COMMERCIAL BANK OF ETHIOPIA

CREDIT MANAGEMENT DIVISION

WORK PLAN PROGRESS/IMPLEMENTATION REPORT
2022/23 FY MARCH&YTD

Corporate Objectives (1) Responsible

Actual Activities Performed Result Obtained
Division Objectives (2) Department/
(4) (5)
Planned Activities (3) Unit

Corporate Objective – 1 Increase Financial Resource Mobilization YTD 2022

Division Objective – 1 Enhance Credit Customers Deposit Performance during Request,

Analysis & Recommendations.
Activity 1.  Customers credit and foreign bank guarantee requests are  Enhance borrower CA
 Evaluating Deposit Performance actually analyzed within the month of December, 2022 deposit
and Past due repayments of
Borrowers cases and proposing performance
for improvement/collection  Customer’s credit and foreign bank guarantee requests are
 Increased
and/or preconditioning actually analyzed year-to-date, 2022/23. The Credit
collection
analysis always is performed by checking the ratio of the
 Identify long outstanding  To minimize new
balances, repayment in arrears, credit customers deposit turn over against sales volume
and enable collection through injection to NPL
and put advice the CRM for ratio below 95% of sales
preconditions when loan cases
are analyzed volume

 Identify causes of poor deposit

performance of credit
customers & advise the lending
units to take corrective

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Corporate Objectives (1) Responsible
Actual Activities Performed Result Obtained
Division Objectives (2) Department/
(4) (5)
Planned Activities (3) Unit

measures

Corporate Objective-1 Increase Financial Resource Mobilization

Division Objective – 2 Increase FCY Earnings from Borrower Exporters

Activity 2.
 6 borrower exporters’ loan cases with FCY generation
 Evaluating Foreign Currency
capacity are processed and USD 17.79 Millionis
Generation Performance and
past due repayments of generated from the borrower exporters & from
exporter borrowers and export related business customer and USD 384,327
proposing for commission charges is collected from 4 foreign bank
improvement/collection and/or
guarantee /FBG/ cases by placing Precondition during
pre-conditioning
the case processed in September, 2022.
 Increased FCY
 Identify FCY generation
 22 borrower exporters’ loan cases with FCY generation earnings. CA
shortfalls vis-à-vis expected
capacity is processed with USD 26.95 Million generation
and long outstanding export from borrower exporters & from export related business
loans and unpaid commission customer and USD 426,081 & EUR 31,514.50
commission charges is collected from 9 foreign bank
charge from FBG
guarantee /FBG/ cases by placing Precondition during the
 Identify causes of poor FCY case processed year-to-date, 2022.
performance of credit
 Precondition has been placed for long outstanding pre-
customers & advise the CRM to
shipment loans
take corrective measures

Corporate Objective-1 Increase Financial Resource Mobilization

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Corporate Objectives (1) Responsible
Actual Activities Performed Result Obtained
Division Objectives (2) Department/
(4) (5)
Planned Activities (3) Unit

Division Objective-3 Ensure Planned Loans and Bonds Collection

Activity 3.
 Monitor collection  Protect new
 Collection performance against the pre-established
performances against pre-
collection plan was monitored by each lending unit injections to NPLs.
established collection plan.
 Prudent lending practice is monitored against NBE
 Ensure prudent lending  DPD cases are
directives e.g. on rescheduled loan, iteration count,
practice through monitoring
NBE status update and pre-shipment loan status identified
of lending activity
check
 Work on proper credit proactively
analysis/appraisal based on  Approved cases
 DLL of each credit approving team was assessed to
the Bank’s procedures; CM,CC,CA
ensure prudent lending practice are ensured
comply with supervisory
bodies’ directives etc whether they are
 Monitoring of Advance on Import Bills has been
 Reduce advance on import
made with top cases as well as NPL cases in within the DLL of
bills through monitoring collaboration with Trade Service and respective
each Credit
CRMs and based on the close follow up NPL amount;
activity
decision team

