Govt. Exams
NIM increase = (3.2% - 2.8%) × ₹5,00,000 crore = 0.4% × ₹5,00,000 crore = ₹2,000 crore
Efficiency ratio of 42% (operating expenses/operating income) indicates strong operational efficiency. Industry benchmark for healthy banks is typically 40-50%. Lower ratios indicate better cost management.
NII = Interest Earned - Interest Expended. If Interest Earned increases by ₹850 crore and Interest Expended increases by ₹620 crore, the net increase in NII = 850 - 620 = ₹230 crore.
RBI's minimum LCR requirement is 100%, to be maintained on a daily basis. At 145%, the bank is compliant with a comfortable liquidity buffer of 45% above the minimum.
When operating expenses grow faster (24%) than total income (18%), the Cost-to-Income Ratio deteriorates, indicating reduced operational efficiency. A lower C/I ratio is preferable.
Pre-tax Profit = Operating Profit - Provisions & Contingencies = 8,500 - 2,100 = ₹6,400 crore. Provisions are deducted before arriving at pre-tax profit.
LTD ratio measures advances as a percentage of deposits. An increase from 78% to 82% means the bank is lending more aggressively relative to deposits, which could indicate higher credit expansion or lower deposit growth.
CRR requirement = 4.5% × ₹10,00,000 crore = ₹45,000 crore
SLR requirement = 18% × ₹6,00,000 crore = ₹1,08,000 crore
Growth = [(9,25,000 - 8,50,000) / 8,50,000] × 100 = [75,000 / 8,50,000] × 100 = 8.82%