We are well-capitalized, says Karnataka Bank MD

We are well-capitalized, says Karnataka Bank MD thumbnail
His comments in a press statement followed reports in the social media about the health of the bank. A bank’s health is measured by capital to risk weighted assets ratio (CRAR), and not by m-cap to deposit ratio as claimed by some reports, he said.ET Bureau|Last Updated: Mar 11, 2020, 08.54 PM ISTIn respect of…

His comments in a press statement followed reports in the social media about the health of the bank. A bank’s health is measured by capital to risk weighted assets ratio (CRAR), and not by m-cap to deposit ratio as claimed by some reports, he said.ET Bureau|Last Updated: Mar 11, 2020, 08.54 PM ISTIn respect of his own bank, CRAR stood at 13.17 % as per the balance sheet for the last fiscal year, which was above the minimum regulatory prescription.BENGALURU: Karnataka Bank managing director Mahabaleshwara MS on Wednesday said the Mangaluru-headquartered private sector lender is well-capitalized and, strong.
His comments in a press statement followed reports in the social media about the health of the bank. A bank’s health is measured by capital to risk weighted assets ratio (CRAR), and not by m-cap to deposit ratio as claimed by some reports, he said.
Banking experts including RBI governor, chief economic advisor to the government, and SBI chairman have said globally health of a bank was assessed by CRAR, and banks in India are well-capitalized, and are, therefore, safe and healthy.
In respect of his own bank, CRAR stood at 13.17 % as per the balance sheet for the last fiscal year, which was above the minimum regulatory prescription. “Bank’s internal policy stipulates maintaining CRAR of at least 1% above the regulatory requirement. We have been consistently maintaining CRAR above the minimum prescribed by the RBI as well as the Bank’s internal policy,” Mahabaleshwara said.
The bank, he added, has been in existence for over 96 years, and fundamentally strong.
Commenting feature is disabled in your country/region.Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service
Read More