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Corporate Objective -2 Resource Allocation
Division Objective -4 Monitoring Disbursement
 Actual disbursement performance of each
lending unit against the allocation of the
month & YTD is monitored;
 Previous performances of incremental
Activity 4.
deposit data of lending units are
 Monitoring Actual
collected& analyzed and disbursement  The disbursement plan allotted is controlled CM &CO
Disbursement
allocation is made based on their
against the Plan.
respective performances;
 The actual disbursement portfolio mix is
also monitored against the plan;

 Collection,  Collection plan for February28, 2023  Monthly collection performance of private CM
disbursement, NPL Private=2,859,107,468.90 sector is 476% this shows the lending units
reduction plan, Public=402,489,580.31 meetabove its expectation as compared with
Newly injected loans Fertilizer=0 its plan of February 28, 2023.
(Plan and actual)  Collection Actual for February 28, 2023  Monthly collection performance of Public
Private= 4,159,514,516.67 ( of which of sector meets more than its expectation with
272,363,157.81 were collected from IFB) 136% as compared with its plan February
Public= 1,915,990,552.85 28, 2023.
 Fertilizer= 2,948,812,166.57  The overall collection YTD meets its
 Collection plan for YTD expectations as compared with the plan
Private = 29,150,137,620 during February 28, 2023.
Public=7,271,003,803  Monthly disbursement performance of

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 Fertilizer= 23,282,667,932.59 private sector meets its expectation with
 Collection Actual for YTD 164% as compared with its plan February
Private= 32,170,158,148.73 of which 28, 2023.
2,991,900,821.65 were collected from IFB  Monthly disbursement performance of public
product) sector meets its expectation with 151% as
Public= 13,948,547,343.34 compared with its plan February 28, 2023.
Fertilizer= 26,979,644,573.73  In the case of fertilizer Monthly
 Disbursement plan for February 28, 2023 disbursement performance meets its
Private= 3,864,969,246.70 expectation with 178% as compared with its
Public= 4,600,379,730.20 plan February 28, 2023.
Fertilizer= 4,502,444,503.70  Monthly NPL reduction performance of
 Disbursement Actual for February 28, private sector and YTD meets above its
2023 expectation with 115% and 91%
Private=6,334,359,803.84 (of which respectively as compared with its plan
1,755,940,798.33 were disbursed to IFB February 28, 2023.
products.  As compared with the plan the actual newly
Public=6,969,204,796.18 injected to NPL is increased. Due to:
Fertilizer= 8,020,850,777.93 1. TADASH TRADING PLC,Production
 Disbursement plan for YTD Interruption due to working capital shortage
and weak credit management of the company.
Private=42,010,535,290
2. EMBET ADDISU BEZABIH,Delay in
Public= 50,004,127,503
project implementation/project
Fertilizer= 48,939,614,171
commencement. The company utilized a
 Disbursement Actual for YTD
maximum grace period and tenure.
Private= 45,642,922,782.25 (of which
Nevertheless, loan buyout is approved by
9,966,212,840.18were disbursed to IFB
Zemen Bank SC and waiting for
products).

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 Public= 29,222,964,923.68
 Fertilizer= 14,739,408,307.44
 NPL reduction plan for February 28, 2023
Private=880,520,909.83
 NPL reduction Actual for February 28,
2023
Private= 1,009,102,095.44
 NPL reduction plan for YTD
Private=3,554,196,742
 NPL reduction Actual for YTD
Private= 3,242,729,725.95
 Newly injected loan to NPL
February 28, 2023
 Private= 244,600,000.00
 Newly injected loan to NPL Actual for
February 28, 2023
Private= 966,754,615.52
 Newly injected loan to NPL plan for YTD
Private= 2,479,800,000
 Newly injected loan to NPL Actual for YTD
Private= 3,593,600,833.86
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settlement of the loan.
3. PINAR SOAP AND DETERGENT PLC, Delay of Fund
transfer from other bank through RTGS.
4. ABDULKADIR DEKU BEJA, MOHAMMED
BATI KALI,GUTA HIRPO MIESO,KEBEBE
GEMECHU ERBA,MENGESHA TIBESO
LOKE,GENEMO TEKLU USHA ,NEBI
WELIYI GEDA
This is Agriculture machinery loan. Fund
diversion to another personal need.
5. MESFIN TADESSE MULETA,political
plan for
instability and unable to contact borrower
b/c he is living abroad as per information
gathered from his agent
6. SISAY ADUNGA BEYU,System error on Staff Payroll
and Currently Settled from Total Arrears.
7. ENDALE MINASE WANOLE,Legal Restriction on
his all property for the case of Diverse with his
spouse.
8. SULTAN BEDANE ATALA,Due to long time illness
he couldn’t pay and He promised to settle full
balance soon.
9. ABAY UMER ABRAHIMIt is a project loan granted
by HO recently transfer to our district office and we
communicate the customer to settle his
outstanding arrears via telephone and in person
and last reminder has also served.
10. YASSIN MOHAMMED ALIThe loan has been settled
 after Feb 28 closing. On March 03,2023.
11. TEMESGEN TSEGAYE TEREFE,The staff was in prison
and now promised to settle soon.

