Mumbai: Reserve Bank Deputy Governor Anand Sinha today allayed fears that the implementation of Basel-III norms will seriously hit domestic banks. "The estimate RBI has done is that transition to Basel-III would not be much of an issue for our banks, as all the capital ratios of our banks are at about the minimum requirement of Basel-III. "Moreover, capital requirement on increased covering of risks would not be applicable to our banks as either those activities are not allowed or the magnitude is quite small," Sinha told a session on the topic at the Ficci-IBA banking summit here. The Basel-III norms kick in from January 1, 2013 and have to be completed by January 1, 2019. Crisil Ratings Director Ramaraj Pai said, meanwhile, that public sector banks would need a whopping Rs 8 trillion in core capital by 2019. As of FY'10, these banks had a core (Tier-I) capital of only Rs 70,000 crore, well above the Basel-II requirements. Sinha said, "Resecuritisation is not allowed in the country and there is a whole lot of capital load that we don't have, similarly our trading books are much smaller. "The stress point for our banks would be to adjust to the amortised portion of pensions and gratuity liabilities in opening balance sheet on April 1, 2013, while transitioning to the international financial reporting standards or IFRS." Sinha also pointed out that going forward, the capital requirements, including core equity capital, are likely to be substantial for supporting high GDP growth, and the credit to GDP ratio, at 55 per cent, is currently lower than some of the Asian countries. But he warned that this ratio is bound to jump as a rapidly growing and structurally changing economy will demand more funds. He said initiatives like financial inclusion, and rising loan demand from more credit intensive sector like manufacturing and infrastructure, would pose challenges.