They have Crar of at least 9%.
Conduct a quarterly review of capital to risk-weighted assets ratio(Crar), non-performing asset(NPA) accounts/provisioning etc.
As on March 31, 2019, all 18 PSBs meet this minimum Crar requirement,” he said in the written reply.
As on March 31, 2019, all 18 PSBs meet this minimum Crar requirement, the minister said in a written reply.
Indian banks are required to maintain a minimum capital to risk weighted asset ratio(Crar) at 9 percent,
against the global Basel-III requirement of 8 percent.
The decision was taken in view of RBI guidelines, which mandate that all DCCBs
should have a Capital to Risk Weighted Assets Ratio(Crar) of 9 per cent.
Of the 11 banks, six are likely to experience capital shortfall relative to the
required minimum risk-weighted assets ratio(Crar) of 9 per cent, the central bank said.
However, the capital to risk-weighted assets ratio(Crar), which is the amount of capital banks
need to hold for making loans and absorbing possible losses, has been retained at 9 per cent.
It aims at better performing banks under the RBI's prompt corrective action(PCA) are given capital to achieve a 9 per cent
Capital to Risk Weighted Assets Ratio(Crar) and required capital conservation.
Official spokesperson said that the decision had been taken in view of RBI guidelines, which mandate that all DCCBs should have a minimum capital adequacy ratio of nine percent
Capital to Risk Weighted Assets Ratio(Crar).