Credit Manager - Retail - Hyderabad

1) Job Purpose

The purpose of this job is to execute risk and credit operations on the basic transactions assigned, as per established frameworks and processes, ensuring sound portfolio quality management. Further, this role coordinates with Sales, Operations and ABFL Risk colleagues to ensure efficient and effective risk management operations

2) Dimensions

What are the areas (in quantitative terms) the job has an impacton

Function

Dept.

Section

Remarks

(As applicable)

1.

Manpower(Nos.)

A

Management

B

Staff

C

Worker

D

Contract

Total

2.

Other Relevant Parameters

(Capacity/Volumes/Budget)

A

Loan Approval Limit

B

Process/ SOP adherence

C

NPA%

3) Job Context & Major Challenges

(What are the specific aspects of the job that provide a challenge to the jobholder in the context of the Unit/Zone

OrganizationalContext

Key Aspects:

• Part of the Aditya Birla Financial Service Group (ABFSG),Aditya Birla Housing Finance Limited (ABHFL) is registered with the National Housing Bank as a housing finance company under the National Housing Bank Act, 1987. The company offers a complete range of housing finance solutions such as home loans, home improvement and home construction loans, balance transfer and top-up loans, loans against property and construction finance. The companyacquiredits license on 9thJuly 2014 and has aggressive growth plans

• ABHFL operates in the Rs. 11.4 trillion Indian Housing Finance market, which has grown at a steady rate of 17% CAGR over the last 3 years while reporting good asset quality despite challenges in the operating environment. While the industry is dominated by five large groups, there has been an emergence of newer entrants in niche segments like affordable housing and self-employed borrowers, given the high potential in these segments. Despite increased focus by banks, HFCs have been able tomaintaintheir share in the mortgage market and hasremainedstable at 37% as onDecember 2015

• The nature of the HFC business (dealing largely with retail customers in thepotentially sensitivearea of housing/ mortgages),along withtheadditionalregulatory and control mechanisms imposedas a result,meansit is imperative that allfunctions and processes align and comply withsound risk management guidelines and applicableregulations/controlsproactively and judiciously. This is vital for managing risk and protecting interests of both the business as well as the customer

Job Context

Key Aspects:

• The Riskteamprovides core underwriting services fundamental to the ABHFL business health, riskmanagementand sustainability. Structured as a dual to the Sales/ Sourcing team, with positions mapped against corresponding Sales roles across the organization, the Risk teamis responsible fornecessary controls and process checks to ensurebusiness performance and health

• While the core responsibility for this function is to control the business via robust underwriting and risk management, supporting business expansion via joint evaluation of different product/ market growth proposals with the Sales team isalso an important contribution

• TheCreditManagerplaystheroleofexecutingrisk and credit operations in line with established guidelines andnorms, andsecuring the organization against diverse risksinlocalbusiness operationsvia process measures and checks. This roleis responsible forensuringrobust and efficient creditworthiness and risk assessment.He/ She isthe ears on the ground member of the Risk Team who meets every customer as part of the underwriting processand alsovisits the property which is being funded. Therefore, he/sheneeds tohave an understanding ofthe Legal and Valuation framework to be able to performtheirrole satisfactorily

Key Challenges

• While the ABFL Mortgages team also works with retail customers in the property space, the ABHFL business is exposed to theadditionalConstruction Risk, i.e. risk from under construction projects not getting completed as planned. The Risk Team must factor forthis when designing andimplementingcontrol mechanisms, and evaluating business proposals

• ABHFL is in itsinceptionphase as a company andin the midst ofrapid growth. The Risk function must therefore be able to balance priorities of risk management and business growth efficiently, without increasing sub-prime exposuresorimpactingbusiness healthand sustainability

• The housing space is characterized by state-wise norms and business practices, as well as varied interpretations of regulatory guidelines by different stakeholders. It is therefore essential for Risk functionteam memberstoremain up to date on business practices/ normsin their respective states/ locationsand work within regulatory guidelines in a manner that minimizes business riskandalsosupports growth objectives

Enabling Skill Sets & Qualifications

• Critical skill setsrequiredto meet these challengesincludebusinessand commercialacumen,analyticalskills,interpersonalandpresentation skills,and execution capabilities

• Education & experience required to fulfil this profile are aCA/ MBA - Finance with minimum0-3yrs of experience in a bank/ NBFC/ HFC

4) Principal Accountabilities

Accountability

Supporting Actions

Underwriting andPortfolio QualityManagement

• Executerisk and credit operationsfor basic transactionsassigned,inadherence with definedframeworks and principles across ABHFL business lines

• Seek guidance from seniors proactivelyand gatherinsights on technical aspects as well as state/ property specific considerations for effective risk assessmentof individual cases

• Liaise withrelevantABFL Risk team members forclarifications onLegal-Technical evaluations, asrequired

Process Efficiency

• Execute risk operations efficientlyand in a manner that enables business performance while ensuring risk management imperatives

• Coordinate seamlessly with Credit Processing Analysts to ensure case files are logged appropriately before proceeding to initiate credit operations

• Work as perprocess-driven coordination mechanisms with Sales andOperations teamsforeffective decision making and problem solving in line with business and risk management needs escalate to RCM asrequired

Risk Compliance & Control

• Ensurecompliance with established risk management principles and norms compileperiodic and need based MIS, reports, escalation case documents, etc.

• Conduct local risk operations in line withdefined'Maker - Checker'mechanismwith Sales and Operations teams in a systematic manner,acrosskey aspects such asexception approvals, collateral valuation, PDD completion, cheque bounce collections, etc.

Collection Efficiency

• Work in alignment with process-driven mechanisms for coordination with theCollections/Operations team on tracking delinquency cases and driving collections efficiently and effectively

• Escalate specific/ complex cases, asrequired, to RCM for recovery and delinquency/ NPA avoidance

Self-Development& Internal StakeholderCoordination

• Seek development to executebetterrisk assessmentand loanunderwriting viatechnical skill-up (e.g.proficiencyon legal & technical documents, property business practices & norms, etc.)and role clarity

• Maintain relationships with internal stakeholders for smooth coordinationon complex/ escalation/ exception cases

5) Job Purpose of Direct Reports

Nil

6) Relationships (If Applicable)

Internal

Frequency

Nature

Regional Credit Manager

AreaCreditManagers

Credit Processing Analysts

ABFL Risk

Sales, Operationscolleagues

Daily/ Need Based

Daily/ Need Based

Daily/ Need Based

Need Based

Daily/Need Based

Periodicreportingonrisk/ credit trends& performance escalation/ exception approvals

Inputs on analysis and structuring of complex cases

Coordinate to ensure case files are logged appropriately

Inputs on Legal-Technical reports/ evaluations

Periodic updates,need based coordination on specific cases

External

Frequency

Nature

Business Forums/ Networking Platforms

Customers

Vendors

Half Yearly

Daily

Daily

Periodic interfacesto upgradeknow-howand awareness onrisk/ credit management mechanisms

Conducting Personal Discussions with the customers as part of the underwriting process

Interacting with the various vendors (Lawyers, Valuationagenciesand Verification agencies) for reports andmonitoringtheir TAT

SIGN-OFF

Signature

Name

Job Holder

Job Holder's Superior

Date

Job Analyst

Signature

Name