A forecasting tool to assess impact of credit related strategies on NPA, Provisions and Capital Requirements.
While financial institutions assess borrower’s repayment capabilities prior to a lending decision, post-facto changes in economic conditions can adversely impact financial position and repayment behaviour of borrowers. COVID 19 has resulted in a decline of global economic conditions and muted spends, in-turn impacting supply chains across industries. Pre-facto borrower characteristics are not relevant anymore, and understandably, financial institutions are redefining forecasts. However, planning for future capital requirements based on predicted NPA and provisions under stressed scenarios, will keep financial institution not only prepared for adversities, but also to build near term strategies to maintain financial health. Verisk NPA Management Tool helps lenders build multiple strategies and compare NPA, provision & capital forecast based on such strategies, to disseminate best-case scenario for execution. A comprehensive tool to classify & monitor changing borrower characteristics and simulate portfolio conditions, in-line with RBI’s guidelines and reporting requirements.
Solution Coverage and Benefits
Scenario Analyzer
Create scenarios based on your understanding of borrower and environmental factors. Forecast and compare metrics such as NPA, Provisions and Capital for various scenarios.
Back Testing
Compare forecasted numbers with actuals to adjust internal strategies.
Asset Classification
Pre-built rules, to classify borrowers into various asset classes.
Reclassify Assets
Flexibility to reclassify borrowers to incorporate internal / regulatory changes (e.g. moratorium guidelines).
Regulatory Compliance
Generate accounting entries and comply with RBI guidelines; streamline processes for internal and external reporting.
Define Collection Buckets
Shape your collection strategies based on internal policies and business calls.
Light Deployment
Start benefitting within days, with standardized data feeds and simplistic configurations.
Cost Effective
Cloud based solution to minimize infrastructure investments.
Unified Customer Tag
Single borrower view and classification, across multiple positions.
Solution Features and Highlights
Proven Regulatory Technology
Experience of running NPA related solutions in private sector banks and SFBs; leader in RBI ADF regulatory reporting.
Workflow Management and Audit
Collaborate across multiple divisions with complete view of "who", "what" and "when" of each change.
Analytical Workbench
Build your own representations of portfolios with flexible selection criteria such as area, region, segment, industry etc.
Codeless Classification Engine
Powerful codeless classification Engine to define product wise NPA events.
Alerts and Reminders
Manage internal deadlines with continuous monitoring of tasks to be performed.
Collateral Management
Allocate collaterals across different positions for a borrower.
Related Solutions
Early Warning Signals
Track borrower characteristics with a combination of internal and external data, across financial, non-financial, external & statistical indicators.
INDAS 109
Future proof solution with PD/LGD models to comply with INDAS 109 requirements. Create your asset quality history with NPA Management for seamless move to INDAS109.