Question

The minimum Common Equity Tier 1 (CET1) capital for banks in India as specified by RBI is:

Q: Answer-The minimum Common Equity Tier 1 (CET1) capital for banks in India as specified by RBI is:

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 banks 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.