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Banks told to examine hiving off non-core biz

The finance ministry has asked banks to explore the possibility of hiving-off non-core businesses, including insurance and mutual funds with a view to raise funds to meet Basel III capital adequacy norms. Financial services secretary G.S. Sandhu said the issue was discusssed at a meeting of heads of seven large banks. V.R. Iyer, CMD, Bank of India, confirmed that there was discussion on monetisation or listing of non-core businesses such as insurance, mutual funds and credit cards to raise capital. She said many banks cannot list their ventures as they are yet to break even.

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