Kotak Mahindra Bank to expand branch network to 100 in 2006-07
Bangalore: The private sector Kotak Mahindra Bank is targeting to expand its branch network to 100 branches by March 2007. The bank's executive vice-chairman and managing director, Uday Kotak said, "The branches will be mostly in semi urban and tier two cities."

This year, the bank is expected end with 70 branches. Of these, 40 branches would be through conversion of non-bank finance company's network, he said.

The bank has a capital-to-risk weighted asset ratio of 13.9 per cent as against the statutorily prescribed 10 per cent and the lowest net non-performing assets ratio of 0.38 per cent.

Currently the bank's operations are concentrated in Punjab and Gujarat. It has a deposit base of Rs 6,500 crore and Rs 5,000 crore as advances. The build up advances was lead by a retail lending, which comprises at least 70 per cent of its operations he said.
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IBA studying banks` Basel-II readiness
Mumbai: The Indian Banks Association (IBA) is surveying bank's Basel II readiness in collaboration with Aptivaa Consultants a consulting firm engaged globally in determining plans and priorities relating to Basel-II.

Basel-II is an improved framework on capital adequacy standards prepared by the Basel-based Bank for International Settlements' Committee on Banking Supervision.

The revised framework requires banks to allocate capital for operational risk and adopt improved risk management systems, apart from capital adequacy for market risk.

The assessment will be made with the help of direct interactions with banks as well as on the basis of information received in reply to a framed questionnaire.

The Reserve Bank of India (RBI) has issued draft guidelines on implementation of Basel-II norms with effect from March 31, 2007. The Basel committee has said each national supervisor should carefully consider the benefits of the revised framework in the context of its domestic banking system when developing a timetable and approach to the implementation of the norms.

The RBI will conduct a parallel run of Basel-II norms from April 1, 2006, basically to estimate the revised framework's impact on banks' balance sheets.
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Allahabad Bank to raise Rs 500 cr via redeemable bonds
Mumbai: Allahabad Bank is planning to raise Rs 500 crore through unsecured redeemable bonds. The bank informed the BSE about its plans to raise tier II capital through private placement basis.
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