Indiv* Ltd Cos. P/ship Firms S P/ship or Indiv* PSEs Ltd Cos. P/ship Firms S P/ship or Indiv*
50 % secured against cash and /or liquid securities
25 % secured against cash and / or liquid securities
Below 25% secured against liquid securities
H E A D
O F F I C E
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
R E G I O N A L
O F F I C E
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
B R A N C H
SVP BRANCH MANAGER Jointly with Credit Manager, where available VP AVP OGI 1 CONDITIONS 2
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
Nil Nil Nil Nil
*Refers to individual carrying on a business ( Trade/ Service or manufacturing) as defined in Section 3.3.1 of CPM Above powers are subject to compliance of SBP PRs, FE manual and all other relevant laws and regulations.
Page No: 33
OTHERS
SCHEDULE No: G-1 ISSUANCE OF NOC

Issuance of NOCs to create further charge on fixed assets and / or current assets in favour of other Banks Financial Institutions
L E V E L POWERS AUTHORITY REGULAR ACCOUNTS
Current Assets BOARD OF DIRECTORS H E A D O F F I C E CREDIT COMMITTEE Fixed Assets
NON PERFORMING ACCOUNTS

Current Assets Fixed Assets
Unlimited (Within Regulatory Parameters) Unlimited (Within Regulatory Parameters) Issuance of NOCs for creation of charge on fixed assets or current assets, in respect of cases sanctioned at Head Office level shall be approved by the respective Competent Authority at Head Office on the basis of recommendations received from concerned Regions/Corporate Offices.
GROUP CHIEF (Credit Mgt & Business Group Jointly)
NA
NA
GROUP CHIEF ( Group Chief Assets Recovery Group with Divisional Head Special Assets Management / Assets Rehabilitation Division (for cases parked / transferred to ARG
NOT APPLICABLE
200.00
200.00
R E G I O N A L
O F F I C E
Regional Head Jointly with Group Chief Assets Recovery Group with Divisional Head Special Assets Management / Assets Rehabilitation Division.(after due clearance from C&RBG and CMG)
EVP NOT APPLICABLE SVP Regional Heads jointly with GM Credit are authorized to issue NOC for creation of charge on fixed assets or current assets in cases (other than NPL) which were sanctioned under their discretionary powers or fall within his powers, subject to following conditions Branch managers jointly with Credit manager are authorized to issue NOC for creation of charge on fixed assets or current assets in cases (other than NPL) which were sanctioned under their discretionary powers or fall within his powers, subject to following conditions
100.00
100.00
100.00
100.00
REGIONAL HEAD Jointly with GENERAL MANAGER CREDIT
SVP
NA
VP
B R A N C H E S
SVP BRANCH MANAGER Jointly with Credit Manager, where available VP AVP OGI
NA
CONDITIONS
1 2
Charge to be created is not Superior to our Bank's charge Availability of cushion and compliance of all other requirements
Page No: 35
SCHEDULE No: G-2 ISSUANCE OF LETTER OF INTENT, EARMARKING OF LIMIT, INTERCHANGEABILITY OF LIMIT, SUB-LIMITS
LETTER OF INTENT: Field offices shall not issue any Letter of Intent, rather process the case on fast track basis following our normal system of approval whereby complete proposal is obtained, analyzed and placed before competent authority expeditiously for approval. If owing to cogent reasons, issuance of LOI is inevitable, then Head Office is the only competent authority for this purpose and draft of LOI to be legally vetted. LOI must clearly state that by issuing it the Bank shall not be legally or morally under obligation to provide the said facility. EARMARKING OF LIMIT/INTERCHANGEABILITY OF LIMITS, SUB-LIMITS Interchangeability Among Group Companies: Interchangeable credit lines for use by member companies of a group or a conglomerate are strictly forbidden. Unutilized or a partially utilized limits of the same borrower: Use of an unutilized or a partially utilized line of credit for another purpose where the limit sanctioned specifically for that purpose stands exhausted, may be allowed in exceptional cases provided adequate cushion in DP and security / collateral is available, through ear-marking or suballocating (temporarily) one credit line to another credit line subject to following conditions: i) Both the limits should be regular ii) Such earmarking shall be for a specific transaction that is, not of repetitive nature iii) Permission from the competent authority (as defined in the adjacent column here) to be obtained prior to allowing such earmarking iv) Separate documentation if warranted to be executed, under BLA advice v) Credit lines carrying higher risk may be sub-allocated to lower risk lines. Sub-allocation in the reverse order is not allowed. vi) Do not form more than 15% of total approved exposure of a single borrower (10% if such accomodaton is allowed by the Group Chief, CIBG). Instances Eligible: i) By proportionately reducing the Usance Letters of Credit line, the customer may be allowed to open sight Letter of Credit. However, customer is not allowed to open Usance Letter of Credit by blocking the sight Letter of Credit line. ii) For retirement of documents, the borrowers may request the bank to take delivery of goods under Banks pledge by utilizing already sanctioned Cash Finance limit. Under this situation lien should be