Question

    Which of the following type of Preference share will not

    be treated as Tier II capital?
    A PNCPS Correct Answer Incorrect Answer
    B PCPS Correct Answer Incorrect Answer
    C RNCPS Correct Answer Incorrect Answer
    D PCPS Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Preference shares may be of the following types: ·         Perpetual Non-Cumulative preference shares (PNCPS) ·         Perpetual Cumulative preference shares (PCPS) ·         Redeemable Non-Cumulative preference shares (RNCPS) ·         iv)Redeemable Cumulative preference shares (RCPS) Perpetual Non-Cumulative Preference Shares (PNCPS) would be eligible to be treated as Tier I capital. Perpetual Cumulative Preference Shares (PCPS), Redeemable Non-Cumulative Preference Shares (RNCPS) and Redeemable Cumulative Preference Shares (RCPS) would be eligible to be treated as Tier II capital.

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