MEASURE & MANAGE RISK

IDBI Bank uses SAS Credit Risk Management Solution to measure, manage and mitigate credit risk across its retail assets by using its superior data mining and statistical analysis capabilities.

With an ever-changing financial service marketplace in an environment of continued turbulence, disruptive competitors, dynamic markets and demanding customers, reaching out to the customers effectively is becoming a tremendous challenge. With over million transactions in a day, alongside comes the challenge of understanding the credit worthiness of customers, and therefore to proactively mitigate, measure and monitor credit risk.

With technology deployment seen as the key solution to fuel growth, IDBI Bank, one of India's fastest growing private sector banks, needed a solution that could help the Bank meet the new regulatory framework and also ascertain the credit portfolio of its customers. IDBI Bank needed a solution that would assist in understanding the credit worthiness of its customers, generating superior Portfolio Analysis and enhancing its risk management initiative in retail banking in line with the Bank's plans on being Basel II compliant by 2006.

“At IDBI Bank we were looking at enhancing our risk management initiative in retail banking in line with our plans on being Basel II compliant by 2006. For this we needed a solution that would assist in understanding the credit worthiness of customers and define pre-approved credit lines for individuals. In addition to the above, facilitate the development of analytical models using superior statistical techniques and intelligence”, says Mr. Pramod Vaidya, Head - Risk Management, IDBI Bank.

Keeping these underlying objectives in mind, IDBI Bank decided to implement the SAS Credit Risk Management Solution across its Retail Assets division. Commenting on why IDBI Bank chose SAS, Mr. Pramod Vaidya, Head - Risk Management, IDBI Bank said “SAS clearly scored over the other contenders in terms of understanding our requirements. The company demonstrated superior delivery capabilities, analytical prowess, high level of GUI and technical and domain skills.”

Currently IDBI Bank uses the SAS Credit Risk Management solution for the performance monitoring of Home Loan Score Card which has been recently implemented in the bank and has been developed by an analytics consultant. In addition to this the bank uses SAS for its superior Data Mining and Statistical analysis capabilities for generating the monthly Portfolio Quality Report. In the near future IDBI Bank envisages using SAS for developing and recalibrating the statistical models internally.

According to Mr. Supratik Gupta Head Retail Risk Management, IDBI Bank, “With increasing over-leveraging risk these days, SAS tools will help us achieve our objective with respect to Customer Relationship Management (CRM) to have more profitable customer relationships”

IDBI Bank looks confidently into the future to face and thrive in the intense competitive environment that is emerging. The bank has now gained experience and has in place the strategies required for gaining a leadership position. With cutting edge relevant technology, aggressive marketing, innovation, tight control over costs and with its motivated workforce, the bank is all set to emerge as a model global corporate citizen in the days ahead.