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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 bank’s chairman and managing director Mr 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, Mr Tanksale said it will depend a lot on the proposed follow-on offer.
As of March 31, the government had a 79.15 percent 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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