12. ZELALEM TESFAYE,Due to bad utilization of OD

Facility, In connection to multiple loan
13. AKMEL ABDELLA MOHAMMED, Unable to

work properly for months due to serious

illness and death of his father.
14. ASMAMAW ATINAF IMPORT AND EXPORT,
Customer sales decline & highly geared. The
case was sent to Workout Loan on Feb
22,2023
15. TOLOSA TESEMA GEMECHU,The loan was
transferred to Ambo District
16. GETACHEW NIGUSSIE GC, Unwillingness to pay.
So foreclosure and litigation decision is passed
and the case is forwarded to foreclosure
department.
17. SOLOMON BERIHUN G/HER, The borrower wants
to lodge reschedule due to the tractor is not
working because of technical problem

Corporate Objective – 3 Enhance process efficiency and effectiveness

Division Objective – 5 Enhance Credit process efficiency and
effectiveness
Activity 5.  At Credit Appraisal 89 loan cases are CA
 Delivering credit processed during September, 2022 out of

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 requests within which 9 cases are FBG
pre-specified  The total LCY request amounted birr
standard times 44.2Billion
without  The FBG requests were USD244.7Million
compromising the  49 cases are completed;
prevailing credit  20 cases are under process
policy and  20 cases returned with advice
procedure of the In the YTD,2022;

Bank, relevant NBE  258 loan cases were processed;

Directives and the  Out of which, 39 were FBG;

 44 local cases were under process  Accomplished LDT
country’s laws and
 58 local cases are returned with advice.
regulations.  Credit Customer Satisfaction
 Total YTD request amounted Birr 90.55 billion
 Appraising work
for all Public & Government and Private  Compliance to the standard
out cases
customer cases;
considering all  FBG requests were USD 1,037M and EUR
loan recovery 22.68M in the YTD, 2022.
mechanisms  100% of the loan cases were processed
 LDT and completed within the standard time
accomplishment of during September & YTD, 2022.
Appraisal Process

Activity 6 I. At Property valuation-maker unit;  Minimized or error free output Valuatio

the 1427 & 1916 number of cases are valuated

n Unit
 Delivering  Credit process efficiency and effectiveness
maker &
checking of & completed during September and YTD enhanced.
respectively & from these; Checker
property
Units
estimation within In Sept, 2022;

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 pre-specified  1346 civil
standard times  80 Mechanical
without  1 agriculture
compromising the  In addition, 398 staff property valuation
Bank’s properties cases are checked
valuation manual In the YTD;
and other relevant  1702 civil
laws and  208 mechanical
regulations of the  6 agriculture
country and  In addition, 513 staff property valuation
documents of the cases are checked
properties. II. At Property valuation-checker unit;
199 & 531 number of valuation cases were
processed (checked) & completed during
September and YTD respectively

In Sept, 2022;
 159 civil and
 40 mechanical
YTD,2022
 427 Civil works
 100 Mechanical and
 4 Agriculture
Activity 7. Valuation SDT in %age:  Minimized or error free output Valuatio
At Valuation Maker Unit: n Unit
 44.64% for September & 58.8% YTD  Credit process efficiency and effectiveness
Maker &

