A clutch of banks are raising capital from overseas markets, which would qualify as their non-equity tier-I portion under the Basel-III guidelines, a Reserve Bank official said Thursday.
"There are a few banks that are in the process of raising overseas capital...These would be the perpetual bonds for tier 1 as tier 2 they have done already," Chandan Sinha, Principal Chief General Manager, in-charge of Department of Banking Operations and Development at RBI, told reporters on the sidelines of an event in Mumbai.
He, however, did not give further details like the number of banks mulling to raise the capital.
Under the revised Basel-III guidelines, banks have an option to issue such instruments to shore up their tier-I capital. Also, under the Basel-III guidelines, greater stress is laid on the core tier-I capital.
Special 