marked over the DP of Cash Finance Pledge limit at the time of opening of LC or when requested by the borrower, provided there is DP available in the account. By proportionately reducing the Cash Financing line, an equal amount may be allowed in the form of Trust Receipts to finance imports made under Sight LCs opened through the Bank in order to secure TR by the collateral held against Cash Finance. iii) By proportionality reducing the Cash / Packing Financing line, an equal amount in the running (existing) pre-shipment Finance-part I line may be allowed . The reverse is however not allowed. iv) By proportionately reducing the pre-shipment Finance part II line, an equal amount in preshipment part-I line may be allowed. The reverse is however, not permitted. v) By proportionately reducing either of the pre-shipment lines (part I or II), equal amounts may be allowed in the post shipment line. The reverse is however not allowed.
NA FOR SME / COMMERCIAL BORROWERS: Permission from the competent sanctioning office to be obtained prior to allowing such earmarking. FOR CORPORATE BORROWERS: Up to tolerance limit up to 10% of the facility to be allowed by the Group Chief CIBG on the basis of justification subject to conditions mentioned herein and CPM and informing the CC subsequently . Permission from the competent sanctioning office in all other cases (i.e where such conditions are not fulfilled) . AUTHORITY
Head Office
CONDITIONS
The above is subject to detailed instructions provided in chapter no. 14 of CPM and mentioned in the above authority column.
Page No: 36
CONSUMER FINANCE
SCHEDULE No: H-1 (PRODUCT BASED CONSUMER FINANCE - ADVANCE SALARY AND SAIBAAN)
TYPES PRIMARY SECURITY ADVANCE SALARY AND SAIBAAN PRODUCTS SECONDARY SECURITY As per Product Program Personal Guarantees as per Prudential Regulations and Consumer Policy. As per respective Product Parameters and Consumer Policy
LEVEL
AUTHORITY
BOARD OF DIRECTORS CREDIT COMMITTEE GROUP CHIEF CRBG & EVP/Wing Head Consumer, Credit Mgt Group Jointly GROUP CHIEF CRBG & Regional Head Jointly WING HEAD Consumer, Credit Mgt Group jointly With Credit Head Retail, CRBG ) Credit Head Retail Initiation Head Product / Credit analyst/ CIU Head Mortgages REGIONAL HEAD (Jointly with GM Credit) EVP SVP SVP BRANCH MANAGER Jointly with Credit Manager, where posted VP AVP OG1 O G II
Advance Salary
Saibaan
Unlimited (Within Regulatory Parameters) Unlimited (With prior approval from SBP if beyond Regulatory cap)
Nil
35.00
HEAD OFFICE
490,000/= involving any exception Nil Nil Nil Nil 490,000/= 490,000/= 400,000/= 350,000/= 300,000/= 250,000/= 200,000/=
Nil
10.00 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
REGIONAL OFFICE
BRANCH
Above stipulated powers are applicable for cases complying all the parameters of the Product programme. Cases involving any exception will fall within the competency of the following authorities, in terms of Credit Committee decision taken in their meeting No 268 dated 7.09.2010:-
CONDITIONS
a) Advance Salary Cases: Group Chief CRBG jointly with the concerned Regional Head b) Saibaan cases: Credit committee In addition to Product parameters, above powers shall always be subject to PRs including but not limited to the regulation 2 regarding maximum loan entitlemennt 3 Group Chief, CRBG is empowered to curtail any of the above powers of a particular Regional Office or Branch.
Page No: 38
SCHEDULE No: H-2 (FINANCE AGAINST PLEDGE OF LIQUID SECURITIES & GOLD ORNAMENTS
Defence Saving Certificates, Special Saving Certificates, Pakistan Investment Bonds, Federal Investment Bonds, Prize Bonds, Bank's own deposits (TDRs, FDRs, Foreign Currency & Local Currency Accounts under Lien) or any other similar certificates issued by GOP / NBP TYPES Pledge of Gold ornaments Pledge of Shares, NIT Units, NAFA Certificates, TFCs etc as defined in Consumer PRs SECONDARY SECURITY Personal Guarantees as per Prudential Regulations and Consumer Policy
PRIMARY SECURITY
PLEDGE OF LIQUID SECURITIES & GOLD ORNAMENTS
POWERS
(SECURITY TYPE WISE)
LEVEL
AUTHORITY
Defence Saving Certificates, Special Saving Certificates, Pakistan Investment Bonds, Federal Shares, NIT Units, Investment Bonds, Prize Bonds, NAFA Certificates, Bank's own deposits (TDRs, FDRs, TFCs etcs as per PRs Foreign Currency & Local Currency Accounts under Lien) Fund based Non Fund based
Against Gold Ornaments
Fund based BOARD OF DIRECTORS CREDIT COMMITTEE GROUP CHIEF (Credit Mgt & Business Group Jointly)
Non Fund based
Fund based
Non Fund based
HEAD OFFICE
12.00
24.00
5.00
10.00
7.50
15.00
REGIONAL OFFICE
REGIONAL HEAD EVP (Jointly with GM SVP Credit) SVP BRANCH MANAGER Jointly VP with Credit Manager, where AVP posted OGI
8.00 6.00 2.50 2.00 1.50 1.25
16.00 12.00 5.00 4.00 3.00 2.00
2.50 2.00 0.50 0.25 Nil Nil
5.00 4.00 1.00 0.50 Nil Nil
5.00 4.00 1.75 1.50 1.25 1.00
10.00 8.00 3.50 3.00 Nil Nil
BRANCHES
CONDITIONS
Above powers are subject to conditions regarding maximum entitlements etc required in Consumer Prudential Regulation, compliance with Consume Policy & other directives issued from time to time. 2 Financing against other banks' deposit shall be subject to conditions mentioned in CPM 1
Page No: 39
SCHEDULE No: H-3 (FINANCE AGAINST MORTGAGE OF IMMOVABLE PROPERTY)

