Entrance Exams
Govt. Exams
ROE = (Net Profit / Equity Capital) × 100. Therefore, Net Profit = (18 × 5,000) / 100 = ₹900 crores
The RBI's Digital Rupee (CBDC) aims to offer a digital alternative for payments and settlements while maintaining physical currency circulation. It enhances payment efficiency and financial security.
Increase in basis points = 120 bps = 1.2%. Increase in NPA amount = 1.2% of ₹80,000 crores = ₹960 crores
Priority Sector Lending mandates that banks lend at least 40% of their Adjusted Net Bank Credit (ANBC) to priority sectors including agriculture, MSMEs, and weaker sections, promoting financial inclusion.
EPS growth = ((54 - 45) / 45) × 100 = (9/45) × 100 = 20%
RBI's guidelines on prepaid payment instruments specify that transactions up to ₹10,000 can be conducted without full KYC verification for semi-closed systems.
NPA includes substandard, doubtful, and loss assets. Standard assets (performing assets) are excluded from NPA calculations as per RBI's asset classification guidelines.
The IBC, 2016 is a comprehensive legislation applicable to individuals and corporates. It mandates a resolution within 180 days (extendable to 270 days) through a structured process involving creditors, including banks.
A Cost-to-Income ratio of 42% is considered healthy (lower is better). Ratios above 50% indicate inefficiency. This suggests the bank is controlling costs well relative to its income.
CAR = (Tier 1 + Tier 2 + Tier 3 Capital) / Risk-Weighted Assets. Basel III requires minimum CAR of 10.5% (including capital conservation buffer) for Indian banks.