When a new manager assumes responsibility at a bank branch, it is crucial to undertake a comprehensive assessment of various aspects to ensure the smooth functioning of the branch. Bank branches typically have established guidelines and protocols in place for this process, and it is the manager’s duty to adhere to these guidelines. Here are the key steps that a new bank branch manager should follow when taking charge
Cash Balance at the Branch
The first and foremost duty of the manager is to reconcile the physical cash balance at the branch with the system’s records. This balance should also be compared to the branch’s cash retention limit to ensure compliance.
Example: If the system records show $100,000 in cash, the manager should count the physical cash in the vault and ensure that it also amounts to $100,000.
ATM Cash Balances
Verify the physical cash in ATMs to ensure it matches the system’s ATM cash balance. Request an ATM tally certificate from the responsible officer for documentation.
Example: If the system indicates that there should be $20,000 in the ATM, the manager should open the ATM, count the cash inside, and confirm that it matches the system’s figure of $20,000.
Checking Gold Loans
Examine the gross and net weights of gold held as collateral for loans. Ensure that loans are granted in accordance with the current market value of the gold. Address any discrepancies and take immediate action for loans that are more than 18 months old.
Example: If a customer has pledged 100 grams of gold as collateral for a loan, the manager should physically weigh the gold to ensure that it matches the borrower’s claim.
Confirm the availability of all keys essential for branch security, including strong room keys, ATM keys, cash safe keys, and main gate keys.
Example: The manager should verify that all keys, including strong room keys, ATM keys, cash safe keys, and main gate keys, are securely stored in the designated areas and can be accessed when needed.
Ensure that sealed envelopes containing duplicate keys are available at a nearby branch. Report any discrepancies in the count.
Example: If the branch’s sealed envelope containing duplicate keys is supposed to be kept at a nearby branch, the manager should confirm that the correct number of envelopes is present at the designated location.
Print a trial balance to gain insights into the branch’s financial status, including its loans and deposits portfolio.
Example: The trial balance might reveal that the branch has $2 million in loans and $1.5 million in deposits, giving an overview of the branch’s financial position.
Generate a report of non-KYC compliant accounts and report them as necessary.
Example: The manager should review a list of accounts without complete Know Your Customer (KYC) documentation and take the necessary steps to collect missing information or report the accounts.
Verify the inventory of security items such as checkbooks, demand drafts, and fixed deposit receipts, ensuring it aligns with the system’s records.
Example: The manager should physically count the number of checkbooks, demand drafts, and fixed deposit receipts to ensure they match the records.
Furniture and Fixtures
Cross-check all furniture and fixtures in the branch with the records in the inventory register.
Example: The manager should compare the inventory register with the actual furniture and fixtures in the branch, ensuring that all items are present and in good condition.
Loan Inward Register
Review the loan inward register, which includes details like application date, borrower names, sanction amounts, and approval or rejection information. This is vital for loan monitoring.
Example: The manager should review the loan inward register and ensure that all loan applications are properly documented, indicating the applicant’s name, loan amount, and approval or rejection status.
Confirm the presence of all necessary loan documents and verify their alignment with the system records.
Example: The manager should physically inspect the branch’s files to ensure that all required loan documents, such as promissory notes and collateral agreements, are present.
Manager Discretionary Power (MDP) Register
Ensure that all loans fall within the manager’s discretionary power for approval.
Example: The manager should cross-reference loan approvals with the MDP register to confirm that all loans granted were within the manager’s discretionary power.
Verify that loans adhere to the bank’s established security norms. Any deviations should be reported.
Example: If a loan was issued without the required collateral, the manager should promptly report this deviation from the established security norms.
Expired Loan Documents
Scrutinize the validity of loan documents, reporting any that have expired before assuming charge.
Example: If a loan agreement’s expiration date is due, the manager should review the agreement and, if necessary, inform the customer to renew it or take appropriate action.
Thoroughly assess inspection reports and address any outstanding issues or queries promptly.
Example: The manager should check the inspection reports to ensure that any queries or issues raised during previous inspections have been addressed.
Confirm that all tax payments have been made to the income tax department.
Example: The manager should verify that all tax payments made to the income tax department have been accurately recorded in the branch’s records.
Branch Security Items
Inspect branch security measures, including CCTV cameras, burglar alarms, and fire equipment, making sure they are up-to-date.
Example: The manager should inspect the branch’s security equipment, such as CCTV cameras, and confirm that they are functioning properly and have not reached their expiry date.
Investigate the status of accounts initiated under SARFAESI (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest) and report accordingly.
