banking sector

The Reserve Bank today said the domestic banks do not have much exposure to the debt-ridden Dubai World and hence their balance sheets will not be materially affected from the crisis. In the larger context, the rating agency Moody’s also today said the ratings of Asian banks are not likely to be downgraded, unless there is a massive restructuring in Dubai. Full Article

After 31st March 2010 Indian banks will have to adhere to the Basel II norms. India had adopted Basel I guidelines in 1999. Later on in February 2005 the RBI had issued draft guidelines for implementing a New Capital Adequacy Framework, in line with Basel II. The deadline for implementing Basel II, originally set for March 31, 2007, has now been extended. Foreign banks in India and Indian banks operating abroad will have to adhere to the guidelines by March 31, 2009. Full Article

With inflation declining for the sixth week in a row, ICICI Bank chief K V Kamath on Friday said lending rate will come down to single digit in a year and predicted attractive opportunities in treasury operations in the soft interest rate regime. Full Article