{
 "name": "Capital Adequacy of Indian Banks (CRAR / Basel III)",
 "unit": "percent of risk-weighted assets",
 "dashboard": "https://bankpulse.ai/dashboards/capital-adequacy/",
 "source": "RBI Financial Stability Report, Report on Trend & Progress of Banking in India, Master Circular on Basel III Capital Regulations (rbi.org.in)",
 "reviewed_by": "Vikram Jain",
 "license": "https://creativecommons.org/licenses/by/4.0/",
 "updated": "2026-06-21T08:45:43+05:30",
 "dateModified": "2026-06-21T08:45:43+05:30",
 "method": "System-wide CRAR of scheduled commercial banks (year-end March) with the RBI Basel III minimum framework — minimum CET1 5.5%, Tier 1 7%, total CRAR 9%, plus a 2.5% Capital Conservation Buffer (effective minimum 11.5%), the D-SIB surcharge and the Countercyclical Capital Buffer. The latest year is indicative/provisional.",
 "note": "Rounded and approximate; NOT in the Verified-numbers ledger pending reviewer sign-off. System CRAR ~16.8-17%; CET1 ~13-14%; Tier 1 ~14-15%; private banks ~17-18%, public-sector banks ~15-16%; effective minimum 11.5% (9% + 2.5% CCB); D-SIBs SBI, HDFC Bank and ICICI Bank carry a 0.20-0.80% surcharge; Countercyclical Capital Buffer currently 0%.",
 "requirements": [
  {
   "requirement": "Minimum Common Equity Tier 1 (CET1)",
   "level": "5.5%",
   "detail": "RBI sets CET1 at 5.5% of risk-weighted assets — higher than the 4.5% Basel III floor"
  },
  {
   "requirement": "Minimum Tier 1 capital",
   "level": "7.0%",
   "detail": "CET1 plus Additional Tier 1 (AT1) instruments such as perpetual bonds"
  },
  {
   "requirement": "Minimum total CRAR",
   "level": "9.0%",
   "detail": "Tier 1 plus Tier 2 capital — RBI's 9% is above the 8% Basel III minimum"
  },
  {
   "requirement": "Capital Conservation Buffer (CCB)",
   "level": "2.5%",
   "detail": "An extra CET1 buffer on top; breaching it restricts dividends and bonuses. Lifts the effective minimum CRAR to 11.5%"
  },
  {
   "requirement": "Effective minimum total CRAR",
   "level": "11.5%",
   "detail": "9.0% minimum + 2.5% CCB — the level banks must hold in normal times to pay dividends freely"
  },
  {
   "requirement": "D-SIB surcharge",
   "level": "0.20-0.80%",
   "detail": "Extra CET1 for Domestic Systemically Important Banks — SBI, HDFC Bank and ICICI Bank carry a 'too-big-to-fail' add-on"
  },
  {
   "requirement": "Countercyclical Capital Buffer (CCyB)",
   "level": "0% (currently)",
   "detail": "A 0-2.5% buffer the RBI can switch on in credit booms; the framework exists but the rate is currently nil"
  }
 ],
 "components": [
  {
   "component": "Common Equity Tier 1 (CET1)",
   "detail": "Paid-up equity shares, retained earnings and statutory reserves — the purest, first-loss-absorbing capital. Regulators watch CET1 most closely"
  },
  {
   "component": "Additional Tier 1 (AT1)",
   "detail": "Perpetual, loss-absorbing instruments (e.g. AT1 / perpetual bonds) with no maturity; together with CET1 they form going-concern Tier 1 capital"
  },
  {
   "component": "Tier 2 capital",
   "detail": "Supplementary 'gone-concern' capital — subordinated debt, certain provisions and revaluation reserves that absorb losses if the bank fails"
  },
  {
   "component": "Risk-weighted assets (RWA)",
   "detail": "The denominator — each asset is weighted by its riskiness (a government bond ~0%, a retail loan and a corporate loan more), so CRAR = capital ÷ RWA"
  },
  {
   "component": "Leverage ratio",
   "detail": "A non-risk-based backstop — Tier 1 capital to total exposure (RBI minimum 3.5-4%), stopping banks from gaming risk weights"
  },
  {
   "component": "Capital Conservation Buffer",
   "detail": "An extra 2.5% CET1 layer banks build in good times and can draw down under stress; dipping into it triggers automatic curbs on payouts"
  }
 ],
 "crar_series": [
  {
   "as_of": "Mar 2018",
   "crar_pct": 13.8,
   "approximate": true,
   "note": "Post-AQR stress and rising provisions; public-sector banks under recapitalisation"
  },
  {
   "as_of": "Mar 2019",
   "crar_pct": 14.3,
   "approximate": true,
   "note": "Government recapitalisation of PSBs lifts buffers as the bad-loan cycle peaks"
  },
  {
   "as_of": "Mar 2020",
   "crar_pct": 14.7,
   "approximate": true,
   "note": "Pre-COVID; banks build capital ahead of expected stress"
  },
  {
   "as_of": "Mar 2021",
   "crar_pct": 16.3,
   "approximate": true,
   "note": "Sharp rise — capital raises, retained profits and a benign credit-cost cycle"
  },
  {
   "as_of": "Mar 2022",
   "crar_pct": 16.8,
   "approximate": true,
   "note": "Profitability rebound and clean balance sheets push buffers to multi-year highs"
  },
  {
   "as_of": "Mar 2023",
   "crar_pct": 17.1,
   "approximate": true,
   "note": "Strong earnings and low slippages keep capital comfortably above minimums"
  },
  {
   "as_of": "Mar 2024",
   "crar_pct": 16.8,
   "approximate": true,
   "note": "Brisk credit growth lifts risk-weighted assets; CRAR stays well above 11.5%"
  },
  {
   "as_of": "Mar 2025",
   "crar_pct": 17.2,
   "approximate": true,
   "note": "Indicative / provisional — buffers remain near record highs (pending confirmation)"
  }
 ]
}