MORTGAGE OF IMMOVABLE PROPERTIES TYPES SECONDARY SECURITY Residential Properties Personal Guarantees as per Regulations and Consumer Policy
PRIMARY SECURITY
Prudential
LEVEL
AUTHORITY
BOARD OF DIRECTORS
POWERS MORTGAGE OF IMMOVABLE PROPERTIES Fund based Non fund based

Unlimited (Within Regulatory Parameters) Unlimited (Within limit fixed by SBP / beyond SBP limit with prior approval from SBP)
HEAD OFFICE
CREDIT COMMITTEE GROUP CHIEF (Credit Mgt & Business Group Jointly)
2.50
Nil Nil Nil Nil Nil Nil
1.00
Nil Nil Nil Nil Nil Nil
REGIONAL OFFICE
EVP SVP SVP
BRANCHES
BRANCH MANAGER Jointly with Credit Manager, where posted
VP AVP OGI
1 CONDITIONS
Powers are valid only for tenor of loans up to 5 years (7 years only for the purposes specified in R-25 PRs) including grace period subject to SBP restriction .
2 Above powers are subject to prevalent SBP restriction on the max amount of such exposure; and shall be exercised strictly in accordance with SBP laid down criteria
Page No: 40
AGRICULTURE FINANCE
SCHEDULE No: I-1

