The document discusses the revised Branch Score Card (BSC) used to evaluate branch performance. Key points: - The BSC is weighted across business parameters like gold loans (44%), NH loans (16%), profitability (20%), and third party products (10%). - Gold loan parameters include pledge count, incremental AUM, interest collection, active customers, and new customer acquisition. - Digital adoption is newly introduced at 10% weightage, measured by 24x7 and digital repayment adoption. - NH loans focus on reducing delinquencies in 30-89 and 90+ day buckets. - Third party products include metrics for products like MTSS, forex, and health insurance.

1. CHANGES IN

2. Why BSC?
The Branch Score Card is a tool for
Reviewing Monitoring Planning
It aids the Branches in monitoring Actual Performance v/s Targets.
It helps in ensuring they meet and exceed the Targets for the benefits of the Organisation and hence themselves
Based on BSC results, branches can undertake timely corrections in their focus on products guided by their field
hierarchy (AMs, RMs, ZHs)
The criterion set will guide the branches on the quantum of business they should do to get into the next higher
level of performance i.e. from very good to Excellent etc.

3. Why BSC? (continue…)
BSC helps identify future leaders – BICs, ABMs, BMs, AMs, RMs, etc – transparently
Branches gets an opportunity to realize their position State wise and PAN India.
It builds a healthy competition between Branches, AMs, Regions, RMs, Zones, etc and brings out winners across
who strive to be the best and better themselves each month.
It is designed to set a tone for the regular monthly review for branches - at Branch level as well as by hierarchy.
Branches can get a feedback on where they do well and where they need to improve.
For RMs/SHs this can be used as tool to monitor and review a branch and guide on timely course corrections.
Even for a good scorer in BSC, RM/SH will be able to guide which are the factors that need improvement.
RMs/SHs can have branch specific –product specific plans.

4. Scoring in Branch Performance Score Card (BSC)
The Maximum score that is possible in BSC is 5 which is awarded if the
branch achieves above 120% of target .
A score of 4 is given for achieving above 100% to 120% of target
A score of 3 is given for achieving above 85% to 100% of target
A score of 2 is given for achieving above 65% to 85% of target
A score of 1 is given for achieving below 65% of target

5. Advantages of BSC over normal appraisal
There is no subjectivity or favoritism in BSC.
Staff can know where they stand at any point in time.
Staff can access on how to improve performance and get a better score thus positively impacting their appraisal.
Staff is aware of the branch performance as it is linked to target vs achievement.
BSC has 75% contribution to the Appraisal of the Branch employee with 25% residual being the AM
assessment of the BM / other staff
Through BSC, the appraisal process is objective and very transparent
BSC has changed the dynamics and the focus is now on business, performance delivery, performance appraisal,
variable pay-out, etc

6. • Five scores in BSC – 5, 4, 3, 2, 1
Recap
• Importance of BSC

7. Highlights of the revised BSC
The Branch Score Card (BSC) has been revised in line with the business focus below.
BSC will be common throughout all branches as opposed to BSC 1 and BSC 2 of previous year.
Weightage of our core business gold loan has been increased to 44% with focus on pledge count, incremental
AUM, NCA, active customer base, and interest collection. Pledge value and AUM achievement parameters have
been removed in new BSC.
Since MSME loans are paused for some time, disbursal count, disbursal value, and NCA have been removed in
the revised BSC. Focus will be on collections with special emphasis on reducing overdues in <90DPD and
>90DPD buckets.
The overall weightage of Third Party Products is now revised to 10% (earlier the weightage was 14%).
Muthoot Health Guard is given additional focus by splitting ‘New customer’ and ‘Renewal’ as two different
parameters.
Digital adoption is a new parameter introduced in BSC with a weightage of 10% - 5% for 24x7 adoption and
5% for digital repayment adoption.

