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Shrinking NPA through Litigation Management System

Every bank has experienced a variety of difficulties in going through the courts for any problem, particularly NPA related problems. Even within the bank, legal processes can be slow and tedious. Banks need to find ways to boost the morale of its legal teams, and technology is now available to do that.

There are many systems available in the market that are designed as per the needs of law firms. These systems do not give the perspectives that banks need for managing the legal processes efficiently. There is a better alternative – Speridian Litigation Management System (LMS). It is in fact designed from the perspective of the banks. It has an adaptive case management framework designed to streamline legal workflow for banks, with emphasis on automating the recovery process lifecycle. LMS is integrated with existing CBS and is capable of supporting multiple hierarchies – head office, zonal office, regional office & branches.

The solution provides a role-based access control system, and it also facilitates external access (mobile version or tab) to empanelled counsels and advocates of the bank to streamline communications with bank officials relating to all legal activities.

KEY PROCESSES

The legal process begins at the initialization stage, with different levels of approval, legal, and court process being automated in a paperless manner. LMS maximizes efficiency and dramatically improves the bank’s ability to respond to the suit filed, and meticulously plan all legal and security enforcement processes. The software provides real-time access to case documents, customized templates for intimation letters, and newspaper advertisements. It generates auto-reminders for all important dates, deadlines, dashboards, and MIS reports for real-time review. 

It helps to monitor at every stage of the legal process, advocate’s billing, performance management, one-time settlements with multi-level approval. It provides a virtual file with attached photos, documents, court, legal expense management, and real-time tracking updates to capture the compliances and pending issues against any customer with proper alerts and reminders.

8 KEY BENEFITS OF LMS

  1. It helps give prompt approvals for various litigations. 
  2. Each process is associated with an activity log which can be viewed from origination until closure for every user. 
  3. All the judicial & court staff are notified in advance; admin level users can configure alerts & reminders.
  4. The SARFAESI module is designed to manage the lifecycle from the initiation to the auction process. 
  5. All the litigation process are covered – SARFAESI, Sec 138 (NI Act) complaint filing, civil suit filing, DRT process, arbitrate, workflow, revenue recovery (RR) and insolvency and bankruptcy code, with a proper alert, a reminder of the time bar, escalation process, and court diary.
  6. A virtual file is maintained for each suit filed, which contains copies of important documents, photographs, and letters.
  7. Alerts and SMS messages are sent at each stage of the legal process to the group members such as legal officer, branch manager, zonal head, HO legal cell and GM in charge. 
  8. Panel advocate performance and Turn-Around-Time (TAT) are captured. 

REPOSITORY, VIRTUAL FILE & MOBILE APP 

LMS becomes the repository of documents and circulars. Sharing documents across different groups is a major challenge – the bigger the bank, the bigger the challenges. With LMS, once uploaded, all documents can be viewed by all appropriate users, overcoming a major challenge. The branch can create a virtual file by uploading any documents, photos, and agreements about a loan account through an e-form. LMS mobility is an add-on feature, wherein the bank’s panel advocate is provided with the tab or mobility version of the software, through which they can interact with the application.

LMS mobile app provides great flexibility at court proceedings where the advocate / consul can communicate the next course of action on various court proceedings apart from raising the invoices.

CASE STUDIES

Speridian LMS has come to mature space in 2019. Earlier, some elements were developed for a leading Kerala based bank in 2018. Thereafter it was presented to a leading PSU bank, which picked up the customized module. There has been a rise in demand for LMS software in the recent years. All banks in India, including village-based PACs, RRBs, scheduled bank and national banks, are deeply engaged with the legal processes.

Loan disbursement is a difficult process and managing defaulters is also a very tough, process. It has caused sleepless nights to bankers. When there is an amalgamation, with different cultures (eg Andhra Bank + Corporation Bank + Union Bank of India), the banks had different legal processes, which makes it difficult to get a single picture. For example, in this merger, one bank does not do much on SARFESI, but another bank does a lot of it, so a single integrated platform is indispensable.

The bottom line is that banks can surely get a wow experience in dealing with legal and court matters using Speridian LMS.

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Sreekumar M,

Head-Premium Services, Banking Verticals, Speridian Technologies

[email protected]

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