Area Sales Head – SME EM – Chandigarh Full Time

The purpose of this job is:

• To set business objectives for the branch & geographic region covered by the branch in line with the mortgage business unit objectives of book size, profitability, MIS & portfolio management, team building etc.
• To own the P&L for the branch in terms of % contribution, NII, campaign/ marketing activity spends, fees, direct sourcing, distribution payments and risk- return parameters
• To devise business strategy for area wise achievement of business objectives in terms of product mix [LAP/ LRD/ HL] and channel/distribution mix.
• To ensure end to end management of sales operations transactions by driving superior product delivery and enhancing financial knowledge of RMs/ SRMs
• To monitor and control credit quality of new acquisitions by driving strong due diligence mechanisms and emphasizing post sanction surveillance through strong customer/ distributor relationship management
• To hire, develop, motivate and retain RMs/ SRMs and support them in conversion of complex cases, distributor rate negotiations etc

To act as a point of escalation for early warning signals for potential NPAs and probable fraudulent cases

Job Context & Major Challenges

As the debt arm of Aditya Birla Financial Services Group (ABFSG), Aditya Birla Finance Limited (ABFL) offers specialized lending and financing solutions in the areas of Capital Markets, Corporate/ Trade Finance, Commercial Real Estate and Mortgages. Currently ranked within the top 25 NBFCs of India, we have made significant progress and our balance sheet at INR 15,000 Cr plus exceeds that of several mid-sized Banks and NBFCs.

A well established brand and top 3 player in the Capital Markets space, today our product suite comprises of a well-diversified look, with equal weightage and focus given to the 3 lines of business. Having seen a y.o.y cumulative growth of 50% in both top-line and bottom line, sustainable profitability continues to be the key management agenda.

The company has a well-defined vision of being one of the most reputed and material financiers within the lending space – spread across both retail HNI and corporate clientele. We have made significant investments in our process and system infrastructure towards preparing for the next level of growth and are one of the only financial entities certified for ISO 9001:2008 across all our business processes. Spread across 18 cities, we plan on further diversifying our risk and revenue mix through expansion into new geographies and new product segments allowing our customers a one-window shop for all their financing needs.

Mortgage lending encompasses a wide variety of financing solutions for clients, ranging from vanilla Home Loans and Loan against property, to more complex Lease Rental discounting, Commercial Purchase and Construction Finance lending. Financing solutions are provided to Self-Employed [professionals/ non-professionals/ salaried] against a wide array of lending programs, each of which aims to estimate the client’s repayment capability accurately before the company to take an exposure. The lending program requires assessing clients on various dimensions, including income, repayment behaviour, stability of income/ residence, profile, collateral [valuation, marketability], ownership structure of business and the property and many others.

Loan approvals entail a good mix of profile checks, balance sheet lending and collateral assessment. An in-depth understanding of the customer’s business model, customers & suppliers, success factors and dependencies needs to be taken into account given these are long term exposures [ranging upto 15 – 20 years]. The financials are assessed to understand the repayment capability in the near and long term. Collateral assessment is another complex part of the underwriting process involving checking the structural stability, marketability, valuation, regulatory / local body compliance and legal veracity – all to ensure the property can be liquidated to repay the loan if required in case of customer default.

Lending is often structured to meet the client needs by deriving comfort through the hard collateral [can be a ready or under-construction property / project] and cash flows [in form of rentals, or project cash-flows – both against sold/ unsold receivables].

In construction finance, underwriting focuses not on the balance sheet but significantly on the project and the promoter group. Assessment here involves understanding the previous track record of the builder in terms of quality and timeliness of completion, saleability of projects, track record with other lenders and no. of projects delivered in the past. Project monitoring and end use of funds disbursed are critical here given risks around funds being used elsewhere, sale receivables not coming to the lender as a repayment and so on. Prudent customer selection is critical and is highly dependent on a relationship manager’s market awareness and client background information.

Being one of the most preferred asset classes in the lending space today lends this business the immense challenge of competing with all FIs / banks in a highly price sensitive target segment.

In construction finance, underwriting focuses not on the balance sheet but significantly on the project and the promoter group. Assessment here involves understanding the previous track record of the builder in terms of quality and timeliness of completion, saleability of projects, track record with other lenders and no. of projects delivered in the past. Project monitoring and end use of funds disbursed are critical here given risks around funds being used elsewhere, sale receivables not coming to the lender as a repayment and so on. Prudent customer selection is critical and is highly dependent on a relationship manager’s market awareness and client background information.

Being one of the most preferred asset classes in the lending space today lends this business the immense challenge of competing with all FIs / banks in a highly price sensitive target segment.

Job Context

Key Aspects

• Mortgage function added as most recent line of business to ABFL in 2011, caters to the short term and long term funding needs of the Institutional as well as retail clients across the country. The product portfolio includes Loan against property, Lease rental discounting, home loans disbursements, etc
• Late entry into a highly competitive and commoditized market
• While unit of sizing up the business is its loan book size, the mortgage function has been tasked with profitability and zero delinquency as key objectives
• Market has displayed a high dependence on distributors historically for sales. Distributors not tied agents.
• Target customers largely from the self employed category, making regional/ local variables central to customer’s decision making
• Business cycles follow real estate market fluctuations, although Tier 1 cities are least impacted as a result
• Product associated with high emotional value [property]. Relationship management key to procuring business and post sanction surveillance of loans.
• Strong understanding of business finance, loan structuring methods and credit administration key to building credibility with customers and gaining competitive advantage
• Understanding of local regional market characteristics such as region specific occupations/trade, local financial and investment preferences and practices important to gain competitive advantage while structuring loans.

