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put anything through straight-through processing, the more customers that is something that it measures? So it is more
of that happens through an unbiased decision where any about prevention rather than cure. That comes from a
interference to that is policed then that brings a science to it. whole bunch of analysis on you.

As a country, we are walled from a different kind of where So we talked about ability and willingness and then it moves
the power and other major industry has moved from the to how much is it, what category are you in and what can
hands of few to many that is digitisation for you and that puts you do to mitigate it.
the power back in the hands of even bankers to say I will
not lend because these alerts are there. When demonetisation happened there was a bunch of
sectors that got affected by the process we know that these Databird Business
So it's backed by even from a regulatory perspective, RBI is are the things which use lots of cash in transactions so lots of
insisting more on it and it just brings more science into the banks reached out and said can you do modelling based on Journal -Award
system. what will be the stress based on this particular incident that
happened. For example banks in the US monitored the
Q. What is the reason? Is it that the people who prices of barley and say if I have a lot is exposure to the for top large
don't want to pay are not paying because of their alcohol industry for instance then I am going to have
inability or willingness? incipient stress in the portfolio two quarters from now. So Business Female
In case of inability you can always stop it early on, say it's a they use it for commodities sensing the lag it’s a lead
5-year term loan, and if the first two loans they have not indicator into incipient Stress. So it's about how intelligently Executive of the
paid you say stop the convenience. That's the easier you use it but fundamentally it’s all about anticipating and do
problem to solve you don't lend more and you ask for more that while you are a customer of the bank. So this is where year 2019
assets, more collaterals and then you do that in a timely the time you spent needs to be more focused on the
fashion. In the inability to pay category it is more about the customer rather than before and after. Banks should spend
timeliness of action. Unwillingness to pay there is a bigger more time on early warning signals including the
scope for fraud. Earlier there was a case where I can take a mechanism.
loan from bank A, then move to bank B and Bank C. So that
the consortium mindset approach is something that India
will have to build a little more. From the perspective of
within the bank can you stop a fraud, if you have systems
and policies in place, absolutely yes. It is in the willingness
category that we see the biggest defaulters it is not in the
inability category.

If you balance to say these are the NPA's that I am willing to
stay with for the moment even then there is a movement
from willingness category to inability category because the
inability is something that they may pay in future based on
whatever is the structure of it so it's the willingness category
that's the dangerous one.
India’s
Q. Is it possible for banks to identify the potential
Most Trusted CEO:
wilful defaulter and avoid future defaults?
Currently banks spend a lot of time on on-boarding
customers. There is a lot of documents and due diligence Dr. Jaya Vaidyanathan,
needed. Banks spend maximum time in the life cycle of
customers before you onboard and after you go bad. The BCT Digital
interim that you are a customer of a bank, there is very little
time spent on your capabilities, willingness the entire aspect Selected as India’s Most Trusted CEO, Dr. Jaya Vaidyanathan
of it. When you are a customer of a bank....So what are the of BCT Digital has led with passion and exuberance. That
signs of stress what are signs of incipient your portfolio of has instilled tremendous ownerships in her team that today
is redefining the industry.

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