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Delivering the Making of
property estimation
within pre-specified
standard time without
compromising the Bank’s
enhanced
properties valuation At Valuation Checker Unit: Checker
manual and other  100% SDT in both September & YTD

relevant laws and

regulations of the country
and documents of the
properties

Activity 8. YTD CM
 Proposal on revising penalty interest rate
 Timely complete for ex-staff of FCY generating companies
and NGOs is prepared, presented for EMC  Enhance Competitiveness in the industry;
the
and approved;
 Amendment proposal of some articles on  Increase FCY inflow;
development/revis
consumer loan of Employees of
 Ensure standardize and uniform Process;
ion of credit International Organizations and NGO's is
prepared, presented for EMC and
documents as per  Getting proper guidance for duties and fix
approved;
responsibilities of credit performers.
 Proposal on amendment of Staff Mortgage
the agreed
Loan, Employee Salary Advance,
schedule; Automobile Loan and Staff Personal Loan is
prepared, presented for EMC and
 Present draft approved;
 Revise Credit policy which has been taken
documents to the over from TO is endorsed by the BoD sub-
committee;
approving organ
 Draft Credit Business Procedure is

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 and disseminate completed;
 Industry analysis on tourist taxi in Bishoftu
signed approved and surrounding towns has been conducted
and submitted;
document to
 Proposal on high value State Owned
respective credit Enterprise's (SOE) employees Mortgage
and Personal Loan request is prepared and
organs/performers the draft has been forwarded for comment;
 Proposal on Special Credit Package for
Senior Management of the Bank is
underway;
 Guideline for Special Staff Loan (SSL)
implementation is drafted and forwarded
for comment;
 Resolution proposal for deceased
employees outstanding mortgage and
personal loans (final draft submitted);
 Procedural clarifications given on different
consumer loan cases as per the request
from various lending units;
 MoU and loan Contracts revised after the
Sep 02, 2022 amendments on consumer
loan procedures for employees of Int. Org.
& NGO's and Diaspora’s communicated to
the lending organs;
 Memo released to lending units on the
amendment of collateral valuation and
eligibility criteria in processing Mortgage
loan request for employees NGO’s &
International Organizations and foreign
generating organizations;
 Assessment on EAG’s employees benefit
package for Computation of loan
Provisioning is underway;

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  First Draft Mortgage & Consumer Loan
Procedure for employees of High Value
Customers presented to executive sub-
committee;
 Proposal on some amendments of
Consumer loan provision for UN employees
was made;

 Industry Average Analysis Report

completed;

 Recommendation Proposal on consumer

loan procedure amendment request of EIC
(completed) and Enhance credit appraisal process
 Assessment proposal on the impact of
consumer loan procedure for FCY
generating entities after the issuance of
Sep 30, 2021 amendment memo
(completed)
 Preparing procedure for related parties
(First draft document completed);
 Procedural amendment was made on
changing principal borrower of staff
mortgage loan bought before marriage and
whom left the Bank into the remaining
spouse's name;
 Assessment on staff loans performance
(loan status);
 Assessment on private disbursement
performance on the first two quarters of FY
2022/23

In March

 Procedural amendment and Mou revision

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 for the consumer loans provided to staffs
of EIC/Ethiopian Insurance Corporation
completed and approved
 Proposal on CAD margin settlement loan
prepared
 Assessment on loans availed to executive
staffs of NGO’s and International
Organization after the issuance of August
27, 2022 (Nehassie 21, 2014 E.C) memo
started
 Various procedural clarifications sent to
different lending units as per their request

Activity 9.

 Check
 Improved data quality
 Unauthorized transactions are traced
unauthorized
periodically and appropriate measure is
transactions
 Data cleansing CM
undertaken with lending units
periodically and
facilitate timely
remedial action;

 The report automation is already deployed  NBE directive is complied CM & CO

however feedback is still given to MIS in
Activity 10.
different automated reports, the feedback  Report preparation has been simplified
 Automate Credit will continue until the report get perfect
Process and Credit
 Credit process accuracy enhanced.
related reports,  The Credit EDRMS project is revitalized and
is in a completion stage

