Entrance Exams
Govt. Exams
Markdown refers to the reduction in the price of a security when a dealer sells it to a customer, representing the dealer's profit margin.
Lower CIR indicates better operational efficiency as the bank is spending less to generate each unit of income. A decrease from 52% to 48% shows improvement.
Percentage increase = [(15000 - 8000) / 8000] × 100 = (7000/8000) × 100 = 87.5%
The DICGC deposit insurance limit was increased to ₹5,00,000 per depositor per bank effective from May 2021 and continues in 2024-2025.
Gross NPA = Total Advances × NPA% = 800000 × 2.5% = 800000 × 0.025 = ₹20,000 crores
A = 50,000(1.12)^2 = 50,000 × 1.2544 = ₹62,720
Leverage Ratio = Total Assets / Equity = 10,00,000 / 50,000 = 20:1
As of 2024, RBI has maintained CRR at 4% of NDTL for banks
Markdown refers to the spread between the bid-ask prices in securities trading by banks
An increase in NIM indicates the bank is earning more profit on its lending and deposit operations