In order to meet the additional capital requirement under the Basel-III norms, State Bank of India (SBI) would need about Rs 230,000 crore up to 2018.
This includes Rs 150,000 crore of tier-I capital and Rs 80,000 crore of tier-II capital, agency reports indicate.
It is learnt that SBI may raise some of the required capital through internal accruals and some part from the market. The largest state-run bank in the country hopes to garner the required capital.
Effective 2013-14, the RBI introduced the Basel-III capital regulations for banks. The capital requirements will be phased over a period, up to March 2018, nine months ahead of the Basel Committee phase-in.
To comply with the Basel-III capital norms, the entire
banking system will collectively require Rs 500,000 crore, according to the Reserve Bank of India (RBI).
Basel-III is the newer international standard of capital allocation devised and adopted following the 2008 financial crisis.
The Basel-III measures lay a lot of emphasis on increasing the buffers, which can help in times of difficulty and avoid the stress spilling over to other markets in the highly interconnected financial system.
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