Example: The manager should review the status of accounts initiated under SARFAESI, identifying any accounts that need immediate action for recovery.
Review loans granted under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme, ensuring follow-up is carried out as needed.
Example: The manager should ensure that loans granted under the CGTMSE scheme have been correctly documented and that follow-up activities are in progress where necessary.
Always check a borrower’s creditworthiness by obtaining a CIBIL report before sanctioning any loan.
Example: Before granting a loan, the manager should request a CIBIL report for the applicant to evaluate their creditworthiness.
Address and resolve any pending complaints in the branch’s register.
Example: If the complaints register lists a customer complaint about a service issue, the manager should review the status and ensure that the complaint is resolved promptly.
Ensure that all eligible loan accounts are covered by insurance as per the bank’s policies.
Example: The manager should confirm that all eligible loan accounts have the required insurance coverage and, if not, report the issue for resolution.
Office Order Register
Review the office order register to understand the duties assigned to each staff member.
Example: The manager should use the office order register to assign staff members to their designated duties and confirm that tasks are properly allocated.
Verify that the nomination register is up-to-date and accurate.
Example: The manager should review the nomination register to confirm that it is up-to-date and accurately reflects the beneficiaries for customer accounts.
Ensure that the inventory is in balance with the system records.
Example: The manager should physically count the branch’s inventory, including stationery and office supplies, and confirm that it matches the records.
15 GH and Form 60, 61
Confirm the proper maintenance of forms 15 GH and Form 60 or 61.
Example: The manager should review forms 15 GH and Form 60 or 61 to ensure that these forms are appropriately completed and maintained as per regulatory requirements.
Pending Loan Proposals
Take swift action on pending loan proposals to ensure timely processing.
Example: The manager should identify pending loan proposals in the system, review them, and take necessary actions to move them forward in the approval process.
Suit Filed Cases
Investigate all suit filed cases in various courts and Debt Recovery Tribunals (DRTs) for the recovery of dues and initiate appropriate actions.
Example: The manager should check for all outstanding legal cases related to loan recovery, noting the status of each case and taking appropriate actions as required
Deliver any returned cheques to the respective parties with a returned memo if necessary.
Example: If a customer’s check bounces due to insufficient funds, the manager should retrieve the check and provide it to the customer with a returned check memo.
Conduct random inspections of a few loans sanctioned to ensure compliance with bank policies.
Example: The manager may randomly select a few loans from the portfolio, reviewing the loan documentation, collateral, and repayment records to ensure compliance with bank policies.
ATM Cards and PIN Mailers
Review the ATM register to confirm the status of ATM cards and PIN mailers.
Example: The manager should cross-reference the ATM register with the number of ATM cards and PIN mailers issued to customers to confirm accuracy.
Staff Leave Details
Check that all staff leave details are accurately recorded.
Example: The manager should review staff leave records and ensure that all leave requests are accurately documented, allowing for proper staff management.
Ensure that locker rent is collected as required.
Example: The manager should verify that locker rents are collected from customers, and the records match the actual collections.
Inspect computers, printers, UPS, modems, and routers, and verify the status of warranties and annual maintenance contracts.
Example: The manager should inspect the condition of computer hardware components, such as checking that computers, printers, UPS systems, modems, and routers are in good working order.
Verify the availability of software CDs.
Example: The manager should confirm the presence and integrity of software CDs to ensure that software installations and updates can be carried out effectively.
Death Claims Register
Confirm that all death claims are processed in accordance with the bank’s circulars.
Example: The manager should review the death claims register and confirm that the necessary documentation for processing claims is complete and accurate.
Review the Non-Performing Account Register and initiate necessary actions for recovery.
Example: The manager should review the Non-Performing Account Register and, if any accounts are identified as non-performing, initiate the necessary recovery actions.
Login Details and Passwords
Take possession of all login IDs and passwords in use.
Example: The manager should collect and securely store login IDs and passwords used for various systems and applications in the branch.
Statements Submitted to Controlling Office
Verify that all statements are submitted to the controlling office and confirm approval.
Example: The manager should confirm that all required financial statements, reports, and documents have been submitted to the controlling office, receiving confirmation of approval as appropriate.
Attend to any pending correspondence without delay.
Example: The manager should review the pending correspondence, including letters, emails, and documents, and address them in a timely manner to ensure smooth operations and customer service.
By diligently following these steps, a new bank branch manager can ensure a smooth transition into their role and effectively oversee the branch’s operations while complying with all relevant regulations and guidelines.