Area Sales Head - SME EM - Madurai

Business

Financial Services

Unit

Aditya Birla Finance Limited

Location

Poornata Position Number of the job 

Reports to: Poornata Position Number

Poornata Position Title of the job (30 characters max)

Area Sales Head

Reports to: Poornata Position Title

Cluster Sales Head – Retail LAP Emerging Markets

Function

Sales

Reports to: Function 

Sales

Department

Retail LAP – Emerging Markets

Reports to: Department 

SME 

Designation of the Employee 

Area Sales Head

Designation of the Manager  

Cluster Sales Head – Retail LAP Emerging Markets

Date of writing/updation of JD

1^st Nov 2023

To set business objectives for location/areas in line with the SME business unit objectives of book size, profitability, MIS & portfolio management, team building etc.; to devise business strategies for area wise achievement of business objectives and to execute the SME business’ distribution strategy. To ensure the end to end management of SME transactions with superior product delivery and to monitor the credit quality of new acquisitions

2) Dimensions: Mention quantitative or qualitative parameters that are relevant for the job and provide a better understanding of the scope and scale of the job.  

Retail LAP – Emerging Markets

Parameters

Measurement Unit

Last Year

Current Year (LE)

Next Year (Proj)

FY 22-23

FY 23-24

FY 24-25

Closing Book

Amt In Cr

2,739

3,605

5,350

No. of Customers (Lan)

Count

3,300

4,100

6,000

Disbursement

Amt In Cr

1,315

1,600

2,000

Locations/Branches

Count

50

75

90

Revenue-(NII + Fee Income )

Amt In Cr

137.1

162

192.0

PBT 

Amt In Cr

98.2

102.0

115

PAT

Amt In Cr

74

76

85

CIR 

%

35.20%

36%

34%

ROA

%

3.07%

2.60%

2.55%

ROE

%

20.50%

19.30%

19.00%

Insurance –Xsell

Net Amt In Cr

7.2

12.0

17.5

Quality/GNPA

%

39.7

35

30

Bounce %

%

16.0%

13%

11%

Aditya Birla Finance Limited ("ABFL"), a lending subsidiary of Aditya Birla Capital Limited is among the leading well-diversified non-banking financial services company in India. ABFL offers customized solutions in areas of personal finance, SME finance, SME finance, corporate finance, wealth management, debt capital markets and loan syndication. ABFL is registered with RBI as a systemically important non-deposit accepting non-banking finance company (“NBFC”) and is amongst the top five largest private diversified NBFCs in India based on AUM.
 
 For the FY ended 31st March 2023, ABFL has a book size of Rs. 66,923 Crores, net PAT of Rs 1287 Crores and net worth of 7,784 crores. The Net Interest Margin expanded by 53 bps y-o-y to 7.35% and ROA at 2.47%. ABFL’s long-term credit rating of AAA (Stable) has been reaffirmed by ICRA in February 2023. ABFL also has a long-term credit rating of AAA (Stable) by India Ratings, Perpetual debt credit rating of AA+ (Stable) by ICRA and AA+ (Stable) by India Ratings (Stable) and short-term credit rating of A1+ by ICRA & India Ratings.

SME caters to the varied needs of a diverse set of customers across retail, HNI, ultra HNI, Micro,Small & Medium enterprises . It encompasses a wide variety of financing solutions for clients, ranging Loan against property, to more complex Lease Rental discounting, Commercial Purchase and Construction Finance lending. Financing solutions are provided to Self-Employed [professionals/ non-professionals] against a wide array of lending programs, each of which aims to estimate the client’s repayment capability accurately before the company to take an exposure. The lending program requires assessing clients on various dimensions, including income, repayment behavior, stability of income/ residence, profile, collateral [valuation, marketability], ownership structure of business and the property and many others.

Loan approvals entail a good mix of profile checks, balance sheet lending and collateral assessment. An in-depth understanding of the customer’s business model, Cash flows, customers & suppliers, success factors and dependencies needs to be considered given these are long term exposures [up to 15 years]. The financials are assessed to understand the repayment capability in the near and long term.  Collateral assessment is another complex part of the underwriting process involving checking the structural stability, marketability, valuation, regulatory / local body compliance and legal veracity – all to ensure the property can be liquidated to repay the loan if required in case of customer default. Lending is often structured to meet the client needs by deriving comfort through the hard collateral [can be a ready or under-construction property / project] and cash flows [in form of rentals, or project cash-flows – both against sold/ unsold receivables].

