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Meeting Growth Targets Without Impacting Credit Quality for a Mid-Market NBFC

Leading Mid Market Non Banking Finance Company (NBFC)

India

Situation
  • The NBFC operates in 12 states in India offering low ticket size loans to small businesses in semi-rural areas​​
  • The NBFC had ambitious plans to grow the loan book at 30-40% Y-o-Y and yet take a conservative view on delinquencies​​
  • The combination of  an aggressive growth ambition with a low portfolio risk led to the identification of origination effectiveness and risk monitoring as key impact areas
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Solution
  • Nanobi’s out-of-box Lending Portfolio Analytics, covering the loan life-cycle from origination to repayment, was deployed ​​
  • The deployment was completed in a record time of 4 weeks only​​
  • The solution empowered the NBFC to use data in making decisions at all levels – from a loan officer in the field to the C-Suite for reviews​​
  • The NBFC incrementally added newer functional areas of analytics like Audit and HR to the platform functionality ​
  • Automated data extraction from Loan Origination System (including mobility based LOAs)​​
  • Computation of origination, portfolio and risk metrics across very large number of small ticket loans across multiple attributes​​
  • Function and Role specific analytical outputs catering to decision making needs across the enterprise

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Results
  • The NBFC has grown their loan book at 40% Despite maintaining a “90+DPD” criteria for NPA (which is very conservative), their NPA stands at just 2.4%​​
  • Close monitoring of exposure by sectors has allowed the NBFC to proactively stop lending to the diary sector and retain NPA quality​​
  • The NBFCs credit rating has been upgraded to A- from BBB+ during the year of their usage of the Nanobi platform
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