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Banks need Additional $65 bn for Meeting Basel III Requirements: Fitch
September 15, 2017
According to Fitch Ratings, Indian banks will need 65 billion US dollars in additional capital, which is lower than the previous estimate of $90 billion US dollars, by March 2019 to meet the Basel III capital norms.
Fitch also said that the banks’ viability ratings can also be affected negatively if they shifted to a weaker capital position, which is why they must address the problem.
Fitch said that although the government is committed to investing just USD 3 billion in fresh equity during the current and the next financial year, it will actually have to inject more than double to address the weak provision cover and improve loan growth.
