Cluster Sales Head - SME Tier 1 Chennai

Business

Financial Services

Unit

Aditya Birla Finance Limited

Location

South Zone

Poornata Position Number of the job 

Reports to: Poornata Position Number

Poornata Position Title of the job (30 characters max)

Cluster Sales Head 

Reports to: Poornata Position Title

Zonal Sales Head 

Function

Sales

Reports to: Function 

Sales

Department

Retail LAP SME Tier 1

Reports to: Department 

SME

Designation of the Employee 

Cluster Sales Head 

Designation of the Manager  

Zonal Sales Head 

Date of writing/updation of JD

1^st Nov 2023

To set business objectives for region in line with the SME business unit objectives of book size, profitability, MIS & portfolio management, team building etc.; to devise business strategies for area wise achievement of business objectives and to execute the SME business’ distribution strategy. To ensure the end to end management of SME transactions with superior product delivery and to monitor the credit quality of new acquisitions

Aditya Birla Finance Limited ("ABFL"), a lending subsidiary of Aditya Birla Capital Limited is among the leading well-diversified non-banking financial services company in India. ABFL offers customized solutions in areas of personal finance, SME finance, SME finance, corporate finance, wealth management, debt capital markets and loan syndication. ABFL is registered with RBI as a systemically important non-deposit accepting non-banking finance company (“NBFC”) and is amongst the top five largest private diversified NBFCs in India based on AUM.
 
 For the FY ended 31st March 2023, ABFL has a book size of Rs. 66,923 Crores, net PAT of Rs 1287 Crores and net worth of 7,784 crores. The Net Interest Margin expanded by 53 bps y-o-y to 7.35% and ROA at 2.47%. ABFL’s long-term credit rating of AAA (Stable) has been reaffirmed by ICRA in February 2023. ABFL also has a long-term credit rating of AAA (Stable) by India Ratings, Perpetual debt credit rating of AA+ (Stable) by ICRA and AA+ (Stable) by India Ratings (Stable) and short-term credit rating of A1+ by ICRA & India Ratings.

SME caters to the varied needs of a diverse set of customers across retail, HNI, ultra HNI, Micro,Small & Medium enterprises . It encompasses a wide variety of financing solutions for clients, ranging 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] 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 behavior, 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, Cash flows, customers & suppliers, success factors and dependencies needs to be considered given these are long term exposures [up to 15 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].

• For the FY ended 31st March 2023, SME is significant contributor to ABFL’s Portfolio (35% of ABFL Book Size) with a closing book of 23,133 crs 

SME has been delivering all-time high PBT of almost 563.3 crs and has posted 3.04% of ROA for FY23

SME has moved into segmented strategy model with further focus on client types considering their different complexities and expectations

• For the FY ended 31st March 2023, Emerging has contributor to SME Portfolio 12% of SME Book Size with a closing book of 2,739 crs.
• Emerging portfolio has 3300 customers with 82 lacs of average ticket size and contribute 33% of Total SME Customer portfolio. 

Emerging had also delivered PBT of almost 98.2 crs and has posted 3% + of ROA for FY23.

Being one of the most preferred asset classes in the lending business today, this business continues to present challenge of competing with all FI’s / Banks in a highly price sensitive target segment.

Key Challenges: 

Retail LAP – Emerging as a business faces a lot of competition from Banks, other NBFCs and Fintechs which has been intense, dynamic and ever changing considering the entry of new players in the market.

