Page 20 - NIBAF-Training Matters October-December 2020
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L N I S T I T U T O E F BANKING AND FINANCE Training Matters!
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consumer insights, types of products offered by the thorough understanding of agri sector and various
MFBs, Market Research & Product development measures taken by SBP.
with respect to regions/areas, selling techniques,
To accelerate the efforts further and increase
strategy to increase in deposits/loan, consumer
banks' outreach to borrowers in the Agri sector,
protection besides group activities & deliberation
NIBAF in collaboration with SBP has initiated an
on different case studies. The participants of the
extensive capacity development programs for
program took interest and got clarification on
banks in this area for the last two years. These
different aspects of marketing and selling
programs aim to equip banks with necessary tools
techniques.
and techniques for serving the subject priority
Agri-financing sector more effectively and efficiently. During FY
2021, NIBAF planned to conduct 24 free of cost
Agriculture sector remained top priority among the training programs pertaining to different aspects
policy makers primarily due to food security and of agri-financing for commercial banks.
employment generation. Over the period, there Specifically, NIBAF conducted six training programs
are significant changes in agri and agri-related during Oct-Dec 2020.
allied business including farm mechanization, tunnel
NIBAF organized 2-day program on Credit Risk &
farming, drip irrigation, water pumping using solar
Security Documentation for agri-officers of banks
panel, and crop management & monitoring using
at Hyderabad and Lahore respectively during Q2-
drone etc. These innovations have creates lucrative
FY2021. The objectives of this program is to
opportunities for the banks to tap potential of this
develop understanding of banks' officials
segment and direct agri-credit to innovative
regarding credit risk, need of securitization in agri-
borrowers.
lending, legal concepts of various assets &
However, Agri-sector is facing traditional underlying securities, significances and legal
difficulties including lack of financing from formal aspects of documentation. For any credit
sources, inability to exploit modern farming underwriting, it is important to determine borrower
technology & techniques, poor water infrastructure capacity and willingness to pay. The credit officers
and management, deficient food preservation and ensure pre-requisite of credit proposal that include
processing. SBP is taking various initiatives and credit history of the borrower, visiting borrower's
measures in order to address these shortcomings place/business, vetting all the documents to
and promote agriculture credit. This requires establish title genuineness, cash flow analysis,
evaluation of loan-size & its purpose, loan
price and duration etc. The officials
should understand various type of
assets/properties, their nature, legal
attributes, legal entitlement that constitute
security and collateral. These training
programs also discussed various revenue
documents, related Acts, Articles &
Clauses, passbook & its attributes; land
Record Management Information System
(LRMIS), types of charges, personal
guarantees etc. This training program
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