Private sector lender YES Bank has pegged its capital requirement at Rs 7,500 crore to support credit growth in the current financial year.
This is the requirement after keeping in mind that the capital buffer is 3 per cent above the regulatory needs.
The bank will not like its Common Equity Tier I (CET1) Ratio to fall below 11 per cent, Prashant Kumar, its managing director (MD) and chief executive, told Business Standard.
He said the CET1 ratio was comfortable at 11.2 per cent (in March 2021), despite accelerated provisioning. The bank expects to grow while maintaining comfortable capital buffers.
Recoveries are expected to outpace potential slippages. The lender is targeting cash recoveries of about Rs 5,000 crore.