SBI needs Rs 2.3 lakh crore to meet Basel III norms: Diwakar Gupta

SBI needs Rs 2.3 lakh crore to meet Basel III norms: Diwakar
Country's largest lender State Bank of India needs an additional capital of Rs 2,30,000 crore to meet the tough Basel III requirements till 2018, a top official has said.

Speaking with media, SBI, Managing Director and Chief Financial Officer, Diwakar Gupta said, "We need about Rs 2,30,000 crore of additional capital for Basel III up to 2018. Out of this, Rs 1,50,000 crore is of tier I and the rest Rs 80,000 in tier II capital."

Basel-III is a new global, voluntary regulatory standard on bank capital adequacy which has been adopted following the 2008 financial crisis and introduced in Indian banks effective this fiscal year. As per Reserve Bank of India guideline, the banking system will collectively require Rs 5,00,000 crore to implement the Basel-III capital needs.

The analyst have estimated that banks will meet the stringent Basel III capital requirements through internal accruals and some part will have to be raised from the market.

Read more about: state bank of india
Story first published: Monday, July 22, 2013, 9:22 [IST]
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