Credit Risk

Switch to Amukha’s Comprehensive Risk Application for System-based Asset Classification

Amukha’s Risk Analytics System (RAS) is the first-of-its-kind innovative application that offers a 360-degree view on the portfolio of companies and individuals by analyzing the traditional and alternative datasets.

Recently, the Reserve Bank of India had asked commercial and small finance banks to put in place or upgrade their systems for automated Asset Classification, Provisioning calculation, and Income Recognition processes latest by Jun. 30, 2021.

Amukha’s RAS is a perfect system for the banks to classify their assets into a. Standard Assets; b. Sub-standard Assets; and c. Doubtful Assets. Besides, RAS can also generate reports and returns for regulatory reporting and the bank’s own MIS requirements. Moreover, RAS can quickly scale up to meet both the bank’s custom and new regulatory requirements.

RAS offers the asset classification on the two separate risk scores derived from 1. The bank’s internal data; and 2. Amukha’s external datasets. To derive the risk score, RAS runs hundreds of business rules on the various datasets such as financials, news, provident fund, GST, directors, ownership, credit rating, etc. for each company or an individual from the bank’s portfolio.

Amukha’s early warning system buckets the portfolio companies and individuals into a high, moderate, and low-risk profile based on the overall risk score. Further, RAS categorizes the portfolio companies as Non-Performing Asset or Clean, etc. based on the risk score and business rules output from internal and external datasets.

Here, we have presented a Highlights screen from RAS showcasing Asset Classification for the portfolio companies.

Amukha has also integrated the RBI Alert screen in RAS, which monitors critical red flags defined by the central bank.

Recently, RAS has triggered several RBI Alerts on Sintex Industries. Following are the RBI alerts on Sintex identified by Amukha’s application:

RAS also offers the option to dig deeper into the company level analysis on various external and internal datasets. Moreover, details on the RBI Alerts are available on the company overview screen.

Amukha’s news data module has highlighted the media reports on Sintex Industries, which triggered the RBI alerts – 1. Default on the interest and principal payment; and 2. PNB reported Rs 1,203 crore fraud by Sintex.

Amukha has integrated several other features such as RFA Alerts screen, Audit Trail, Daily Newsletters, etc. to build a comprehensive risk application and make RAS a perfect partner for all types of banks.

To know more about RAS, email us at info@amukha.com.

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