Class Practice

Practice Test : 1 Bank Balance Sheet and Ratios Estimation BankA

Capital Networth AvgAdvan!es Avg$nvest&ents Avg)eposits +ther$n!o&e +perating,-penses Yieldon$nvest&ent YieldonAdvan!es Cost of )eposits NA Carr4 Forward NA arovision NA rovision

625 12525 "5#50 #'500 1#5500 2150 2''0 '55 1025 '25 525 1"'5 *'5 1055

BankB

Ratios for Estimation

650 Cost of Working Funds 18800 Yield on Working Funds "8500 Net$nterest%argin #"200 (eturnonAssets 1*2500 (eturnofCapital 2250 $nter&ediation(atio 2"60 .ook/alue '50 ,arningserhare 10*6 3rossNA(atio Net NA (atio '*0 5*5 2015 *85 10'5

Asset Category Rating

Clai&s on overeign Clai&sontate3ovt3uranteeoans Clai&s on Foreign overeign Clai&s ,s on Clai&s on )o&esti! .anks Clai&s on Foreign .anks Clai&s N.FCs on Clai&sonNon7(esidentCorporates Claims on Corporates ACC Ce&ents er& oans ACC Ce&ents WC) (elian!eetro!he&i!aler&oans (elian!eetro!he&i!alWC) indal ower er& oans indal owe WC) .harti Airtel er& oans Claims on Regulatory Retails $ndividuals ,du!ation oans $ndividuals9ousingoans:essthan20la!; $ndividuals9ousingoans:207'5la!; $ndividuals9ousingoans:A
A A AA AAA AA A

Risk Weight 0 20 20 50

20 20 #0 50

A

20 A1 AA A1

A A2 A

/"0 /80 /'5

20 #0 20 50 50 50 '5 50 50 '5 100 '5 '5 '5 '5 150 100 50 100 150 125 125

CCF 100 50

#0 20

%.7e!urtised,-posuresfororiginator

AA

#0

%.7e!uritisedotherthanoriginator

AA

50

Book Value #Rs$Crore%

Collateral Type

&air'uts for E(posure ) Collateral

1250 12'' 155 .onds 54rs 18500 .onds '4rs #600 .onds 64rs 1250 .onds 54rs 12500 .ond 4rs 8 525 Cash 250 .onds 4rs5 4rs '51C) 4rs ' 5*# 12* NC>Cash '25 NC 1250 .ond 4rs 8 12' 5220 6500 150 1264rs .ond 5 1550 Cash 18' !ash>ns! 2#5" insuran!e '525 255 Cash 126 Cash '61 Cash 2220 Cash 85 1850 128 ,?uit4

Collateral Value

0 0

0 0

* 8

#50 1651

8 *

2*5 125 '25

8 0 * 050 8

18 0 *2 8 '*

0 8

8 81

0 8

" 112

0 0 0 0 *

"

12 0 0 0 0 0

12' 0 25 11 *5 12"

0 0 50

68

'5 !ash #*6 !ash

0 0

" 5

"6 !ash

0

"

12 !ash 7!""

0

1

Ad*usted E(posure RWA

1250 12'' 71'*8 18*6108

0 255* 7#*"6 "2#05*

#6626 1180 128## 50'

'#252 2#6 #8*"" 25#5

21"68 6'*15 518#6 116 '08*8 11# 12*6"6

*#"#6 1#*8# 155508 2#2 #5*2* 565 62#*8

118 5220 6500 150 11"52 1*2# 18' 2#5" '525 2#0

885 2610 #250 1125 11"52 106'25 1*025 1'6"25 56*#'5 #*5

115 '16 20"1 85 1850 158 0 66 #*1

115 #58 20"1 12'5 2#125 1"'5 0 1"8 #*1

8'

261

11

55 +,--,$-,7

Common Equity Tier-1 Common Share capital Share premium Retained Earnings Accumulatedotherreserves ntangile Reserves ReciprocalCrossholding Regulator!Ad"ustments

260 363 1936 257 6 3 39

276 !dditional Tier 1 "nstruments #erpetual $e%ts Su%sidiaries E)uit! Reciprocal Cross holding Additional *ier 1 Regulator!Ad"ustmentsA*+1

Tier-2 Ca%ital "nstrument and Pro&isions *ier+2 ,onds *ier 2 instrument issured %! su%sidiaries -#A #rovision Reciprocal Cross holding *ier+2 instruments

