Mumbai, May 8 -- The Reserve Bank of India (RBI) on Friday said it has not accepted feedback that warned against allowing quarterly profits to be added to the calculation of capital adequacy levels.

It said that under current guidelines, banks are permitted to take quarterly profits to capital, but with an additional qualifying condition pertaining to bad loan provisions.

"The proposed revision to the guidelines removes the additional qualifying condition," it said.

RBI said that banks are required to factor in aspects like probable charges on profits, seasonal variations, etc., as well as compliance with extant guidelines, before taking the quarterly profits to regulatory capital.

"There is also a requirement of audit/limited review,...