BANKING/FINANCE: Indian Bank may need Rs 700 cr in 2010-11 for operational risks.

from BUSINESS LINE, February 19, 2010 Chennai, Feb. 18 - Indian Bank would need to raise about Rs 700 crore to meet its operational risk under the Basel II norms and for credit expansion in 2010-11. Basel II norms require banks with guidelines to measure the credit, market and operational risks, and the capital required to cover these risks.

Mr M. S. Sundara Rajan, Chairman and Managing Director, Indian Bank, told Business Line that Basel II norms would require the bank to set aside 15 per cent of its net income for the purpose of operational risk.

Operational risk, as defined by the Basel Committee, is the risk of loss resulting from inadequate or failed internal …