final babi

Upload: abhishek-shetty

Post on 09-Apr-2018

238 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/8/2019 Final Babi

    1/15

  • 8/8/2019 Final Babi

    2/15

    RAVIRAVI -- 0404

    RAJEEVRAJEEV --0505SONUSONU 1818

    AZADAZAD 3131

    AAKASHAAKASH 3636

    ABHISHEKABHISHEK -- 3737

  • 8/8/2019 Final Babi

    3/15

    A system of trading in money whichinvolved safeguarding deposits and makingfunds available for borrowers, bankingdeveloped in the Middle Ages in responseto the growing need for credit in commerce.

  • 8/8/2019 Final Babi

    4/15

    Important role in the economic life of thenation

    Economic development.

    Encouraging savings.

    Like a heart in the economic

    structure

  • 8/8/2019 Final Babi

    5/15

    Capital Adequacy and Recapitalization ofBanks.

    Disclosure Norms.

    Technological Developments in Banking.

    Prudential Accounting Norms for Banks.

    Asset Liability Management (ALM) System.

    Risk Management Guidelines. Revival of Weak Banks.

    Non-banking finance companies.

  • 8/8/2019 Final Babi

    6/15

    Recapitalization is restructuring a company's debt andequity mixture, most often with the aim of making acompany's capital structure more stable.

    CAR is a ratio of a bank's capital to its risk.

    CAR= Tier1capital + Tier2capital

    Risk weighted assets

    where, TIER 1 CAPITAL -A) Equity Capital, B)Disclosed Reserves.

    TIER 2 CAPITAL -A) Undisclosed Reserves, B) GeneralLoss reserves, C) Subordinate Term Debts

  • 8/8/2019 Final Babi

    7/15

    Maturity pattern of loans and advances,

    investment securities, deposits andborrowings.

    Foreign currency assets and liabilities.

    Movements in NPAs.

    Lending to sensitive sectors as defined by theReserve Bank from time to time.

  • 8/8/2019 Final Babi

    8/15

    Banks entered the domain of informationtechnology and computer networking.

    The Indian Financial Network (INFINET) wasinaugurated in June 1999.

    Wide Area Network (WAN) was introduced

    the financial sector. Faster connectivity within the financial sector.

  • 8/8/2019 Final Babi

    9/15

    Improving the financial soundness of banksand to bring them at par with international

    standards. The RBI advised PSBs to set up SACs for timely

    and speedier settlement of NPAs in the smallscale sector.

    Recognizing that the high level of NPAs in thePSBs can endanger financial system stability,the Union Budget 2000-01 announced thesetting up of seven more DRTs for speedyrecovery of bad loans.

  • 8/8/2019 Final Babi

    10/15

    The Reserve Bank advised banks in February1999 to put in place an ALM system April1,1999.

    Banks were expected to cover at least 60 percent of their liabilities and assets in the interimand 100 per cent of their business by April 1,2000.

    Banks and such institutions were required toprepare statements on liquidity gaps andinterest rate sensitivity at specified periodicintervals.

  • 8/8/2019 Final Babi

    11/15

    Banks would put in place loan policies, approvedby their boards of directors, covering themethodologies for measurement, monitoring and

    control of credit risk. The guidelines also require banks to evaluate their

    portfolios on an on-going basis, rather than at atime close to the balance sheet date.

    These guidelines together with ALM guidelineswould serve as a benchmark for banks which areyet to establish an integrated risk managementsystem.

  • 8/8/2019 Final Babi

    12/15

    The Reserve Bank had set up a Working Groupto suggest measures for the revival of weakPSBs in February 1999.

    It would submit a report based on solvency,earning capacity and profitability.

    The Group also suggested a two-stagerestructuring process, whereby focus would be

    on restoring competitive efficiency in stage one,with the options of privatization and/ormerger assuming relevance only in stage two.

  • 8/8/2019 Final Babi

    13/15

    A financial institute which is a company.

    A non-banking institute which is a companyand whose principal business is the receivingof deposits or lending in any manner.

    Such other institution as the RBI

    specify withapproval of Govt.

  • 8/8/2019 Final Babi

    14/15

  • 8/8/2019 Final Babi

    15/15