Area Credit Manager

Business

Financial Services HO

Unit

Aditya Birla Finance Limited

Location

Chennai

Poornata Position Number of the job 

NA

Reports to: Poornata Position Number

00115102

Poornata Position Title of the job (30 characters max)

Area Credit Manager

Reports to: Poornata Position Title

Regional Credit Manager 

Function

Risk Management & Compliance

Reports to: Function 

Risk – Mortgages

Department

Risk – Mortgages

Reports to: Department 

Risk – Mortgages

Designation of the Employee 

Area Credit Manager

Designation of the Manager  

Regional Credit Manager

Date of writing/updation of JD

24^th Sep 2021

To recommend proposals to RCM, ZCM, NRM, Credit Committee for decision on the case.

To manage CPAs, Legal agencies, Technical agencies & verification agencies to facilitate the quick turnaround of credit lending proposals.

The key responsibilities include initial screening of the proposal, thorough preparation appraisal of credit proposals with the required due diligence; co-ordination with the sales team for resolution of credit and risk concerns, maintaining Turn Around Time (TAT); interfacing with the Sales team,External agencies (legal, Technical, verification) &Regional Credit Manager for faster decisions; Assist business functions and Sr. Credit Analyst for decision of the case.

2) 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
 (Max 254 Characters)  

Unit Workforce Number
 (Max 254 Characters)  

Function Workforce Number  
 (Max 254 Characters)  

Department Workforce Number  
 (Max 254 Characters)  

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

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.

The Risk and Compliance function is engaged in evaluating the creditworthiness of the loan applications for CMG, CFG, SME and Mortgage lending divisions considering the quantitative & qualitative factors like ownership, size & market presence of the client business, capital adequacy, collateral quality, earnings quality, liquidity, management quality & client credibility & adherence to statutory requirements.

The Risk & Compliance is engaged in formulating credit risk policies for all ABFL businesses, carries out risk assessment of credit proposals, obtains credit decisions from Credit Committees, monitors credit exposure and carries out recovery of over dues. It formulates risk policies in association with Central Risk, ABFSG for overall risk management in ABFL. 

Credit / Loan proposals prepared by Business Credit team are critically analyzed from credit risk perspective and the proposals along with Risk Assessment Sheet are put upto to Credit Committee for approval. While carrying out critical evaluation of the credit proposal the function also carries out evaluation of the risk mitigants in the credit proposal like the nature and the quality of the collateral, adequacy of the collateral, acceptability of the collateral given the regulatory and the compliance needs.

The Risk & Compliance function carries out monitoring of client wise exposure and portfolio exposure to identify ‘early warning signals’ of stress and to minimize NPAs. Currently monitoring is done in association with Business Teams as RMG does not have presence at Branch level. It carries out over due loan recovery from defaulting clients in coordination with Business Teams. 

The Mortgage Lending Division 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, Construction Finance, Structured Finance & Real Estate Investment products (NCDs).

The Risk and Compliance function is engaged in evaluating the creditworthiness of the loan applications for CMG, CFD, SME and Mortgage lending divisions considering the quantitative & qualitative factors like ownership, size & market presence of the client business, capital adequacy, collateral quality, earnings quality, liquidity, management quality & client credibility & adherence to statutory requirements

Both risk and credit functions are combined in the Mortgage product and are performed by the same team of credit analysts across all locations which not only includes Independent assessment of Credit and risks associated with proposal but also identifying & accepting the mitigants for going ahead with the transaction. 

Loan proposals are critically analyzed from credit risk& property risk perspective for further decision at the local / Regional / National levels within the respective authorities & recommended to the Credit Committee for approval if beyond purview of the respective authorities.

Credit Risk & compliance carries out monitoring of client wise exposure and portfolio exposure to identify ‘early warning signals’ of stress and to minimize NPAs.     It also carries out over due loan recovery from defaulting clients in coordination with Business Teams. 

The Credit Analyst is an integral part of the Risk & complianceand is responsible for analyzing the proposal with the required due diligence and to ensure that all information required to take a credit decision is captured in the proposal. The analyst is also responsible to ensure that proposals are compliant with all the norms of credit policy, RBI regulations and other statutory regulations. He/she has to maintain stipulated TAT in credit appraisal process and is also responsible for keeping update on the various changes in economic scenario, sectors, etc., co-ordination with sales team for faster decisions to improvise TATs of the overall sanction process.

The Credit Analyst also manages  CPAs who do the processing and the basic data entry of the files & he also has to liaise with the verification agencies, technical agencies and Legal agencies to ensure that the property risk & customer risks are managed.

The major challenges to this profile include 

• Availability of data and information for exhaustive credit appraisals as each of the proposals has their respective structuring complexities as per the customer, product & regulatory requirements.
• Ensuring faster TATs in a highly competitive & dynamic market conditions and scale of operations due to voluminous retail transactions as well as structured high value deals.
• Liasing with external agencies (legal, Technical, verification) to ensure that crdit risk, customer risk & property risk are all mitigated.
• Cross functional coordination to enable timely approval of credit proposals.
• Pro- active monitoring and regularization of sticky accounts as well as pending documents.
• Self updation on economic / sectoral changes in the economy
• Seamless co-ordination with multiple internal and external entities

The critical skill sets are a strong analytical acumen, evaluation skills, detail orientation & decision making skills, initiative & target orientation & market intelligence developed through a strong industry network.   

Profile also requires good interpersonal skills due to high cross functional engagement not only internal teams and stake holders but also with external agencies.

The role also calls for team management and man-management skills as the Sr. Credit Analyst needs to co-ordinate with various people to achieve his job objectives.

The education & experience required to fulfil this profile are a Chartered Accountant or an MBA with minimum 0-4yrs of experience in credit and risk functions of Banks/NBFCs.

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 Sr. Credit Analyst / 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.

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

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

1. 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  

NA

Internal

1. Head Credit, Risk & compliance
2. Regional Credit Manager Mortgages
3. Credit Analyst / CPA
4. Sales team
5. Operations dept
6. Other support functions

1. Weekly

1. Daily

1. Daily

1. Daily

1. Daily

1. MIS, intimation in cases requiring management intervention
2. Recommendations on loans, ongoing portfolio/client reviews, documentation audits
3. MIS, intimation on major shortfall/skips/defaults in portfolios 
4. Client servicing issues, Mortgage creation, Disbursal completion
5. Business discussions for smooth operations

External

1. Clients

1. Auditors/ Lawyers/ Valuers/ FI & Fraud Containment Agencies

1. All proposal daily/ alternate day

Need based

Daily

1. CRM & Proposal discussions, understanding the market pulse, Review Meetings and Collection Meetings
2. CRM, understanding the market pulse of new initiatives etc

Ensuring proper Credit and Business discussions for smooth operations

Job Holder

Reports to – Manager 

Name

Signature (needed for the hard copy)