8. Highlights of the revised BSC
The Branch Score Card (BSC) has been revised in line with the business focus below.
Audit Score Card (ASC) is being used as a hurdle in the revised BSC. Grade of A or B is minimum expected of a
branch. If branch is rated C then the BSC will be deducted by 0.5 to arrive at the final BSC score and if the
branch is rated D, BSC will be deducted by 1 to arrive at the final BSC.
Non-business parameter of learning has been removed from BSC.

9. Revised BSC
Branch Score Card FY 20-21
Criteria
Weightage in (%) Actual Score Weighted Score 1 2 3 4 5
Profitability
Profitability (Target vs Achievement) 20.00% 5 1.00 Below 65% of Target 65% to 85% of Target Above 85% to 100% of Target Above 100% to 120% of Target Above 120% of Target
Business
Gold Loans 44.00% 2.20
Pledge Count 10.00% 5 0.50 Below 65% of Target 65% to 85% of Target Above 85% to 100% of Target Above 100% to 120% of Target Above 120% of Target
Incremental AUM 9.00% 5 0.45 Below 65% of Target 65% to 85% of Target Above 85% to 100% of Target Above 100% to 120% of Target Above 120% of Target
New Customer Acquisition 10.00% 5 0.50 Below 65% of Target 65% to 85% of Target Above 85% to 100% of Target Above 100% to 120% of Target Above 120% of Target
Active customer base 6.00% 5 0.30 Below 65% of Target 65% to 85% of Target Above 85% to 100% of Target Above 100% to 120% of Target Above 120% of Target
Interest Collection 9.00% 5 0.45
Below 60% of Interest
Due
60% to 75% of Interest
Due
Above 75% to 90% of Interest
Due
Above 90% to 100% of Interest
Due
Above 100% of Interest
Due
Digital Adoption 10.00% 0.50
24x7 % 5.00% 5 0.25 Below 65% of Target 65% to 85% of Target Above 85% to 100% of Target Above 100% to 120% of Target Above 120% of Target
Digital Repayment % 5.00% 5 0.25 Below 65% of Target 65% to 85% of Target Above 85% to 100% of Target Above 100% to 120% of Target Above 120% of Target
NH Loans 16.00% 0.80
30+ delinquency % (30-89 Days) 6.00% 5 0.30 >=6% <=6% <= 5% <=4.5% <=4%
90+ delinqnuency % 10.00% 5 0.50 <=3% <=2% <= 1.5% <=1.25% <=1%
Third Party Products 10.00% 0.50
MTSS 0.75% 5 0.04 Below 65% of Target 65% to 85% of Target Above 85% to 100% of Target Above 100% to 120% of Target Above 120% of Target
Forex + BBPS 1.20% 5 0.06 Below 65% of Target 65% to 85% of Target Above 85% to 100% of Target Above 100% to 120% of Target Above 120% of Target
DMT+INDO-NEPAL+SIP 1.00% 5 0.05 Below 65% of Target 65% to 85% of Target Above 85% to 100% of Target Above 100% to 120% of Target Above 120% of Target
Muthoot Health Guard - New Policy 1.50% 5 0.08 Below 65% of Target 65% to 85% of Target Above 85% to 100% of Target Above 100% to 120% of Target Above 120% of Target
Muthoot Health Guard - Renewal 1.50% 5 0.08 Below 65% of Target 65% to 85% of Target Above 85% to 100% of Target Above 100% to 120% of Target Above 120% of Target
Swarnavarsham + Swethavarsham 1.00% 5 0.05 Below 65% of Target 65% to 85% of Target Above 85% to 100% of Target Above 100% to 120% of Target Above 120% of Target
General Insurance + Life Insurance+MHFL+Chits 1.55% 5 0.08 Below 65% of Target 65% to 85% of Target Above 85% to 100% of Target Above 100% to 120% of Target Above 120% of Target
Auto Loan 1.50% 5 0.08 Below 65% of Target 65% to 85% of Target Above 85% to 100% of Target Above 100% to 120% of Target Above 120% of Target
Total Business Score 80.00% 4.00

