TA-9711 SRI: Strengthening the Regional Development Bank Project - Independent Nonperforming Loan Study (52219-001)

TA No.: 9711

Executing agency: Regional Development Bank

Project Number: 52219-001

Contract name: Strengthening the Regional Development Bank Project - Independent Nonperforming Loan Study 

Contract description: Scope of Work
1. Perform an independent and objective analysis of the RDB’s loan portfolio covering the following:
(i) Analysis of the total loan portfolio in terms of growth trends, sector, customer, and loan product trends during FY2015-FY2020,
(ii) Analysis of the impact of the Lankaputhra Development Bank’s (LDB) loans on total RDB loan portfolio in terms of sector, customer, and loan products,
(iii) Analysis of the NPL portfolio of the bank in terms of geography, sector, loan product (separately on leasing), and customer, during FY2015-FY2020,
(iv) Analysis of the impact of the LDB’s NPL portfolio on RDB’s NPL portfolio post-merger until FY2020,
(v) An aging analysis, demographic analysis (geography, sector, customer, and product type) of current 0-90 day past due segments in RDB’s NPL portfolio (analysis should be split between LDB’s acquired portfolio and RDB’s portfolio) and hypothesis validation using data for the past five years,
(vi) Vintage analysis of RDB’s NPL portfolio with subset of LDB portfolio included,
(vii) Gathering a representative sample data of borrowers based on high-ticket loans, evergreen loans and NPLs for each sector to check correctness of asset classifications and provisions based on Central Bank Sri Lanka requirements and assess reporting mechanism if its regularized across branches (LDB should be separated from RDB).
(viii) Analysis of systems limitations (manual inputting of data), and other matters related to NPLs