Client profile:
Our client, a publicly listed midsized Private bank, has a large Home and Loans against property (LAP) portfolio.
Analysis:
A detailed assessment was undertaken of the total portfolio dynamics, as well as of the LAP portfolio. The profitability / pricing vs. NPA interplay was also analyzed in detail. Customer/property assessment was done and the early trend on stress was analyzed while assessing the efficacy of the warning systems. The analysis also included modeling to assess the impact of negative amortization and reduction in property prices.