Indian banking system need Rs 1.75 lakh crore recapitalisation for meeting Basel III norms, but according to RBI it is manageable though challenging. This view is from the recently released annual report for FY12. Out of this, 1.50 lakh crore is for public sector banks which control almost 70% of total operations while private sector banks will need Rs. 25,000 cr. Basel-III norms were formulated after the 2008 credit crisis and aimed to reduce the risk of financial collapse. Indian banks will start to prepare to meet these norms from March 2013 and will achieve the target by March 2018.
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