Bank of baroda

Latest Credit Rating
Interval
AAA
Half yearly basis
AA or A
Quarterly basis
BBB or below
Bi-monthly basis
Furthermore, we also conduct on-site audits of stock and book debts of such borrowers. Frequently, chartered accountants
are employed to ensure that all stock audit work is satisfactory and complies with generally accepted accounting principles.
In commercial credit facilities where the security offered is fixed assets, the security will be inspected half-yearly during
January and July. In the case of commercial credit facilities issued pursuant to a consortium agreement, the security will
be inspected periodically as fixed by the consortium.
In our retail lending schemes, the frequency of inspection of securities is dependent on the type of credit product. In the
case of Housing Loan products, we require inspection of the collateral security offered at every disbursement of funds,
and thereafter once every three years. In the case of overdraft products that are granted against property, we require
inspection of the collateral security initially at the time of disbursement of funds, and thereafter annually. Security for
Baroda Two-Wheelers/Car Loan products are inspected annually and security for Baroda Traders’ Loan products are
inspected every 10 months. In the case of Baroda Professionals products, we require an inspection of the security once
every 10 months.
In addition to inspection of securities, we also require the manager of the relevant office which sanctioned and granted
any credit facilities to meet personally with the borrower at least once a year to review their credit terms and conditions.
End-use of Funds Compliance Review
We have constituted a Slippage Prevention Task Force (SPTF) whose members work on a continuous basis to ensure
that all of our credit exposures are effectively managed. In particular, SPTF members maintain a database that tracks any
credit accounts in excess of Rs. 10 million that may lead to unnecessary adverse exposures by ensuring that any funds
disbursed by us are used pursuant to the terms and conditions of the credit facility.
By ensuring that funds disbursed are only used pursuant to the terms and conditions of any sanctioned credit facility, we
believe that any credit risks we face will be well managed and effectively controlled.
Regular Audit
We have established a credit audit wing within our central audit and inspection department with the objective to improve
the quality of our credit portfolio, review credit facility approval procedures and compliance, provide feedback on effective
regulatory compliance, as well as to independently review our credit risk assessment mechanisms and provide
recommendations to improve our risk management capabilities.
Our credit audit wing conducts credit audits of all eligible credit sanctions within the six months after the credit facilities
have been sanctioned. At the conclusion of such audits, a credit audit report shall be presented to the branch and
regional office to ensure that credit risks are understood and managed throughout our corporate structure and management
team.