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Appointment of a Consultant to devise and implement the Rule Based Approval System of Lending for various types of Retail and Small Enterprise loans

UCO Bank invites proposals (Expression of Interest) for appointment of a Consultant for Project on ‘Rule based approval system of lending for various types of retail and small enterprise loans’. The Consultant will be responsible to devise a suitable model for the Bank for Rule based Approval System of lending for various types of retail and small enterprise loans and assist the Bank to implement the same.

About the Organization :

UCO Bank, headquartered in Kolkata, is a leading Public Sector Bank with 1741 branches in India, 4 overseas branches in Singapore and Hong Kong and one Representative Office in Malaysia. The Bank has a total business of Rs.92610 crore with deposits at Rs.55596 crore and advances at Rs.37014 crore as of June, 2006. The advances port-folio of the Bank is well-diversified. The Retail and small enterprise loans of the Bank constitutes slightly more than 20% of its total port-folio.

Bank is in the process of implementing the Core Banking Solutions (CBS) in partnership with HP and Infosys to have the benefit of high-technology platform to provide different types of products and services to the customers. The CBS package being implemented by the Bank also includes Credit Appraisal Module meant for processing retail and small enterprise loans. With the availability of CBS technology, UCO Bank intends to provide a Rule based approval system for these loans to take the benefit of technology.

Bank’s Retail Portfolio :

Our Bank intends to significantly increase its various types of retail and small enterprise loans segment during the next 3 to 4 years. In order to help the Bank in getting shifted to a systematic risk evaluation for various types of retail and small enterprise loans, a system of Rule Based Lending will ensure the creation of a good quality of various types of retail and small enterprise loans port-folio.

Keeping this objective in view, the Bank would like to appoint a Consultant who can put in place a Rule Based Approval System of Lending for the Bank’s various types of retail and small enterprise loans.

Prerequisites for the appointment of a Consultant :

The Consultant will have to look into the following features and benefits of Rule Based Lending system to devise a suitable model for the Bank.

• Loan Approval System will be customized and modelled according to the Bank’s needs.
  
  
  • Credit Policies and Guidelines
  • “Knock-Out” Conditions (i.e. immediate reject)
  • “Grey” conditions where special/separate approval is needed
    
    
• Covers various credit facility types - Retail Term Loans and Small Enterprise Term Loans and running Cash Credit accounts.
  
  
  • For each of the facility types, specific collateral/policy requirements can be specified
    
    
• Built-in Credit Risk Scoring System
  
  
  • Credit Risk Rating is automatically produced
  • Capturing of default probability information and basis for portfolio Management
  • Fulfils Basel II requirements - Assigns Customer, Facility and Exposure Risk Factor
    
    
• Efficient loan approving process

   

  • Automated and instantaneous credit decision based on data. No requirement for Credit Analyst at branches.
    
    
• Enables Portfolio Management capability

   

  • Credit Risk Scoring function enables development of Risk Based Pricing Tools
    
    • Managing pricing decision, capital requirements and portfolio profile based on customer risk
    • Performance measurement » Customer Profitability and Product Profitability

Details of Offer to be submitted by Consultant Firms :

UCO Bank invites applications from reputed banks / consulting firms who have sufficient on-hand experience of implementation of Risk Projects / Rule-Based Approval System of Lending in banks of similar size as our Bank either in India or abroad.

The last date for receipt of applications from the consulting firms of repute will be 20th October, 2006.

The applications should cover the following aspects :

1. Name of the Bank/Firm
2. Key persons in the organization who will handle the assignment and their experience/profile
3. Experience in the relevant field / assignments
4. Names of banks/firms for which consultancy in the relevant field has been undertaken
5. Approach/methodology proposed to be adopted
6. Tentative time required for devising a suitable model for the Bank and its implementation

Selection Procedure :

The applications received in response to the advertisement and meeting the above criteria will be screened by an Internal Committee of Executives. The Internal Committee will shortlist the applicants with reference to their experience in the area, profile of key persons who will handle the assignment in our Bank, approach/methodology proposed to be adopted for implementing

Rule-Based Lending in our Bank, and time required to implement the project. The shortlisted applicants will be invited to make their presentations. Based on the presentations and the discussions, 4 or 5 firms will finally be selected from whom financial bids will be obtained and L1 will be entrusted with the job.

The Bank reserves the right to screen the applications so received and to decline any application without informing the reason thereto.

The intending parties/consulting firms/Banks may kindly send their proposals in a sealed envelope to the under mentioned address :

A K Gupta
General Manager
Strategic Planning, (2nd floor)
UCO Bank, H.O.
10, B T M Sarani
Kolkata - 700 001

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