Basel III norms News

Due to subdued market conditions, banks have been unable to raise enough funds from the markets so far.

The finance ministry has made a case for pushing back the Reserve Bank's deadline for implementing Basel III banking norms in view of higher capital requirement to deal with bad loans which have reached unacceptable levels.

State Bank of India on Friday said it will raise Rs 5,681 crore by issuance of preferential shares to the central government, its majority shareholder.

A sharp decline in profitability and mounting losses could wipe out the revenue reserves of some PSU banks and hamper their near-term ability to pay interest on the bonds issued to meet Basel III norms, Crisil Ratings said today.

Government has set parameters for public sector banks for receiving capital support and only those lenders which fulfil the criteria post third quarter results would be eligible for funds.

The Reserve Bank has revised certain rules on measuring liquidity for Basel III norms, providing exemption to branches of foreign banks from submitting statement with regard to foreign currency.  

Country's largest lender State Bank of India (SBI) on Monday said it plans to raise up to Rs 12,000 crore by issuing tier-II bonds on private placement basis.

In order to meet Basel-III norms by March 2019, banks in India will need to begin collecting relevant data points and upgrade their processes, which could run into several thousands, across the organisation.

State-owned Bank of Maharashtra is looking to sell stressed assets worth Rs 500 crore in an auction in September.

Reserve Bank Deputy Governor R Gandhi on Friday said state-owned banks are "adequately" capitalised at present but would need additional money to comply with global capital adequacy norms in the future.

State-owned Bank of Maharashtra (BoM) Monday raised Rs 1,000 crore from bonds to funds business growth.

State-owned banks are likely to continue to raise funds through additional Tier-I capital to meet the Basel III norms even as the government plans to pare its holdings in such financial institutions, says a report.

Clarity on taxation would help investors in putting money into such instrument without hesitation.

Banks can issue tier-2 debt capital instruments to retail investors, subject to board approval.