Mundra: PSBs’ Basel-III needs to overshoot Rs 2.4 trn estimate 

Mumbai:  Reserve Bank Deputy Governor S S Mundra said that state-run banks’ capital needs to comply with Basel-III regulations may overshoot the earlier estimate of Rs 2.4 trillion, and also expressed reservations about the move to infuse funds in banks selectively.  “As we move towards the Basel-III framework, may be in a year or two from now, the requirement will keep on increasing and certainly there would be enhanced capital requirement,” Mundra told reporters on the sidelines of an event by the domestic brokerage IIFL here.            He said the RBI had earlier estimated a capital requirement of Rs 2.40 lakh crore for state-run banks which was done on a 15 per cent growth in risk weighted assets during the period till FY19, by when the migration to Basel-III has to be completed.          However, with expectations of faster growth, the credit growth will come at 16-17 per cent, higher than what was envisaged earlier, he said.