Capital cliff ahead

.....the Indian banking system will need almost $40 billion of additional capital by 2018. Various other analysts have also come out with similar numbers. Even the RBI has talked of such large numbers in its various reports. Thus, Mr Varma is not an outlier, nor do his calculations or assumptions stretch credulity. In fact one can argue that the numbers will be even larger if we assume that the RBI goes ahead and implements higher provisioning norms for restructured assets and some form of dynamic provisioning......

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