Mumbai: The changes in the rules for raising Basel III-compliant capital announced by India`s central bank this month are "credit positive" as they make it easier for banks to raise funds and attract more investors, Moody`s said on Monday.
The Reserve Bank of India 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," Moody`s Investors Service said in its weekly credit outlook out 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 percent.