| The Reserve Bank of India (RBI) Governor D. Subbarao said on Friday that Indian banks were well capitalised and can comfortably adjust to the new Basel III norms on capital, liquidity, disclosures and risk management.
“At the aggregate level Indian banks will not have any problem in adjusting to the new capital rules both in terms of quantum and quality,” Subbarao said in his Inaugural Address at ‘BANCON 2010’ in Mumbai today.
“We expect to have a more accurate picture when banks review their Basel III compliance position following the publication of the final Basel III rules scheduled around the year end,” he added.
Indian banks are comfortably placed in terms of compliance with the new capital rules, Subbarao said, adding that a few individual banks may fall short of the Basel III norms and will have to augment their capital.
However, as the phase-in time allowed is long enough, these banks should be able to make a comfortable adjustment to the enhanced requirement, the RBI Governor said in a statement.
The central bank chief also said that there was a strong case to review and recast the country’s banking legislation.
“The current statutory arrangement we have is a baffling plethora of laws governing different segments of the banking industry,” Subbarao said referring to a slew of legislations governing Indian banks.
However, he added that notwithstanding this wide array of legislations of varying vintage, the statutory arrangement has served the system well by helping maintain an orderly banking system. |
IFBI M Connect 
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