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Market-led
solutions
for financial
services
Market-led
solutions
for financial
services
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Market-led solutions for financial services
Session plan
1. Introductions
2. Overview of branch monitoring tool
3. Branch monitoring programme
4. Steps of monitoring
5. Monitoring visit planning
6. Branch monitoring tool structure
7. Tool description
8. Tool guidelines
9. Hands-on experience of the tool
10. Practical tips for branch monitoring
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Session 1: Introduction
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Session objectives
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TRAINING ARRANGEMENTS
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Call out
What is Branch
Monitoring? What all
should be covered under
branch monitoring? How
often do you do it?
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Call out
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Branch Monitoring
- Conducted by operations
department itself
- Reports to the senior
management staff of operations
department
- Is a assessment cum
improvement mission
- Highlights mostly operational
anomalies
- Action taken can be fast
tracked
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Call out
How about accounting and
branch monitoring?
Why do they check the same
documents that we do for
monitoring?
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Accounting
Assessment of fiscal
anomalies, reconciliation of
cash
It is part of accounting
procedure as the coverage is
100%
No-field level verification
based on documents only
Post-facto establishment of
accountability of erring
employees
Transaction based approach
Branch Monitoring
Assessment of mostly
operational anomalies and
development of corrective
action plan
For accounting examination, a
properly drafted document
does not negates the
probability of ghost loans
Field level verification
Correctional approach
Process and policies based
approach
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Call out
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Risks Mitigated
Branch Monitoring Programme focuses on 4 key operational risks
assessment and mitigation planning. These are:
RISK
EXPLANATION
Credit Risk
Fraud Risk
Error Risk
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1. In Groups identify and discuss some examples of noncompliance of operational policies and procedures and the
associated risks.
2. Each group will present the summary of their discussion in the
plenary.
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15 minutes
Step 1
Verify branch
administration
and monitoring
processes
Step 3
Step 2
Verify loan
processes and
adherence to
policies
Step 4
Step 5
Step 6
Cross-verify with
client folders,
accounting
records and
loan ledgers
Step 7
Develop action
plan for
corrective action
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Step 1
Step 2
Step 3
Collect branch
data in
preparation of
the visit
Step 4
Step 5
Verify branch
administration
and monitoring
processes
Step 6
Step 7
Develop action
plan for corrective
action
Report back to
the senior
management
team
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Closed loans
o
o
o
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Most important
Important
Not important
Means of
Verification
Importance
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Assess the importance of each of aspects identified step using the 3point scale given below
Most important
Important
Not important
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In Groups
Write down what all aspects to check for Step 5
o Branch administration
o Branch monitoring process
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Session 5:
Monitoring Visit Planning
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Closed loans
o
o
o
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Sampling tips
For the sample clients, each record should be traced from branch
office to the clients passbooks/records or vice-versa and the records
must be matched and verified. The above table only includes the
minimum sample size requirement for the monitoring purpose. If
time permits, AM must increase the sample size.
There may be cases where the same client has obtained more than
one loan. In this case, all records pertaining to different loan
products for the same client should be verified.
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Session 6:
Branch Monitoring Tool
Structure
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Schematic Diagram
During Visit
Pre-Visit
About the branch
Branch Profile
Products and
administration assessment
Post Visit
Reports
Report 3: Individual
Loans Monitoring
Report 4: Agriculture
Loans Monitoring
Area Average
Input sheets
Output Sheet
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Pre-Visit
Collect branch data
in preparation of the
visit
Step 2
Step 3
Step 4
Step 5
Cross-verify
with loan
documents and
accounting
records
Verify loan
processes and
adherence to
policies
Verify branch
administration
and monitoring
processes
Step 6
Develop action
plan for
corrective action
During
Visit
Step 7
Report back to
the senior
management
team
Post Visit
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Client Selection
Centre formation
Loan application and
documentation
Loan evaluation and
approval
Loan disbursement
LUC
Repayment/Centre
Meetings
Delinquency Management
Individual loan
portfolio
assessment
Client Selection
Loan application and
documentation
CIBI
Loan evaluation and approval
Loan disbursement
Post Loan Documentation
(Applicable in MAUNLAD)
Loan Utilization Check
Loan Supervision/Monitoring Visit
Loan Repayment/Collection
Delinquency Management
Agricultural
loan portfolio
assessment
Client Selection
Centre formation
Loan application and
documentation
Loan evaluation and
approval
Loan disbursement
LUC
Repayment/Centre
Meetings
Delinquency Management
Branch monitoring
and administration
review
Branch monitoring
Branch administration
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Area Averages
Entry
Branch
Operational
Dashboard
Individual Loans
Review (Branch and
clients visits)
Agriculture Loans
Review (Branch and
clients/group Visits)
Group Loans
findings
Individual
Loans findings
Agriculture
Loans findings
Group Loans
review report
Individual
Loans review
report
Agriculture
Loans review
report
Administration and
Monitoring review report
BRANCH
MONITORING
REPORT
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Session 9:
Hands on Experience of the Tool
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Exercise 9.1
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54
Session 9:
Practical Tips for Branch
Monitoring
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