Question

A bank has an outstanding term loan exposure of ₹20 crore to a single corporate borrower. The bank’s Tier 1 capital is ₹100 crore. As per RBI’s Large Exposure Framework (LE

  • F , what is the maximum total exposure (fund-based and non-fund based) the bank can take on this borrower, assuming the bank has obtained board approval for the enhanced limit?
A ₹15 crore
B ₹20 crore
C ₹25 crore
D ₹30 crore
E ₹35 crore
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