TotalRe'ulatoryCa%ital

2&5'3( & 32 5 212#$

577 5 201 7 776

$7(6#$

Capital Composition Common Share capital Share premium Retained Earnings Accumulated other reserves ntangile Reserves Reciprocal Cross holding Regulator! Ad"ustments #erpetual $e%ts Su%sidiaries E)uit! Reciprocal Cross holding Additional *ier 1 Regulator! Ad"ustments A*+1 Su%ordinated *ier+2 ,onds *ier 2 instrument issued %! su%sidiaries -#A #rovision Reciprocal Cross holding *ier+2 instruments

Common E)uit! *ier 1 Additional *ier 1 Capital *ier 2 *otal Regulator! Capital

))* $6$ $(7( 2(7 6 $ $+ 2)(#$ ) $2 ( 1** ( 117( 7

&5(7 212'3( 2973 7772'3(

Asset Category Rating.LTV.CC F

Clai&sonovereign Clai&s ,s on Clai&s on )o&esti! .anks ACC Ce&ents er& oans (elian!e etro!he&i!al WC) indal ower er& oans $ndividuals9ousingoans:essthan20la!; Co&&er!ial (eal ,state oansto%,:urnoverlessthan50!rore; oanstorusts=Cooperativeo!ieties Agri!ulature oans :A
A AA A

A1

A /"0

100 50 AA AA

Book Value #Rs$Crore% RW 0

50 20 20 20 50 50 100 '5 '5 '5 150 150 125 #0 20 #0 50

1250 18500 #600 250

12*

'25 5220 126 1550 18' '525 255 85 1850 '5 #*6 "6 12 "77,

Collateral Type

N$ .onds'4rs .onds 64rs .onds 4rs 5 NC>Cash 4rs '
&air'uts for E(posure ) Collateral

Collateral Value

0 8 8 *

Ad*usted Book Value

0 1651 2*5

0

8

*2

8

81 0

.ond 4rs 5 Cash !ash>ns! Cash

!ash !ash !ash !ash

*

12 0 0 0 0 0 0 0 0 0 0

12'

25

" 5 " 1

125000 185"#16 #68220 221#6 11600 '1*"6 522000 12000 1*2#00 18'00 '52500 2#000 8500 185000 6600 16800 8'00 1100 *15*"68

/n0estment 1ortfolio

Amount

Residual 3aturity

3se! 20#6 3se! 20#*

20100 20 Yr 1'000 18 Yr

3se! 20#2 3se! 2028

6500 16 Yr 11500 12 Yr

3se! 202* 3se! 3se! 2018 3se! 201' 3se! 201' 3se! 201' .ank .onds Corporate.onds ,?uit4 +pen ForeTotal

Cou%on

8200Yr 8 2*00 Yr# 5000Yr 2 2500 &onth " 1*00 &onth 8 #65 &onth " 125Yr " #'5 6Yr 200 100

2uration

12'75. 12'50. 11'75. 11'25.

1250 1025

10'75. ('75. 11'25. ('25. 7'75. 7'50. 11'75. 11'(5.

'25 515 8'5 055 025 055 6'5 *'5

1025 8'5

7(76(

"nterest Rate S/a%s

,loatin' Received

,ied #a!s

Residual . aturity !mount (!rs (200

"nterest Rate ,utures

!mount 2&00

0eli&ery 6month

.aturity 3/ear

4T3

Rating 1220 AAA 11"5 AAA

Type

1120 AAA 10'0 AAA

AF AF

1020 AAA 820 AAA 10'0 AAA ''0 AAA '20 AAA 6"5 AAA 1120 AAA 11#0 AAA

AF AF AF 9F 9F 9F AF AF 9F 9F

9% 9%

ertical Ris oriontal Ris

4ield Change

5pe'ifi' Risk Amount

5pe'ifi' Risk

0'60. 0'60. 0'60. 0'60.

0 0 0 0

0'60. 0'60. 0'60. 1'00. 1'00. 1'00. 0'60. 0'65.

0 0 0 0 0 0 1'(0. 1'(0. 9. 9. 21'60.

2elta#p%

0 13'&35(3 0 9'33(991 0 3'59&(7& 0 5'&5393 0 0 0 0 0 0 2'25 6'75 1( 9 36

3'236(&2 0'6(5397 2'37127& 0'127669 0'0326&9 0'01(77 00*552608 010*02628

200 100 33('&&5(

4ones 35'21002

3'056671 0'1790(9

Net profit OperatingExpenditure ProvisionsfortaxPayment ProvisionsforlostAssets Provisionfordepreiation !"# Profit $as% reovery &nsurane payments

1275 2600 310 675 125 175 500 75

Net profit OperatingExpenditure ProvisionsfortaxPayment ProvisionsforlostAssets Provisionfordepreiation

1275 2600 310 675 125 &9(5

'E(( !"# Profit $as% reovery &nsurane payments

175 500 75 750

Adjusted Income

Capitalcharge

&235 705('333333