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ROLE BRIEF
Executive Director, Proposed Non-Banking Financial Company
Wholesale Lending | Bengaluru
Position
Executive Director (Whole-Time Director), proposed NBFC
Entity
New private limited company, to be incorporated as a wholly owned subsidiary of Stable-Alpha Technologies Private Limited
Proposed registration
Investment and Credit Company (NBFC-ICC), non-deposit taking, Base Layer
Reporting to
Board of Directors
Location
Bengaluru
Experience Sought
15 years or more in banking or financial services, with depth in lending and credit underwriting
Compensation
Competitive and commensurate with experience. Includes participation in the group's long term incentive plan.
Business plan in brief
- Phase 1: wholesale lending. The NBFC will begin with secured wholesale lending to other NBFCs, through term loans and subscription to non-convertible debentures of growth stage NBFCs. Ticket sizes will be in the range of ₹1 crore to ₹10 crore. The sponsor already understands this segment well from the fixed income side. Starting here also allows the credit function to be built and tested on a small set of institutional counterparties that can be monitored closely.
- Phase 2: retail lending. Once the wholesale book has seasoned and the underwriting framework has been tested through a credit cycle, and once the necessary governance, technology and collections capability are in place, the NBFC intends to move progressively into direct retail lending, drawing on the sponsor's distribution reach and customer relationships.
- Capital and funding. Initial equity of about ₹50 crore will be brought in by Stable-Alpha, well above the ₹10 crore minimum Net Owned Fund requirement. Borrowings are targeted at gearing of about 3 times, against the ceiling of 7 times applicable to Base Layer NBFCs. Funding is planned through a mix of bank lines, institutional placements and public issues of secured, rated and listed NCDs. No borrowing will be raised before the Certificate of Registration is granted.
- Purpose of the Role
The Executive Director will be the senior most executive of the NBFC and a whole time member of its Board. The mandate is to build the lending business from the ground up: to write the credit policy, hire and lead the credit and risk team, own the loan book, and carry personal accountability to the Board and to the regulator for the way the business is run.
The person will join at the pre-registration stage and will therefore have a direct hand in shaping the business plan, the organisation structure and the control environment that the Reserve Bank will assess.
- Key Responsibilities Credit and underwriting
- Draft the credit policy for Board approval, covering counterparty selection, appraisal standards, security and covenant structures, pricing, and exposure limits for single borrowers and for groups.
- Own the underwriting of wholesale exposures end to end. This includes financial and promoter due diligence, an assessment of the borrower NBFC's own asset quality and collection performance, security cover and deal structuring.
- Set up the credit monitoring, early warning and NPA recognition framework, and lead recovery and resolution where it becomes necessary.
- Design the underwriting approach for the retail phase, including scorecard based decisioning and portfolio quality controls.
Governance, risk and compliance
- Serve as a whole time director on the Board, and support the Board and its committees on risk, audit and asset liability matters.
- Ensure compliance with the Reserve Bank's Master Directions applicable to NBFCs. This covers prudential norms on income recognition, asset classification and provisioning, capital adequacy, KYC and AML, fair practices and outsourcing.
- Oversee regulatory returns and reporting, and act as the main point of contact with the Reserve Bank, including during inspections.
- Put in place internal audit, risk management and internal controls appropriate to the scale of operations.
Treasury, ALM and finance
- Build and manage the liability side, covering bank lines, institutional borrowings and NCD issuances, with attention to tenor matching and liquidity risk.
- Anchor the asset liability management process, and maintain the liquidity risk framework and liquidity buffers.
- Work with the Board on capital planning so that capital adequacy and leverage remain comfortably within regulatory limits.
Institution building
- Recruit, mentor and lead the credit, risk, operations and collections teams.
- Support the preparation and filing of the application for the Certificate of Registration, and lead the operational readiness required at the time of registration.
- Build and maintain relationships with borrower NBFCs, banks, rating agencies, debenture trustees and institutional investors.
- Candidate Profile Experience
- About 15 years or more in banking or financial services, with a substantial part of it in lending and credit underwriting.
- Direct ownership of a loan book, having appraised, sanctioned or supervised credit decisions and carried accountability for portfolio quality through at least one credit cycle.
- Working knowledge of prudential regulation, covering asset classification and provisioning, capital adequacy, exposure norms and the related reporting.
- Practical experience of handling stressed accounts, including early warning identification, restructuring, recovery and resolution.
Backgrounds we would welcome
We Are Open On Institutional Background And Are Equally Interested In Candidates From Public Sector Banks, Private Sector Banks And NBFCs. The Following Profiles Would Fit Well
- Branch Manager, or Chief Manager or Senior Manager at a public sector bank, particularly someone who has headed a credit intensive branch, a mid corporate or SME credit vertical, or a regional credit processing or sanctioning centre. Officers in Scale III to Scale V with strong credit exposure are very much in scope.
- Credit or risk leadership at a bank or NBFC, such as Head of Credit, Chief Risk Officer, or Zonal or Regional Credit Head.
- Wholesale or institutional lending experience, including lending to NBFCs, financial institutions or mid corporates, or work on structured and securitisation transactions. This would be a clear advantage.
- Retail lending leadership, including experience of building or scaling a secured or unsecured retail book. This would be useful for the second phase.
Qualifications And Eligibility
- Graduate. A professional qualification such as CA, MBA in Finance, CAIIB or equivalent is preferred.
- The candidate must meet the Reserve Bank of India's fit and proper criteria for directors of NBFCs. This includes a clean regulatory and credit record, no disqualification under Section 164 of the Companies Act, 2013, a valid Director Identification Number or eligibility to obtain one, and willingness to furnish the prescribed declarations and undertakings.
- No pending or past regulatory, disciplinary or criminal proceedings of a kind that would prejudice the registration application.
- Bankers who have retired or are approaching superannuation, and who are willing to take up a full time executive role, are welcome to apply.
Attributes
- Independence of judgement, and the standing to decline a credit and defend that view at the Board.
- Comfort with working in a small and new institution that does not have the support infrastructure of a large bank.
- Willingness to be hands on with files, systems and hiring in the early years.
- High standards of personal and professional integrity.
- Engagement and Terms
- Full time executive appointment, based in Bengaluru.
- Board seat as a whole time director of the NBFC, subject to shareholder approval and to the Reserve Bank's fit and proper process.
- Compensation will be competitive and commensurate with experience. The role also carries participation in the group's long term incentive plan.
- Candidates who would prefer to engage in an advisory capacity during the pre-registration phase, before formal appointment, can be accommodated.
Skills: capital,underwriting,nbfc,wholesale
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