Banks can cross-collaborate better on delinquencies with real-time updates on borrower activity
A Bank's ability to generate profits depends not only on its assets’ quality but also on the dynamics of data management for its impaired assets.
In June 2022, personal credit rose at an annual rate of 18 percent, double the percentage points (nine percent) from July 2020 before the peak of the COVID-19 pandemic.
Moreover, non-performing assets (NPAs), and bad loans in the Indian banking system soared after the Reserve Bank of India conducted an asset quality review (AQR) in 2016, and finally stabilized in 2022 at 5.9 percent, the lowest in six years.
In the current scenario, an RBI report has stated Banks’ gross NPAs may climb to 8.3 percent by March 2023 from 5.9 percent in March 2022 in case of severe stress.
As the volume increases for such assets locked up in litigation, improved processes for monitoring are the need of the hour.
With information scattered around, it is difficult to keep a record of every case. Integrated Litigation Management offers dashboards for an overview of debtors, data accessibility for litigation teams, and information sharing using reports and notifications.
CRisMac ILMS | Integrated Legal Management System
Collaborate Effectively and Streamline Recovery Efforts for Quicker Settlements
CRisMac Integrated Litigation Management System (ILMS) is a solution for Lending Entities to streamline recovery efforts of legal processes. CRisMac ILMS is a data management solution offering real-time auto-syncing of information updated by various teams involved in recovery and litigation.
New age recovery efforts require updates from field agents but can use data from internal analytics systems too. CRisMac ILMS is a comprehensive solution that has provisions for seamless system-to-system dataflow, generation of insights, and automation of major tasks.
Integrated with Asset Classification Systems
Banks and lenders need to keep record of every borrower, and continuously monitor whether they will be a liability or an asset. A borrower’s account is classified as a non-performing asset (NPA) if the repayment is overdue by 90 days. In such cases, the lender has to initiate recovery action immediately.
CRisMac ILMS automates data sourcing for NPAs from credit monitoring or asset classification systems. An ‘NPA Status Note’ for borrowers can also be generated apart from the wide range of other reports which touch upon various aspects of the recovery process.
Status notes can also be viewed on a mobile app allowing Banks’ Executives to take quick decisions.
Automated Notice Generation for Defaulters
The system generates important notices for borrowers – Default Notices, Recall Notices, SARFAESI Demand Notices, possession notices, Sale notices, and certificates of sale.
It stores complete case details like Case Descriptions, Courts, Titles, Opposition parties, and attorneys, related documents etc. to increase information-sharing amongst stakeholders.
One Solution for All Recovery Litigation Efforts
Litigation Monitoring Solutions help Banks take timely actions for a variety of legal matters in lending. Some of the recovery actions covered in CRisMac ILMS are –
Securitization and Reconstruction of Financial Assets Enforcement of Security Interest Act (SARFAESI) Act – Physical Possession, RP Fixation, Sale Notice, Auction, Sale through Private Treaty, SARFAESI Movement Chart
Debts Recovery Tribunals (DRT) and DRATs
Suit Filed Cases - Pre, post, and during details
- Insolvency and Bankruptcy Code (IBC)
- National Company Law Tribunal (NCLT)
- National Company Law Appellate Tribunal (NCLAT)
- Supreme Court
- Liquidation
- Committee of Creditors (COC) meetings
Performance and Development Review (PDR) Act
Consumer Complaints extracted and recorded (Suit Filing)
Account for related areas such as arbitration
Cases filed under section 138 of the Negotiable Instrument Act
Section 25 of the Payment and Settlements System act
Banking Ombudsman
Right to Information (RTI) which was adopted in 2005
Litigation Against the Bank
Criminal Cases against the Bank/Officials
Get in touch with D2K Banking Fintech Consultancy Experts for roadmaps to deploy comprehensive data analytics solutions.