Call for Indian banks to boost capital base

Indian banks need to strengthen their capital base to meet the needs of the fast-growing domestic economy, Duvvuri Subbarao, the governor of the Reserve Bank of India, said on Wednesday.

While India’s banking system has weathered the global financial crisis well, concerns have grown that some commercial banks may be in need of capital injections to fund future growth and help them extend more credit to productive sectors of the economy.