'Govt to infuse capital in PSU banks'
In 2010-11, the government pumped in Rs 20,157 crore for infusion in public sector banks to maintain tier I capital at 8 per cent and increase the government equity in some banks to 58 per cent.
In the following fiscal, public sector banks got Rs 12,000 crore for improving their capital adequacy ratio.
In order to strengthen risk management mechanism, the Reserve Bank issued guideline for Basel III earlier this year.
The implementation of the capital adequacy guidelines based on the Basel III capital regulations will begin from January 1, 2013.
The guideline envisages banks to maintain a minimum total capital (MTC) of 9 per cent against 8 per cent prescribed by the basel Committee of total risk weighted assets.
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