Important Announcement
C & I, SIB & AGL Segments
C&I, SIB & AGL SEGMENTS (OTHER THAN "P" SEGMENT) (No Change)
ITEM NO. PENAL INTEREST
(i) Cash Credit Limits:
Irregularity in cash credit account
Continuously irregular for a period beyond 60 days – 2 % on the entire outstanding. In other cases – 2 % on the irregular portion.
(ii) Non-Submission of stock statement 1.5 % for the month if the stock statement is not submitted within the stipulated period.
(iii) Non-submission of renewal data 2% for the delay beyond 3 months from the date renewal was due.
(iv) Non-compliance with covenants 2% on entir outstanding.
(v) TERM LOANS :-
(a) Non-payment of interest/instalment
2% on the entire outstanding for the period of default.
  (b) Cross-default * 2% on the entire outstanding for the period of default.
  ( c) Adverse deviation by more than 20% from stipulated level I respect of any two of the following items :-
CURRENT RATIO, TOL/TNW, INTEREST COVERAGE RATIO
1.5% for the period of non-adherence for a minimum period of 1 year.
• Submission of stock statements – delay beyond 10 days of the succeeding month to be considered as non-submission.
• The aggregate penal interest on account of non-compliance not to exceed 3% in aggregate.
• Sick units under rehabilitation and non-compliance on account of natural calamities/extraneous reasons-Penal interest not to be levied.
* What Does Cross Default Mean?
A provision in a loan agreement that puts the borrower in default, if the borrower defaults on another obligation.