1. Interpretation
In these policy guidelines, unless there is anything repugnant to the subject or context:
| 1.1 |
“Corporation” means JAMMU AND KASHMIR DEVELOPMENT FINANCE CORPORATION LIMITED. |
| 1.2 |
“Tender Opening Committee” means the committee constituted specifically for the purpose of opening offers received from the Banks. |
| 1.3 |
“Short Term Investment” means investment to be made for a period of less than and equal to 366 days as elucidated in the Para 2. |
| 1.4 |
“Bank” means all nationalized banks, State Bank of India & its Associate Banks. |
2. Periodicity
| 2.1 |
upto 45 days; |
| 2.2 |
upto to 90 days; |
| 2.3 |
upto 180 days; |
| 2.4 |
upto 366 days; |
3. Criteria for selection of Banks
| 3.1 |
CAR as per RBI norms; |
| 3.2 |
Net NPA not to exceed 3%; |
| 3.3 |
Net profit for three consecutive years; |
| 3.4 |
No cumulative losses; |
4. Procedure
| 4.1 |
Assessment of surplus funds shall be made on monthly basis i.e. on the first of each calendar month; |
| 4.2 |
The quotations should be addressed to the Managing Director of the Corporation; |
| 4.3 |
The quotations shall be received from banks in a sealed cover and no quotation per fax or in open envelope shall be entertained. However, in case of emergency, offers can be obtained over fax/phone; |
| 4.4 |
Quotes with over writings/cuttings shall be rejected out rightly; |
| 4.5 |
Rates should be quoted both in words & figures. The decimal points, if any, forming the part of the rate, shall not exceed two decimals and must be in multiples of 5; |
| 4.6 |
Quotes with a validity period less/more than the offer period & amount of investment less/more than the offered one shall be out rightly rejected; |
| 4.7 |
The quotations shall be opened by the tender opening committee to be constituted by the Managing Director on the scheduled date and time in presence of Bankers who wish to be present; |
| 4.8 |
The quotations shall be entered in a register maintained therefor and all the members of the committee shall sign the register; |
| 4.9 |
Negotiations for enhancement of the interest rate over and above the quoted rate can be held only with the bank quoting highest OR with the banks which have quoted the first & second highest; |
| 4.10 |
In case of a tie, the decision of the committee shall be binding; |
| 4.11 |
There shall be no investment limit in any particular Bank. |
 |
|
No.
Dated:
To
___________
(Empanelled Banks)
Dear Sir
Sub: Regarding Investment of Surplus Funds
We are interested in deploying surplus funds of Rs. __________ approximately. We request you to quote the Best Interest Rate that you are willing to pay on our deposits (with quarterly compounding) for the following periods:-
Period
Up to 45 days
46 days to 90 days
91 days to180 days
181 days to less than one year
366 days
Term and Conditions
1) Please send a copy of latest Audited Annual Accounts and the latest quarterly published financial statements (if not already sent).
2) The rate quoted should be in two decimal points and in multiples of 5. The rates quoted shall remain firm ____date (3 days) from the date of receipt of the quotation and shall no be withdrawn and /or amended before that date. In case quote is withdrawn, you will not be permitted to participate in the future quotes for a period of three months. J&K DFC Ltd.shall have the right for limit of investment with different banks and your bank shall have no discretion to challenge the authority of the J&KDFC Ltd.for having fixing such limits.
Your offer addressed to the undersigned should be sent in a seal cover or by fax before 1:00 PM and ______dated. The quotation received after the schedule time will not be considered. The offers received from empanelled banks will be opened at 1:30 PM on _____ and decision will be taken regarding placement of funds.
Yours truly
Authorized Officer/ Signatory
From
___________ (Name of Bank)
To
The Managing Director
J&K Development Finance Corporation Ltd.,
24-A , IInd Extension,
Gandhi Nagar, Jammu.
Dear Sir,
Subject: Quotations of Interest Rates.
In response to your communication No. ________dated ______, we have pleasure in quoting our Special Rates for J&K DFC as under:-
Period Rates (with quarterly compounding)
upto 45 days
46 days to 90 days
91days to 180 days
181 days to less than one year
upto 366 days
We hereby confirm that no broker is involved in submitting this quotation of interest rates and that J&K DFC Ltd. shall have the liberty to place the funds with any bank at its own sole discretion. We confirm that our latest position of Capital Adequacy Ratio (CAR) and Non- Performing Assets (NPAs) is as under.
a) CAR (Percentage) ____as on ___
b) NPAs (Percentage) ____as on ___
We also agree to make the Payment / Repayment of the Term Deposits for the purpose of quick clearing by SBI cheques only.
This offer will be valid upto _____date _____time.
J&KDFC shall have the right to limit the investment on bank as per their own policy irrespective of the rate of interest quoted by us and we hereby undertake that we shall not challenge the discretion of J&K DFC in this regard.
Yours faithfully,
Authorized Officer/ Signatory
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