Key Challenges

• To ensure a branch strategy that is differentiated and innovative and that can withstand competitive pressures
• To maintain a healthy P&L for the branch
• To constantly upgrade financial know how of self, team members and channel partners on loan structuring methods and business financials in order to build credibility with customers
• To keep abreast with the latest market trends and local market preferences and needs
• To ensure conversion percentages are high despite a highly competitive and commoditized market
• To ensure credit quality through strong due diligence and tight controls
• Recruitment of mortgage sales specialists across levels in the team and getting them oriented for corporate mortgage lending.
• To enable RMs/ SRMs to build meaningful and long term partnerships [ Customer/ Channel Partner]
• To enable DSAs to increase product sales while simultaneously maintaining control of the sales distribution outcomes with self

To ensure compliant sales operations despite sales pressures and market cycles

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)- Maximum 10 KRAs can be updated

Key Result Areas

Supporting Actions

Branch Sales

& Market

Penetration

Management

• Defines the branch strategy to drives sales and achievement of targets in terms of product mix, customer segments, channel/ distributor mix and budgets for marketing/ lead generation initiatives.
• Sets business targets for self and RMs/ SRMs in the team and works towards achievement of the same
• Identifies business growth opportunities in the region in terms of channel partners and key customer segments and directs RMs/ SRMs towards tapping these opportunities
• Engages with Channel partners, DSAs and other distributors to understand the proposals submitted and extract critical supporting documentation.
• Increases branch revenues through strong focus on cross-selling initiatives & innovative product mixes.
• Enables and drives contests/marketing campaigns to spread brand and product awareness and expand business volumes for the branch
• Monitors and achieves target book size through the above activities

Branch

Profitability

Management

• Ensures achievement of branch book size, revenues, NII & PF targets from direct / channel sales by aligning sales actions with branch business strategy
• Maximizes profits by ensuring targeted fee income & effective cost management
• Ensures branch budgets are adhered to and optimally utilized for maximum returns

Distribution

Expansion

Operations

• Monitors local market trends and competitive offerings & identifies opportunities for distribution expansion for the branch
• Engages regularly with key channel partners & develops consistent touch points with them to enable quicker and better customer connectivity
• Devises a strategy to enable branch channel partners through knowledge sharing via engagement programs & sales training, in order to build long term partnerships and capabilities
• Monitors SLAs & sales efficiencies of channels & ROI of channels
• Effectively deploys schemes & prioritize sales of high revenue products/ structures through distribution network

Branch

Customer

Servicing &

Relationship

Management

• Monitors client servicing metrics for the branch and sets standards for the same. Mentors and develops RMs/ SRMs to achieve client centricity in their interactions
• Supports RMs/ SRMs in moving exception cases through the credit risk team within regulatory and compliance guidelines
• Identifies and implements market best practices for enhancing operational efficiency, productivity and customer satisfaction across branch operations
• Enables RMs/ SRMs to develop strong client relationships in order to carry out pre sanction due diligence/ post sanction surveillance from a de-risking perspective

Branch Sales

Operations &

Internal

Compliance

• Drives faster TATs on deal closures, tighter due diligence & compliant operations to improve branch operations metrics
• Shares policy inputs and updates based on market intelligence of the region/ market dynamics with relevant internal stakeholders
• Recommends process changes/improvements to enhance operational efficiencies and strengthen process controls
• Supports branch audit activities and addresses observations , if any, with appropriate levels of urgency
• Acts as a point of escalation on delinquent cases/ potential NPAs and closely monitors these through the team for collection dues.

Branch Sales

MIS &

Reporting

• Ensures all branch sales metrics are shared and reported in a timely, accurate and compliant manner to the RSM/ ARSM and Business Analyst- Mortgages
• Monitors discrepancies/ variances in reporting and ensures they are corrected and reconciled with actual target achievement numbers
• Leverages sales MIS to track branch progress against targets on Book size, NII and PF and overall P&L

People

Management

• Evaluates Branch manpower plans & ensure effective retention through developing performance linked incentive structures
• Oversees sourcing, recruitment, on-boarding and capability development of team members to drive productivity
• Guides RMs/ SRMs for better customer acquisition, retention & helps them achieve superior outcomes by setting performance standards
• Trains RMs/ SRMs on product structuring and business finance to enable greater customer connect and increase the perception of their credibility as financial advisors/ representatives
• Ensures optimal work allocation within the branch team and drives accountability for results

Job Purpose Of Direct Reports

RM

To effectively contribute towards building the asset of the Mortgages Division by marketing/ selling targeted Home Loan products and solutions to potential and existing customers at targeted yields. Ensure client and channel acquisition through effective networking, organizing local area programs, direct builder network and cross selling through group systems (ABMM/ABG group companies).

SRM

• To effectively contribute towards building the Mortgages line of business and loan book by marketing/ selling all products (LAP/LRD/HL) and solutions to potential and existing customers at targeted yields and fee through a strong distribution network
• To strengthen the distribution network through the identification, empanelment and activation of able DSAs through knowledge sharing and capability building
• To ensure client and channel acquisition through effective networking, organizing local area programs, direct builder network, cross-selling through group (ABG group companies)
• To establish and nurture strong customer relationships through effective customer management and relationships building measures and techniques
• To leverage an understanding of local markets and preferences and facilitate structuring of loans in accordance
• To ensure all necessary due diligence is conducted to prevent fraudulent loans and ensure all sales processes are carried out in keeping with internal and regulatory guidelines,