FAQ on Credit & Operations

Credit
What is meant by ED and ID and how is the percentage derived?
ED refers to Early Delinquency. All cases which have been sourced in the last 12
months (on a 3-month lag basis) are identified as ED cases. By 3-month lag we mean
that from the current CFR (say Aug11 CFR) cases sourced in the months of Jun11
Jul11and Aug11 are not taken into consideration. Only cases booked in May11 and
preceding 11 months (12 months in all) are considered. In this case it will be from
Jun10 to May11.
ED percentage is derived by dividing the ODPOS in 60+ buckets by TOTAL
ODPOS.
Similarly, ID refers to Infant Delinquency. All cases which have been sourced in the
last 6 months (on a 1-month lag basis) are identified as ID cases. By 1-month lag we
mean that from the current CFR (say Aug11 CFR) cases sourced in the month of
Aug11 are not taken into consideration. Only cases booked in Jul11 and preceding 5
months (6 months in all) are considered. In this case it will be from Feb11 to Jul11.
ID percentage is derived by dividing the ODPOS in 0+ buckets by total
ODPOS.

Operations
What is First Cut Pool Acceptance and how it is calculated for the
purpose of incentive payout?
When a case is sourced and no discrepancy found in the file and the file is accepted
for securitization in the first shot i.e. accepted Without Deviation then the
Operations team (at SBU, Zonal and National levels) qualifies for incentive on the
accepted number of files. The Operations team will not qualify for incentive against
files which are With Deviation even if such files (after all discrepancies are
satisfactorily addressed) are accepted for securitization in 2 nd, 3rd or final cut as the
case may be. For the purpose of incentive the percentage is derived by dividing the
number of files accepted Without Deviation by total number of files i.e. the total
derived by summing the With Deviation and Without Deviation numbers.
What is meant by T and T+1 in relation to File Dispatch and how is the
same calculated for incentive purpose?
T is the Requisition Dispatch Date. Branch has to send the file (physical file) to HO
within one day of Requisition Dispatch Date or else their incentive would take a hit.
The date on which the file is sent to HO is captured in Sent Approve Date column.
Net dispatch day(s) is calculated by taking holidays into account. This means that
Branch is given the benefit of Sundays and holidays. There is a column Net
Dispatch Days the calculation of which is equal to:
Sent Approve Date column - Requisition Dispatch Date column
Holiday/Sunday column.
If the Net Dispatch Days column is <=0; the Status of that requisition is T.
If the Net Dispatch Days column is =1; the Status of that requisition is T+1.
If the Net Dispatch Days column is =2; the Status of that requisition is T+2.
If the Net Dispatch Days column is =3; the Status of that requisition is T+3.
If the Net Dispatch Days column is >3; the Status of that requisition is T+N.
The above is automatically calculated in system for all requisitions where the files
have been sent to HO.

Apart from the above, if the Requisition Dispatch Date has dates of the last 2 days of
the months (i.e. 30th & 31st for 31 days month; 29 th & 30th for 30 days month), the
same is tagged as Last two days in the Status column and the benefit is given to
the Operations team for incentive purpose.
To derive the SBU-wise score of the number of requisitions qualifying for incentive
we add the numbers for T, T+1 and Last two days.
What is File Execution on T+6 TAT basis and Audit on E+3 and E+8 TAT
which are incentive parameters for HO Operations team?
File Execution on T+6 TAT basis:
T is the Requisition Dispatch Date. The HO Ops team is required to Execute the
file within 6 days (i.e. 6 days or less) from the date of Requisition Dispatch to qualify
for incentive. The Execution date is captured in system and the same is reflected in
Execution Date and Time column.
Moreover it is also assumed that TAT T+6 has been maintained for all Proposals
which are Unexecuted. Hence the counts of Unexecuted Proposals are added to
TAT T+6 numbers.
Similarly, it also assumed that TAT T+6 has been maintained for all Proposals which
are discrepant (Discrepancy reasons are mentioned in Discrepancy column). The
logic behind this is that in case a file is discrepant, for whatever reason, Ops Team is
not to be penalized for such discrepancy. The reason for such discrepancy could be
FILE NOT RECEIVED, REQN ON HOLD, IP NOT CLEARED etc. Therefore, the count
of discrepant cases is added to TAT T+6 numbers.
Audit on E+3 and E+8 TAT:
E is the EXECUTION DT column in Proposal Audit Report. For HO Ops team to
qualify for incentive it has to complete the Proposal Audit within 3 days of Execution
of the file for all proposals whose REQ DESPATCH DATE is 25 th of the month or earlier
and within 8 days if the REQ DESPATCH DATE is 26 th and later. The relevant column
for calculation is the TAT WITH EXECUTION DT. E+3 and E+8 is explained below
once again for more clarity:
i) E+3: All proposals which have REQ DESPATCH DATE tagged as <=25 are
considered as E+3 cases. To qualify for incentive on this parameter, Ops team has
to complete the file audit in 3 days or less. If done, these are known as OK cases.
The number of days i.e. the TAT is reflected in TAT WITH EXECUTION DT column.
ii) E+8: All proposals which have REQ DESPATCH DATE tagged as >25 are
considered as E+8 cases. To qualify for incentive on this parameter, Ops team has
to complete the file audit in 8 days or less. If done, these are known as OK cases.
As mentioned above, the number of days i.e. the TAT is reflected in TAT WITH
EXECUTION DT column.
What is Overall TAT and what comprises the same?
Overall TAT is the time from Enquiry Date to Instrument Hand Over Date and is
computed as net off holidays. The data is prepared considering spill over cases of
last 2 months as well. The TAT of four departments are taken into consideration
while computing the Overall TAT. They are Sales, Credit, Operations and Treasury.
Within each department there are a number of individual TAT heads which need to
be maintained by each department. The composition of overall TAT is given below,
department-wise.
Sales TAT: FI Negative Clearance TAT, Pre Sanction Docs TAT, Query Clearance TAT,
Post Sanction Docs TAT, Post Sanction Discrepancy Clearance TAT.
Credit TAT: FI TAT, Credit TAT

Operations TAT: CRM TAT, Dedupe TAT, Pre Sanction Ops TAT, Post Sanction Ops
TAT, DO TAT, Requisition TAT, Instrument Handover TAT.
Treasury TAT: Payment Processing TAT, Instrument Dispatched TAT, Instrument
Branch Received TAT.
The summation of the average number of days of all the above TATs would give us
the Overall TAT which is used for incentive for SBU, Zonal and National Ops Heads as
also for Team Leaders Operations.