As a matter of prudence, RBI has stipulated that scheduled commercial banks operating in India shall maintain a minimum total capital (MTC) of 9% of total risk weighted assets (RWAs) i.e., capital to risk weighted assets (CRAR). This will be further divided into different components I. Common Equity Tier 1 (CET1) capital must be at least 5.5% of risk-weighted assets (RWAs) i.e., for credit risk + market risk + operational risk on an ongoing basis. II. Tier 1 capital must be at least 7% of RWAs on an ongoing basis. Thus, within the minimum Tier 1 capital, Additional Tier 1 capital can be admitted maximum at 1.5% of RWAs. III. Total Capital (Tier 1 Capital plus Tier 2 Capital) must be at least 9% of RWAs on an ongoing basis. Thus, within the minimum CRAR of 9%, Tier 2 capital can be admitted maximum up to 2%. IV. If a bank has complied with the minimum Common Equity Tier 1 and Tier 1 capital ratios,then the excess Additional Tier 1 capital can be admitted for compliance with the minimum CRAR of 9% of RWAs. V. In addition to the minimum Common Equity Tier 1 capital of 5.5% of RWAs, banks are also required to maintain a capital conservation buffer (CCB) of 2.5% of RWAs6 in the form of Common Equity Tier 1 capital
Refer the following summarized Balance Sheet of Roy Ltd. as on 31‐3‐2023:
If MOS = 50000 units and BE units are 35000, then what are the Budgeted Sales units?
Which of the following formulae correctly calculates the Operating Profit Margin?
A loan granted for short duration crops will be treated as NPA, if the instalment of principal or interest thereon remains overdue for ________
What is MIBOR?
Ratio of net profit before interest and tax to sales is:
Refer the following summarized Balance Sheet of Roy Ltd. as on 31‐3‐2023:
Refer the following summarized Balance Sheet of Roy Ltd. as on 31‐3‐2023:
Refer the following summarized Balance Sheet of Roy Ltd. as on 31‐3‐2023:
Refer the following summarized Balance Sheet of Roy Ltd. as on 31‐3‐2023: