SSG GROUP

Internship Presentation
Term-IV
Strategic Solutions Group
(SSG)
Mentor: Sharad Agrawal (JGM)
Rahul Mishra
Supervisor: Rajesh Narnolia
(CM II)
Enroll
No.P301414CMG453
BAN ID: BAN64456
November 26, 2015
Content
Wholesale Banking Group (WBG)
ICICI Performance Highlights & Loan Portfolios
About Strategic Solutions Group (SSG)
Resolution Methodologies
Specific Activities and work done
Conclusion
Wholesale Banking Group

(WBG)
ICICI Performance Highlights

Advances increased by 15.2% year-on-year to Rs. 3,997.38
billion at June 30, 2015
Retail advances growth at 24.5% year-on-year at June 30,
2015
Overall domestic loan growth at 17.4%
Period-end CASA ratio at 44.1% at June 30, 2015 compared
to 43.0% at June 30, 2014
Net NPA ratio at 1.40% at June 30, 2015 , June 30, 2014:
0.87%)
Composition of loan book (Y-oY)
About SSG
Improving
asset quality and closely

monitoring exposures under stress.
Proactive action whenever required to
minimize the provisions and the losses
to the Bank.
Various
mechanisms are used for
recovery of money-
Restructuring
One Time Settlement
Reduction of exposure
Sale of assets to Asset Reconstruction Companies

(ARCs) etc.
Corporate Debt Restructuring (CDR)
Special Debt Restructuring (SDR)
Resolution Methodologies
Corrective Action Plan (CAP) under Joint
Lender Forum (JLF)

Rectification
Restructuring
Recovery
Settlement
Legal Recourse
Assignment of Debt
Strategic Debt Restructuring (SDR)
Strategy Framework for

Resolution
NPA
NPA
High
Negotiated Exit
Restructuring
Enforcement
SDR
Mgmt
quality
AUW
AUW
Lo
w
Low
Viability
Hig
h
Restructuring
A restructured account is one where the bank, for economic or

legal reasons relating to the borrower's financial difficulty,
grants to the borrower concessions that the bank would not
otherwise consider.
Normally
involves
modification
of
terms
of
the
advances/securities, may include alteration of repayment

period/repayable amount/ the amount of instalments/rate of
interest (due to reasons other than competitive reasons). The
aim is to preserve economic value of viable assets.
Lenders sign Inter Creditor Agreement (ICA) and lender and

borrower sign Debtor Credit Agreement (DCA). JLF can refer
the
borrower
to
Corporate
Debt
Restructuring
(CDR)
mechanism or restructure independently of it.
Restructuring
under
CDR
is
non-statutory,
voluntary
mechanism for restructuring.

9
CDR provides benefit of collective bargaining and equal terms
Recovery
When rectification are not seen as feasible, recovery is

resorted to.
The JLF may decide the best recovery process to be

followed, among the various legal and other options
available, to extract optimum results.
10
Settlement
Option normally explored in the case of borrowers with

lesser exposure, or when borrower is unviable for
restructuring,
or
recovery
through
legal
recourse
seems remote.
The criteria for deciding on the settlement amount

would
depend
on
the
existing
operations
of
the
company, future prospects, value of security available

to the bank and Present Value (PV) of returns.
11
Legal Recourse
This option is explored when the promoter is not cooperating,
or
where
there
are
instances
of
diversion/fraud, or when the company has ceased

operations.
The expected PV of returns through the legal route to

be assessed against any settlement offer to decide on
the further course of action.
Information about promoter and promoter assets/ other

engagements help while resorting to legal recourse.
The various means of legal recourse include Debt

Recovery Tribunals (DRT), SARFAESI, civil recovery suit,
Section 138 of the Negotiable Instruments Act, or by
declaring the borrower as a wilful defaulter.
12
SDR
Gives lenders the right to convert their outstanding loans into

a majority equity stake if the borrower fails to meet conditions
stipulated under the restructuring package.
This option must be incorporated at the time of initial

restructuring.
The decision on invoking the SDR should be taken within 30

days from the above review of the account.
Post the conversion, all lenders under the JLF must collectively
hold 51% or more of the equity shares issued by the company
The JLF must approve the SDR conversion package within 90

days from the date of deciding to undertake SDR, and this
conversion should be completed within a period of 90 days
from the date of approval of the SDR package by the JLF.
13
Specific Activities
14
One Pagers
CMA
Credit Note
Power Point Presentation
Cover Note
Express Renewal Note
CMA
Provides a basis for financial analysis of a company
Excel sheet consisting of several worksheets, with Profit and

