New Delhi, May 21 -- The Reserve Bank of India's new credit risk framework could free up around Rs 58,000 crore in regulatory capital for banks, potentially boosting lending and lowering borrowing costs for companies, according to a report by CareEdge Ratings.

The report titled "RBI's New Credit Risk Framework to Unlock Rs 580 Billion Capital Relief" said the RBI's revised rules will reduce the amount of capital banks need to set aside for loans given to better-rated companies.

"The reduction in risk weights for AA and BBB rated exposures is estimated to release regulatory capital of around Rs 33,000 crore and Rs 25,000 crore, respectively," CareEdge Ratings said in the report.

In simple terms, banks are required to keep a certain amou...