Tier 1 capital ratio of Indian banks among the lowest
- Arun Jaitley discusses ways to revive India’s GDP growth
- India tops A.T. Kearney’s Global Services Location Index, extends lead over China
- Tata Sons spends Rs3,228.36 crore to hike stakes in group companies
- Mumbai rains: Flight operations halted, restarted at airport
- Anti-dumping duty on import of bus, truck tyres from China
Much has been written about the need for infusing capital in Indian banks, particularly in some state-run lenders.
How does India compare with other countries as far as bank capital adequacy is concerned?
The chart, taken from the International Monetary Fund’s (IMF’s) latest Global Financial Stability Report, shows the Tier 1 capital ratio for major emerging market economies.
India is the third from bottom.
Only Russian and Chilean banks have a worse ratio.
And banks in the advanced economies too all have higher Tier 1 ratios than Indian lenders.
This chart underscores the dire need for the government to recapitalize many of its banks.