Setting up a corporate banking division; Global trust bank

Abstract

As part of the ongoing financial sector reforms, Reserve Bank Of India & ‘the Goverment Of India ,have permitted the setting up of private sector banks in India subject to certain requirements on capital ,location of corporate office registration under companies act etc. These new private banks are required to maintain a capital adequacy ratio of 8% on their risk weighted assets, which are based on BIS norms. In the above context and keeping in mind the intense competition in the banking sector for healthy standard asset accounts, the new banks need to carve out a niche by tapping the best of these accounts. This study attempts to encapsulate the process of setting up a “CORPORATE BANKING DIVISION”, for a new private sector bank.