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Indian banks will have to raise Rs 3 trn in external capital 

May 6, 2014
Business Standard

Indian banks will be required to raise Rs 3 lakh crore in external capital in the next four years, which was a huge challenge, a top bank official said. 

"Indian banks will be required to raise Rs 3 trillion in external capital in next four years. Expansion of capital to this extent will affect the returns on the equity of these banks, especially public sector banks," Indian Overseas Bank DGM Vairam Somasundaram said at a seminar here. 

"It will be difficult for the government to find such a large amount to capitalise the public sector banks. The situation of the private sector banks will not be much different, leading to merger and consolidation of the banks," he opined. 

RBI's directive to implement the Basel III norms by 2018 March, was also a big challenge, he said. 

Read more: Business Standard

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