Banks/Financial Institutions: Near-term capital concerns addressed ::Kotak Securities (PDF link)

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http://www.kotaksecurities.com/pdf/indiadaily/indiadaily02032012.pdf

Banks/Financial Institutions: Near-term capital concerns addressed
` Capital infusion by GoI and LIC to increase tier-1 ratio by 70 bps; core tier-1
ratio at 8%
` Valuation dilutive in select banks as infusion is below book; near-term RoE
down by 60-100 bps
` Transition to Basel III guidelines moving smoothly; leverage ratio declines
180 bps
` Capital addresses near-term risks to balance sheet; payouts not taking a
share of capital