Easy norms to help banks infuse extra capital in insurance arms...

In a bid to help banks to infuse additional capital in their insurance subsidiaries, the Reserve Bank of India (RBI) has said the entire investments in the paid up equity of the subsidiaries (including insurance entities), will be deducted at 50% from tier-I and 50% from tier-II capital. Earlier the entire amount which the bank was investing in insurance companies was getting deducted from tier-I for calculating the capital adequacy of the parent banks, but now will be deducted equally both from tier-I and II. In this way the banks will be in a position to infuse more capital to ...

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