Basel II norms with special emphasis on capital adequacy ratio of Indian Banks

The need, genesis and development of the concept of Capital Adequacy Ratio (CAR) in banking are discussed and linked up to Basel norms for banking. An outline of the basics of Basel II norms and its impact on CAR is provided. The trends in CAR values for banks in India are analysed after suitable grouping of banks. An overall summarising discussion as well as identification of scope for further work is included.