Banks may need to be capitalised at present. Still, they would need additional capital of $70 billion ( Rs 5.3 trillion) to support India’s ambitions in becoming a $5 trillion economy, SBI Chairman Dinesh Khara said.

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“To really support this kind of activity, there is a need for significantly ramping up the capital of the banking system. Though, as of now, banks are very well-capitalised but seen in the context of a $5 trillion economy, my assessment is that additional capital worth $70 billion would be required for the banking system as a whole,” Khara said at Fibac 2021, a conference hosted by industry body Ficci and the Indian Banks’ Association (IBA).