credit monitoring

CREDIT MONITORING

Consistent and comprehensive monitoring of the credit portfolio critical to maintain the quality of the credit portfolio for lenders. This is required both from a perspective of ensuring the end use of borrowed funds as well as the continued performance. The lack of performance of borrowers could potentially have serious implications to the lenders.

Credit Monitoring is an ongoing exercise on the exposures of the bank. Continuous review on the borrower business performance and other activities could reflect appropriate red flags and it is mandatory for the financial institutions to constantly oversee and evaluate such signals and put in place proper regulatory mechanism at the early stages and restrict slippages if any.

Post-disbursement of exposure facilities forms an essential part of the monitoring process. The actual performance of the borrowers should be monitored by devising various performance indicators, Industry and Sectoral practices etc.

All projections, data etc as produced for availing the exposure, by the borrower must be substantiated by backup data. The particulars furnished by the borrower should be constantly reviewed and compared with the projected performance at periodical intervals. Timely obtention, inspection, review and analysis of the audited financials and review of the account, is the most integral part of post disbursement monitoring. Prompt identification of Industry stress, strain, and categorizing them for constant monitoring is imperative.

Credimore’s Monitoring Report will provide you a complete understating on the credit history, creditworthiness, adverse comments on the industry front as well as the borrowers’ business and borrowers’ ability on repayment after analyzing the financial statements and other information of the borrower such as capital structure of, its management performance, short and long-term liabilities.