Banks need additional $70 bn to back $5- trn GDP: SBI's Dinesh Khara

The Indian banking system will need additional $70 billion (Rs 5.25 trillion) in capital for banks to support the aim of making India a $5-trillion economy, SBI Chairman Dinesh Khara said on Wednesday.

Though banks are well capitalised as of now, to support the rise in economic and investment activity, the banking system needs to ramp up capital base,” Khara said at  FICCI-FIBAC 2021.

This means banks should continue to stay attractive with the investment community. They should be also in position to raise capital through additional tier 1 bonds at fairly reasonable costs. Banks would continue to play a critical role in meeting the needs of corporations.