Assignment 1: Submitted By: Bappa Shona Baroi (0092/50)

Case facts: The current Scenario of loan disbursement system follows the following steps:
Step 1: The Customer through a channel (Branch, DSA, Web etc! submits the rele"ant documents
to a branch of #B# ($ day!
Step 2: %&ecuti"es at the branch do a round of primary "erification and send the file to the Central
'perations department at (umbai () days * ) days for each iteration!
Step 3: C' department does Secondary "erification of the file #f the papers are not in order or in
case of a discrepancy, the +' as,s the Branch for clarifications - supplementary proofs After the
completion of the secondary "erification, the file is sent to the .is, (anagement and Audit
Department (/ days * 0 days for each iteration!
Step 4: The .is, (anagement and Audit Department does a credit chec,, audits the documents
submitted and chec,s the sanctioned loan amount #f there is a discrepancy or the loan amount
e&ceeds the permissible credit amount for that customer, the department sends the file bac, to C'
department for re"iew (/ days * ) days for each iteration!
Step 5: The C' Department after appro"al from the .is, (anagement and Audit Department,
sends the file to the 1egal department for preparation of loan agreement papers The legal
department sends the agreement papers to the originating branch which, after signature of the
customers sends them bac, to the legal department The legal department then registers the loan
($2 days!
Step : After a go ahead from the legal department, the C' department instructs the +ead office to
disburse the loan (3 days!
Based on these, the wor,flow model generated is as follows:
4oals that (r Sengupta proposed to achie"e:
$! .educing loan turnaround time (Target 5 0 days!
)! .educing 'perations cost (Target 6 by )37!
0!#ntegrating the operations of +B#1 with its subsidiaries
/! #ncrease Customer Satisfaction
8rom the wor,flow diagram of the current loan processing system, we see there are many scopes
where optimisation can ta,e place 1oops are there in Secondary 9erification Step A number of
tas,s li,e primary "erification and ris, assessment can be run parallely, but in the current system,
there are no parallel tas,s This leads to wastage of time and resources
Considering the issues, the following wor,flow design is proposed:
!edu"ing #oan turnaround time:
Complete 9erifiation :rocess done in the Branch 'ffice
Secondary 9erification and 1egal 1oan Agreement run in parallel
Credit Chec,, Document Chec, and 1oan Amount Chec, .un in parallel
Days Sa"ed;0 So goal Accomplished
!edu"ing $perations %ost:
Secondary 9erification :rocess can be done at the Branch office itself as the process of doing half
the "erification here and half at another place would <ust ma,e the process waste resources Also,
detecting document discrepency at the Branch itself ma,es it much easier for the customer to sol"e
those issues rather than creating an information gap between the Corporate 'ffice and the customer
through the Branch This can significantly reduce the 'perations Cost
&ntegrating the operations o' (B&) *ith its subsidiaries:
Whether to go for integration of +B#1 with its subsidiaries is a complicated decision which will
depend upon the state of those subsidiaries #f the subsidiaries are too autonomous with their own
established operation processes, integrating would not ma,e much sense But if these are not too
de"eloped, then it would best ser"e the interest of +B#1 to integrate and upgrade to a common
system 8rom the case facts, it is not "ery clear about their condition
&n"rease %ustomer Satis'a"tion:
Customer satisfaction is directly correlated to the manner in which customer issues are tac,led
.educing the loan sanction time would automatically please the customer Also ,eeping helping
disco"er the issues in documentation and "erification at early stages, say at the Branch or DSA le"el
would ,eep the situation much under the customer=s control instead of a looping between the
Central office and the Branch in which case the customer <ust feels li,e a pawn The ban, can also
implement #T wherby the customer will get a notification email or S(S at each milestone reached
by his-her loan application