The current average CRAR for the scheduled commercial banks is over 13 per cent while Tier I ratio is about nine per cent. Importantly, Tier I capital does not include items such as intangible assets and deferred tax assets that are now sought to be deducted internationally. Liquidity buffers 10.
Indian banks have a significant holding of liquid assets as they are required to maintain cash reserve ratio – CRR, currently 5.75 per cent – and statutory liquidity ratio – SLR, currently 25 per cent – both, as a proportion to their “net” liabilities.