Special Correspondent

Launches e-learning programme for bank’s employees

All branches to be networked under core banking

To implement Basel II norms from October

CHENNAI: The Chairman and Managing Director of Indian Bank, M. S. Sundara Rajan, asserted that he would strive to ensure that the bank did not add to its non-performing assets (NPAs).

In an informal interaction with The Hindu here after launching the bank’s e-learning programme for its employees, Mr. Sundara Rajan ruled out sale of its NPAs to Asset Reconstruction Company (ARC). The gross NPA of the bank was around Rs. 515 crore, he pointed out. Factors such as the small size of the NPA and the ability of the bank to recover them were among the reasons for not going to ARC, he said.

Mr. Sundara Rajan, who took over as the Chairman and Managing Director early last month, said his priority was also to bring all branches of the bank under the core banking network. The bank at present has 1,492 branches. Out of which, 1,131 branches were linked to the core banking network. Around 90 per cent of 20,000-odd employees (18,000 employees) of the bank are covered under the core banking network. The CMD said the bank would exploit the core banking technology to cross-sell products.

To a question, Mr. Sundara Rajan said Indian Bank was well prepared to implement Basel II norms from October this year. He said the bank’s capital adequacy ratio was comfortable at 14.14 per cent. “We have made our own internal calculations. We are not getting any hit because of Basel II,” he asserted.

Indian Bank, on Thursday, launched an e-learning programme for its employees. The initiative was introduced in association with KESDEE, a U.S.-based firm specialising in providing e-learning solutions. Through this programme, the bank would host 41 user-friendly course libraries covering subjects such as risk management, asset and liability management etc. The initiative had cost the bank a mere Rs. 120 per employee, the CMD said.