KrishaK for HDFC

8/2/2019 KrishaK for HDFC

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Copyright2012 D2K

CRisMac KRISHAKSM

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Presentation Path

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Agri - Facts

3

Challenges in Rural Credit Penetration

5

Sustainable Role for BC & BF

Risk Mitigation - Future Contract

System Driven Planning - Lead Bank Activities

CRisMac KrishaK A Sustainable Option

Data Flow to other Systems

Risk Mitigating Rural Credit

Rural Enterprise Current Scenario

7


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Presentation Path

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CRisMac Krishak Empowers

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CRisMac KrishaK Facilitates

18

Benefits of CRisMac KrishaK

Conclusion

Security Details

Sanction Documents

Reports

Screen Shots


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Agri - Facts

Agriculture is a vital sector of the economy with a contribution of

14.2% to GDP (Growth rate : 5.4%)

60% of the population is dependent on agriculture

68% of the cultivable land is Rain-fed only leading to risk in agri-

finance

43% of farmers are landless (Agricultural Laborer)

70 % of poor live in rural India


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Agri Facts ... Dilemma

On one side, India is amongst the top farm produce

exporting countries

On the other side our farmers are committing suicide

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Particulars (Agri. & Allied) World #

Milk, Cashew Nuts, Banana, Sapota,

Ginger, Turmeric, Spices & Jute1st

Tea, Wheat, Sugarcane, Rice, Cotton,

Groundnut & Inland fish2nd

Tobacco, Sorghum, Coconuts,

Rapeseed & Tomatoes3rd


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Proper assessment of rural credit needs

Ability to factor in prevailing input prices while assessing

credit requirements

Fair Assessment of credit limit based on historical market

price

Availability of updated socio-economic/ demographic data

for risk appraisal for rural financing

Uncertain price of Agriculture produce for farmer - Cyclical

volatility in production volume depresses realizable price

Small window of 30-40 days during sowing season for

assessment & disbursal of credit

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Lack of trained resources at bank branches

Disbursal of timely & adequate credit

High transaction cost of credit delivery

Large no of middle-men; low profit margins; low viability

High risk due to weather uncertainties

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Rural Enterprise Current Scenario

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CRisMac KrishaK A Sustainable Option

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EnablesScientificevaluatio

n ofRuralCreditneeds

GeneratesCreditplans

&

Loandocument

s

Analyzes& Plans forfinancingactivities

holdingpotential

for growth

Collate inputsfor planning

likedemographic

data,

infrastructureand economicenvironment




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CRisMac KrishaK Functional

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Risk Appraised Credit & Insurance

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Data Flow to other Systems

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Timely CreditAdequateCredit

CounseledCredit

CreditRisk

Operation

al Risk

Risk Mitigating Rural Credit

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Market

Risk


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Sustainable Role for BC & BF

Assist in collecting household survey data for meaningful DSS

Assist in risk mitigated additional business mobilization

Assist in Verification and validation

May assist in appraisal & doc.

Function as an aggregator in futures contract facilitation

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Risk Mitigation - Future Contract

Benefits of Delivery Based Futures Contract by Farmers

Mitigates price risk & settlement risk for farmer and credit

risk for the bank

Farmers/ aggregator hedge price risk thru futures contract

with Agri-commodity exchange & concentrate on quality

produce

Facilitates Agri-commodity exchange to device suitable

produce specific products & insulate farmers from counter

party default risks

Farmers/ aggregator arranges to deliver commodities in the

registered go down

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System Driven Planning - Lead Bank Activities

CRisMac KrishaK facilitates Lead Bank functions as under:

