This curve – which shows the yields of Government securities of different tenors – had been relatively distorted at its shorter end since 2007 and was stressed downwards by factors such as the excess liquidity plaguing the banking system and the decrease in the KRR. I have detailed earlier the measures which we took to bring liquidity to reasonable levels.
I shall outline some of the key measures: •  Capital adequacy norms at 9% which is higher than the 8% international norm  •  Income Recognition and Asset Classification (IRAC) norms  BIS Review 9/2005  3  •  Exposure norms – individual and group norms 15% and 40%, respectively with additional 10% in case of infrastructure funding.