i-flex Solutions - Reveleus Leader in Basel II Application Market in India

i-flex Solutions Ltd has announced that Reveleus^TM, a business of the Company and a leading global provider of analytical applications for the financial services industry announced on May 04, 2007 that four banks and one NBFC in India - Union Bank of India, Indusind Bank, HDFC Bank, UTI Bank and Fullerton India Credit Company are implementing various modules of its Basel II Solution, covering Credit, Market and Operational Risk.

Reveleus’ Basel II Solution, with its pre-built rules framework for determining capital adequacy, helps banks reduce the cost and complexity of compliance. It addresses all three pillars of Basel II: capital adequacy calculations, supervisory oversight and market discipline.

Worldwide Tier 1 clients such as Citibank, Wachovia, Wells Fargo, Lloyds TSB and Bank of Montreal have chosen the Reveleus’ Basel II Solution and $2.7 trillion of North American banking assets flow through the Reveleus Basel II engine.

Gartner’s Basel II Risk Management Application Software Magic Quadrant has placed Reveleus in the Leaders Quadrant. The Tower Group has also ranked Reveleus’ Basel II solution amongst the best in the risk management domain.

In India, HDFC Bank, Indusind Bank, Union Bank of India and UTI Bank will be implementing different approaches for Credit and Market Risk under Basel II, using Reveleus. Fullerton India Credit Company is implementing the Reveleus Operational Risk solution.

"Although the Reserve Bank of India has stipulated that banks need to only comply with the Standardized Approach, many of these banks have also chosen to implement both the Standardized Approach and the more demanding Advanced Internal Ratings-Based (AIRB) Approach for Credit Risk" said S Ramakrishnan, CEO, Reveleus.

"The selection of Reveleus by leaders in the Indian banking industry validates our vision, to holistically address the Credit, Operational and Market Risk requirements for global financial institutions. We are committed to ensuring that Indian Banks can accurately measure and manage their capital requirements," Added S Ramakrishnan.

The attractiveness of Reveleus for banks is enhanced because it solves one of the most challenging requirements of Basel II - a pooling mechanism for the retail portfolios of banks. This is being implemented at India's premier private sector bank.

As banks have large retail portfolios consisting of millions of borrowers, the process of polling retail assets is extremely challenging. Banks need to create homogenous pools of retail assets that share similar risk characteristics, for instance, housing loans whose borrowers have a similar income, age and work profiles. Further, the regulators (RBI) need to validate that the pools they have created are truly homogenous. Reveleus has created such a model and algorithms, that enables banks to both create such pools and also to be demonstrate its validity to regulators.

Source : Equity Bulls

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