Loss Account and Balance Sheet (with projections), Working
Capital Assessment, Cash Flow Statement, etc.
Key Financial Parameters is an important sheet, which

automatically calculates 48 ratios which give an insight into
the businesss operations
Some of the major parameters are:
Total Operating Income (TOI): Total Operating Income (TOI)

growth or de-growth can be used to determine demand
supply
scenario
for
the
companys
products/services.
Generally it should be looked into in conjunction with order

book of the company.
15
EBITDA margin: It should be compared for change over the

years and in comparison with peers
CMA (continued)
Some of the major parameters are:
Interest:
Compare
Y-o-Y
change.
If
increasing
significantly, it can mean more debt taken during

the year, capitalized interest now debited to P&L, or
large depreciation of rupee, if there are larger
foreign currency loans
Exposure to group companies: Details have to be

sought regarding proper valuation, and if it was
done
out
of
additional
equity
or
additional
borrowings.
DSCR: The higher, the better
Guarantees: How much obligation can fall due on

the parent, and whether the guaranteed amounts
16
are self-sustaining?
Credit Note
It is an exhaustive document, providing a detailed

description of the proposal.
It
contains
compliances,
details
of
business
assistance,
ROE,
description,
pending
financial
performance, proposal, and recommendations, etc. and

also contains several annexures for project details,
CMA Form V (for calculating maximum permissible bank
finance), ROE calculator, security cover, etc.
I was involved in the preparation of credit note for the

subsidiary of a real estate company to be presented to
the Credit Committee (CC)
I was also involved in the preparation of a cover note

and PPT for the same proposal
17
Express Renewal Note
Express renewal note is moved to renew

the clients limits for a period of three
months.
I was involved in the preparation of an

express renewal note for the subsidiary
of an offshore service provider offering
support services to oil exploration and
production (E&P) companies.
18
Specific Activities
One Pagers for 100 Companies
This contains background of the company, their

present status and management details.
It also contains financial details of the company

i.e. TOI, PAT, Debt etc.
Prepared
One
pagers
for
approx.
100
companies and analyze other key details of

those companies.
Adobe Acrobat
Document
19
Microsoft Excel
Worksheet
Companies Analysis
Microsoft Excel
Worksheet
20
Specific Activities
CMA
Provides a basis for financial analysis of a

company
Excel sheet consisting of several worksheets,

with Profit and Loss Account and Balance Sheet
(with projections), Working Capital Assessment,
Cash Flow Statement, etc.
Key Financial Parameters is an important

sheet, which automatically calculates 48 ratios
which
give
an
insight
Microsoft Excel
97-2003 Worksheet
operations
21
into
the
businesss
Thank
you

SSG GROUP

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Internship Presentation

November 26, 2015

Wholesale Banking Group

ICICI Performance Highlights

Composition of loan book (Y-oY)

asset quality and closely

One Time Settlement

Sale of assets to Asset Reconstruction Companies

Corporate Debt Restructuring (CDR)

Special Debt Restructuring (SDR)

Lender Forum (JLF)

Strategy Framework for

A restructured account is one where the bank, for economic or

advances/securities, may include alteration of repayment

Lenders sign Inter Creditor Agreement (ICA) and lender and

mechanism or restructure independently of it.

mechanism for restructuring.

CDR provides benefit of collective bargaining and equal terms

When rectification are not seen as feasible, recovery is

The JLF may decide the best recovery process to be

Option normally explored in the case of borrowers with

The criteria for deciding on the settlement amount

company, future prospects, value of security available

This option is explored when the promoter is not cooperating,

diversion/fraud, or when the company has ceased

The expected PV of returns through the legal route to

Information about promoter and promoter assets/ other

The various means of legal recourse include Debt

Gives lenders the right to convert their outstanding loans into

This option must be incorporated at the time of initial

The decision on invoking the SDR should be taken within 30

The JLF must approve the SDR conversion package within 90

Power Point Presentation

Express Renewal Note

Provides a basis for financial analysis of a company

Excel sheet consisting of several worksheets, with Profit and

Key Financial Parameters is an important sheet, which

Some of the major parameters are:

Total Operating Income (TOI): Total Operating Income (TOI)

Generally it should be looked into in conjunction with order

EBITDA margin: It should be compared for change over the

Some of the major parameters are:

significantly, it can mean more debt taken during

Exposure to group companies: Details have to be

DSCR: The higher, the better

Guarantees: How much obligation can fall due on

It is an exhaustive document, providing a detailed

performance, proposal, and recommendations, etc. and

I was involved in the preparation of credit note for the

I was also involved in the preparation of a cover note

Express Renewal Note

Express renewal note is moved to renew

I was involved in the preparation of an

This contains background of the company, their

It also contains financial details of the company

companies and analyze other key details of

Provides a basis for financial analysis of a

Excel sheet consisting of several worksheets,