Area Credit Manager-MSE

1. POSITION DESCRIPTION

JOB TITLE

Area Credit Manager-Formal LAP

GRADE

AVP-I

DEPARTMENT

Credit

LOCATION

RO

SUB-DEPARTMENT

Credit-MSME

TYPE OF POSITION

Permanent

REPORTS TO

Regional Credit Manager

REPORTING INTO

Credit Managers – MSME

1. ROLE PURPOSE & OBJECTIVE

• Implement robust credit underwriting policies and processes for large ticket size MSME loans (up to 10 Cr) in the region and ensure that the processes/policies are effectively managed on the field.

• Conduct income appraisal of MSME borrowers. In depth understanding and analysis of P & L Account and Balance Sheet including cash flows of self-employed borrowers.

• Ratio analysis of financials and loans for short and long term lending to self-employed customers.

• Responsible for underwriting and building good quality secured portfolio.

• Engage with Risk committee to monitor credit risk and ensure Risk is managed proactively, involve in IDM (Inter Departmental Meeting), Risk Committee meetings, Audit closure meeting

• Work closely with Business and Collections team to manage collections in different buckets at the field

• Manage cost and productivity of team and vendors.

1. SIZE OF THE ROLE

FINANCIAL SIZE

NON-FINANCIAL SIZE

• Portfolio size of Rs. 1000 Cr

• 20-25 vendors (legal, technical etc.)

• 1 product (secured)

• 70-80 files per month

1. KEY DUTIES & RESPONSIBILITIES OF THE ROLE

1. Business/ Financials (Only Relevant roles)

• Underwriting target customer of affluent segment with detailed review

• Evaluate and assess collateral security adequate for the lending.

• Implement Credit policies and processes for MSME Loans in the field

• Implement new policies, amendments and technology changes through proper communication / training

• Participate in collection of dues from customers to maintain low delinquency/Bounce Rate

• Review and suggest policy and process changes based on the field understanding / feedback from the field team

• Monitor and ensure Credit related Regulatory and Legal compliances are followed thoroughly by the key role holders in field

• Ensure that area surveys, cross checks, negative area reviews are done timely along with Audit and Vigilance team

• Ensure the portfolio quality in excellent category through induction of good quality customers in MSME at the field level

• Effectively monitor external risk by keeping a tab on field issues and customer dynamics

• Identify, highlight and address emerging risks proactively along with the risk and compliance departments

• Execute strict actions taken as per the Penalty Matrix for the field deviations.

• Conduct Periodic review of Portfolio Quality and Collection to take necessary actions.

• Conduct periodic reviews with Credit Managers for driving desirable credit performance

• Prepare and monitor action plans for Poor and High Risk branches in MSME

• Be updated about the competition in the field and update the management on regular basis

• Monitor credit staff expenses across and ensure the same within the budget

1. Customer (Both Internal & External)

• Supervising the team spread in given area for building of a performing portfolio.

• Work with other Area Managers and Regional Business Managers for effective implementation of Credit Policies and team management

• Engage with credit vendors, FCU and other agencies to ensure productivity and cost control.

• Work with Business team, Audit team, Collection team and Risk team for effective risk management

• Engage with Product Management Team for necessary changes in products as per the observations from the field

• Engage with Recruitment Manager for timely recruitment and induction of new employees

• Engage branch supervisors to understand the customer and field staff requirements while framing the policies and processes

• Ensure that credit responds to Customer’s and branch staff queries and issues timely.

• Co-ordinate with Business team, Collections team and Vigilance team for effective collections management

• Engage with HR to ensure all staffing and training requirements are met in a timely manner

• Ensure the key MIS’s and reports are effectively delivered to management for managing business, portfolio, team and risk in the field

1. Internal Process

• Full adherence to all Regulatory Norms, Internal Policy & Process with respect to Credit & Collections

• Deliver High TAT applications are addressed immediately.

• Provide timely compliances to internal and external audit reports

• Present major findings to Risk Committee on High-Risk branches, IDM Issues and on monthly basis in coordination with Audit and Vigilance

• Implement accountability to address policy/process violations

• Timely escalation of critical cases to Credit Head and obtain appropriate deviation approvals

• Monitor timely & accurate submission of daily, weekly & monthly reports

1. Innovation & Learning

• Engage with HR to execute all training programs on Credit Policies and Processes

• Ensure structured induction plan for new joinees, lateral hires and internally promoted candidates

• Responsible for on time hiring of the right people for the assigned hubs

• Ensure goal-setting, midyear review and annual appraisal process happens within specified timelines for self and reportees

• Monitor performance of direct and skip level reportees against defined goals/metrics and take corrective action wherever required

• Ensure staff attrition is below defined limits at regional level

• Pursue Relevant Courses to the team and for the self and Groom team members for cross learning and provide growth opportunities

• Visit Field regularly with Subordinates to keep abreast of area related issues, Underwriting performances, Performance of Competitors, and any staff related issues which may pose a risk to portfolio

1. MINIMUM REQUIREMENTS OF KNOWLEDGE & SKILLS

Educational

Qualifications

• CA or MBA in Finance from a reputed college. (, with relevant experience)

Experience

• Preferred experience of 5 years or more in Credit Secured Loan products in term loans and working capital limits.

• Experience in Team Handling and Credit Risk Management

Certifications

NA

Functional Skills

• Knowledge of Underwriting of loans (Credit, product & process)

• Knowledge of Documentation and Regulatory requirements

• Knowledge of financial services landscape in rural & priority sector

• Knowledge of financial analysis

• Business acumen

• Evaluate and assess collateral security/collateral documentation adequate for the lending

Behavioral Skills

• Accuracy, precision and attention to detail

• Pro-activeness and initiative taking

• Training skills and Co-ordination skills

• Interpersonal, Communication and Presentation skills

• Ownership, Leadership and team handling

• Problem Solving, conflict management skills

• Good personal discipline and planning

• Ability to form good working relationships with other functions

• Decision Making skills

1. KEY INTERACTIONS

INTERNAL

EXTERNAL

Regional Credit Manager, Credit Managers, Regional Business Managers, Area Managers, Product Managers,

Customers and Community

Vigilance Managers, Legal Managers, Audit Manager, Risk Managers, Collection Manager

Auditors

Operations Manager, IT Manager and Service Quality Manager

Vendors and Consultants

Recruitment Manager, State HR, Payroll Manager

Competitors

Accounts Manager

Credit Bureau Agencies

PREPARED BY : Archit Sharma

DATE : 22^nd June 2023

REVIEWED BY : Vaibhav Sinha

DATE : 28^th June 2023

LAST UPDATED BY : TM Team

DATE : 8^th August 2023