NEED TO PROVIDE MORE CAPITAL TO PSBs: RBI

The Reserve Bank of India (RBI) on Tuesday made a strong case for providing more capital to public sector banks to deal with the problem of stressed assets and get back to a position from where they can start generating internal accruals. “Indian banks got into stress before implementation of Basel III and revised IFRS (international financial reporting standards), which provide protection against system level stresses...so we have to find more capital for supporting banks today. Of course government of India has supported entire AQR (asset quality review) exercise that we have done,” RBI deputy governor NS Vishwanathan said.