• For the FY ended 31st March 2023, SME is significant contributor to ABFL’s Portfolio (35% of ABFL Book Size) with a closing book of 23,133 crs 

SME has been delivering all-time high PBT of almost 563.3 crs and has posted 3.04% of ROA for FY23

SME has moved into segmented strategy model with further focus on client types considering their different complexities and expectations

• For the FY ended 31st March 2023, Emerging has contributor to SME Portfolio 12% of SME Book Size with a closing book of 2,739 crs.
• Emerging portfolio has 3300 customers with 82 lacs of average ticket size and contribute 33% of Total SME Customer portfolio. 

Emerging had also delivered PBT of almost 98.2 crs and has posted 3% + of ROA for FY23.

Being one of the most preferred asset classes in the lending business today, this business continues to present challenge of competing with all FI’s / Banks in a highly price sensitive target segment.

Key Challenges: 

Retail LAP – Emerging Markets as a business faces a lot of competition from Banks, other NBFCs and Fintechs which has been intense, dynamic and ever changing considering the entry of new players in the market.

• Managing factors like technological advancements, changing regulations, and evolving consumer behavior
• Strongly imbibe the ethical way of business & drive Aditya Birla Group’s Vision & values to each and every one in the team.
• Develop robust processes across Credit, operations, Collections & legal.
• Manage profit & loss, manage portfolio, customer, customer portfolio, customer life-cycle to maintain a clean Book growth and hygiene.
• Spearhead & launch many campaigns to drive the business in respect to Distribution, support functions & keep the spirit & morale high for the team while imbibing the ethical way of business & drive Aditya Birla Group’s Vision & values to each and every one in the team.
• Manage and Monitor employee productivity and foster employee development
• To ensure manpower is in place to execute the desired business plan.
• Setting up robust, comprehensive and scalable Governance frameworks for identifying and managing risk

Deliver Sales growth at the location and expand the customer base

• Identify business growth opportunities across the location, build direct/ channel/ new client acquisition strategies and tap growth opportunities to achieve area-wise targets 

• Augment the business volumes of SME lending in the location, manage client databases and tap them through Relationship Managers.

• Drive relationships with key clients, faster TAT and cross selling initiatives in order to increase the client base of the locations/area. 

• Monitor lead generation & RM sales productivity metrics to drive a high-performance sales culture across the area

Analyze product positioning and competition across the locations and develop the distribution network

• Scan the location market and its competitive offerings on a periodic basis; report on emerging trends and business opportunities for the SME segment to the head office

• Engage with channel partners and develop a touch point management system for faster customer connectivity  

• Conduct engagement programs and sales trainings to develop channel partners

• Monitor SLAs, sales efficiencies and RoI of channels 

• Effectively deploy schemes and prioritize sales of high revenue products and structures

Drive high levels of customer satisfaction across the location through relationship managers

• Monitor client servicing metrics, develop relationship marketing programs and motivate RMs and channel partners to display highest levels of client servicing standards

• Encourage the implementation of improved processes and best practices in order to enhance operational productivity

• Engage with key customers on a periodic to build stronger relationships, thereby contributing to faster growth

• Monitor customer issues and complaints and drive necessary action to address the same

Analyze and communicate information for better risk management and operational effectiveness to the management team

• Support the risk and review process by supervising the preparation of loan proposals and documentations to ensure controlled operations for the locations

• Liaise with the customers and the Risk team to provide regular information required for monitoring the creditworthiness of the proposals

• Prepare periodic MIS reports for profits, NPAs, new clients & report on a periodic manner to RSMs & ZSMs.

Team Management & Development

• Guide and develop RMs to facilitate better customer acquisition, retention and support, and helping them to achieve superior performance standards

• Nominate teams for product, behavioral and negotiation trainings and work for self development initiatives

Relationship Manager – To effectively contribute towards building the SME line of business and loan book by marketing/ selling all products (LAP/LRD) and solutions to potential and existing customers at targeted yields and fee through a strong distribution network, identified and empaneled able DSAs through knowledge sharing and capability building. Leverage an understanding of local markets and preferences and facilitate structuring of loans in accordance, while ensuring all necessary due diligence is conducted to prevent fraudulent loans and ensure all sales processes are carried out in keeping with internal and regulatory guidelines

Internal

1. Cluster Sales Head

1. Relationship Managers

1. HO 
2. HR dept

1. Risk dept

1. Operations dept

1. Weekly

1. Daily

1. Weekly
2. Need based

1. Fortnightly

1.  Weekly

1. Area-wise business MIS, review on new market development
2. Reviewing new leads generated & new clients developed
3. MIS
4. Region recruitments, performance reviews

1. Providing market intelligence, MIS on deviations in client accounts
2. Client servicing issues

External

1. Existing and Prospective clients
2. Channel partners

1. Daily

1. Daily/ weekly

1. CRM & understanding the need of new products
2. Product and business development initiatives

Job Holder

Reports to – Manager 

Name

Signature (needed for the hard copy)