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Indian banks look at complying with Basel III guidelines

RBI said banks should have minimum tier-I capital of 7 percent

Written by Reuters | Mumbai | Published: January 1, 2012 2:28:17 am

Indian banks will have to start finding ways to preserve capital and use it more efficiently,bankers and analysts said on Saturday,a day after India’s central bank issued draft guidelines on Basel III capital regulations.

On Friday,the RBI said banks should have minimum tier-I capital of 7 percent,while total capital must be at least 9 percent of risk-weighted assets under the Basel III draft guidelines.

Implementation of the minimum capital requirements will begin from January 2013 and should be fully implemented by March 31,2017,it said.

“We have to start working on it now so that,by the time we are there,our capital is utilised most efficiently,” N. Seshadri,executive director of state-run Bank of India said adding that “we have to do some things differently”.

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