Banks asked to prepare capital requirement plan by Aug 15

 The Finance Ministry has asked public sector banks to prepare its capital requirement plan for the current fiscal by August 15 keeping in view implementation of new global risk norms (Basel III) from January next year.

In order to finalise the additional capital allocation, the Finance Ministry will hold discussions with the management of the banks between August 15-31, sources said.
The capital requirement plan for the banks should also include, investment needs of its subsidiaries or the joint ventures. Besides, it should take into consideration the expected recoveries from bad loans and projected net profit during 2012-13, sources said.

With the implementation of RBI capital regulation norms on Basel-III from January 1, 2013, there is a pressure on banks to have more equity capital. It is, therefore, felt that there is an urgent need to devise a robust strategy for optimal utilisation of capital available with the banks, sources added.