SUNRISERS INNOVATION

Innovation Tournament

SUNRISERSSAP Code Team Member Department Band Zone

24004088 ROHIT AGARWALA ACCOUNTS L-5M EAST

23064406 KISHAN BACHANI DIRECT MARKETING L-7O EAST

24002553 PRASANT KUMAR MISHRA INFORMATION TECHNOLOGY L-7O EAST

23125296 AGNI SOM LEGAL DEPARTMENT L-8O EAST

24003320 TARUN DE OPERATIONS L-7O EAST

23132991 ANJALI JOSEPH HR OPERATIONS L-8O EAST

What is the need for this Idea ?We see two major organizational challenges in the present scenario:

1. Control on increasing NPA & PNPA :

Reduction and control of increasing NPA & PNPA has become a basic requirement. We put most of our time to hold this line of control, but in actual this process gradually has become our biggest weakness. Somehow, we are getting into the habit of collecting minimum-to-solve. In this way permanent or significant reversal of these contracts are getting neglected. Due to huge number of contracts in individual trial repeat visit to these contracts or spending required time towards any chronic contracts is getting difficult.

2.Portfolio management :

Overall portfolio is deteriorating day by day which is leading to substantial increase of OD & NPA provision. We are losing focus from the soft ageing cases as most of our time and energy is spent to solve the NPAs. Therefore managing every bucket all together is getting difficult resulting in deterioration of portfolio health.

Significant change of approach and methodology can arrest the scenario where we all are suffering. This is where our idea gave birth.

Continued..

What’s our Idea ?

Our idea is to drive recovery through 2 separate teams.

One team for soft bucket i.e. 0-2 aging contracts and another to handle 3 & above aging contracts.

The team which handles 0-2 aging contracts will ensure timely payment and restrict slippage of buckets. As a result our CD efficiency will improve and flow into 3 age will be arrested.

Approach towards 3 & above aging contracts required change to control further deterioration. The second team will ensure repeated follow ups which in turn will result in control of overdue along with portfolio correction. This will enhance the focus on every bucket movement rather our present approach of only focusing on NPAs and PNPAs.

The method of the allocation is shown in the next slides.

Continued..

0 1 2 3 4 5 6 7 8 Abv

0-2 agingTEAM A

3 & above aging TEAM B

01 2 3 4 5 6 7 80

0 22

2

22

1

1

1

11

1

13 4 6 7 8

4 5 6 7

3 5 6

3 4

3 4

5

00

0

00

0

2

Target will be to bounce back any flow from 0-2 age from the line.Target for 3 & above aging will be to reduce them to the left side of the line.

5

>

>

>

>

The red line indicates a line of control

Tele caller normally

calls 0-2 age contracts of

all these trials

(1800)

Total contract of branch XYZ(2400)

No of REC in branch 7 + one Telecaller

REC 1 (340)

REC 2 (340)

REC 3 (340)

REC 4 (340)

REC 5 (340)

REC 6 (340)

REC 7 (360)

PRESENT METHOD

Observations:

• Contracts are allocated to executives based on geographical area only. So when one new executive joins, one portion of the existing geography is taken out for him.• Telecaller’s job and productivity is overlapped with REC’s. Separate identification of his/her productivity cannot be measured.• One REC has to attain every type of customer, ranging from 0 aging to 11 aging or higher. Specified focus in any bucket not possible.• Contract size in every trial looks bigger and unmanageable.• When executives are driven for PNPA, focus from 0-2 ageing are neglected resulting lower CD efficiency.

Sample branch Krishnagar West Bengal

Tele caller +

Total contract of branch XYZ(2400)

BRANCH HEAD

No of REC in branch 7 + one

Telecaller

ECS/PDC contracts(500)

Field payment (600)

REC 4 (150)

3 & Above(600)

TEAM B

SUGGESTED METHOD

Office payment contracts (700)

0-2 aging (1800)

TEAM A

REC 5 (150)

REC 6 (150)

REC 7 (150)

REC 1 (1200)

REC 2 (300)

REC 3 (300)

Steps :

• Two teams will be created namely Team A and Team B headed by the Branch Head.

•Team A will handle 0-2 ageing contracts and Team B will handle 3 & above contracts.

• For Team A, contracts to be first separated by their mode of payment -1.ECS / PDC2.Office collection3.Field collection.

• For Team B, rest 3 & above contracts will be allocated to the senior & skilled employees from the team.

Team A Team BContracts to be handled 0 - 2 ageing cases 3 & above casesNos of contracts handled

(refer diagram as example)1800 contracts 600 contracts

Allocation of manpower 1 Telecaller & 3 REC's 4 REC'S

Role of the Team

Focused approach on PDC/ECS and office payment contracts. Collection of short PDC's and collection of payment from customer’s whose ECS and PDC's bounced.One REC will be tagged with the Telecaller for any specific field movement and overall collection efficiency.2 REC’s will be involved in collection of field payment contracts.

Focused approach on 3 and above contracts.4 REC’s will be handling the rest 600 contracts.They will make case to case visit and repeat visit on the commitment date.

Benefits

Reminder of monthly EMI which will reduce the payment defaults.Timely collection of short PDC.CD Efficiency will improve.Strengthen our relationship with customers.Prevention of bucket jump and to stop contracts from going above 3 ageing.

Contract size will be smaller and manageable.Focus can be given to the chronic cases as executives will have time to visit these cases.OD efficiency will increase.Control on PNPA and NPA’s.

What is the expected Impact ?

1. Focus on PNPA & NPA contracts will increase. There will be more time for effectively handling these cases with more repeat visits.

2. Due to reduction in number of contracts, concentration on 3-4-5 aging will improve. So contracts flow into PNPA will be less.

3. Due to the above reason from these buckets OD collection will rise because of better planning and execution

4. On the other hand there will be separate mechanism in driving the good portfolio of a branch. Customers will be knocked for payment/PDC in due time.

5. This will not only improve our CD efficiency but relationship with our good customers also will improve.

6. With the existing manpower only this innovative structure can be implemented.

7. No additional cost in implementation/execution of the concept.

8. We also see a future benefit on the concept. The day we implement the new statutory regulation of NPA (3 aging), by that time we will be absolutely ready for the same.