The paper examines the impact of credit rating on capital adequacy ratios of Indian state-owned banks using quarterly data for the period 1997:1 to 2002:4. To this end, a multinomial logit model with multi credit rating indicators as dependent variable is estimated. The variables that can...

The article examines the pros and cons of the implementation of Basel II in India and contextually, conducts an empirical exercise to examine the impact of capital requirements on the Indian banking system