RBI reserves to recap banks amid economic slowdown? Experts divided

With economic stress leading to a pile-up of bad debts, banks need to raise capital fast to nurse back to health, say economists.

In fact, Reserve Bank of India (RBI) Governor Shaktikanta Das last week said banks should not wait for any event to happen, but actively raise capital to ensure financial resilience.   

“Meeting the minimum capital requirement is necessary, but not a sufficient condition for financial stability,” Das said at the SBI Economics and Banking Conclave, adding, “building buffers and raising capital will be crucial for credit flow and resilience of the financial system”. Therefore, he said banks