February 19, 2012 6:58 PM

printer

Govt committed to provide capital to banks to meet global risk norms: Pranab

Finance Minister Pranab Mukherjeetoday said the government is committed to provide adequate capital to public sector banks to meet global risk norms. Speaking on the sidelines of a function in Gurgaon, Mr Mukherjee said requirements of all banks cannot be done in one year it will take time . He said the guidelines have been approved. He said, the draft guidelines on the Basel III capital regulations were released on December 30, for implementation from January 1, 2013 and will be completed in phases by January 1, 2019.To strengthen risk management mechanism, RBI has issuedissued draft guidelines, envisaging that the equity capital of a bank should not be less than 5.5 per cent of risk-weighted loans.He said the government had provided capital to state-owned banks last fiscal, and it is taking necessary steps tokeep banks adequately capitalise in 2012-13 as well.In 2010-11, the government provided capital supportover 20,000 crore rupees to public sector banks. Finance Minister said that banking services to un-banked villages with a population of 1,000 or more will be provided within a couple of years.The minister said that banks can play a very major role through inclusive programmes like Swabhimaan, and by extending facilities to the large number of rural population. However, Mr Mukherjee said, if these subsidies are provided through the banking network, institutional financial networks, the leakage will be reduced substantially.

Most Read
View All arrow-right

No posts found.