Mumbai, Sep 13 (UNI) Reserve bank is likely to finalise its perspective on holding companies within a period of three weeks, RBI Deputy governor V Leeladhar said here today.
Addressing a bankers conference, Leeladhar said the regulator is analyzing the response for a discussion paper in this regard, which it had put on its website for public comments, and will come out with its directives soon.
''This is the first time we are considering such a proposal and it should be done properly. Let's also see what response is coming for the proposal. I think, it may happen in two to three weeks'', he said.
As of now, ICICI and State Bank of India (SBI) have submitted proposals for setting up separate holding companies for asset management.
On the issue of proposals submitted by ICICI and State Bank of India(SBI) for Qualified Full Banking (QFB) license in Singapore, he said the issue is also under the consideration of regulator.
QFB license is the mandatory recognition for banks to access the retail market in Singapore.
''State bank of India (SBI) and ICICI bank are the two banks which have applied for QFB status. If these banks fulfill the respective regulatory requirements, normally, they will be given the QFB status in Singapore.'', he said.
The regulator feels that Indian markets are less affected by US sub prime crisis.
On the concern of Non Performing Asset (NPA) margins of commercial banks, Leeladhar said the issue should be dealt with the respective incumbents of the banks.
''I think it (NPAs) should be dealt with the chairmen of the banks. Reserve bank is only a regulator, not an owner'', he said.
With the new regulatory mechanisms, banks are about to get a relief from credit risks while the capital requirements may come down in due course, he added.
Earlier, in his speech, Leeladhar said Commercial banks, which account for the lion share in the total assets of the system, will be on basel 2 standards while cooperative banks will remain on basel 1 norms for credit risk with surrogate measures for market risk.