•  While banks have been diversifying their operations and are into new businesses, it is necessary to recognise the reputation risk, especially when promoting VCFs and other such funds. As is now well known, internationally many banks had previously offloaded certain items from their balance sheet to specialised investment vehicles.
During the market crunch the banks had to take back those assets on their balance sheets. •  Securitisation of assets by banks in India during the year ended March 31, 2009 showed a decline of about 30% over the previous year.