Retail lending is the practice of loaning money to individuals rather than institutions.

Retail lending is done by banks, credit unions, and savings and loan associations. These institutions make loans for automobile purchases, home purchases, medical care, home repair, vacations, and other consumer uses. Retail lending has taken a prominent role in the lending activities of banks, as the availability of credit and the number of products offered for retail lending have grown. The amounts loaned through retail lending are usually smaller than those loaned to businesses. Retail lending may take the form of installment loans, which must be paid off little by little over the course of years, or non-installment loans, which are paid off in one lump sum
Risks in Retail Lending

T h is wo r k s h o p a ims t o e q uip t h e p a r t ic ip a n t s wit h a t h o r o u g h u n d e r s t a n d in g o f t h e r is k s in v o lv e d in v a r io us len d in g p r o du c t s a n d u s in g mo d els f o r t h e ir q ua n t if ic a t io n a n d p r ic in g .

T hi s pr o g r a mme wi l l e na b l e i t s pa r t i c i p a n t s t o Understand in detail the risk characteristics and product life cycle of various retail lending products Discuss how to build an optimum retail lending portfolio and maintain an appropriate strategy for churning the portfolio Get a grasp of the credit risk involved in various retail lending products and how to measure expected loss Master through a hands-on exercise how to price a retail lending product using one of the prevalent lending models Appreciate the operational risk involved in retail lending

T hi s pr o g r a mme wi l l be n e f i t Retail finance professionals Originators and investors in securitised retail assets Risk Management consultants Faculty Mr. Manish Tripathy Mr. Manish Tripathy is a graduate from Indian Institute of Management, Calcutta where he studied PGDM (2007-09) with specialization in Finance. He has more than 7 years of experience in Banks namely Punjab National Bank and State Bank of Bikaner and Jaipur. Besides having a vast experience of working in various spheres of banking ranging from routine, credit & foreign exchange to planning & execution of policies; he has specifically been associated with the risk management departments of both the banks. His various assignments include stints in retail lending at branch level as well as lending policy formulation & analysis at the regional level. organizations. He has been visiting faculty with the Finance Department of the Indian Institute of Management, Calcutta for the last 7 years in areas of Commercial Banking, Working Capital Finance, Bank and Risk Management, Financial Markets and International Finance. Mumbai: 25-26 November 2010 C o u r s e s t r uc t ur e Day 1 Session One Retail lending in India : What went wrong ? Retail lending in India : Prospects for present and future Retail Lending in India : Need for alternate approach Understanding the fundamental concept of requirement of retail lending in India

 Retail lending philosophy : Need-based of the borrower or target driven by the lender - which one is more important Session Two Characteristics of different retail lending products : o Housing Loan o Loan Against Property o Vehicle Loan o Car Loan o Equipment Finance o Personal Loan o Educational Loan o IPO Funding o Loan against shares Session Three Caselet: Providing proper solutions for 4 caselets about the amount of loan to be provided for 4 different types of loan Session Four Branch versus Franchisee based delivery system Understanding the product life cycle of each retail lending product Building up portfolio and churning of portfolio strategy depending on the maturity ladder of Product Life Cycle (PLC) of retail lending product Creating value differentiator through retail lending by proper leveraging the PLC of retail lending product s Risk of generalization of Retail Lending Product with consumer durable products

Day 2 Session One Fundamental concept of Risk Management Application of fundamental concept in Risk Management in Retail Lending Understanding the concept of Credit Risk in Retail Lending Credit Risk for different retail lending product Fundamental concept of Modeling Credit Risk in Retail lending product wise How to measure Expected Loss Session Two Quantification of Probability of Default in Retail Lending Product Different models present in practice Comparison of different models in practice Adaptability of this model in Indian context Practical issues of modification of these models and some recommended solutions Session Three Exercise: An Excel-based exercise on how to find out the pricing of four retail loan products with the help of two popular retail lending models prevalent in the market Session Four Operational risk in Retail Lending Quantification of Operational Risk in Retail Lending Role of Internal Audit in managing Operational Risk in Retail Lending Use of Information Technology for managing Operational Risk in Retail Lending One sample modeling for Operational Risk in Retail lending P r o g r a mme de t a i l s

Mumbai Venue: Mum-93. Date: Timings: Fees: 25-26 November2010 09:30 am to 05:00 pm Rs. 25,000/- plus service tax* (non-residential) Hotel le Meridien, Sahar Airport Road, Behind Hyatt Regency, Andheri east -

(*The fees include lunch & refreshments for the duration of the programme.) Participants will receive a Certificate of Participation at the end of the programme.