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Corporate Objective – 4 Ensure Financial Soundness
Division Objective – 7 Reduce New Injections & Existing Non-Performing
Loans
Activity 11
 Conduct credit CA & CC

analysis before the

loan fall into NPL
on the request of
 At Credit Appraisal,
credit extension,  4 private and 1 public cases are
renewal, restructured with total amount of birr  Prevent New Injections and maintain asset
17.9Billion during September, 2022;
rescheduling,  In the YTD, of 15 private loans & 2 Gov.t quality
wavering and with 21.9Billion , 2022 are restructured;  Policy/procedure complied
 At Workout Loan,21 loan cases were
others as  NPL Reduced.
restructured During Sept, with
appropriate Birr296.6M and 49 loan cases were
without restructured with Birr 849.3B in the
YTD,2022
compromising the
prevailing credit
policy & procedure
of the bank (Loan
rescheduling).
Activity 12.  Newly injected NPLs during the quarter are CM & CC
 Monitor and report properly identified and lending units are
 Financial soundness enhanced
newly injected NPL accordingly requested the justification for
cases and further action;  Maintaining the quality of loan upon
complying the NBE directive
recommend  New injected NPLs due to multiple loan

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 further action in
consultation with classification are identified and

the CRMs to the communicated to respective lending units

credit approving for further NPL reduction;

team;  Classification of restructured cases is

customized in the T-24 system and is now  Reduction of NPLs
 Conduct follow up
of loan cases after functional for credit performers and

credit extension, rescheduled loans are properly monitored

renewal, in the system;

rescheduling,
wavering & others;
Activity 13.  EWS manual has been prepared and tested  Reduction of NPLs CM
 Focus on cases on 40 cases, and further pilot testing is
which have shown now underway  Comply the NBE directive
early warning  The Early alert meeting committee has
 Increase healthy loans
signals to prevent been tabled for flagged cases by EWS and
default; recommendation is forwarded for those
risky cases
 Monitor loans  Guideline has prepared and TO
using EWS and (Transformation Office) office has made
present follow up confirmation for endorsement for EMC
report to Early deliberation after confirmation of
Alert Meeting rectification on comments given on the
Committee; document.

 Monitor
 Top DPD cases’ data is extracted and
rectification of

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 EWS flagged cases follow up is continuously made by
by the CRMs. forwarding the cases to respective lending
units, the response and action plan is
collected, the loans’ status in the next
period is confirmed, maximum effort is
exerted (monitored) to make the loans
regularize;
Activity 14. CM

 Review top NPL  Top NPL cases are reviewed and from  Top exposure cases are Monitored

cases and high these, Top 25 NPLs are also identified for

exposure further action (as of February 28, 2023)  Comply the NBE directive so as to report it

performing loans timely

 Identify top 25  High exposure performing loans are also

NPL credit identified
customers, assess  Top private borrowers that have credit
their status and exposures constituting more than 5
resolution process; percent of the Bank’s Capital has been
 Review top private identified and reported to NBE if any;
borrowers which
 Status of Public sector loans are reviewed
have credit
and monitored in collaboration with Public
exposures
Credit department
constituting more
than 0.5 percent of
 The status of other recommended special
the Bank’s Capital
cases are also reviewed up on need
 Review
performance of

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 public sector loans
 Other reviews on
credit cases with
certain
characteristics
when
recommended by
the top
management of
the Bank;
Corporate Objective- 4Ensure Financial Soundness
Division Objective – 8 Maintain Adequate Loan Provision (Expected
Credit Loss)
Activity 15.  Data collected for producing ECL report of CM
 Preparing loan December, 2022 is prepared by the  Ensured Financial Soundness
provisioning and existing seven and PD by 23-sectors;
sending regular  Collecting and validating December data  NBE directive is complied
nd
reports for NBE as for the 2 Q is going on to compute ECL as
per IFRS & NBE per IFRS-9 standard & provision as per
requirement. NBE requirement;
 Collecting the October& November&
December acquired & foreclosed data for
the computation of average recovery rate
as per NBE requirements;
 Amending our ECL model as per the
requirement of Embedded Great

