Question
A bank’s exposure to steel sector is already 18% of total advances against internal cap of 15%. A new steel project proposal of ₹300 crore is otherwise financially sound. What should be the policy-driven decision?
Solution
To control concentration risk → share exposure through syndication.
More Basic Accounting Concepts Questions
- What does cash flow means in accounting parlance?
- A bank has a funded loan exposure of ₹80 crore carrying 100% risk weight. It has also issued a bank guarantee of ₹40 crore with credit conversion factor of...
- Which insurance firm recently launched Emerging Opportunity Fund, which will invest in mid-cap companies and emerging market leaders with the potential to ...
- Which of the following strategy is made by the senior most management in large corporates?
- As per AS- 2 what should be the valuation of inventory from the following information: Purchase Price = 2000 Trade Discount = 200 Cash Discount = 100 Deliv...
- Which of the following is not true about nominal capital?Â
- Â The application of audit procedures to less than 100% of items within a population of audit relevance is:
- What is the difference between GVA and GDP?
- A bank has funded exposure ₹100 crore with risk weight 100% and non-funded exposure ₹50 crore with credit conversion factor 50% and risk weight 100%. What ...
- Which of the following Schemes of Government contributed towards Inclusive Growth of India? I- Mahatma Gandhi National Rural Employment Guarantee Act (MGNR...