RBI lets banks count quarterly profits for regulatory capital boosting CRAR flexibility

Banks can now take profits into CRAR each quarter

The RBI has issued the Commercial Banks Prudential Norms on Capital Adequacy Fifth Amendment Directions 2026, allowing banks to reckon profits from the current financial year for CRAR calculations on a quarterly basis. The move applies subject to specific conditions and a prescribed formula, potentially giving banks greater flexibility in meeting capital adequacy requirements.