Banks need to raise, conserve capital due to Covid: Former RBI deputy guv

NPA levels of banks are sure to go up and the entire risk management mechanism will undergo a paradigm shift, Vishwanathan said

Commercial banks of the country are required to raise capital at this juncture even if it is not needed as the Covid-19 pandemic has made the future uncertain, former deputy governor of RBI N S Vishwanathan said. He said that raising resources at the moment is essential as it might not be available or become exorbitant when actually needed.

"Banks are required to raise capital at the moment. They need to raise and conserve capital. This is because when it is needed, capital may not be available or become highly expensive," Vishwanathan said while speaking at a webinar organised by