SR. Relationship Manger-Real Estate/ Mumbai

SR. Relationship Manger-Real Estate/ Mumbai Key Aspects:

The Construction Finance division caters to the short term and long term funding needs of the developers against project across the country. The product portfolio includes Construction finance against projects and Structured finance against committed cash flow of developers. The role holder is entirely responsible for Relationship building and structuring of all deals and managing the portfolio.

In construction finance, underwriting focuses not on the balance sheet but significantly on the project and the promoter group. Assessment here involves understanding the previous track record of the builder in terms of quality and timeliness of completion, saleability of projects, track record with other lenders and no. of projects delivered in the past. Project monitoring and end use of funds disbursed are critical here given risks around funds being used elsewhere, sale receivables not coming to the lender as a repayment and so on. Prudent customer selection is critical and is highly dependent on a relationship manager’s market awareness and client background information.

Mortgage lending encompasses a wide variety of financing solutions for clients, ranging from vanilla Home Loans and Loan against property, to more complex Lease Rental discounting, Commercial Purchase and Construction Finance lending. Financing solutions are provided to Self-Employed [professionals/ non-professionals/ salaried] against a wide array of lending programs, each of which aims to estimate the client’s repayment capability accurately before the company to take an exposure.

Loan approvals entail a good mix of profile checks, balance sheet lending and collateral assessment. An in-depth understanding of the customer’s business model, customers & suppliers, success factors and dependencies needs to be taken into account given these are long term exposures [ranging upto 15 – 20 years]. The financials are assessed to understand the repayment capability in the near and long term

·         Providing housing finance (to buyers), Loan against Property, Commercial Property Purchase, Lease Rental Discounting and Construction Finance (to builders) solutions, ABHFL caters to a diverse range of customer segments through its various service offerings. Additionally, being predominantly retail driven, the business is characterized by high volume of loan transactions and customer relationships. As a result, ABHFL business performance is strongly impacted by people, process and organizational efficiencies, alongside core business drivers such as product/ solution quality, channel and customer relationship management and risk management.

• Creating a differentiated proposition will be key in this highly competitive market

·         High cost of funding and smaller margins need to be offset by greater business volumes and market share 

·         To constantly evaluate businesses, product segments and geographies we need to be in

·         To constantly create innovative products and go to market strategies that help grow the business exponentially while ensuring profitability and zero delinquency

·         To evaluate new business opportunities for creating a differentiated positioning in this competitive housing finance market

·         All of the above can lead to strong competitive differentiation and enable quicker market penetration and profitable growth

·         The lending program requires assessing clients on various dimensions, including income, repayment behavior, stability of income/ residence, profile, collateral [valuation, marketability], ownership structure of business and the property and many others.

• The role holder is entirely responsible for Relationship building and structuring of all deals and managing the portfolio.

Key Challenges                    

• This is high risk and high return business, highly volatile but secured. Present CF portfolio is approx. 5% of HFC book though contributes approx. 23% of bottom line. CF book is Critical from overall retail home loan business proposition and remain competitive in market.
• Number of borrowers may be less but it demands high relationship management skills as projects and customers require day to day monitoring and dealings almost on a weekly basis.
• HFC business is diversified in terms of geography and customers, we neither can have bulky exposure on book nor concentration on geographies, thus Construction Finance business in HFC also should be in line with the exiting retail proposition, this requires Onboarding of smaller clients with the same amount of work and quality as in case of large corporate borrower.

Enabling Skill Sets & Qualifications

·         The critical skill sets required to meet these challenges are Building builder relationships, past experience in Real estate debt or equity business, Structuring knowledge, communication & presentation skills, strong Real estate market network & high customer service orientation.

·         The education & experience required to fulfil this profile are a Post graduate with minimum 4 to 8 yrs of experience in Real estate lending space