Professional Documents
Culture Documents
FORTNIGHTLY REPORT - 1
on
By
Kanishk Tatiya
MBA (Tech.) Computer
SAP ID: 70471017059
Roll No: N056
WE
UNDERSTAND YOUR WORLD
1. INTRODUCTION
1.1 About The Organization
HDFC Bank Limited is an Indian banking and financial services company, headquartered in Mumbai, Maharashtra.
HDFC Bank is India’s largest private sector bank by assets and by market capitalization as of April 2021. It is the third
largest company by market capitalization on the Indian stock exchanges. It is also the thirteenth largest employer in
India with nearly 120,000 employees.
HDFC Bank was incorporated in 1994 as a subsidiary of the Housing Development Finance Corporation, with its
registered office in Mumbai, Maharashtra, India. As of 1st May 2021, the Bank's distribution network was at 5,608
branches across 2,800 cities. It has a base of 1,16,971 permanent employees as of 21 March 2020.
2. Activity Plan
Fig. Activity Plan
The HDFC Bank Preferred program for high-net-worth individuals, the HDFC Bank Plus and the Investment Advisory
Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions,
information, and advice on various investment avenues. The Bank also has a wide array of retail loan products including
Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading
provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their
investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron)
and issues the MasterCard Maestro debit card as well. The Bank launched its credit card business in late 2001. By March
2015, the bank had a total card base (debit and credit cards) of over 25 million. The Bank is also one of the leading
players in the "merchant acquiring" business with over 235,000 Point-of-sale (POS) terminals for debit / credit cards
acceptance at merchant establishments. The Bank is well positioned as a leader in various net based B2C opportunities
including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.
4. Nature of Job
Credit risk analyst are responsible for conducting detailed research on the financial history of businesses and
individuals to determine their creditworthiness. It entails evaluating financial information and risks prior to granting
loans to businesses or individuals.
They assist in determining whether loans should be extended to loan applicants by evaluating the information
provided by potential borrowers, such as their financial liabilities, credit history, employment, and income, to
determine the risks of extending credit to them.
Help the organization to determine new loans to be issued or lines of credit to be approved based on their
assessment of the credit worthiness of applicants.
Involves preparing loan applications, credit modifications, and loan extensions for commercial customers.
Outcomes:
Learn how to underwrite commercial loans and prepare presentations.
Decision making on credit applications under the supervision of senior underwriters.
Learn how to utilize provided software to score credit applications.
Work with the credit administrator on policies and procedures.
Provides support for business developers on new customers
Undertakes the analysis, evaluation, and underwriting of proposed credit facilities for customers and prospects
Assesses credit opportunities; identifies key risks, and structures alternatives working with relationship
managers and credit officers
Responsible for conducting research on borrowers and industries
Takes ownership of the credit process, making decisions in the best interest of the customer and organization
Responsible for measuring covenants put in place within loan agreements, with a clear understanding of the
effect and purpose of those loan covenants, and communicates the compliance of the borrowers to the relationship
manager and chief credit officer as needed
Analyze more complex credits with assistance from senior department staff.
Apply experience with comparable credits to recommend appropriate covenants, terms, and conditions, and
structure for a credit request.
Identify policy exceptions within a credit request.
Discusses risk ratings and the rationale for the determination of acceptable credits with the relationship
managers (RM) and credit approvers.
5. Market Segmentation of Customers
The bank provided business loans to the following entities:
1. Limited Liability Partnership (LLP) Firms
2. Private Limited Firms
3. Proprietor firm
4. Doctors/Physiotherapists / Bachelor of Homeopathic Medicine and Surgery (BHMS)
5. Chartered Accountants (CAs)
6. Architects
8. Financial Calculations:
1. Profit is calculated from the provided financial statements of the business loan applicant.
2. Revenue Calculation of the business/income of the loan applicant.
9. Software Used:
LOS System:
Loan origination system (LOS) is as software which a borrower applies for a loan, and a lender disburses it or
rejects the application.
The origination process includes every step from application to funding disbursement, or rejection of the
application.
2. Application
The application process is where the borrower provides relevant information to request a loan. The lender takes all the
details from the borrower and proceeds with processing and underwriting the loan.
3. Application processing
The lender processes the application after it is submitted. In the case of larger organizations such as banks. Multiple
departments review the application, one by one. It is essential to verify and validate the application and check whether it
is complete and authentic. The verification department will contact the customer if the application requires any correction
or if any information is missing
4. Underwriting
Underwriting is a process by which credit managers analyse the financial information. To decide how much funding the
lender can allocate, they must consider multiple parameters. Lenders have different scoring mechanisms, such as credit
scores, risk scores, outstanding loans, etc. to evaluate the eligibility of a borrower. LOS system takes care of calculating
these scores.
5. Credit decision
The result of underwriting is the credit decision. The lender decides if the application will be approved or denied at this
stage. Loan origination systems can make this decision for the lenders. It is easy to assess different risk factors and scores
and conclude quickly.
6. Quality check
The final stages of loan origination is quality checking. The lending business is highly regulated. Therefore, to ensure
compliance, the lending organization must check that the processes are error-free and compliant. The lender validates the
internal and external regulations at this stage. The lending organization verifies the application one more time before the
funding.