Credit In charge (Overall In Charge of credit and related functions such as trade, syndication)
Job description
Responsibilities
Due diligence on borrowers
- Due diligence on prospective clients before taking up the proposals on board and at time of review which includes obtaining ACRA, D&B, status reports from banks, statements of accounts with existing banks and market reports. Checking the names with RBI defaulters list and litigations etc. against the company / directors /shareholders.
- Ensure necessary CDD / AML & CFT measures are in place in relation with promoter’s background and business, including any adverse media reports.
Screening of prospective & existing borrowers
- Carry out screening of directors / shareholders in world compliance check and obtain KYC documents.
- Risk rating of customers based on nature, place of incorporation, jurisdiction of incorporation, corporate shareholders, suspicious transactions, tax litigations and politically exposed persons etc.
Credit rating of borrowal accounts
· Carry out credit rating of the customer as per internal rating model. The model is based on the financials and other aspects including management, industry and past experience to arrive at risk rating and pricing. Our internal rating model (OVS model) is devised by KPMG independently and it is well defined, consistent and mapped with regulatory requirements of grading as per MAS 612.
· Credit rating model to incorporate the various characteristics of the borrower, such as key financials indicators, business, industry factors, conduct of account etc.
· Proper grading of accounts as per MAS/RBI guidelines whichever are stringent.
Formulating appropriate Pricing mechanism
- To arrive at pricing of the loan, having regard to risk rating, industry scenario, cost of funds, asset-liability position, operating costs, profit margin and security offered.
Appraisal of financials key ratios & industry
- Analysis of balance sheet, operating statements and cash flow of the borrower and also consider cash flow of group / parent companies to take holistic view of the group.
- Analyse Key financial ratios and compare with benchmark ratios as per policy.
- Analyse the trend of business, compare projections v/s performance and assess business model whether it is self sustained.
Assessment of credit limits
- Assess the requirement of the borrower based on past performance and future trends, trade cycle, and cost of project (for project finance term loans).
- It is also based on credit strength of obligor and our borrower and group exposure limits. Internal rating is carried out without undue reliance on external ratings.
- Syndicated loans are appraised independently without undue reliance on assessment of lead arranger or underwriter of the facility.
Separation of credit origination & Credit approval / Review functions
· Segregation of credit sourcing and appraisal to be ensured and guidelines to be laid down for distancing of operations & appraisal process.
Security, including collaterals
· Collaterals & guarantees may be obtained as credit mitigation measures.
Lending to Single Group
· All proposals should incorporate max permitted Single borrower/ Group borrower limits as laid down as per Delegation/ Credit policy guidelines. It is directly linked with bank’s capital structure and RBI guidelines for single and group borrower limits.
Compliance with Regulatory guidelines
· Processing of proposals following the guidelines of RBI / MAS.
Lending to Related parties
- Ensuring Credit granted , if any,
- to concerns related to bank’s Directors/ senior management is done at arm’s length and free from conflict of interest and approved by apex sanctioning authority of the bank.
- (Board of Directors)
Formulation , Review & updation of policies, procedures and manuals
- Annual review and update policies, procedures and manuals in line with latest regulatory guidelines and in line with prevailing economic environment on annual intervals.
- Policy should lay down the conditions and guidelines for identification, measurement, evolution, and monitoring, reporting and mitigation of credit risk at both individual obligor and portfolio levels. It should be well defined documented, consistent and adequate for nature and complexity of our business activity and it should be approved by the Board of Directors.
- Roles and responsibilities of staff involved in management of various credit functions to be laid down
- Operational guidelines to be documented and set out in sufficient details for effective implementation by operational staff.
Delegation of authority
· All credit proposals to be put up to appropriate delegated authority as defined by in delegation of powers, issued by Head Office from time to time. This is based on quantum of exposure, risk rating of the obligor and tenor of credit. It is treated as secured and unsecured on the basis of security / collaterals offered against the facility.
Audit compliance
· Addressing previous internal/ external/ statutory audit observations.
Mechanism for approving excesses beyond sanctioned limits
· Evaluate & process requests of customers for Ad Hoc / TOLs / modification in sanction terms.
Periodicity of credit reviews
· All credit accounts to be reviewed at least once a year.
· All Special mention accounts to be reviewed from monitoring perspective at 6-monthly intervals.
· Status review / Short review to be conducted wherever complete data/ latest financials are not available.
· In addition to above, occurrence of any event that may jeopardize the repayment capacity of the obligor may trigger for review of account.
· Testing of financial covenants set out in the facilities.
Monitoring conduct of a/c / overdue position
· Monitoring daily overdue statements to prevent slippage of performing assets into classified category by recovery of overdue position.
Liaison with HO
· Follow up with HO for matters under consideration with them and reply to their observations.
· Reporting of events that may affect the risk perception of the account during the year in addition to reviews.
Upgradation of skills & knowledge of staff
· Impart formal / informal training and conduct weekly test for staff to enrich domain knowledge.
· Attend trainings / seminars / workshops and take online tests on AML /CFT and PDPA.
Reconciliation
· Overall In Charge of Nostro and Vostro account reconciliation
Compliance with guidelines of MAS / MOM / RBI / HO as and when applicable.
