Reserve Ratio Formula Excel Template

Prepared by Dheeraj Vaidya, CFA, FRM

dheeraj@wallstreetmojo.com

visit - www.wallstreetmojo.com
ABC bank ltd is registering itself as a bank for the first time with the central bank. It wants to
determine its cash reserve requirement and it has calculated its Net Demand and Time
liabilities as $1 billion. You are required to calculate all the Cash Reserve Ratio considering
reserve requirement is 5%.

Reserve Requirement 5%
Bank Deposits $1,000,000,000
Reserve Ratio $50,000,000
Below is the extract from RBL bank ltd for two financial years. All the below figures are in crores. Assume that  Net
Demand and Time liabilities is 45% of the total borrowings and Central bank requires a 4% reserve ratio.

Report Date Mar-17 Mar-18

Equity Share Capital 375.2 419.67
Reserves 3959.41 6263.36
Borrowings 42567.85 53163.7
Other Liabilities 1786.26 2010.24
Total 48688.72 61856.97
Net Block 224.16 302.71
Capital Work in Progress 34.55 31.29
Investments 13481.71 15447.5
Other Assets 34948.3 46075.47
Total 48688.72 61856.97
Net Demand and Time liabilities
(45% of Borrowings) 19,155.53 23,923.67

Reserve Requirement 4% 4%

Reserve Ratio For Mar 2018 766.22 956.95

. Assume that  Net
ve ratio.
Below is the extract from Federal bank ltd for two financial years. All the below figures are in crores. Assume that  Net
Demand and Time liabilities is 85% and 90% of the total borrowings and Central bank requires 5% and 5.5% reserve
ratio for the year 2017 and 2018 respectively.

Report Date Mar-17 Mar-18

Equity Share Capital 344.81 394.43
Reserves 8592.56 11810.8
Borrowings 103561.88 123525.99
Other Liabilities 2709.66 2801.92
Total 115208.91 138533.14
Net Block 474.54 448.08
Capital Work in Progress 14.92 9.29
Investments 28196.09 30781.07
Other Assets 86523.36 107294.7
Total 115208.91 138533.14
Net Demand and Time liabilities
(85% and 90% of Borrowings) 88,027.60 111,173.39
Reserve Requirement 5% 5.5%

Reserve Ratio for March 2018 4401.38 6114.54

 res. Assume that  Net
% and 5.5% reserve