C a n c e l l a t i o n P o l i c y : CRISIL reserves the right, to retain 25% of the fees for any cancellations less than 24 hours before the training programme or non-attendance. CRISIL reserves the right to accept or reject nominations at its sole discretion. T o r e g i s t e r f o r t he pr o g r a mme , c o nt a

Retail lending has changed dramatically in the last couple of decades, moving from a largely intuitive process to an increasingly automated one. With automation comes the danger of rapidly magnifying problems, as with the U.S. Mortgage Crisis. Reliance on weak, outdated models can create portfolio disasters. Managing a retail loan portfolio successfully depends on properly developing, deploying, and integrating a wide range of models. These modeling activities-everything from account-level scores to portfolio forecasts and economic capital-need to be coordinated across a range of loan products and across marketing, credit, collections, operations, and finance. This course discusses key drivers of portfolio performance and portfolio modeling approaches that range from classical to leading edge. Topics will cover the range of portfolio modeling issues such as forecasting, stress testing, volatility measurement, economic capital, diversification, and optimization relative to the efficient frontier. Through the course, integrating all of these modeling efforts will be emphasized so that results can be coordinated across business functions and loan products.

Baroda Uttar Pradesh Gramin Bank offers a wide range of retail loans to meet your diverse needs. Whether the need is for a new house, child's education, purchase of a new car or home appliances, our unique and need specific loans will enable you to convert your dreams to realities. Key Schemes

Saral Vyapar Yojna

This Trader Loan facility enables Individuals, Proprietorships, bodies such as Partnership firms and Co-op societies to avail of working capital or undertake development of shop by way of loan/overdraft.

Loan against Securities

You can avail loan for productive purpose or for meeting contingency needs of personal nature through schemes mentioned here: Loan Against National Savings Certificates (NSC) / Kisan Vikas Patra (KVP)

LABOD

Baroda Uttar Pradesh Gramin Bank provides loan for all nonspecific needs against your deposit with us Baroda Uttar Pradesh Gramin Bank invites you to be a proud owner

Housing Loan

of your own home and offers easy Housing Loan with a number of conveniences to suit your budget.The Home Loans offering fromBaroda Eastern Uttar Pradesh Gramin Bank essentially provides for finance in relation to the extension / purchase of a new house, financing of an old house, purchase of a plot, Renovation / Repairing of house.

Two Wheeler Loan

Two-Wheeler Loan make it possible to purchase a two-wheeler and pay back in easy monthly instalments, thereby reducing the burden of a one-time payment.

Car Loan

In today's fast paced world, a vehicle is but a necessity. Yet other expenses and plans in life take priority and the dream of owning a car takes a back seat. Whether as a comfortable and dependable means of transport or as a status symbol in society, we believe you deserve ownership of a vehicle.

Education Loan

Whether you are planning higher education of your child, pursuing a graduate or post-graduate degree, the Baroda Uttar Pradesh Gramin BankEducation Loans, can help finance your ambitions and goals.

Loan to Salaried Persons

Loans tailor-made for consumer durables that specifically meet the requirement of the salaried persons. Avail of up to Rs 3.0 Lakh for any kind of product

Marriage Loan

The marriage of your daughter / son or loving sister / brother is usually one that you want to celebrate with pride and joy. When it is

the most important day of her/his life, and yours, you want to give her/him the best memories of the day to cherish, You want to make sure that all arrangements are made well in advance and every comfort meticulously provided for.

The Marriage Loan from Baroda Uttar Pradesh Gramin Bank is the ideal way to provide for such occasions.