Indian companies are coming out with healthy corporate results after a brief phase of poor performance. Most of the fear factors that were associated with the issue of IPO have disappeared today with more strident and quick action from the market regulators. In future, primary capital market will grow and contributions of non-banking corporate sector are expected to rise and make the Indian economy more stable.

Banks have been involved in multiple initiatives to progressively leverage technology to automate their business, inject robustness in operations that they carry out and support expansion in untapped business areas. To monitor the business effectively from a central headquarter, the banks should have a unique system which will manage the whole gamut of their limits. With this as the back drop, banks are actively considering a single Central Limits and Collateral Management System (hereafter called Central System) as an important component of their Basel II implementation plans. Banks are trying to create the central system to enable the efficient and effective operations of their loan portfolio.

Banks, at present, have different product processors for managing various loan products. With the existing system of multiple product processors for different products, limit management has not been done across the products and customers. Even though some banks have collateral monitoring systems for monitoring the collaterals assigned to the bank, they are unable to cater to many of the business requirements of various business units. More so, in view of the increasing number of products introduced by the banks, the complexities in collateral valuation for various asset categories and the limits administration across products and accounts.

Collateral Management System,Credit Risk Management , Non-banking corporate sector, Indian economy, Corporate and investment banking, Management Information System, MIS, Initial Public Offering, IPO, Risk management, Indian banking system.