To meet minimum capital requirements, capital buffers, domestically systemically important banks (DSIBs) surcharge and impact of increased stressed assets, the Government’s contribution to the equity up to March 31, 2019, would have to be to the tune of two lakh forty thousand crore rupees at the existing level of its shareholding in respective public sector banks.
This requirement is independent of the risk based capital requirements which the banks might need under the RBS process. It is, however, important to note that this requirement may come down if, going forward, the asset quality improves on account of higher growth and consequently, higher internal retention.