Asset quality

Asset quality is an evaluation of asset to measure the credit risk associated with it.

Description

Asset quality is related to the left-hand side of the bank balance sheet. Bank managers are concerned with the quality of their loans since that provides earnings for the bank. Loan quality and asset quality are two terms with basically the same meaning.

Government bonds and T-bills are considered as good quality loans whereas junk bonds, corporate credits to low credit score firms etc. are bad quality loans. A bad quality loan has a higher probability of becoming a non-performing loan with no return.

Bank management components are:

See also

References

South India

South India is the area encompassing India's states of Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana as well as the union territories of Andaman and Nicobar, Lakshadweep and Puducherry, occupying 19.31% of India's area (635,780 km² or 245,480 sq mi). South India includes the southern part of the peninsular Deccan Plateau and is bounded by the Bay of Bengal in the east, the Arabian Sea in the west and the Indian Ocean in the south. The geography of the region is diverse with two mountain ranges the Western and Eastern Ghats bordering the plateau heartland. Godavari, Krishna, Kaveri, Tungabhadra and Vaigai rivers are important non-perennial sources of water. Chennai, Bangalore, Hyderabad, Coimbatore and Kochi are the largest urban areas in the region.

Majority of the people in South India speak one of the four major Dravidian languages: Telugu, Tamil, Kannada and Malayalam. During its history, a number of dynastic kingdoms ruled over parts of South India whose invasions across southern and southeastern Asia impacted the history and culture in those regions. Major dynasties that were established in South India include the Cheras, Cholas, Pandyas, Pallavas, Satavahanas, Chalukyas, Rashtrakutas and Vijayanagara. European countries entered India through Kerala and the region was colonized by Britain and other nations.

Indian Bank

Indian Bank (Hindi:इंडियन बैंक)(Tamil;இந்தியவங்கி) is an Indian state-owned financial services company established in 1907 and headquartered in Chennai, India. It has 20464 employees, 2416 branches in India and is one of the big public sector banks of India. It has overseas branches in Colombo and Jaffna in Sri Lanka, and in Singapore, and 229 correspondent banks in 69 countries. Since 1969 the Government of India has owned the bank.

History

Early formation and expansion

In the last quarter of 1906, Madras (now Chennai) was hit by the worst financial crisis the city was ever to suffer. Of the three best-known British commercial names in 19th century Madras, one crashed; a second had to be resurrected by a distress sale; and the third had to be bailed out by a benevolent benefactor. Arbuthnot & Co, which failed, was considered the soundest of the three. Parry's (now EID Parry), may have been the earliest of them and Binny & Co.'s founders may have had the oldest associations with Madras, but it was Arbuthnot, established in 1810, that was the city's strongest commercial organisation in the 19th Century. A key figure in the bankruptcy case for Arbuthnot's was the Madras lawyer, V. Krishnaswamy Iyer who founded the Indian bank which was an offshoot of nationalistic fervour and the Swadeshi movement, when the then British Arbuthnot Bank collapsed and the Indian Bank emerged. Mr V. Krishnaswamy Iyer solicited the support of the Nagarathar Chettiars authored by Mr. Ramasamy Chettiar, who was Annamalai Chettiar's elder brother. Sri V. Krishnaswamy Iyer and Mr. Ramasamy Chettiar were one of the first directors of Indian Bank. Later on in 1915, Mr. Annamalai Chettiar was inducted into the board of the Indian Bank. It commenced operations on 15 August 1907 with its head office in Parry's Building, Parry Corner, Madras.

South Indian Bank

South Indian Bank Limited (SIB) (BSE: 532218, NSE: SOUTHBANK) is a private sector bank headquartered at Thrissur City in Kerala, India. South Indian Bank has 831 branches, 4 service branches,33 ext.counters and 20 regional offices spread across more than 26 states and 3 union territories in India. It has set up 1269 ATMs and 4 Bulk Note Acceptor/Cash Deposit Machines all over India.

Milestones