The minimum Common Equity Tier 1 (CET1) capital for

Solution

Minimum Common Equity Tier 1 (CET1) for banks in India is 5.5%. Tier 1 capital = common equity tier 1 (CET1) capital+ Additional Tier 1 capital (AT1) Common equity Tier 1 comprises of a bank’s core capital and includes common shares, stock surpluses resulting from the issue of common shares, retained earnings, common shares issued by subsidiaries and held by third parties. Additional Tier 1 capital is defined as those uncommon instruments which are eligible to be included in this tier.