Profitability & Capital Adequacy Presentation
c. Wholesale Financing
Section 8: Risk Management & Asset Quality
Stringent Underwriting Process in Wholesale Business
Customer Selection
2
Due Diligence with
focus on Cash Flows
3
Smell Check
•
•
•
All New-To-Bank potential borrowers (incl. promoter/directors) are checked including CIBIL, Suit filed, CFR, CRILC, etc.
Further, bank has also defined minimum internal rating thresholds for onboarding any borrower, which acts as a
guiding factor for loan originations.
The Bank follows a conservative underwriting approach wherein primary assessment of debt servicing ability is based
on underlying cash flows of the borrower.
• The Bank conducts detailed due diligence of the borrower including objective financial assessment, assessment of
borrower's business profile, industry, ownership & management, key risks and customer's past track record, which in
turn helps determining the Bank's appetite for the exposure.
• As part of underwriting process market feedback is obtained from borrower's peers, customers, suppliers, external
rating agencies, banks, etc.
S
Granular Exposure
•
Focusing on granular small to medium ticket size credit exposures
Risk based approvals
• The Bank follows a 'risk-based' approach for credit sanctions wherein higher risk exposures (basis internal rating,
quantum and tenure) require approval from higher approval authority.
Note: The underwriting process mentioned above, may change depending on product to product.
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