Govt committed to 8% Tier-I capital for PSU banks: Pranab Mukherjee
Mukherjee also cautioned the banks, saying, "The journey has just begun (for Indian banks). We need to be smart, resilient and stable to reach out to the people at large."
Finance Minister Pranab Mukherjee on Friday said the government was committed to maintaining 8 per cent Tier-I capital in all public sector banks to enable them to meet Basel-III capital adequacy norms.
"The draft guidelines on Basel-III capital regulation were released on December 30, 2011, for implementation from January 1, 2013. These guidelines envisage more stringent norms for capital adequacy. On our part, the government has committed for maintaining a minimum of 8 per cent Tier-I capital in all PSBs (public sector banks)...," he said.
The extra provision under Basel-III would also be taken care of by the government, which was also focused on keeping all the public sector banks "adequately capitalised", he said after unveiling the new Rs 6 crore corporate building of public sector Indian Bank here. "I can assure you that we have committed to bring our banks on par with global sphere while catering to the needs of the (Indian) economy," he said.
Lauding city-headquartered Indian Bank for achieving financial inclusion in the entire Union Territory of Puducherry, Mukherjee pressed for making financial inclusion services available at the doorstep of rural people. "Rural people's large dependence on money lenders cannot be overcome without access to financial intermediation. We must supply these services at their doorstep," he said.
Mukherjee also cautioned the banks, saying, "The journey has just begun (for Indian banks). We need to be smart, resilient and stable to reach out to the people at large."
He said the financial inclusion drive and the 'Swabhiman' scheme of the government were among the key priorities and "critical in the development of the Indian economy".
Earlier, he launched the Indian Bank's mobile banking service and online application facility for educational loans. Indian Bank currently has 1,927 branches and 1,209 ATMs across the country. The bank's total business crossed the Rs 2 lakh crore mark in FY'11, Indian Bank Chairman and Managing Director T M Bhasin said.