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 granularity of PD model initiative;
 Identifying and informing anomalies
noticed on loan and collateral listing data
to the responsible bodies for adjustment;
 Mapping the new economic sectors on
historical data for granular ECL
computation;
 Performing initiatives as per their
schedule;
 Supporting other teams in relation to
validated the required data, clearing
equivocal loans & advances.
 Collecting and validating January and
February data for ECL computation (3rd
Quarter).
Corporate Objective – 5 Improve Risk Management Culture of The Bank
Division Objective – 9 Improve Credit Risk Management and compliance
Activity 16. YTD, CM
 Evaluate credit
 Credit portfolio concentration has been  Maintaining loan portfolio concentration as
portfolio of the
properly assessed periodically against the per the expectation of the bank and NBE
bank with respect
plan by each portfolio parameter made at
to ownership,
the end of every month and quarters of FY  The DLL of each CDC is maintained
sector, loan
2022/23;
tenure, loan

product, loan

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 quality, geographic In March,

distribution  Assessment of Credit Portfolio

(district, Concentration for the month ending

administrative February 28, 2023 in different categories

regions, etc.)and including Product, Economic sector,

others Tenure, Ownership, Status, District and

 Evaluate Region was made;

committees  DLL of all credit decision committee is

decisions collected and assessed for the 1st quarter

for any deviation from the discretion given

for each if any; including assessing any

exceptionally approved ones beyond the

existing credit policy;

Activity 17.  The monitoring team periodically  Audit reports are rectified on time CM
 Monitor investigates cases raised by Risk &
 NBE directives are complied.
compliance and Compliance department
review audit  Timely respond for regulatory requests;
reports:  Follow up has been made on rectification of
 Monitor audit reports,
compliance of the
Credit Business of
the Bank to all  Monitoring is made on whether the credit
applicable NBE operation applies the applicable NBE
directives; directives
 Follow up
implementation of  Response has been made on issues raised

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 action plans drawn
for identified
on NBE on-site examination as per the
issues/problems
action plan
by NBE on-site
examination.
Activity 18.
 Conducting/ At Credit Appraisal Department,
update/ credit  In September, 50 cases risk grading is
risking grading conducted and updated, 39 FBG credit
rating conducted by global raters is
when the borrower
reviewed, 14 loan cases were recently
 Proper decision was made on the basis of
request is updated & 11 cases not applicable for risk
the identified risk grade of the customer. CA
appraised and up grade
 In the YTD, 94 cases risk grading is  Reduced Credit Risk exposure.
on observation of conducted and updated, 69 FBG credit
early warning rating conducted by global raters is
reviewed, 23 loan cases were recently
signal by Customer
updated & 17 cases were not applicable for
Relationship risk grade
Manager.
Corporate Objective – Ensure Sustainable Profitability
Division Objective – 10 Expense management/Ensure cost optimization
Activity 19.  Much emphasis is given for usage of soft  Successfully meet the budget allotted All
 Managing expense copy reports instead of hard copies Departm
and ensuring cost  Planned to expend Birr 9.5M but actually it ents and
optimization by:  Continues usage of sharing files through become Birr 18.2M with 92%increase in units
 Controlling of network Sept, 2022 under
expense through the
monthly used  Planned to expend Birr 28.33 Million but Division
 The work is distributed fairly to the
items against the actually Birr 40.1 with 41.5% increase in
available workforce
work done/budget YTD, 2022

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 Promoting re-
checking before
printing any
reports,
 Increasing usage
of soft copy
reports and  Soft copy documents are re-checked
formats instead of before printing
hard copies
 Optimizing
potential of the  Potential of the available workforce is

available optimized/average productivity of the

workforce employee enhanced

 Awareness
creation (session)  Awareness creation (session) is made on

on efficient efficient utilization of stationery items,

utilization of telephone usage, other utilities and safe

stationery items, and proper handling of fixed asset;

telephone usage,
other utilities and
safe and proper
handling of fixed
asset;

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 PART II. CREDIT DIVISION INITIATIVES’ IMPLEMENTATION(PROGRESS) STATUS
Corporate Objective – Implement Credit Initiatives as per Scheduled Time
Division Objective – Implement each Credit Initiatives As per time schedule set by Transformation Office

