The new Basel III norms announced by the Reserve Bank of India (RBI) on Wednesday will trigger a huge chase for capital by banks. Conservative estimates place the additional capital required at about Rs 1.5 trillion. Fortunately, the new norms come into effect in a phased manner over January 1, 2013-March 31, 2018, so that banks have a little over five years to find the required capital. That is small consolation, especially for public sector banks (PSBs).