Professional services firm Ernst & Young said it has developed a tool that allows banks to assess the level of non-performing assets (NPAs) in accordance with regulatory requirements.
The tool would enable banks to identify vulnerabilities and inconsistencies in loan portfolios through comprehensive dashboards, it said in a press release.
"EY Fraud Investigation & Dispute Services has launched an automated tool, 'NPAccurate', which allows banks to assess the level of clean up required by the deadline of 31 March 2017," the company said.
"The banking sector is inundated with an exponential rise in stressed assets. The regulator has therefore, tightened their grip on the sector, with the rationale that banks should come clean at the earliest and not postpone the situation any further. With the March 2017 deadline closing in, bankers will have to deploy innovative tools such as NPAccurate to take care of their loan portfolios," said Arpinder Singh, Partner and National Leader, Fraud Investigation & Dispute Services at EY.
EY said its tool is equipped with a unique risk scoring intelligence mechanism that will allow senior management to efficiently evaluate top vulnerable branches and customer accounts for bad loans. In addition, the tool has the flexibility of integrating with most of the core banking systems (CBS) used by banks.
