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'United Bank losses could test India’s approach to Basel III requirements' 

February 12, 2014
The Hindu Business Line

Recent losses incurred by United Bank of India (UBI) could see its capital ratios fall below the regulatory minimum, and test the authorities’ approach to bank regulatory capital instruments in the present Basel III era, according to a report by Fitch Ratings.

This is likely to be the first instance within Asia since the implementation of the Basel III framework.

“It is also important at this time because a number of Indian banks — mostly State-owned — are considering raising fresh regulatory capital in the international market, in light of the capital pressures on the sector. The authorities face a dilemma, and their response could set a credit precedent,” the report said.

Read more: The Hindu Business Line

 
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