Reserve Bank of India permits quarterly profit inclusion in CET1
The Reserve Bank of India (RBI) just made things simpler for banks: now, they can include their profits from each quarter when calculating how much regulatory capital they have.
This is a shift from the old system, which had extra hoops to jump through if banks had nonperforming assets (bad loans).
The change is part of new rules for Common Equity Tier 1 (CET1) capital, announced Friday.
Banks eligible for quarterly CET1 updates
Banks, big and small, including payments and small finance banks, can now boost their capital numbers every quarter, as long as they use the RBI's formula and get their financials reviewed regularly.
Earlier in April 2026, stakeholders suggested sticking with annual profit counts plus quarterly reviews for safety, but the RBI decided to go straight to quarterly updates instead.