• Managing factors like technological advancements, changing regulations, and evolving consumer behavior
• Strongly imbibe the ethical way of business & drive Aditya Birla Group’s Vision & values to each and every one in the team.
• Develop robust processes across Credit, operations, Collections & legal.
• Manage profit & loss, manage portfolio, customer, customer portfolio, customer life-cycle to maintain a clean Book growth and hygiene.
• Spearhead & launch many campaigns to drive the business in respect to Distribution, support functions & keep the spirit & morale high for the team while imbibing the ethical way of business & drive Aditya Birla Group’s Vision & values to each and every one in the team.
• Manage and Monitor employee productivity and foster employee development
• To ensure manpower is in place to execute the desired business plan.
• Setting up robust, comprehensive and scalable Governance frameworks for identifying and managing risk

Deliver strong sales growth in the region and expand the customer base

• Identify business growth opportunities across the region, build direct/ channel/ new client acquisition strategies and tap growth opportunities to achieve Regional targets 

• Augment the business volumes of SME lending in the region, manage client databases and tap them through Cluster/Area Sales Heads and dedicated relationship managers

• Drive relationships with key clients, collaborate with internal stake holders for faster TAT and cross selling initiatives in order to increase the client base of the Region 

• Monitor lead generation & RM sales productivity metrics to drive a high-performance sales culture across the zone

• Timely hiring of people in the region and coordinate closely with HR team.

Analyze product positioning and competition across the region and develop the distribution network

• Scan the regional market and its competitive offerings on a periodic basis; report on emerging trends and business opportunities for the SME segment to the head office

• Engage with channel partners and develop a touch point management system for faster customer connectivity  

• Conduct engagement programs like running contests for internal employees and external stake holder/ DSAs and sales trainings to develop channel partners

• Monitor SLAs, sales efficiencies and RoI of channels and ensure timely channel payouts 

• Effectively deploy schemes and prioritize sales of high revenue products and structures

Drive high levels of customer satisfaction across the region through Cluster/Area Sales heads and relationship managers

• Monitor client servicing metrics, develop relationship marketing programs and motivate Cluster/Area Sales Heads, RMs and channel partners to display highest levels of client servicing standards

• Encourage the implementation of improved processes and best practices in order to enhance operational productivity

• To ensure high mission happiness score for the region

• Engage with key customers on a periodic to build stronger relationships, thereby contributing to faster growth

• Monitor customer issues and complaints and drive necessary action to address the same

Analyze and communicate information for better risk management and operational effectiveness to the management team

• Support the risk and review process by supervising the preparation of loan proposals and documentations to ensure controlled operations for the region

• Liaise with the customers and the Risk team to provide regular information required for monitoring the creditworthiness of the proposals

• Prepare periodic MIS reports for profits, NPAs, new clients, new product launches, new branches, new channel development, etc. and communicate to Zonal Head and senior management

Promote talent and develop human resources

• Guide and develop Cluster/Area Sales Heads and RMs to facilitate better customer acquisition, retention and support, and helping them to achieve superior performance standards

• Nominate teams for product, behavioral and negotiation trainings and work for self-development initiatives

• Nominate deserving team members for awards and recognition

• Devise and implement specific sales strategy for under performers at regular intervals. 

Area Head - SME: To set business objectives for the branch & geographic region covered by the branch in line with the SME 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] and channel/distribution mix. 

Cluster Sales Head - To set business objectives for cluster in line with the SME business unit objectives of book size, profitability, MIS & portfolio management, team building etc.; to devise business strategies for area wise achievement of business objectives and to execute the SME business’ distribution strategy. To ensure the end to end management of SME transactions with superior product delivery and to monitor the credit quality of new acquisitions.

Internal

1. National sales Manager 

1. Relationship Managers

1. HO – Product Team

1. Customer service Team 

1. IT and Infra Teams/ Collections 
2. HR dept

1. Risk dept

1. Operations dept

1. Weekly

1. Daily

1. Weekly
2. Need based

1. Fortnightly

1. Weekly

1. Region business MIS, review on new market development
2. Reviewing new leads generated & new clients developed
3. MIS
4. Region recruitments, performance reviews

1. Providing market intelligence, MIS on deviations in client accounts
2. Client servicing issues
3. Review of portfolio/overdue account/NPA resolution plan 

External

1. Existing and Prospective clients
2. Channel partners

1. Daily

1. Daily/ weekly

1. CRM & understanding the need of new products

1. Product and business development initiatives