Vinu: Manu, once a loan is sanctioned, what should a banker actually track every month?

Manu: Three things—account conduct, cash flow behaviour, and compliance with sanction terms.

Vinu: Let’s start with account conduct. What do you look for?

Manu: Regular credits, no frequent overdrawings, and no cheque returns. If a borrower with ₹50 lakh limit is continuously overdrawn, stress is already visible.

Vinu: What is the next important check?

Manu: Turnover in the account. If the sanctioned assessment is based on ₹6 crore annual sales but monthly credits are only ₹20 lakh, routing discipline is weak.

Vinu: How do stock statements help monthly monitoring?

Manu: They determine drawing power. Sudden increase in stock from ₹80 lakh to ₹1.6 crore without matching sales is a warning signal.

Vinu: Do you review debtors also?

Manu:  Yes. Rising receivables and delayed collections directly affect cash flow and EMI servicing.

Vinu: What about term loan accounts?

Manu: Track EMI regularity and cash surplus. If the unit earns but still delays a ₹3 lakh EMI, cash leakage is likely.

Vinu: Are GST and other returns useful in monitoring?

Manu: Very useful. GST turnover must broadly match sales and bank credits. Mismatch indicates either suppression or diversion.

Vinu: How important is covenant and document compliance?

Manu: Critical. Delayed submission of statements, renewal papers, or insurance often reflects poor financial discipline.

Vinu: Any early warning signs bankers should never ignore?

Manu: Frequent ad-hoc limit requests, repeated cheque returns, delayed data submission, and falling account turnover.

Vinu: Final takeaway for branch bankers?

Manu: Sanction creates exposure. Monthly monitoring protects the bank.

Vinu: That makes post-sanction work very clear.

Manu: Strong monitoring prevents good accounts from becoming NPAs.

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