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Public sector banks (PSBs) would require common equity of Rs 1.4-1.5 lakh crore on top of internal accruals to achieve full Basel III implementation by March 31, 2018.
In addition, the banks will require to Rs 2.65-2.75 lakh crore in the form of non-equity capital, the Reserve Bank of India said in its Annual Report for 2011-12 .
Similarly, major private sector banks would require common equity of Rs 20,000-25,000 crore on top of internal accruals. In addition, they will need Rs 50,000-60,000 crore in form of non-equity capital.
The RBI said its projections are based on the conservative assumption of uniform growth in risk-weighted assets (RWAs) of 20 per cent per annum individually for all banks and individual bank’s assessment of internal accruals (in the range of 1.0-1.2 per cent of RWAs).
Basel III is a global regulatory standard on bank capital adequacy, stress testing and market liquidity risk.
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