Retail Policy - Agri
Agriculture finance is a complex business with typical challenges unlike normal retail lending business. The diverse nature of business requires very strong & deep understanding of geo-specific peculiarities, state specific legislations, non traditional method of valuation of agri land, technical know how, large no of crops and their typical geo-specific economies, type of soil, irrigation facilities, variety of customer profiles, infrastructure both basic and marketing, very different rural mentality of customer which has direct bearing on credit appraisal etc.
This can be had only with long experience, extensive travelling, close interaction with customers and other stake holders of the segment. Since the agriculture is dependent on nature and invisible forces, the element of risk is very high compared to all other funding products. As a part of regulatory requirements the bank needs to provide for 40% PSL of which 18% of adjusted net bank credit has to be under agri segment (Direct +Indirect)
The key responsibilities of this role is :
- Add value to the agri lending business by identifying & minimizing risks involved in the tractor/farm equipment lending transactions.
- Meet the targets under direct/ indirect and weaker sector advances .
- To maintain synergies between product policies and line requirements with an objective to provide fine balance between them
- To devise segment specific & versatile policy to capture low risk business and to diversify portfolio
- To identify and limit the risks in the policy and keep on fine tuning in order to build a healthy portfolio within the regulatory framework as well as internal risk appetite of the bank.
- Knowledge about various kind of crops, pattern, economies, farm equipments, allied activities like dairy, poultry, pisciculture. Good knowledge about the study and analysis of Balance sheets, state specific traditions, legislations, regulatory restrictions is mandatory for this role.