Arohan Financial Services Limited | Annual Report 2021-22

using key delinquency metrics. Collection efficiency movement and validation with bank statement. The borrower’s relative market position and operational efficiency. The quality of management by analysing their track record, payment record and financial conservatism. BRANCH OPERATIONS & QUALITY The first pillar in Arohan’s focus on its Portfolio Quality is the Branch Operations & Quality vertical, which is responsible for maintaining the overall quality of assets, ensuring compliance with policies and procedures, track and build efficiencies in all aspects of business and ensure anchor review forums. Through this vertical, Arohanensures improved operations at the Branch level, including strengthening the asset origination process. The vertical also plays a key role in improving customer attendance at centre meetings, increasing the percentage of loan repayments made by customers, enhancing the quality of customer service, and ensuring overall compliance and adherence with the Company’s internal policies and procedures, along with other statutory requirements. To this effect, Arohan’s Branch Operations & Quality vertical has dedicated cadres of Zonal Quality Heads, Regional Quality Heads and last mile presence with Branch Quality Heads at the respective operating Branches, creating a network of professionals right from the branch-level right up to the Zonal office levels responsible for ensuringquality inbusiness. The vertical alsohelpsmonitor and improve internal control, fraud detection and remedial action processes, as well as communicate policies and procedures to employees, ensuring their adherence to the same, while implementing strategic initiatives across the organization. The vertical had played a key role in facilitating collections, cash reconciliation and controls during the first wave of the COVID-19 pandemic when collection processes went awry due to the lockdowns, resulting in customer stress and thus delayed repayments. The experience was put to good use during the subsequent waves of FY2021-22. The function played a crucial role in managing the Branch teams and supervising the entire activities at branch, regional and zonal levels to ensure a fine balance of quality and quantity across Arohan’s lending portfolio. New Initiatives Early PAR Mentorship Programme (EPMP): In order to detect Early PAR branches and ensure improvement in portfolio quality, a mentorship programme on Early PAR branches was conceptualised and implemented, along with the Credit Function, during the FY2021- 22. Through this programme, low performing branches in each Region were identified and mentoredcloselybytheRegionalQualityHeads resulting into improved quality of portfolio. Cashless Collection: Another significant achievement has been in promoting cashless collections, as a key strategic initiative of the Company. Additionally, the vertical also worked closely with the Recovery team for direct recoveries from delinquent customers with the objective of enhancing the bandwidth of the resources in the field. Action on frauds and deviations: The vertical plays a key role in streamlining actions on fraud, as well as any deviations, to ensure faster resolution and closure. The focused interventions have resulted in a significant drop in fraud cases in the FY 2021-22. Additionally, observed deviations have been addressed through focused coaching, to address skill- gaps while also by identifying system gaps to be plugged and checked. 75 Annual Report | 2021-2022 Management Discussion & Analysis