Profitability & Capital Adequacy Presentation
b. Retail, Rural & SME Loans
The Bank has a 10 Step Stringent Underwriting Process (1/2)
1
No-Go Criteria
2
Credit Bureau Check
3
Fraud Check
+
Credit Scorecard
5
Field Verification
6
Personal Discussion
Section 8: Risk Management & Asset Quality
The Bank evaluates certain quick no-go criteria such as deduplication against existing records, bank validation and minimum
credit parameter rules.
The Bank pings the Credit Bureaus to check the customer's credit behavior history, number of credit inquiries, age in
bureau, limit utilization, recency of inquiries, level of unsecured debt, etc.
The Bank uses certain file screening techniques, banking transaction checks and industry fraud databases to weed out
possible fraudulent applications. The bank also uses Fraud Scorecards and real-time video-based checks to identify
fraudulent applications
The application is then put through scorecards which have been developed based on experience with similar cohort of
customers in the past. It includes criteria such as leverage, volatility of average balances, cheque bounces in bank account,
profitability ratios, liquidity ratios and study of working capital, etc.
The Bank conducts field level verifications, including residence checks, office address checks, reference verification, lifestyle
checks (to see if the product/quantum of loan correlates with lifestyle profile) and business activity checks.
Based on inputs received, from our processes, a personal discussion is conducted with the customer which includes
establishment of business credentials, understanding financials, seeking clarifications on financials, queries on banking
habits, queries on the credit bureau report, clarification on banking entries if any, and understanding the requirement and
end use of funds.
Note: The underwriting process mentioned above, changes depending on product to product.
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