(PRODUCTION FINANCE AGAINST HYPOTHECATION OF CROPS WITH SECONDARY SECURITY)
TYPES A Standing crops duly insured Required to be collaterally secured by any of the following Tangible security viz., Charge/lien on borrower's agriculture land through Agri. Pass Book duly registered 1 with Revenue Authority 2 Pledge of Gold Ornaments 3 Pledge/lien of NIT Unit/DSCs/SSCs/lien on bank's own deposit etc. 4 Registered Mortgage of property other than agriculture land In case of livestock financing, collective guarantee of notable persons of the area, 5 where the security provided by the borrower is deficient to cover loan subject to compliance of Prudential Regulation R-6 regarding maximum unsecured Financing Two sureties good for the amount subject to compliance with Prudential B Regulation R-6 regarding maximum unsecured Financing
PRIMARY SECURITY
HYPOTHECATION OF STANDING CROPS /MOVEABLE ASSETS SECONDARY SECURITY
POWERS (CUSTOMER TYPE AND LOAN TYPE WISE) Backed up by tangible Security LEVEL AUTHORITY Limited Companies Partnership SoleproprietorLimited Partnership Firms Firms ship /Individual Companies Solepropriet orship /Individual Backed up by two Securities

20.00 10.00 8.00 4.00 2.00 1.00 0.300 0.25 0.200 20.00 10.00 8.00 4.00 2.00 1.00 0.300 0.25 0.200 20.00 10.00 8.00 4.00 2.00 1.00 0.300 0.25 0.200 NA 0.50 0.50 0.30 0.30 0.30 0.30 0.00 0.000 NA 0.50 0.50 0.30 0.30 0.30 0.30 0.00 0.000 NA 0.50 0.50 0.30 0.30 0.30 0.30 0.00 0.000
HEAD OFFICE
REGIONAL OFFICE
REGIONAL HEAD Jointly with Regional Agriculture Manager and GM Credit
EVP SVP SVP
BRANCH
VP BRANCH MANAGER AVP (Jointly with Agriculture Field OGI Officer) OGII OG III
CONDITIONS
PRUDENTIAL REGULATION R-6 (MAXIMUM UNSECURED FINANCING): Maximum unsecured financing, which can be availed 1 by a borrower, from all banks/DFIs, shall not exceed Rs. 500,000/=. In order to ensure that the prescribed limit is not breached, a written declaration from the borrower shall be obtained about unsecured facilities availed by it from other financial institutions. All exposures in excess of Rs. 500,000/= should be properly secured as defined in Prudential Regulations (on Agriculture Financing).
Page No: 42
SCHEDULE No: I-2

(DEVELOPMENT (FIXED INVESTMENT) FINANCE AGAINST HYPOTHECATION OF CROPS WITH SECONDARY SECURITY)
Hypothecation of standing Crop PRIMARY SECURITY
Borrower's agriculture land OR property other than agricultural Land
Hypothecation of asset (Machinery/ tractor / livestock / etc ) to be acquire through loan. TYPES
Required to be collaterally secured by any of the following Tangible security:Pledge of Gold Ornaments Pledge/lien of NIT Unit/DSCs/SSCs etc. SECONDARY SECURITY
Pledge of liquid securities/ Mortgage of any property
TYPES
Charge on borrower's agriculture land through Agri. Pass Book duly registered with Revenue Authority. Registered Mortgage of property other than agricultural Land In case of livestock financing, collective guarantee of notable persons of the area, where the security provided by the borrower is deficient to cover loan subject to compliance with Prudential Regulation R-6 regarding maximum unsecured Financing.
POWERS (CUSTOMER TYPE AND LOAN TYPE WISE) LEVEL AUTHORITY Limited
BOARD OF DIRECTORS CREDIT COMMITTEE GROUP CHIEF (Credit Mgt & Business Group Jointly) REGIONAL HEAD Jointly with Regional Agriculture Manager and GM Credit REGIONAL OFFICE GM Credit jointly with Regional Agriculture Manager BRANCH MANAGER (Jointly with Agriculture Field Officer) EVP SVP SVP VP SVP
Backed up by tangible Security Companies Partnership Firms Soleproprietorship /Individual

40.00 20.00 10.00 8.00 5.00 5.00 3.00 2.00 0.70 40.00 20.00 10.00 8.00 5.00 5.00 3.00 2.00 0.70 40.00 20.00 10.00 8.00 5.00 5.00 3.00 2.00 0.70
HEAD OFFICE
BRANCH
VP AVP OGI
CONDITIONS
PRUDENTIAL REGULATION R-6 (MAXIMUM UNSECURED FINANCING): Maximum unsecured financing, which can be availed by a borrower, from all banks/DFIs, shall not exceed Rs. 500,000/=. In order to ensure that the prescribed limit is not breached, a written declaration shall be obtained from the borrower about unsecured facilities availed by it from other financial institutions. All exposures in excess of Rs. 500,000/= should be properly secured as defined in these Prudential Regulations (on Agriculture Financing).
Page No: 43
RESTRUCTURING RESHEDULING
SCHEDULE No: J-1

RESCHEDULING / RESTRUCTURING / SETTLEMENT / WRITE OFF / WAIVER OF ACCOUNTS TRANSFERRED TO ASSET RECOVERY GROUPS HEAD OFFICE (other than J-2)
POWERS FOR (CUSTOMER TYPE WISE) Rescheduling / Restructuring LEVEL AUTHORITY Writing Off Principal Settlement Discount Rehabilitation Rescheduling / on early Waiver of (involving no (Rescheduling / Restructuring mark-up Rescheduling Restructuring repaymen Without increase Restructuring) With increase in t of loan in Exposure Exposure
BOARD OF DIRECTORS

40.00 50.00 200.00 200.00 200.00 40.00
CREDIT COMMITTEE
HEAD OFFICE
GROUP CHIEFS COMMITTEE ( Group Chief ARG with Group Chief Credit Management* and concerned Business Group (CRBG or CIBG or AFG) jointly
20.00
30.00
50.00
50.00
*50.00
NA NA
20.00
REGIONAL OFFICE
REGIONAL HEAD, ( Jointly with GM Credit and EVP or SVP of ARG
EVP SVP
NA NA
NA NA
NA NA
NA NA
NA NA
Jointly with Credit Manager, where posted

SVP NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
BRANCHES
BRANCH MANAGER
VP AVP OGI
1 2 3
CONDITIONS
Restructuring/settlement proposals would be directly submitted before the Credit Committee as was done by the Ex-SAM Group Cases relating to C&RBG would be initiated/recommended by the concerned regions and approved by the Group Chief ARG for submission before the Credit Committee. Cases relating to C&IBG would be initiated/ recommended by the concerned Corporate Heads and approved by the Group Chief, ARG for submission before the Credit Committee.
In terms of Instruction Circular No. 86/2010 dated 16.07.2010 the above power will be applicable to settlement cases of NBP SAIBAAN and Advance Salary as well till the time separate Consumer Recovery Policy is formulated. Rehabilitation cases where exposure of the borrower is increased due to fresh and or enhancement in the present credit lines the same would be 5* directly submitted before the Credit Committee by the ARG till a cell is formed in the C&RM to exclusively deal with the ARG cases.ARG approval 6 Above stated powers are for both Consortium and Non Consortium arrangements 4
Page No: 45
SCHEDULE No: J-2

RESCHEDULING / RESTRUCTURING / SETTLEMENT / WRITE OFF / WAIVER IN LOANS OF UP TO RS. 20 M SME /COMM ACCOUNTS & ALL OTHERS ACCOUNTS NOT TRANSFERRED TO ARG
POWERS FOR (CUSTOMER TYPE WISE) Settlement Waiver of mark-up
(involving no Rescheduling Restructuring)
LEVEL
AUTHORITY
Writing Off Principal
Rescheduling/Restructuring Discount on Rehabilitation Rescheduling / early (Rescheduling / Restructuring repayment Restructuring Without increase of loan With increase in in Exposure Exposure
BOARD OF DIRECTORS

40.00 50.00 200.00 200.00 200.00 40.00
CREDIT COMMITTEE
HEAD OFFICE
GROUP CHIEFS COMMITTEE ( Group Chief ARG/ARG-SM with Group Chiefs Credit Management and concerned Business Group (CRBG) jointly) REGIONAL HEAD, ( Jointly with GM Credit and EVP / SVP of ARG) REGIONAL HEAD, (Jointly with GM Credit) EVP SVP EVP SVP SVP
20.00
30.00
50.00
50.00
*50.00
7.50 5.00 Nil Nil Nil Nil Nil Nil
Nil
7.50 5.00 2.50 1.00 Nil Nil Nil Nil
12.50 10.00 7.50 5.00 Nil Nil Nil Nil
15.00 10.00 7.50 5.00 Nil Nil Nil Nil
10.00 7.50 Nil Nil Nil Nil Nil Nil
Nil Nil Nil Nil Nil Nil Nil Nil
REGIONAL OFFICE
BRANCHES
VP AVP OGI
1 Restructuring/settlement proposals would be directly submitted before the Credit Committee as was done by the Ex-SAM Group 2 Cases relating to C&RBG would be initiated/recommended by the concerned regions and approved by the Group Chief ARG for submission before the Credit Committee. 3 Cases relating to C&IBG would be initiated/ recommended by the concerned Corporate Heads and approved by the Group Chief, ARG for submission before the Credit Committee. Rehabilitation cases where exposure of the borrower is increased due to fresh and or enhancement in the present credit lines the same would be *4 directly submitted before the Credit Committee by the ARG till a cell is formed in the C&RM to exclusively deal with the ARG cases. Till the time seperate Consumer Recovery Policy is formulated, the above stated powers are also applicable for settelment of NBP Saibaan and 5 Advance Salary loans as mentioned in Instruction Circular No. 86/2010 dated 16.07.2010. However, such powers at RO level are delegated to RH jointly with GM Credit instead of GM Business & GM Credit. 6 Above stated powers are for both Consortium and Non Consortium arrangements
CONDITIONS
Page No: 46

