News Articles

B. Kiran Kumar 11251005

ET Banking Conclave to explore new tech

Banking has moved from the regular brick and mortar branches to ATMs, the internet and now the mobilephone. The constantly changing paradigm of banking throws up as many challenges as opportunities. The Economic Times Banking Technology Conclave kicks off on Wednesday, and it promises to be an event that will explore every aspects of banking technology, from risk management to mobile banking. The event will be chaired by Standard Chartered Bank India CEO Neeraj Swaroop, and will include stalwarts from the industry. The knowledge partner for the event is KPMG in association with Nabard, IBM, Standard Chartered Bank, Allied Digital, Tata Teleservices and TimesofMoney.

RBI deputy governor KC Chakrabarty says banks misguiding investors on bad loans
Reserve Bank deputy governor K C Chakrabarty today flayed banks for attributing their sudden fall in profits to the computerised system of recognising bad loans and said this is tantamount to misguiding investors. "You have misguided your investors for the past five years by not giving your proper NPA (nonperforming assets) figures," he told a banking technology summit organised by the industry body CII here.

The need for stricter laws to report restructured loans

It is just over a week since an RBI-appointed Expert Group called for an early end to the present smoke and mirrors system of estimating non-performing assets (NPA) numbers, euphemistically termed 'regulatory forbearance'. Yet, far from heeding the Group's suggestion, the government is reportedly contemplating exactly the opposite. Faced with the prospect of drought in large parts of the country, it wants to continue the existing practice of regulatory forbearance. This would enable banks to restructure their short-term crop loans, particularly those made to small and marginal farmers, without classifying them 'non-performing.'

Banks switch to interconnectivity

In a significant development, the Institute for Development and Research in Banking Technology (IDRBT) has set up the National Financial Switch (NFS), which comprises a national switch to facilitate connectivity between the banks' switches and their ATMs, and inter-bank payment gateway for authentication and routing the payment details of various e-commerce transactions. Connectivity was provided recently to banks like the Corporation Bank, the Bank of Baroda and the ICICI Bank. "About 18 more banks would join the connectivity in the next two weeks. Connectivity would be established in as many as 3,200 in 22 cities," Dr VP Gulati, director, IDRBT, announced.

'Mobile technology is the future in banking

Banking and technology go hand in hand, from foreign remittances to simple cheque clearances everything is being done online and in real time. The banking industry is growing like never before and customers are experiencing unprecedented conveniences. ET is organising its first Banking Technology Conclave on August 21, which will feature the who's who of the banking and technology industries.

Banks too look at strategic outsourcing

Strategic outsourcing is not confined to large corporates. Hooking onto the bandwagon are public sector banks who want to outsource their entire IT business to global majors. At least two banks, Bank of India and Bank of Baroda, are in talks towards this end with software houses who offer end-to-end IT solutions. Strategic outsourcing includes consultancy services, integrated technology solutions, as well as maintaining

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