Revenue Audit: Protecting the Bottom Line of Financial Institutions
For Banks and NBFCs, "Income Leakage" is a silent profit killer. At Diwakar and Associates, we provide a deep-dive audit into core banking systems to ensure that interest, commissions, and charges are applied strictly as per the sanctioned terms and current regulatory guidelines.
Why, When & Where is it done?
- Why : To detect and recover lost income caused by incorrect system parameters, manual errors in interest rates, or missed penal charges. It ensures the institution’s actual earnings match its true potential.
- When: Conducted on a periodic basis (Quarterly or Half-Yearly) or as a "Special Assignment" when yield on advances shows an unexplained dip.
- Where: Performed at the Branch level for retail operations and at the Zonal or Head Office level for corporate credit and treasury operations.
- What is it Done: A meticulous comparison of Sanction Letters versus System Inputs, verifying interest resets, processing fees, and collateral-related charges.
Applicability Limits (The Numbers)
Advance Portfolios
The branch or NBFC unit manages a loan book of ₹25 Crore or more.
High Transaction Volume
Units processing a high volume of daily transactions where manual oversight is impossible.
Yield Stress
Branches where the "Yield on Advances" has dropped by more than 0.25% without a corresponding market rate cut.
How we provide this service at Diwakar and Associates
We secure your institution’s profitability through a data-intensive four-stage approach:
1
Interest Parameter Audit
We verify if the base rates and spreads entered into the system match the actual loan agreements, with a specific focus on "Interest Reset" dates for floating-rate loans.
2
Fee Income Verification
We audit the collection of processing fees, documentation charges, and incidental expenses that are often overlooked during the busy loan-disbursement phase.
3
Limit & Drawing Power Check
We verify that the "Drawing Power" (DP) in CC/OD accounts is calculated correctly based on the latest stock statements, ensuring penal interest is charged for any over-drawings.
4
Recovery & System Correction
We provide a "Recovery Sheet" listing the exact amounts to be recovered from customers. We then work with your IT/Operations team to rectify system settings to prevent the same error from recurring.
The Impact
We don't just find errors; we identify the root cause in your system parameters to stop future leakages before they happen.
Our Commitment to You
Accuracy is the cornerstone of our practice. At Diwakar and Associates, we commit to being your "Zero-Leakage" partner. We promise a relentless and detailed investigation of every income stream, ensuring that your institution recovers every Paisa of legitimate revenue. Our work is designed to strengthen your bottom line and ensure absolute compliance with internal and regulatory fee structures.
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