The threat of cyber crimes is keeping bankers awake at night, said Arundhati Bhattacharya, Chairman, State Bank of India.

“Technology is a great enabler but it has its downsides too…(the threat of) cyber crime keeps me awake at night,” she said recalling the $81 million digital theft involving the Bangladesh Central Bank earlier this year.

Speaking at a FICCI Banking Conclave on Changing Landscape of Indian Banking, she said that it was important to be aware of the fact that while technology had helped change the landscape of banking it had its downsides and it was important to protect the banking system.

‘Adopting, adapting’

Pointing out that technology was evolving at an unimaginable speed, she said that as part of its policy of adopting and adapting, SBI was looking at the franchisee-model through which all basic banking services could be delivered.

The evolving global regulatory norms were “creating challenges not seen earlier,” she said.

One such norm was the requirement of LCR (liquidity coverage ratio) – a key ratio that reflects a bank’s ability to match possible capital outflows with high-quality liquid assets.

“The liquidity of Indian banks is good,” she said. Still, they now need to show their LCR to establish their credibility and ability to attract capital in a capital-deficient country like India, she said.

SBI was devising small investment products and flexi-deposit schemes for those banking through the Business Correspondent model, she said.

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