Progress so
Expected far up to
Initiative Weight Dependencies/ Challenges
End Date November
30,2022
S/no
1 Develop a clear risk appetite 6.3% Aug 30,2022 68% Cross Functional Initiative (RMC)

2 Set pre-approved limits for private banking customers 6.3% Aug 30,2022 80% Cross Functional Initiative (WSB)

Create sector specialists in credit for large corporates and

3
priority sectors. 6.3% June 30,2022 66.5% Cross Functional Initiatives - WSB

4
Digitize the end-to-end lending process to streamline the Technical support; The completion and the approval
process flow across the credit value chain 6.3% Sep 30,2022 32.4% of the credit procedure proposed

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 5 Create differentiated underwriting process (i.e., swim Cross Functional Initiatives – WSB Customer
lanes) for low-risk customers 6.3% June 30,2022 69.2% Segmentation & Risk Appetite

6
Redesign the Credit Risk Grading System. 6.3% April 30,2022 69.1%

Future dated However, it is Cross Functional and has pre-requisite

7
Develop a risk-based pricing tool (i.e., RAROC tool) Oct 30,2023 initiative

8 Leverage existing corporates to structure working capital

loans 6.3% Sep 30,2022 72.7% Cross Functional Initiative (WSB)

9
Digitize the end-to-end retail lending journey 6.3% Dec 30,2022 60%

Enhance performance system through increased focus on

10 coaching, mentorship and on-going development for credit Transferred to Transformation Office no Progress expected
risk teams.

Introduce Early Warning Systems and Early Alert

11 6.3% Nov 30,2022 85% The excel based spread sheet model pending
Meetings
approval

Difficulty in setting standard time due to not

finalizing differentiated underwriting process
(Initiative # 5)

Digitizing end-to-end lending process is not

12 Enhance transparency across the credit journey 6.3% May 30,2022 82.3% completed i.e. it is the prior task for this
initiative.

For the remaining task will be held by the IS

team.

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 13 Embed greater granularity in the roll-rate PD analysis 6.3% Nov 30,2022 91%

Develop a client level PD model for top corporate

14 Dec 30,2022 Sep,22 to Dec, 23
customers

Dependency Clustering of customers by segment

15 Improve the effectiveness of collections 6.3% June 30,2022 89.1%
and by DPD were not accomplished

16 Enhance Collateral management 6.3% July 30,2022 61%

17 Roll-out NPV tool to guide restructuring decisions 6.3% April 30,2022 82.5% Technical Assistance

18 Reduce NPL 6.3% June 30,2022 100%

19 Pre-shipment Loan Performance Monitoring 6.3% June 30,2022 100% Dependent on the performance of lending units

20 Preparation of successor pool for Credit Division June 30,2022 14% Waiting for Managerial position assignment

Overall Divisions Initiatives’ Implementation

Performance as of September 30,2022 75%

1.Justifications for Major Work Plan Performance Deviations

Deviations
 Unable to get accurate data from MIS
(ex. Gaps in sectorial classification)
 New Unauthorized transactions are
continuously increasing even though
Justifications Way forward
 Data cleansing made by the SCRUM  To let the MIS update its data in a
team is not properly updated on MIS continuous basis
data
 New Unauthorized transactions are  Awareness creation session
created mainly on branches and

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 data cleansing is underway
 EWS pilot testing is late
 Lending units do not timely respond
for requests upon monitoring (ex.
Credit plan revision)
 Meeting the loan portfolio
concentration mix as per the
expectation of NBE becomes difficult
consumer Loan CPCs
 Unsubstantiated and late reply on EWS
findings by respective lending units
 Reluctant to respond on time
 The process needs long time to adjust
as per the expectation
 Proper communication with
respective lending units and
escalating the case
 Strict follow up and escalating
cases
 Controlling it on-going basis

2. PROPOSED WAY FORWARD FOR WORK PLAN PERFORMANCE DEVIATIONS

WAY FORWARD EXPECTED DELIVERABLES RESPONSIBLE ORGANS
 To let the MIS update its data in a  Cleansed data  MIS
continuous basis
 Strict follow up and escalating  Timely delivered reports  Lending Units
cases
 Controlling it on-going basis  Loan Portfolio mix as per the  CM
expectation

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 THE END!

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