Indian Bank gears up for Basel - II norms

Indian Bank is gearing up to meet Basel II norms and the initiatives are expected to culminate before October 2007.

MS Sundara Rajan, chairman and managing director, said a parallel run on the new standards would also be initiated soon so that the bank is ready with Basel II prescriptions well ahead.

The bank's capital adequacy ratio (CAR) stood at 14.47 per cent as against the RBI specifications of nine per cent. Net NPA was at 0.28 per cent as of June 30, 2007, as against 0.35 per cent last year.

It has set a goal to achieve an aggregate business of Rs 1 lakh crore at the earliest possible time and currently its total business was at Rs 79,879 crore.

It plans to bring all its 1,471 branches under the core banking solutions network before the end of this fiscal of which 1,169 are already under the CBS.

It has also sought approval from the RBI to set up another 50 branches across the country to have a pan India presence. Of these, seven branches are slated to function in specific minority community areas.

On financial inclusion, Sundara Rajan said it had been taken up in 1,114 villages by roping in about 3.92 lakh account holders.

To a query on new products and services, Sundara Rajan said it might be by the subsidiaries to be on the cards and at present reiterated that all of them were in a healthy status.

Indbank Merchant Banking would open five more branches in addition to the existing seven branches.

The CMD earlier addressing the employees and the customers marking the bank's Centenary Celebrations in the city appealed assured that the bank would give up to the trust and confidence reposed by the government and as well the ardent constituents.

Sharath Chandra, director of the bank and other senior executives took part in the function.