10. Revised BSC vs previous BSC FY (19-20)
BSC FY 19-20 BSC FY 20-21
Weightage in (%) Weightage in (%)
Profitability
Profitability (Target vs Achievement) 20.00% 20.00%
Business
Gold Loans 42.5% 44.00%
Pledge Count - 10.00%
Pledge Value 10.5% -
Incremental AUM - 9.00%
New Customer Acquisition 10.5% 10.00%
Active customer base - 6.00%
Interest Collection 9% 9.00%
AUM Achievement 12.5% -
Digital Adoption 0% 10.00%
24x7 % - 5.00%
Digital Repayment % - 5.00%
NH Loans 16.00% 16.00%
30+ delinquency % (30-89 Days) 4.00% 6.00%
90+ delinqnuency % 4.00% 10.00%
Disbursal Count 2.40% -
Disbursal Value 2.80% -
New Customer Acquisition 2.80% -
Third Party Products 14.00% 10.00%
MTSS 2.50% 0.75%
Forex + BBPS 1.20% 1.20%
DMT+INDO-NEPAL+SIP 1.00% 1.00%
Muthoot Health Guard 2.30% -
Muthoot Health Guard - New Policy - 1.50%
Muthoot Health Guard - Renewal - 1.50%
Swarnavarsham + Swethavarsham 1.50% 1.00%
General Insurance + Life Insurance+MHFL+Chits 2.00% 1.55%
Auto Loan 3.50% 1.50%
Audit Score 6.00% 0.00%
Audit Score Card (Part A + Part B) 6.00% -
Learning 1.50% 0.00%
Daily Material Average Test Score 1.50% -
Total Business Score 80% 80%
Total Score (Profitability + Business) 100.00% 100.00%
Total BSC Score after Hurdle - 100.00%
Colour Code Remark
Removed from FY(19-20)
Newly Added in FY(20-21)

11. Business
Parameters
The business parameters BSC takes into consideration can be broadly classified into four:
Gold Loans NH Loans Profitability Third Party
Products
To achieve a score of 3, the branch needs to hit above 85% of the target.
Achieving above 120% of the target, fetches the branches the ultimate score of 5.
Achievements below 65% of the target will account for a minimal score of 1.

12. Business Parameters:
Gold Loans
Gold Loan is assigned with a total weightage of 44% in revised BSC to give more focus
to our core business i.e., Gold Loans.
Pledge Count : Gold loan disbursal count for the month
Incremental AUM: Current AUM – AUM on 31st March 2020
Incremental target
Interest Collection: 1.8% of the total outstanding on the last day of the
month.
Active customer base: No. of active customers for the month
New Customer Acquisition: No. of new customers acquired for the month
The parameters that fall under Gold Loans are:

13. Business Parameters:
Gold Loans
Parameters How each parameter is measured Impact of each parameter
Pledge count No. of gold loan disbursals for the month
• Higher disbursals
• AUM
• Profits
Incremental
AUM
(Current AUM – AUM on 31st March 2020)
Incremental target
• Higher profits
NCA
No. of new customers acquired for the
month
• Higher pledge count
• ACB
• AUM
• Profits
• Cross-selling
ACB No. of active customers for the month
• Higher AUM
• Profits
• Cross-selling
Interest
collection
1.8% of total outstanding on the last day of
the month
• Higher profitability
• Cash flow to company
• Customer retention
• Lower NPA
• Lower possibility of auction and hence
happy customers
Focus is on the following parameters
The above parameters lead to better branch performance, better scores in BSC, and
better rewards for branch staff.

