July / August  2006




August/September Contents 

Sufis - wisdom against

 Sufi poet saints

 50 years of mountain

 Interviews with:
 Ajaz Anwar
Iqbal Hussain
Kamil Mumtaz

 Heritage cities:
 Taxila Dharmrajika
 Bhera - Part I
Bhera - Part II


Cotton - the fibre of

Cotton textiles of
 South Asia

 Handlooms & Dyes

 Hiran Minar


 Lahore Gymkhana

 B2B - Part I

B2B - Part II

Optical Networks I
Optical Networks II

Role of Internet in
 S Asian development

Technology and
 investment in US
 stock markets

Security & Trust in
 Internet banking

 Telecom & software
 - trends & future in
 South Asia

China & India - major
 players by 2025

Pakistan - IT Markets
Part I
Part II
Part III
Part IV









   about us              back-issues           contact us         search             data bank


  craft shop

print gallery

 Page  2  of  6

Security and Trust in Internet Banking



Salman Minhas


First published November 2001


The South Asian Banking scene

Only 2 Highly Automated Banks

Very few Banks in South Asia have state-of-the-art automation. Some cite trade unions in India as a barrier, some blame the poor quality of the paper currency notes for ATM’s. There are a few exceptions.

-- HDFC Bank under A. Puri – ex- Citibanker [ see Jan 2000 ] spent about a billion rupees on Information Technology to place HDFC at the forefront of Technology based banking in India. HDFC has 1 million customers served by 350 ATMs. Profits soared Rs 1.2 billion from Rs 200 million in 1996. HDFC expanded aggressively to 123 Branches in 43 cities / towns . Each Branch has between 4-8 staff supported by networked computers and ATMs.

-- ICICI Bank [ K.V. Kamath is ex-ADB and director & CEO of its parent ], Profits increased Rs. 1.07 billion from Rs. 170 million in 1996. It has 86 Branches in 50 cities / towns.

South Asian Banks - Bad Loans & Lack of Automation .

---The 27 Indian State owned Banks have about 15 % to 50 % bad loans . The Pakistan State owned banks are in a similar shape , and it has taken the efforts of ex-Citibankers such as Shaukat Tarin to clean up the bad loans of United Bank [ UBL], and Union bank .

-- In talking to a major Chartered Accounting firm in Delhi , it appears that because Accounts Reconciliation is manual in most Indian State banks , the banks’ Assets & Liabilities are completed skewed and out of date .

-- The Bombay Broker Harshad Mehta, took advantage of this time lag of settlement in a manual banking system to effectively play the Bombay Stock Market using Bonds as capital to do highly leveraged trading.

A fossilised bureaucracy in the Government sectors [ with few exceptions ] meanwhile drags its feet over these new technologies .

 next page



Copyright © 2000 - 2006 []. Intellectual Property. All rights reserved.