RETAIL BANKING | Staff Reporter, India

Indian banks remain 'moderately capitalised'

Overall Capital Adequacy Ratio stood at 13.74% as of March 2017.

According to a report by CARE Ratings, the overall sector remained moderately capitalised with overall Capital Adequacy Ratio (CAR) of 13.74%, Tier I CAR of 10.76% and Common Equity Tier I (CET I ) Ratio of 9.97% as of March 31, 2017.

"Most of the private sector banks have been maintaining adequate cushion over the minimum regulatory requirement to support growth in near future. As a result, private sector banks reported higher capital adequacy at 15.52% with Tier I CAR of 13.39% and CET I Ratio of 12.88% as on March 31, 2017. On an aggregate basis, PSBs reported CAR of 12.20% with Tier I CAR of 9.54% and CET I ratio of 8.63%; however, on an individual basis, some of the PSBs would require significant capital infusion to meet the Basel III requirements and provisioning requirement on account of asset quality challenges and credit growth," added CARE Ratings.

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.