Further, questions have been raised about requiring banks to mobilise additional capital, given the huge capital needs and a lackluster capital market. This compels us to take a balanced view about continuing with the additional requirements to ensure banking resilience by having adequate cushion towards identified weaknesses and the practical difficulties the banks face. Exposure norms – the group borrower limits 35.
Exposure norms for banks in India are as follows: for a single borrower, it is 15 per cent of the bank’s capital funds and for borrowers belonging to a group, 40 per cent of the bank’s capital funds.