IDFC FIRST Bank Merger and Performance Update
6d. The Bank underwrites retail loans with lot of due diligence and rigour, drawing on
experience and has built effective monitoring and collection capabilities
.
6a - Robust Underwriting Process
(As applicable product wise)
Integrated decision support system for
underwriting
• Instant de-duplication capability
• Financials analysis including net worth, liquidity,
leverage, turnover, working capital cycle, GST
return
•
• Banking analysis: the Bank statements of the
customer is analyzed and correlated to the
financials
• Consumer and commercial Credit Bureau check
for variables including enquiries, repayment
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record, vintage analysis etc.
Demographic and bureau credit scorecards
• Fraud check: Hunter checks fraud score
• Field verifications
• Personal discussions with customer at customer
premises
6b - Strong Monitoring Framework
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•
•
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Cheque bounce analysis and monitoring
monthly: product wise, segment wise,
geography wise, channel wise
Early delinquency analysis: Non-starter (quick
mortality) analysis, 1st payment, 2nd payment,
3rd Payment default rates analysis
Fraud incidence monitoring
Collection efficiency analysis for every mode
and channels across delinquency buckets
Vintage analysis of the portfolio performance
Delinquency flow analysis: Normalization, roll
forward, roll back for every delinquency buckets
for each product
Scorecard monitoring
Early warning checks for MSME products
.
6c - Efficient Collection Machinery
Robust mechanism exists for calling, online
collections, digital collections, field collections
monitoring
Focus on reducing cheque bounces, through
better underwriting, interventions and test &
learn process
Segmentation to drive differentiated collections
action basis propensity to flow
Constant monitoring of call quality and
customer interface quality for improving
collection experience for customers
Bucket wise, delinquency and resolution % for
every product at granular level
Granular monitoring of portfolio
•
• CRILC (RBI) checks for verification on financials,
legal cases, directors
•
• Collateral valuation: legal and technical checks;
external valuers
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IDFC FIRST
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