Financial Institutions (Banks / NBFIs) Services Division

The FIs Business Division of Versatile Finance & Management Associates delivers comprehensive consultancy services designed to enhance the operational efficiency and financial performance of banking institutions. Our core services include:

Business Process Optimization– Evaluate and optimize internal processes and workflows to enhance operational efficiency and reduce costs.
  • Implementing KPI-based performance analyses across various departments including HR, CRM, Corporate, Retail, CMSME, and Treasury.
  • Centralized trade operations, account opening, and CAD processes through electronic documentation (E-doc).
  • Legal and SAM Division Structuring: Developing a centralized organogram to improve outcomes with reduced manpower, along with providing the SAMD Manual and standard operating procedures (SOPs).
Risk Assessment and Management
  • Identification of Weaknesses and Threats: Conducting thorough analyses using tools such as the Core Risk Inspection Report, Comprehensive Risk Management Rating, CAMELS framework, and observations from DBI and Financial Examinations.
  • Capacity Building: Assisting the financial institutions to address upcoming challenges related to IFRS-9 and risk-based supervision.
Sustainability Consulting
  • Climate-Related Financial Disclosures: Offering consultancy on carbon footprint disclosures to align with IFRS S1 and S2, and other regulatory requirements.
Court Case Monitoring
  • Establishing guidelines for proper monitoring of court cases, detailing processes to follow before and after filing.
Performance Analysis
  • Branch Manager Evaluation: Analyzing the performance of the top ten branch managers based on metrics such as deposit growth, advance performance, profitability, NPL trends, and recovery performance in comparison to peer banks.
  • Employee Productivity: Conducting branch-wise cost-to-income ratio analyses to assess employee productivity.
Customer Service Evaluation
  • Implementing mystery shopping initiatives to assess customer service quality and standards.
Product Innovation and Development
  • Assessing the status of product innovation, particularly in digital banking platforms and research and development initiatives.
Credit Portfolio Management
  • Strategy Development: Fixing strategies for customer retention, growth, or exit to minimize concentration risk.

  • Large Borrower Performance Analysis: Evaluating performance against Bangladesh Bank guidelines and assessing future challenges for institutional borrowers.

  • Defaulter and Documentation Analysis: Reviewing the top twenty defaulters for documentation compliance, collateral status, and recovery efforts, as well as examining documentation for the top fifty borrowers.

Operational Assessments

  • Visit Export and Readymade Garment (RMG) customers to ascertain actual operational status, including shipment discrepancies, export proceeds realization, and unexecuted export orders.

Non-Performing Loan (NPL) Analysis

  • Forward Movement Monitoring: Analyzing specific categories of loans including classified loans, declared distress, and write-offs, while assessing eligible security coverage and interest income related to distress loans.

Branch Development Strategies

  • Conducting feasibility studies for opening new branches or sub-branches in potential locations based on business prospects.

Corrective Action Plans

  • Preparing guidelines for borrower follow-up and developing a corrective action plan (CAP) to enhance existing loan follow-up and monitoring systems, which are currently weak.

Long-Term Growth Strategies

  • Implementing steps and strategies based on industry best practices to ensure sustainable growth, paired with end-to-end supervision of implementation status. Reports will be submitted to the Board of Directors (BoD) on a half-yearly or quarterly basis.

Standard Operating Procedures (SOPs) Development

  • Developing SOPs for different banking divisions, covering all nationalized and private commercial banks to streamline operations and enhance customer service through a research forum for digitalization.

Credit Memo Review

  • Conducting independent assessments of credit memos exceeding Tk. 100 crore, adhering to Bangladesh Bank guidelines and seeking Board Member consent on positive impacts.

Retail Loan Underwriting

  • Providing support for retail loan underwriting and monitoring through outsourcing arrangements.

Functional Audits

  • Performing functional audits on classified loans and stress accounts as per Bangladesh Bank requirements, ensuring accountability among bank officials.

Professional NPL Management Services (Non-legal Measures):

  • NPL Management Process Automation and Re-engineering

  • SOP for reorganizing SAM Division to ensure better results, in light of the growing levels of portfolio stress and regulatory attention on improving asset quality.

  • Using Alternative Dispute Resolution (ADR) in negotiations and mediation in accordance with BB circular BRPD-11, dated 12.05.2024

  • Providing guidelines for strict court case status monitoring.

  • Evaluation of mortgaged properties’ current market worth and condition in relation to default loans.

  • Verification of ownership and sale authorizations in accordance with ARA clauses 33(5) and 33(7)

  • Finding anonymous borrowers and implementing the required recovery measures

  • Capacity building program for officers and executives under SAM & Legal Division.