Bank guarantee (BG) is used to strengthen and/or secure an obligation under a commercial contract. Customers can apply to the Bank to issue BG in favour of a Beneficiary. After examining and approving the application, the bank executes an agreement with the customer with the required terms and conditions. The bank will then issue the guarantee.
Financial Guarantees, Performance Guarantees and Deffered Payment Guarantees are provided to eligible customers
Financial Guarantee is in lieu of monetary obligations and Performance guarantee is in respect of performance of a contract
Deferred payment guarantee is provided when the guarantee is backed by adequate tangible security or by counter guarantees of Central or State Governments, public sector financial institutions or other companies
All Corporates having turnover of Rs.500 Crores and above.
Guarantees issued on behalf of Joint stock companies should be supported by appropriate resolution of the Board of the directors of the company.
Hypothecation / extension of Hypothecation charge over the underlying current assets.
Second charge on fixed assets and or hypothecation of machinery / assets.
Additional tangible security such as immovable properties / bank deposits etc.
Personal guarantee of proprietors / partners / promoters