C-Edge’s Services and Solutions Helps Banks to Arrest Their NPAs

A popular adage goes thus – a stitch in time saves nine. And this is exactly what comes to my mind when I think of some of the services extended at C-Edge Technologies. We have modelled few services so that our clients, mostly banks, are safe guarded from debilitating losses in the future – especially due to NPAs. Our products and services such as …..help banks to take informed decisions to safeguard their profits – especially by arresting their NPAs. Non-Performing Assets - one of the foremost and formidable problems to hit the banks finds its roots in the bank’s target oriented approach of lending. This approach has not only taken away the qualitative aspect of lending but has also led to the downfall of the credibility of the banks and created a dent in its profitability and capital adequacy ratio. The entire Indian banking industry is groaning under the burden of their non-performing assets.

Loans turn into NPA’s when the interest or principal payment turns overdue in 90 days or more. Our products prevent banks from turning their loans to NPA’s by alerting them as soon as the overdue period crosses 60 days. This is done by the Credit Action Plan (CAPs) service, which advises banks to restructure the loan account by recognising if the borrower is a wilful defaulter or not and is willing to extend their personal guarantee of not isolating any assets without the consent of the bank. Any deviation from this action plan renders the borrower as ‘non-cooperative’.

At C-Edge Technologies, our services are modelled to arrest this growing concern of most of our clients. Our services tend to completely eliminate this issue right from the place of its origin – which is the bank’s branches. We believe, the issue needs to be regulated at the banks various branches and sub-branches rather than addressing the issue at the Head offices.

Our services enable banks to monitor their credit appraisal techniques and also send alerts whenever inadequacies are encountered. The biggest challenge before banks today is to monitor  and manage the existing loan book more comprehensively and efficiently and our services are neatly aligned to address this requirement.

Main Features of our NPA related products are:

1. Recognize distress symptoms early and take prompt corrective action

2. Monitor accounts much earlier and formulate credit action plans

3. To ensure that banks don’t continue to lend to “bad” customers or against “over leveraged” collateral.

4. Eliminate computational and integration challenges by calculating exact NPA levels

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