Six Old, Five New Private Banks Under Scanner
RBI ANNUAL REPORT FOR 2002-03
The board for financial supervision (BFS) of the Reserve Bank of India has placed five new private sector banks and six old private sector banks under a monthly monitoring system.
The RBI annual report said that the monitoring was essential keeping in view the emerging supervisory concerns.
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There are eight new private sector banks in the country and 21 old private sector banks. The new private banks are Bank of Punjab, Centurion Bank, Global Trust Bank, HDFC Bank, ICICI Bank, IDBI Bank, IndusInd Bank and UTI Bank.
The move by BFS would mean that at least one of the institution-backed banks has been placed under monthly monitoring.
However, the name of the bank is not revealed in the report. The four institution-backed banks are HDFC Bank, IDBI Bank, UTI Bank and ICICI Bank.
Under this monitoring, certain key financial parameters of the bank like capital to risk-weighted assets ratio (CRAR), exposure to sensitive sectors, managerial problems and promoters shareholding are analysed at the end of each month to monitor the progress made by them.