Govt Exams
RBI mandates a minimum leverage ratio of 3% (Tier 1 capital divided by total assets) for banks to prevent excessive leverage under Basel III.
Declining Gross NPA with increasing Slippage ratio suggests recovery of old NPAs but deteriorating new loan quality, indicating mixed asset quality trends.
Provision made: ₹6 crore (charged as loss). Recovery: ₹2 crore (credited to P&L). Net impact: ₹2 crore gain (recovery > provision reversal applicable).
PCR = (Gross NPA - Net NPA) / Gross NPA × 100 = (2.5 - 0.8) / 2.5 × 100 = 1.7/2.5 × 100 = 68%.
The Standing Deposit Facility allows banks to place funds with RBI at a fixed rate (typically 25-50 bps below repo) to manage liquidity surplus.
Quarterly rate = 6.2%/4 = 1.55%, n = 8 quarters. Amount = 1,00,000 × (1.0155)^8 ≈ 1,00,000 × 1.128 = ₹1,12,800.
After 2 years of EMI payments, the principal balance is reduced. A ₹10 lakh part-payment further reduces this, resulting in less than ₹40 lakh remaining.
Average = (9 + 11 + 13) / 3 = 33 / 3 = 11.0%
Uncovered = 3.2% × (1 - 0.65) = 3.2% × 0.35 = 1.12%
Current Advances = 50,000 × 1.18 = ₹59,000 crore