Slide 2:
increase in the minimum capital adequacy ratio (CRAR) to 10 per cent by 2002
, the entire portfolio of Government securities should be marked to market in three years. Also, a 5 per cent weightage is to be assigned for Government and other approved securities to hedge against market risk.
Net NPAs have to be brought down to below 5 per cent by 2000 and to 3 per cent by 2002. However, banks with international presence should reduce gross NPA to 5 per cent and 3 per cent by 2000 and 2002, respectively and
net NPAs to 3 per cent and 0 per cent, respectively.
The Committee proposed Asset Reconstruction Company (ARC) to tide over the backlog of NPAs. In case of prudential norms relating to income recognition, the present norm of 180 days should be brought down to 90 days in a phased manner by 2002
. As regards asset classification, an asset may be classified as doubtful if it is in the substandard category for 18 months in the first instance and eventually for 12 months and loss if it has been so identified but not written off.
These norms which should be regarded as the minimum, may be brought into force in a phased manner
Slide 3:
A. Strengthening the Banking System . Systems and Methods in Banks C. Structural Issues C. Structural Issues D. Integration of Financial Markets
Slide 4:
E. Rural and Small Industrial Credit F. Regulation and Supervision G. Legal and Legislative Framework