BANKING
| Central Bank says it needs over Rs 14,000 cr for Basel III Sun, 13 May 2012 14:19:15 +0530 |
| Business Standard Economy Policy News State-run Central Bank of India has said it will be requiring over Rs 14,000 crore of fresh capital to meet the Basel-III guidelines which will kick in from next fiscal. "Our bank will require Rs 14,067 crore in order to meet the Basel-III requirements," the city-headquartered bank's chairman and managing director M V Tanksale said. When asked how the bank, which posted a net loss of Rs 105 crore for the March quarter due to a jump in stressed assets, will fund it, Tanksale said it will depend a lot on the proposed follow-on offer. As of March 31, the government had a 79% stake in the bank. An FPO will require the government to participate equally in the offering. According to the research by Care Rating, the banks require up to $55 billion in fresh equity capital to meet the Basel-III norms. The agency said private banks are better placed than the state-run ones when it comes to capital adequacy. Public sector banks will be required to raise up to $20 billion from the capital markets, it predicted. |
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