14. Business Parameters:
Gold Loans
Example for Incremental AUM Calculation
Incremental AUM is calculated as = Current month AUM – AUM on 31st March 2020
Incremental AUM target
Let’s look at this with an example. Suppose a branch has an AUM of 3 crores as on 31st
March 2020. The target for the branch is 3.1 crore for the month and the branch has
achieved an AUM of 3.15 crore for the month
Incremental AUM = 3.15 - 3 = 0.15/0.1 = 1.5 x 100 = 150%
3.1 – 3
The branch will get a score of 5 for Incremental AUM
If the branch had achieved only 3.09 crores. Incremental AUM will be calculated as:
Incremental AUM = 3.09 - 3 = 0.09/0.1 = 0.9 x 100 = 90%
3.1 – 3
The branch will get a score of 3 for Incremental AUM

15. Business Parameters:
Digital Adoption
Digital adoption is a newly introduced parameter.
The parameters that fall under Digital Adoption are:
24x7 Adoption %: Number of 24x7 done for the month (Count)
Digital Repayment Adoption %: Total repayments done digitally for the month (Value)
Weightage of 5% since 24x7 helps branch in increasing pledge amount,
incremental AUM, and overall profitability
Weightage of 5% since it will lead to less cash in branches, Easy and beneficial for
customers & more time for branches to do marketing and other activities.
10% is the total weightage assigned to Digital Adoption.
Digital payment is the need of the hour. In the current scenario, shifting of customer
behavior towards Digital channels is beneficial to customers, branches and branch staff

16. • Weightage given for gold loans in BSC
Recap
• Parameters taken into consideration for gold loans in BSC
• Weightage given to digital adoption
• Parameters taken into consideration for digital adoption

17. Business Parameters:
NH Loans
16% is the total weightage assigned to NH Loans in revised BSC
The parameters that fall under Neighborhood Loans are:
Disbursal Count, disbursal value and new customer acquisition are not
included in new BSC as we have paused MSME lending for some time and focus
is on ‘Collections’
30+ Delinquency %:
Principal O/s of defaulted NH loans
Total NH O/s of the branch, as on the last day
of the month
90+ Delinquency %:
Portfolio of NH loans which are due for more than 90 days
Total NH O/s of the branch
(30-89 days)
(If the YTD AUM of NH is ‘zero’ then the score must be given zero)

18. Business Parameters:
Third Party
Products
10% is the total weightage assigned to Third Party Products. The parameters that
fall under third party products are:
MTSS: No. of MTSS done for the month (Count)
Forex and BBPS: Value of business done for the month
DMT, Indo-Nepal and SIP: Value of DMT, No. of Indo-Nepal and SIP
done for the month (Count)
Muthoot Health Guard: Split into two parameters: No. of New Policy
(Count) and no. of Renewal Policy (Count)
Swarnavarsham and Swethavarsham: Value of business done for the
month (Grams)
General insurance, life insurance, MHFL and chits: Value of business
done for the month (Value)
Auto loan: No. of auto loan done for the month (Count)

19. Non-Business
Parameters
Audit Score Card: ASC acts a hurdle for the score in BSC. If the branch is
graded A or B in ASC, there will not be any impact on the BSC. But if the branch
is graded C, then the BSC will drop by 0.5 points and if the branch is graded D,
BSC will be reduced by 1 point.
The non-business parameter BSC takes into consideration is:
Eg. Let us look at what happens when a branch with a score of 4 in BSC achieves
the following grades in ASC.
ASC grading Final Score in BSC
A 4 (Same score)
B 4 (Same score)
C 3.5 (Score reduced by 0.5 points)
D 3 (Score reduced by 1 point)
Business performance and Operational hygiene are two sides of same coin.
Reduction of score in BSC for operational lapses/frauds is incorporated to ensure
that branches give equal importance to business performance and adherence to laid
down operational regulations and stipulations.

20. Short Quiz
What are the changes in BSC?Q
What is the newly introduced parameter in BSC?Q
What are the changes with respect to NH loans in BSC?Q
Which third party product is split into two parameters in BSC?Q
What is the impact of ASC grade on BSC score?Q