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.

A bank with ₹6,900 crore of eligible capital against ₹60,000 crore of risk-weighted assets reports 11.5%.

The Indian regulatory minimum under the current framework, including the required buffer, sits around 11.5% at the total capital level with a lower floor for the core tier, and the exact figures should be checked against the current regulation rather than assumed.

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 is telling.

Growth in lending consumes capital. That is the whole business model.