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A bank has compiled following data for computing its CRAR as on 30 Sep 2015 Material

Tier I capital 2500   YouTube

Tier ii capital 2000
Channel
RWA for credit risk
other than retail assets For
(include 2000 crores of commercial real estate
- 35,500

Lectures
Exposure on retail assets - 8,700

Total eligible financial collaterals available for retail assets - 1200

  Bank
Capital charge for general market risk net position - 450 Promotion
Capital charge for specific risk - 190

exams
Capital charge for equity - 150
Vertical adjustment - 15   Only for
Horizontal adjustment -
10 Bankers

Total capital charge for options - 70

Gross income for the previous year
- 495   RBI
Gross income for the year before previous
year - 450
Gross income for 2nd year before previous year - 390
  IIBF
Based on the data given above, answer the following questions.
  IRDA
The capital required for credit risk at minimum required rate as per RBI is ......
  SEBI
a. Rs. 4585 Crores
b. Rs. 4383 Crores
  BCSBI
c. Rs. 3701 Crores

d. Rs. 3508 Crores

  CIBIL

Ans - c   Banking
and
= 8700-1200=7500 Insurance
@ 75% =5625

35500+5625=41125
  Ministry
9%= 3701 Crs
of Finance

.............................................
  Excise
Total Risk weighted assets for market risk is ...... & Customs

a. Rs. 9833 Crores   Income

b. Rs. 9553 Crores
Tax
c. Rs. 8952 Crores
Department
d. Rs. 7156 Crores

Ans - a

Total Risk weighted assets for market risk

= 450+190+15+10+150+70
= 885/.09

= 9833 Crores

.............................................

Total weighted assets for operational risk is ......

a. Rs. 4944 Crores

b. Rs. 4323 Crores

c. Rs. 9553 Crores

d. Rs. 7156 Crores

Ans - a

1335/3
=885/.09

=4944

.............................................

The CRAR of the bank as on 30th Sept 2015 is ......

1/2
a. 7.35 %
b. 8.05 %
c. 9.22 %
d. 10.23 %

Ans - b

41125+9833+4944 = 55902
4500/55902
= 8.049
.............................................

The bank compares its tier I CRAR with minimum require tier I CRAR And finds

a. Its tier I CRAR is more and exceeds requirement by 675 Crs

b. Its tier I CRAR is more and exceeds requirement by 355 Crs
c. Its tier I CRAR falls short by Rs 854 Crs
d. None of these

Ans - c

(As per RBI, Tier I capital adequacy ratio should be atleast 6 %)

RWA is 55902
6 % of 55902 = 55902 x 6/100 = 3354.
Tier I capital is 2500.
So, 3354-2500=854
Tier I capital will be short fall by Rs. 854 Crores.

……………………………………………………………………………………………………………………………………………

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