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    Question

    Provisioning Coverage Ratio (PCR) is the ratio of

    provisioning to what?
    A Interest-bearing liabilities Correct Answer Incorrect Answer
    B Debt service Correct Answer Incorrect Answer
    C NPA ratio Correct Answer Incorrect Answer
    D Gross Non-Performing Assets Correct Answer Incorrect Answer
    E Safety Net Ratio Correct Answer Incorrect Answer

    Solution

    PCR = Provisioning / Gross NPAs; higher PCR means better risk coverage.

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