Entrance Exams
Govt. Exams
P/E Ratio = Stock Price / EPS = 900 / 45 = 20
RBI's 2024 guidelines stipulate a maximum LTV of 80% for residential property loans to manage credit risk.
LDR = Loans / Deposits. 82% = Loans / 10,000. Loans = 0.82 × 10,000 = ₹8,200 crore
SI = (P × R × T) / 100 = (50 × 9 × 3) / 100 = 13.5 lakh. Total = 50 + 13.5 = ₹63.5 lakh
Subordinated Debt is part of Tier 2 Capital, not Tier 1. Tier 1 comprises CET1 and AT1 components.
Excess capital = Current CAR - Minimum CAR = 15.5% - 10.5% = 5%
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.
The UNBFC framework aims to bring informal financial service providers under regulatory oversight to protect consumers and ensure financial stability.
ROE = ROA × Equity Multiplier = 1.2% × 12 = 14.4%. This relationship is derived from the DuPont analysis.
Tier 1 capital (Common Equity Tier 1 and Additional Tier 1) can absorb losses and is the highest quality capital. Tier 2 capital may have maturity dates and subordination features.