Letters to the editor

Updated: Feb 29 2012, 05:23am hrs
A daunting task

Basel III is proposed to be implemented by Indian banks in a phased manner from 1/1/2013 to 31/03/2017 that will entail additional capital both to have a cushion to fall back on against perceived risks and also for future business expansion programmes. In an uncertain globalised environment, the risk management profile of Indian banks will undergo a constant aligning. For India to sustain the GDP growth rate of 8%, the banking industry will have to grow at around 22% every year and to this effect banks will need a huge capital. Hence, capital conservation and raising will assume greater importance.

Srinivasan Umashankar

Nagpur