Central Bank needs Rs 14K cr for Basel III norms

PTI Updated - November 16, 2017 at 04:48 PM.

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.

Published on May 13, 2012 09:53