As a result of the COVID pandemic and its after effects, bank lenders are likely to face major challenges in the area of credit monitoring and recovery. Identification of early warning signals and timely corrective measures will be most crucial to prevent NPAs and ensure sustained profitability.
.Gain insight into the economic challenges arising out of COVID pandemic and its after effects on lending portfolios of banks.
.Evolve effective follow-up and monitoring strategies.
.Identify early warning signals of distress and initiate corrective measures.
.Deal with problem loans so as to minimize losses to the bank.
.Learn from international experience.
.COVID pandemic - its after effects and their impact on lending portfolios of banks
.Effective follow-up and monitoring of loans – managing ‘utilization risk’, essential components of good loan monitoring system, tools of loan monitoring, risk rating review
.Why ‘over trading’ is risky, estimating ‘sustainable growth rate’
.Cash flow analysis for effective loan monitoring
.Early warning signals for problem loans – benefits of early warning system, responsibility of risk management, common warning signals pertaining to management, finance, processes, products and other aspects
.When a loan is considered ‘problem loan’?
.Dealing with problem loans – start with legal documents (deficiencies, missing documents), look at guarantees, understand covenants, perform overall review, take stock of where things stand, review of financial statements, cash flow projections for three to six months.
.Workout plan and clear strategy – getting facts right, understanding the situation and mapping out optimal path, negotiating with borrower, strengthening bank’s position and mitigating risk of loss
.Working with troubled borrowers – maintaining open lines of communication, clearly establishing what is acceptable and not acceptable, providing honest assessment, remaining professional and not taking anything personally, discussing solutions and potential alternatives, never making promises which cannot be kept, keeping good records of communication, working through third party in case of non-cooperative borrower
.Preventing or minimizing losses and maximizing recoveries for bank
.The above mentioned topics will be supported by a number of case studies and sharing of international experience
.Relationship Managers and credit officers working in corporate, commercial and SME lending. Those working in credit risk management and internal audit will also find the program useful
.Basic familiarity with financial statement and their analysis.
.familiarity with bank lending products.
.Training Attendance Certificate .