Entrance Exams
Govt. Exams
If growth is 12%, current deposits = previous deposits × 1.12. 80,000 = previous × 1.12. Previous = 80,000 / 1.12 ≈ ₹71,428 crore
Liquidity Ratio measures short-term solvency and ability to meet immediate obligations using liquid assets.
RBI's 2024 guidelines stipulate a maximum LTV of 80% for residential property loans to manage credit risk.
Subordinated Debt is part of Tier 2 Capital, not Tier 1. Tier 1 comprises CET1 and AT1 components.
A reduction in the Reserve Ratio means banks need to hold less in reserves, freeing up capital for lending, which increases money supply and lending capacity.
ROE = ROA × Equity Multiplier = 1.2% × 12 = 14.4%. This relationship is derived from the DuPont analysis.
CAR = (Tier 1 + Tier 2 capital) / Risk-weighted assets = (5,000 + 2,000) / 70,000 = 7,000 / 70,000 = 10%.
A CIR of 42% (lower is better) indicates the bank spends ₹42 to earn ₹100, which is considered efficient. Industry average for Indian banks is around 40-45%.
As of 2024, the RBI has mandated a minimum SLR of 18% of net demand and time liabilities (NDTL) for scheduled commercial banks.
Q1 to Q2: (600-500)/500 = 20%. Q2 to Q3: (720-600)/600 = 20%. Average growth rate = 20%.