106 Economic Survey 2008-09 FINANCIAL PERFORMANCE OF BANKS
Tribunals for an amount of Rs. 5,819 crore of which51.9 per cent was recovered.
commercial banks under different categories
available up to 2007-08 are abstracted in Table 5.8.
To prepare banks for the implementation of
BASEL-II norms, a three-track approach has been
adopted with regard to capital adequacy rules. On
performance of SCBs has showed improvement as
the first track, commercial banks are required to
gleaned from the operational parameters. Operating
maintain capital for both credit and market risks as
expenses as per cent of net income declined in all
per BASEL-I framework; on the second track, the
the categories of SCBs. It was also noticed that the
cooperative banks are required to maintain capital
spreads of public sector and old private sector banks
for credit risk as per BASEL-I framework and through
reduced, while the spreads of foreign banks and new
surrogates for market risk; and the RRBs, on the
third track, have to maintain minimum capital which
Interest rate income or spread defined as
may not be on par with BASEL-I norms.
the difference between interest income and interest
With the introduction of stiffer prudential
expenses of SCBs as a proportion of total assets
norms by the RBI for maintaining quality of credit
could serve as a measure of the cost of financial
necessitated due to the rapid increase in credit
intermediation. High interest rate spreads could be
expansion by SCBs in the system, risk-weighted
indicative of the level of efficiency of the financial
assets of SCBs at the end-March 2008 increased to
intermediation and also a relatively less competitive
Rs. 31,28,093 crore from Rs. 24,12,236 crore at end-
market. Net interest income or spread was 23 basis
March 2007. Concomitantly, capital funds of SCBs
points lower at 2.35 per cent during 2007-08
kept pace with the risk-weighted assets and
compared to 2.58 per cent in 2006-07. Highest spread
increased to Rs. 4,06,835 crore at end-March 2008
during 2007-08 at 3.79 per cent was observed in
from the level of Rs. 2,96,191 crore at end-March
respect of foreign banks followed by old private banks
2007. The capital to risk-weighted assets ratio
(2.43 per cent), new private banks (2.40 per cent)
(CRAR) during 2007-08 increased from 12.3 per cent
and public sector banks (2.15 per cent).
as of end-March 2007 to 13.0 per cent as of end-
March 2008. CRAR for foreign and new private sector
banks was at 13.1 per cent and 14.4 per centrespectively as of end-March 2008 compared to 12.4
per cent and 12.0 per cent respectively as of end-
as proportion of total assets declined to 1.3 per cent
during 2007-08 compared to 1.5 per cent during2006-07. While this decline reflected an improvement,
in terms of quantum of funds, the situation depicteda different picture. During 2006-07 the amount
recovered and written off (Rs. 26,243 crore) was more
on computerization, automation and development of
than the fresh addition (Rs. 26,211 crore) of NPAs.
communication network. The cumulative expenditure
In contrast, during 2007-08 the amount recovered
during September 1999 to March 2008 was Rs.
and written off (Rs. 28,090 crore) was significantly
15,016 crore. These help in changing the image and
less than the fresh addition (Rs. 34,420 crore) of
outlook of banking sector significantly by improving
the processes and procedures, rapid productdevelopment through alternative delivery channels,
reduction in the transaction costs and eventually
by Rs. 611 crore in 2006-07, increased by Rs. 5,949
leading to higher productivity. The technology is also
crore in 2007-08. During 2007-08 a total of 1,86,535
being leveraged to expand the banking outreach
cases for NPA recoveries were referred to the
particularly to rural areas. The number of branches
Lok Adalat for an amount of Rs. 2,142 crore of which
providing “core banking solutions” (CBS) rose rapidly
8.2 per cent was recovered. A total of 83,942 cases
to 67.0 per cent as of end-March 2008 from 44.4 per
for NPA recoveries were referred under the SARFESI
Act for an amount of Rs. 7,263 crore of which 61
automated teller machines (ATMs) at the end-March
per cent was recovered. A total of only 3,728 cases
for NPA recoveries were referred to the Debt Recovery
website: http://indiabudget.nic.in
Financial Intermediation and Markets 107 Table 5.8 : Working results of scheduled commercial banks Public sector Old pvt. sector sector banks 2006-07 2007-08 2006-07 2007-08 2006-07 2007-08 2006-07 2007-08 2006-07 2007-08 (Rs. Crore) (As per cent of total assets) Memo item Source : RBI website: http://indiabudget.nic.in
Isotretinoin Use Linked to Increased Risk of IBD: Presented at ACG By Bruce Sylvester www.docguide.com SAN DIEGO -- October 30, 2009 -- Results from a retrospective study presented here at the American College of Gastroenterology (ACG) 74th Annual Scientific Meeting suggest that use of isotretinoin is associated with the development of inflammatory bowel disease (IBD). "We performed a cas
Current conditions of hazardous chemicals exposure and study of their - As medical drugs used for public health and livestock hygiene are flowing into the environment, there are increasing concerns for the implications at home and abroad. International organizations including World Health Organization (WHO), and the United States and the European Union are making persistent efforts to exa