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India sets up supervisory bodies for SBI and ICICI Bank

A supervisory college each.

This is because both State Bank of India and ICICI Bank have vast expanse of overseas operations spreading across many supervisory jurisdictions.

The Reserve Bank today set up the two supervisory bodies to ensure compliance of global prudential norms and reduce supervisory overlap.

"The objective of establishing supervisory college is to deal with supervisory issues revolving around these banks and establish a cooperation mechanism for cross-border supervision," RBI said in a statement.

This mechanism was developed with the aim of reducing supervisory overlap and filling in supervisory gaps for better supervisory co-operation enunciated in Basel II Framework, it said.

For SBI there are nine host country supervisors. These are, Bangladesh Bank, Central Bank ofBSE 1.13 % Bahrain, National Bank of Belgium, Dubai Financial Services Authority, Financial Services Authority (London), Federal Financial Services Authority (BaFin), Bank of Mauritius, Nepal Rastra Bank and Monetary Authority of Singapore.

At the same time, ICICI Bank has seven host country supervisors including Central Bank of Bahrain, National Bank of Belgium, Financial Services Authority (London), Bank of Russia and Monetary Authority of Singapore.

RBI Deputy Deputy Governor K C Chakrabarty hoped the college, being a process and not a one-time forum, will become a key tool of consolidated supervision particularly considering the ever expanding footprint of Indian banks abroad.

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