UC-271
Cost-of-Funds & ALM Optimiser
Optimises the borrowing mix and deployment to minimise blended cost of funds and idle cash within RBI and ALM constraints.
TBDBuild Duration
TBDIndicative ROI
The Challenge
The NBFC borrows at 10.5-12% on BBB- instruments against AA-rated peers, on a ~1.7% net margin. Every basis point of funding cost is the whole profit.
How It Works
- Ingests the liability schedule, instrument terms and cash positions.
- Constrained optimisation of mix and deployment under RBI/ALM limits.
- Returns borrowing and deployment recommendations with reason codes.
What It Removes
- Manual borrowing-mix calls
- Idle cash at branches
- ALM constraint breaches
Input Data RequirementsCIINFOS liability and borrowing records, NCD/instrument terms, cash positions, RBI/ALM constraint set
Output FormatOptimal borrowing mix, deployment plan, idle-cash reduction recommendations
“On a 1.7% margin, every basis point of funding cost is the profit - this defends each one.”