Area Credit Head – SME Retail Full Time NEW

Business

Financial Services

Unit

Aditya Birla Capital Ltd.

Location

Pan India

Poornata Position Number of the job

Reports to: Poornata Position Number

Poornata Position Title of the job

Area Credit Manager – Mortgages Risk

Reports to: Poornata Position Title

Regional Credit Head – Mortgage

Function

Credit, Risk and Compliance

Reports to: Function

Credit

Department

Credit, Risk and Compliance

Reports to: Department

Mortgage

Designation of the Employee

Area Credit Manager – Mortgages Risk

Designation of the Manager

Regional Credit Head – Mortgage

Date of writing/ Updation of JD

2 nd April 2021

• Job Purpose: Write the purpose for which the job exists (in 2-3 lines) (Max 1325 Characters)

To undertake critical review of the credit proposals logged in with a view to especially bringing out the industry, business, financial, management and facility structure risk contained in the credit proposal. The role needs to bring out the collateral and other credit risk mitigation to facilitate the approving authority to take decision on the credit proposal. The role is critical in enabling quick turnaround of credit lending proposals for the Mortgage business comprising of Loan against Property, Lease Rent Discounting, Construction Finance and Home Loan business in close liaison with the sales team.

• Dimensions: Mention quantitative or qualitative parameters that are relevant for the job and provide a better understanding of the scope and scale of the job.

Business Workforce Number

Unit Workforce Number

Function Workforce Number

Department Workforce Number

Other Quantitative and Important Parameters for the job: Budgets/ Volumes/No. of Products/Geography/ Markets/ Customers or any other parameter

• Job Context & Major Challenges: Write the specific aspects of the job that provide a challenge (internal and external) to the jobholder in the context of the Business/Unit/Function/Department/Section

Organization Context

Aditya Birla Finance Limited (“ABFL”) is a lending subsidiary of Aditya Birla Capital Limited. ABFL is registered with RBI as a Systematically Important Non-Deposit accepting Non-Banking Finance Company (NBFC). ABFL is one of the top private diversified NBFCs in India. As of 31-Dec’20, ABFL has a pan-India presence with 91 branches and a lending book of Rs. 45,560 Crores.

ABFL offers end-to-end lending solutions to a diverse set of customers – Retail, HNI, MSMEs, and Mid & Large Corporates through secured as well as unsecured loan products. The diverse range of lending products includes Retail Small Ticket Secured and Unsecured Loans, Unsecured Personal Loans, Unsecured Business Loans, Health & Education Loans, Digital B2B2C and B2B2B Small Ticket Loans, Small Business Secured Loans, Loans Against Property (LAP), Lease Rental Discounting (LRD), Construction Finance (to Real Estate Developers), SME Loans, Capital Markets Loans (Loan Against Shares), Supply Chain Finance, Mid and Large Corporate Loans, and Infrastructure Finance loans. ABFL also has a Wealth Management division.

ABFL is rated “AAA” by India Ratings, ICRA and CARE (reaffirmed in 2020). ABFL secured the ABG Business Excellence Award in 2017 (Silver), and 2015 (Bronze), and multiple other Awards on forums like CII.

• Key Result Areas: Write the key results expected from the job and the supporting actions for each of these key result areas (For a majority of jobs typically there could be 4- 7 key result areas)

Key Result Areas

Supporting Actions

To Assess and conduct detailed credit analysis & evaluation of lending proposals for approval / decision at the local level or further recommendation for approval/ decision at the Regional / National / Credit Committee levels

• To scrutinize the credit proposals by analyzing the client creditworthiness, business strength, market credibility, Financial statements, Income Tax returns, cash flow statements, repayment track record, average bank balance & adherence to other internal credit norms
• To perform direct and thorough investigation and obtain relevant credit information through personal interaction with customer.
• To undertake detailed external research and market feedback including banker, Suppliers, customers on the loan proposal and evaluate the proposal in accordance
• To interact with the Legal and Technical agencies to ensure that property risk have been understood and mitigated.
• To submit Credit Appraisal Memo to the Regional Credit Manager for each proposal highlighting the key risks associated with the borrower to enable a prudent credit lending decision.
• Ensuring no loss of revenue – by issuing proper sanction letter as per approvals are being issued, capturing the right deviation while assessing the case
• To ensure document execution from RMs & the handover of complete documentation to MOG for disbursement of loans. Ensuring proper mortgage is created in favour of ABFL. Ensuring the underlying security mortgaged is marketable and having a clear title.
• Significant Credit Delegation and deviation authority. Area Credit Manager have the financial delegation of up to 1.50 Crs.
• Introduction of high risk products like funding on industrial, warehouse and Plots properties as well as significant increase in the threshold limits of non-income base surrogate products which make experience and required skill set of person handling the portfolio extremely critical. This is unlike many banks and NBFCs which are into pure residential and commercial completed properties only.

