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COVER
STORY
Indian
Banking: Marching Forward
- - Katuri Nageswara Rao
Indian
banking system has performed well during the year 2004-05,
in an environment of rising interest rates and falling
treasury income from G-Sec trade. PSBs have stood up
to the challenges of competition, even though they do
not enjoy a level playing field. There is a need to
attract FDI into banks and Asset Reconstruction Companies
to sustain the forward march.
©
2006 IUP . All Rights Reserved
COVER
STORY
Karur
Vysya Bank: Strong Fundamentals
- - Katuri Nageswara Rao and Yash Paul Pahuja
Karur
Vysya Bank (KVB) is one of the best private banks in
India that performed well on many parameters like return
on assets, net NPAs to net advances, capital adequacy
ratio etc. The bank has started diversifying its activities
into insurance selling etc. Its foray into derivatives
segments and use of advance risk management tools like
VaR implies that the bank is ready for risk-based supervision
and Basel II. The bank is implementing latest technology
like CBS (Centralized Banking Solution) software, which
is not an easy task considering its size.
©
2006 IUP . All Rights Reserved.
SCENARIO
Islamic
Banking: Is the Future Perfect?
- - Meenaxi Dhariwal and Avishek Ghosh
Islamic
banking and the demand for its products have been growing
rapidly around the world. Even the western countries
are adopting it. Indian government has also been exploring
the ways to bring it to India. Until now all Islamic
banks had been operating as Non-Banking Financial Companies
(NBFCs) and not as banks. Due to the massive population
of Muslims in India, Islamic banking can be a reality
in the near future.
©
2006 IUP . All Rights Reserved
SCENARIO
The
Long Road to Basel II: Implications for Indian Banks
- - Manoranjan Sharma
All
the three pillars of Basel II provide best practices
and guidance to make the financial system strong and
stable in the world. India has chosen to be in sync
with international community in terms of implementation
of Basel II Accord. But there are diverse challenges
like bank wise loan policy, advanced risk measures linked
to variation, evaluating the off balance sheet risk
exposure etc., that need to be addressed for succulent
implementation of Basel II.
©
2006 IUP . All Rights Reserved
TECHNOLOGY
eBanking
Applications in Indian Banks: Emerging Issues
- - GV Chalam and KS Nageswara Rao
The unprecedented developments in technology affected
every sector and banking sector is not an exception
to it. Hence, banks are forced to upgrade their technologies
to meet the growing needs of their various kinds of
customers. To compete in the dynamic environment, the
banks should adopt market expansion and customer acquisition
strategies through new products like telebanking, instant
banking services at lowest cost possible.
©2006 IUP . All Rights Reserved
TECHNOLOGY
The
Role of IT in Microfinance
- - Ramaprasad and RS Bharatish Rao
Today,
every organization in the world assumes that without
the implementation of IT, survival is very difficult.
This article discuses the developments and scenarios
in the field of infotech application in microfinance.
©
2006 IUP . All Rights Reserved
RETAIL
BANKING
Customer
Service in Retail Banking in India
- - Manoj Kumar Joshi
Customer
service of high standard and quality implemented through
the use of modern technology helps banks succeed in
the competitive world of retail banking. RBI has come
out with broad guidelines by framing `Fair Practices
Code on lenders liability to be implemented by all
the banks to improve customer service. The biggest challenge
that the banks face is the protection of privacy and
dignity of the customers in the electronic age.
©
2006 IUP . All Rights Reserved
RISK
MANAGEMENT
Banks
and Frauds
- - Reena Ray
Frauds
could cost banks heavily and most of them stem from
the operations of banks themselves. While eliminating
them is very difficult, frequency of frauds can be reduced
by strict surveillance. RBI has set up a Board of Financial
Supervision to check and control this menace. It has
also issued KYC (Know Your Customer) norms to check
frauds. Besides, Basel II also includes frauds in its
draft as an operational risk.
©
2006 IUP . All Rights Reserved
ECONOMY
Banking
Cash Transaction Tax: An Overview
- - M Yadagiri
Banking
cash transaction tax was implemented on June 1, 2005
as a measure to check tax evasion. The levy of this
tax will definitely regulate the monetary transactions
through banking channel in the course of time and prove
to be an effective measure to check tax evasion. It
is levied not to collect revenue but to discourage the
cash transactions.
©
2006 IUP . All Rights Reserved
BOOK
REVIEW
Credit
Risk Scorecards: Developing and Implementing Intelligent
Credit Scoring
- - Naeem Siddiqi
This
slim, hard-bound and 196 pages copy is virtually a handbook
for the development and implementation of Basel II and
intelligent credit risk scorecards. Released in 2005,
it is a `must-read for the people who are involved
in managing the risks of retail lending and insurance.
The book is targeted at two sets of people: Senior level
executives, who want a business understanding of how
credit scorecards are developed and statisticians and
risk modelers, who do not understand credit or insurance
very well.
©
2006 SAS Institute Inc. All Rights Reserved. IUP holds the copyright for the Book Review. |
