RBI to conduct bankers' meet to discuss Basel norms
Mumbai: The Reserve Bank of India (RBI) will convene a meeting of Indian banks before the yearend in order to work towards the implementation of Basel II norms. (The deadline for compliance to Basel II norms is 2006.) RBI executive director Shyamala Gopinath said: "We will have a meeting with banks shortly to evaluate the new framework and plan for the transition of Indian banks to Basel II norms. We may conduct a quantitative impact study, if necessary."

The Basel Committee undertook a quantitative impact study in October 2002 involving a range of banks across 45 countries, including seven Indian banks. "The timing, approach and sequencing of the Basel norms will have to be closely tailored to our circumstances," Gopinath said. "The complexity and sophistication essential for banks in implementing the New Capital Accord restricts its universal application in the emerging markets." The new norms envisage stringent risk management measures to face operational, credit and market risk, which is expected to lead to increased capital requirements of banks.
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LIC may become PSU pension fund manager
New Delhi: The Life Insurance Corporation of India is becoming a hot favourite for taking up the mantle of the sole public sector pension funds manager (PFM) under the new pension structure. "We are thinking of LIC taking the lead as the public sector pension entity," a senior finance ministry official was quoted as saying. If finally selected LIC may have to float a separate outfit for its foray into the pension sector.

The public sector PFM has been tentatively named as the Pension Corporation of India. Though LIC's candidature has been under consideration no concrete proposal has emerged as yet, officials said. Thus, it is could not be ascertained whether the public sector PFM will be a wholly owned subsidiary or will have equity tie-up between the lead institution with other public or private partners.
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Finance ministry to seek expert view on IDBI role
Mumbai: The Indian finance ministry will seek the expert advice on the final role of IDBI, a senior government official was quoted as saying. "IDBI is certainly on the model of a universal bank but whether it should be a classical retail bank or whether it should concentrate on only corporates is yet to be finalised. We will seek some advice on this matter and also do some studies on the same," said N S Sisodia, secretary, banking and insurance, ministry of finance and company affairs.

IDBI will have access to cheaper funds by way of retail deposits but there is some lack on clarity on whether it will do retail lending per se. About whether there will be any merger with other financial institutions such as IFCI or IIBI, he said: "It will be a little premature to comment on a merger and to say what entities are being considered for it."
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