Bottom-up approach in credit planning ; mitigate risk for bank &borrower

Data supported decision making by factoring for resources and its

potential productive use; System driven computation of MPBF &

expected income Automated preparation of Vill., Br., Block, DCP credit plans by

the use of economic, demographic and other data inputs;

scientific planning of capital

Automated generation of Lead Bank Returns and allocation of

credit plan targets for Bank wise, Block wise, Sector wise &

Branch wise Segregations

Monitoring of progress of deployment of credit vis a vis District

Credit Plan

Periodic data generation for BLBC, DLRC, SLBC for effective4/19/12 16


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CRisMac Krishak Empowers

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Planning &

Data Collection

Appraisal

Assessment

Sanctionin

g

Documentat

ion

Credit for

ruralIndebtedne

ss

Consumpt

ion Credit

Review

SmartCard

SystemGenerated

Application


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CRisMac KrishaK Facilitates

Village information at glance

Demographic data

Land holding data

Village credit plan

Village Infrastructure details

Market analysis of the produce etc.

The household details such as

Asset details

Land ownership details Lease land details

Bank account details

Liability details

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Facility of Village Allocation

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Selection ofBranch,District,

Block andVillages


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Individual Household Details

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Entry ofthe

existingBank,Land,Asset

details ofthe

Entry ofPersonal details


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Working Capital KCC/ Production Credit

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Productio

n

Livestock Post

HarvestActivities

Maintena

nce

Non-Farm

Activities


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Other Features of Production Plan

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Analysisof

Marketprice ofproduce

basedon Agri-Mandi

price ofmore

than 48months

Sensitivity of theProject

to

fluctuations in

variable

s

GrossCroppedArea

Maintaining

disposalstatus of

loan


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Warehouse Receipt Finance

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Futures Contract Main Interface

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Risk Mitigation - Insurance

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TL/DL-Investment Credit


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Repayment Schedule & IRR Calculator

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To checkeconomicviability of

Project

Selection ofRepayment

Schedule in variousmodes


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Farm Business Plan Summary

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Production Credit

Investment Credit

Non-Farm Credit


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Civic Engagements- Non Credit Initiatives

Better utilization ofcredit

Conservation of soil

Credit counseling

Latest developmentson agro-machinery

Better usage offertilizers &pesticides

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Security Details

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BAR CODE

THUMB IMPRESSIONS

PHOTOS

SIGNATURES


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Sanction Documents

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Reports

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Benefits of CRisMac KrishaK

CRisMac KrishaK is data supported appraisal

system based on granular household data in

conjunction with production, yield, cost & other

critical data inputs Actual field condition testing reveals that the

collection of household data take less than 8

mins./ record

Household data could be collected by the branch,

staff, Govt. dev. Staffs, Students, Teachers,

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Benefits of CRisMac KrishaK.

Provision made for using Adhar database in future

System provides for recording multiple banking relationship

including membership of SHG and MFIs at household

survey stage. Provision for updating related market place

intelligence on the customers

Provision for independent biometric recording of finger

prints with photographs available, as integral part of the

security features along with KYC parameters Low cost of credit delivery

System defined error free documentation

Centrally controlled documentation process reduces the4/19/12 41

fi f C i i h


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Scientific appraisal & data supported computation significantlyreduces the instance of default

Significant relief to branch staff from extensive paper work in shorttime

Assessment, appraisal & establishment of line of credit can becontinued through out the year

Assessment of current Yr. Target & provision for risk appraised credit

planning upto 3 Yrs. Quantum leap in number of customers & valuesMinimum one thousand incremental Customers for R & SU hub

Efficient and scientific loan processing for timely and adequate credit Leveraging beneficial financial products like delivery based futures

contract eliminates price risk & settlement risk for the farmer and

credit risk for lenders

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B fi f CRi M K i h K


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Alert for Price volatility due to cyclicality of produce shortage & glutthrough market data analysis covering over 48 months period

Commodities exchange platform enables farmers to sell their producethrough delivery based futures contract thereby avoiding many layersof middle-men

In the traditional market situation, the middle-men profit margin isover 60% of the retail price. However the price differential will be

significantly reduced for the benefit of producer & consumers Scientific assessment of crop plan with risk mitigation approach and

inclusion of crop & weather insurance significantly reduces risks tofarmers due to uncertainties

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C l i


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Conclusion

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Win-Win Situation For Stakeholders


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