Question

A bank has Tier I capital of ₹900 crore and Tier II capital of ₹300 crore. Risk Weighted Assets increase from ₹8,000 crore to ₹10,000 crore due to large sanction. What is the impact on CRAR?

A CRAR improves
B CRAR remains same
C CRAR deteriorates
D CRAR becomes negative
E CRAR becomes zero
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