The adoption of Basle II norms required banks globally to recapitalize their balance sheets. This saw most banks approaching capital markets to raise Tier I and Tier II capital. Indian banks, both from the PSU and private sector have over the years equipped their capital adequacy ratios (CARs) to meet the Basel II threshold. As a result, most banks saw an improvement in CAR over the past 5 years. As data from Reserve Bank of India (RBI) Trends and Progress in Banking (2012) shows, banks globally, including those in the US and Europe, have CAR in excess of 12% in 2012.