Capital adequacy ratio

Regulatory capital as a percentage of risk-weighted assets. It measures how much loss a bank can absorb before depositors are at risk.

Eligible capital of ₹6,900 crore against ₹60,000 crore of risk-weighted assets gives a ratio of 11.5%.

Under the current framework the Indian regulatory minimum, including the required buffer, is around 11.5% at the total capital level, with a lower floor for the core tier. Check the exact figures against the current regulation. Do not assume them.

A bank operating close to its minimum has no room to grow its loan book without raising capital, which is itself a constraint on the growth story it's telling.

Growth in lending consumes capital, and the whole business model is built around that.