To monitor the existing portfolios based on designed formats and parameters

• To monitor the Mortgages portfolio performance by continual analysis of changes in fundamentals & reviewing the ratings change, analyze covenants for deviations and evaluate industry performance norms in that sector
• To monitor the overdue position and take appropriate steps to support the recovery process for the same.
• Follow up for the pending OTC and PDD documents for the location, Critical review of the pending documents.
• Monitoring and keeping an eye on loans by tracking various covenants and monitoring sanction condition put in the proposals at the time of approvals.
• To maintain network with other financial institutions and able to take independent local industry references for customers if required
• With increased delinquency and stressed levels, requirement of driving consistent monitoring of the accounts has increased the complexity of the role. Area Credit Manager and his team below plays important role in overall framework of monitoring policy whether it is identification of stressed accounts or timely exit of identified stressed account. Risk Team along with collection and business is equally responsible for resolution of delinquent account and it is critical part of their KRAs. June 2017 ending mortgage Portfolio (Ticket Size below 25 Crs and Construction finance cases) is INR 4200 Crs with average ticket Size of INR 3 Crs. Every 10 accounts going delinquent increases delinquency by 70 Basis point in the given portfolio.

To adhere to compliance policies in proposal evaluation

• To ensure that each proposal complies with credit policies; internal & external norms of lending
• To be involved in continual revision of credit norms by giving requisite inputs to the management
• To support development of new credit policies and evaluation norms

To ensure compliance with robust documentation mechanism

• To maintain thorough documentation process for effective tracking of proposal documents and TAT monitoring

To prepare regular MIS for areas under risk management and give presentation to various stakeholders

• To prepare MIS & trend charts on portfolio progress/variances/defaults for all the loans during their credit life cycle & send them to the team leader/CRO

Process Management

• Ensuring that end to end processes are followed as per the SOPs as defined for Mortgages at the local assessment level
• Ensuring proper distributor network is being followed – to avoid future fraud’s
• Continuous improvement in credit approval process to meet the dynamic business needs and instituting mechanisms for adherence of risk associated with the product s, safety of financed amount and customer satisfaction.
• Proper capturing of data in the requisite system to ensure proper MIS generation for business decisions
• Training implementation for Local Credit Process team, Sales team on product, processes, legal and technical aspects.
• Handling customer escalations and complaints during and post disbursements – replies to mailers, correspondences with co-ordination with the legal team

Team Management

• Managing the Credit Analyst to ensure that TAT, Process and Credit Quality are adhered to.
• Managing team of CPAs to ensure that TAT, Process and Credit Quality are adhered to.

The role also includes training and nurturing CPA’s. Training in underwriting, legal and technical. Coordinating with internal teams in case of structured transactions.

Vendor Management

• Identifying and recommendation for Appointment of vendors at local levels including valuation, legal, Field Investigation Agencies, Fraud Containment Agencies.
• Managing TAT with various vendors – a) Field investigation, b) Lawyers, c) Technical Valuers, d) RCU agency to ensure Customer Delight
• Regular Training and reviewing the performance of the vendors with regular interaction and keeping eye on the other financial institution association.
• Job Purpose of Direct Reports: Describe the job purpose of the direct report/s to the job (in 2-3 lines for each report)

NA

• Relationships: Describe the nature and purpose of most important contacts or relationship (except superior/team members) with individuals, departments, organizations inside and outside of the organization, that job is required to interact with in order to deliver the job objectives

Relationship Type Frequency Nature

Internal

• Head Credit, Risk & compliance
• Regional Credit Manager Mortgages
• Credit Analyst / CPA
• Sales team
• Operations dept
• Other support functions
• Weekly
• Daily
• Daily
• Daily
• Daily
• MIS, intimation in cases requiring management intervention
• Recommendations on loans, ongoing portfolio/client reviews, documentation audits
• MIS, intimation on major shortfall/skips/defaults in portfolios
• Client servicing issues, Mortgage creation, Disbursal completion
• Business discussions for smooth operations

External

Nature

• Clients
• Auditors/ Lawyers/ Valuers/ FI & Fraud Containment Agencies
• All proposal daily/ alternate day

Need based

Daily

• CRM & Proposal discussions, understanding the market pulse, Review Meetings and Collection Meetings
• CRM, understanding the market pulse of new initiatives etc
• Ensuring proper Credit and Business discussions for smooth operations
• Organizational Relationships: Provide the structure for a level above and below the position for which this job description is written. Use position titles in the structured and indicate all the reports of the position.