Capital raising gets easier for banksThe Reserve Bank of India (RBI) has allowed banks to issue perpetual debt instruments to shore up their Tier-I capital. It has also permitted them to issue long-term debt instruments to boost their upper Tier-II capital.
These moves come as a huge positive for the banks after the central bank sprung a negative surprise on them recently by raising the reverse repo rate in its quarterly review of the monetary policy on January 24, 2006.
