RBI's new rules on Basel III credit positive for banks: Moody's

Moody's has said changes in the rules for raising Basel III-compliant capital are "credit positive" as they make it easier for banks to raise funds and attract more investors.

The Reserve Bank of India (RBI) had on September 1 cut the minimum maturity for Tier 2 capital that banks can issue to five years from 10 years. It also allowed retail investors to buy Tier 1 capital.

"The new norms are credit positive for Indian banks, in particular public-sector banks," the credit rating agency said in its weekly outlook on Monday.

Indian banks have to comply with Basel III capital norms by March 2019, including maintaining a minimum capital adequacy ratio of 11.5 per cent.

(Reuters)