• Look for new source of funding, better credit risk management over time will help

attract bigger and cheaper sources of funding.

o Measurement criteria – Average annual cost of capital from various funding
sources

5.3.4 IMPLEMENTATION PLAN

• Develop risk analytics capabilities through hiring experts, training current employees,
developing a dedicated risk evaluation department that also keeps track of aggregated
risk at firm level, and incorporating best in class risk calculation and credit evaluation
methodologies. This will help contain NPAs and reduce the number of defaults on
loans.
o Measurement criteria – Credit risk metrics (such as CVar) of the overall loan
portfolio

• Make every effort to obtain a banking license by keeping the key financial metrics
well within the regulatory requirements by leveraging the risk department and
reducing exposure through syndication of loans. This will also help attract other
cheaper sources of funding such as FIIs.
o Measurement criteria – New capital raised and other key financial metrics

• Develop a separate research department with a specific focus on financial innovation

to expand the product suite. Utilize the client information from past transactions to
structure the products. Broader and innovative product offerings such as long term
loans for capital expansions or short term loans for liquidity or working capital
requirements, lines of credit for project finance, fixed or flexible interest rate loans,
syndicated loans and structured loans with high degree of customization in repayment
schedules can help cater to specific financing requirements of businesses.
o Measurement Criteria – Amount of new products successfully offered to
borrowers

Please refer to Figure-12 for the mapping of the strategic plan with the implementation.

20   ADITYA  BIRLA  FINANCIAL  SERVICES  GROUP