Friday, May 4, 2012

Banks seen in no rush for capital despite Basel III rules

...............The Reserve Bank of India (RBI)'s guidelines on Basel-III capital regulations are unlikely to make domestic lenders scramble for funds, at least in the near term, say industry analysts and bankers.
“There is no desperation among Indian banks to raise capital,” said Rohit Bammi, partner, financial risk management at KPMG in India. “Most banks are well capitalised and do not have any immediate need for funds. Also, the banking story in India is still attractive for investors. This strengthens banks’ ability to access markets. So, even if they need to raise capital over the medium term due to growth in their businesses, there will not be any shortage of funds.”.................

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