Indian lenders face Basel Ⅲ crunch

摘要

India will inject more than twice as much funds as originally planned into stressed state-owned banks this financial year to give them some respite in meeting their core capital needs. Nevertheless, the banks will still need to tap the markets to meet loss-absorbing capital requirements under the new Basel Ⅲ standards. In the fiscal year ending March 2016, India plans to funnel Rs190bn (US$3bn) into state-owned lenders, nearly three times the Rs69.9bn provided last year and more than double the Rs79.4bn set aside earlier this year. Even with the extra help, these lenders, which account for nearly 73% of the Indian banking system, still face an uphill struggle to maintain comfortable capital levels as their assets grow and more loans become non-performing.