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CREDIT APPROVAL DISCRETIONARY POWERS

B-6 B-7 B-8 B-9

C-1 C-2 C-3 C-4

E-1 E-2 E-3

Revised vide Instruction Circular No. 41/2011

Revised vide Instruction Circular No. 41/2011

Revised vide Instruction Circular No. 41/2011

Revised vide Instruction Circular No. 41/2011

Revised vide Instruction Circular No. 41/2011

Finance Against Liquid Securities AUTHORITY

Unlimited (within Regulatory Parameters)

Unlimited (Within Regulatory Parameters)

30.00 25.00 15.00 10.00

60.00 50.00 30.00 15.00

90.00 75.00 45.00 25.00

25.00 15.00 10.00 5.00

50.00 30.00 20.00 10.00

75.00 45.00 30.00 15.00

Nil Nil Nil Nil

Nil Nil Nil Nil

Nil Nil Nil Nil

Revised vide Instruction Circular No. 41/2011

SCHEDULE No: B-1 (FINANCE AGAINST PLEDGE OF LIQUID SECURITIES)

PLEDGE OF LIQUID SECURITIES

Public Sector Enterprises

Unlimited (Within Regulatory Parameters)

REGIONAL HEAD (Jointly with GM Credit)

EVP SVP SVP

BRANCH MANAGER (Jointly with Credit Manager, where available)

Revised vide Instruction circular No. 41/2011

Unlimited (Within Regulatory Parameters) Unlimited (Within Regulatory Parameters)

EVP REGIONAL HEAD (Jointly with GM Credit) SVP

Following powers are not For TFCs

10.00 5.00 2.50 1.00

5.00 2.50 1.00 0.50

Nil Nil Nil Nil

5.00 2.50 Nil Nil

3.50 1.50 Nil Nil

1.50 0.50 Nil Nil

Revised vide Instruction Circular No. 41/2011

SCHEDULE No: B-3 FINANCE AGAINST PLEDGE OF GOODS/PRODUCE /STOCKS IN TRADE

REGIONAL HEAD (Jointly with GM Credit)

Revised vide Instruction circular No. 41/2011

Public Sector Enterprises

Unlimited (Within Regulatory Parameters) Unlimited (Within Regulatory Parameters)

REGIONAL HEAD (Jointly with GM Credit)

BRANCH MANAGER (Jointly with Credit Manager, where posted )

Revised vide Instruction circular No. 41/2011

HYPOTHECATION OF GOODS AND MACH. & RECEIVABLES)

TYPES SECONDARY SECURITY

REGIONAL HEAD (Jointly with GM Credit)

BRANCH MANAGER (Jointly with Credit Manager, where posted)

Revised vide Instruction Circular No. 41/2011

Unlimited (Within Regulatory Parameters) Unlimited (Within Regulatory Parameters)

REGIONAL HEAD** (Jointly with GM Credit)

BRANCH MANAGER (Jointly with Credit Manager, where posted)

Revised vide Instruction Circular No. 41/2011

SCHEDULE No: B-7

Public Sector Enterprises

CUSTOMER TYPE Limited Partner ship Companies Firms

Unlimited (Within Regulatory Parameters) Unlimited (Within Regulatory Parameters)

Nil Nil Nil

30.00 25.00 20.00