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COVID-19: Loan portfolio assessment considerations for banks and NBFCs

Banks and non-banking financial companies (NBFCs) have been grappling with issues related to non-performing assets (NPAs) for some time. These challenges are expected to increase manifold due to COVID-19 impact on sectors such as real estate, infrastructure and manufacturing, which are expected to see deterioration of cash flows of borrowers eventually leading to an increasingly distressed loan portfolio for banks and NBFCs.

Therefore, it is imperative to critically evaluate the quality of the loan portfolio to determine the estimated credit loss (ECL) and formulate an appropriate strategy to maximise loan recovery (including exploring sale of portfolio), both in terms of timeline and value. Internal matters such as strengthening the credit risk assessment process and enhancing liquidity also need to be evaluated.

Here’s how we can help you PLAN how to assess your loan portfolio and formulate an appropriate strategy to maximise loan recovery

  • Loan portfolio categorisation
  • Loan portfolio status and recovery assessment
  • Loan recovery strategies
  • Post-assessment debt restructuring and advisory
  • Integrity and forensic reviews

and more…