Additional Tier-1 bonds are a type of unsecured, perpetual bonds that banks issue to shore up their core capital base to meet the Basal-III norms. As per the Basel-III, all banks in India must hold a minimum Capital amounting to ……. of their risk-weighted loans.

Q. Additional Tier-1 bonds are a type of unsecured, perpetual bonds that banks issue to shore up their core capital base to meet the Basal-III norms. As per the Basel-III, all banks in India must hold a minimum Capital amounting to ……. of their risk-weighted loans.

(a) 9.5%

(b) 11.5%

(c) 10.5%

(d) 12.5%

Answer.

(b) 11.5%

Solution.

(b) 11.5%