Practice Test : 1

Bank Balance Sheet and Ratios Estimation

Ratios for Estimation
Bank A
Bank B
Capital
625
650 Cost of Working Funds
Networth
12525
18800 Yield on Working Funds
Avg. Advances
95350
98500 Net Interest Margin
Avg. Investments
37500
39200 Return on Assets
Avg. Deposits
135500
142500 Return of Capital
Other Income
2150
2250 Intermediation Ratio
Operating Expenses
2770
2960 Book Value
Yield on Investment
7.55%
7.50% Earnings Per Share
Yield on Advances
10.25%
10.46% Gross NPA Ratio
Cost of Deposits
7.25%
7.40% Net NPA Ratio
NPA
525
545
Carry Forward NPA
1975
2015
Tax Provision
475
485
NPA Provision
1055
1075

Asset Category
Rating
Claims on Sovereign
Claims on State Govt. Gurantee Loans
Claims on Foreign Sovereign
Claims on PSEs
Claims on Domestic Banks
Claims on Foreign Banks
Claims on NBFCs
Claims on Non-Resident Corporates
Claims on Corporates
ACC Cements Term Loans
ACC Cements WCDL
Reliance Petrochemical Term Loans
Reliance Petrochemical WCDL
Jindal Power Term Loans
Jindal Powe WCDL
Bharti Airtel Term Loans
Claims on Regulatory Retails
Individuals Education Loans
Individuals Housing Loans( Less than 20 lac)
Individuals Housing Loans(20-75 lac)
Individuals Housing Loans(Above 75 lac)
Commercial Real Estate
Loans to SME ( Turnover less than 50 crore)
Loans to Trusts,Cooperative Societies
Agriculature Loans ( Less than 2 lac)
Agriculature Loans (Above 2 lac)
NPA(Provision coverage less than 20%)
NPA (Provision coverage 20%)
NPA (Provision coverage 50%)
NPA ( not covered trough Basel Collaterals)
Venture Capital Funds
Consumer Credit, credit card loans etc
Capital Market Exposurs
Non Fund Based Loans
Sigma Food Export (Standby credit) AA
Performance Bonds of NTPC AAA
MBS - Securtised Exposures for originator
MBS -Securitised other than originator

A
A
AA
AAA
AA
A

Risk Weight
0%
20%
20%
50%
20%
20%
30%
50%

A
A1
AA
A1
A
A2
A

20%
20%
30%
20%
50%
50%
50%

LTV 90
LTV 80
LTV 75

75%
50%
50%
75%
100%
75%
75%
75%
75%
150%
100%
50%
100%
150%
125%
125%

CCF
100%
50%

30%
20%

AA
AA

30%
50%

Book Value
(Rs.Crore)

Collateral Type

Haircuts for Exposure &

Collateral

Collateral Value

1250
1277
155 Bonds 5yrs
18500 Bonds 7yrs
3600 Bonds 6yrs
1250 Bonds 5yrs
12500 Bond 8 yrs
525 Cash

0
0
4%
8%
8%
4%
8%
0

250 Bonds 5 yrs

75 CD 1 yrs
543 7 yrs
124 NSC/Cash
725 7 yrs bonds
122 Cash/NSC
1250 Bond 8 yrs

4%
0.50%
8%
0%
8%
0%
8%

127
5220
6500
150
126 Bond 5 yrs
1550 Cash
187 cash/nsc
2359 insurance
7525
255 Cash
126 Cash
761 Cash
2220 Cash
85
1850
128 Equity

0
0
0
0
4%
0
0
0%
0
0

0
0
350
1651
245
125
725
18
0
42
8
74
8
81
9
112
9

12
127
0
25
11
45
129

0
0
50%

68

75 cash
346 cash

0
0

9
5

96 cash
12 cash
71844

0
0

9
1

Adjusted Exposure
RWA
1250
1277
-174.8
18461.08
3662.6
1180
12833
507

0
255.4
-34.96
9230.54
732.52
236
3849.9
253.5

219.68
67.415
518.36
116
708.48
113
1246.96

43.936
13.483
155.508
23.2
354.24
56.5
623.48

118
5220
6500
150
119.52
1423
187
2359
7525
230
115
716
2091
85
1850
158
0
66
341

88.5
2610
3250
112.5
119.52
1067.25
140.25
1769.25
5643.75
345
115
358
2091
127.5
2312.5
197.5
0
19.8
34.1

87
11

26.1
5.5
36226.267

Common Equity Tier-1

Common Share capital
Share premium
Retained Earnings
Accumulated other reserves
Intangile Reserves
Reciprocal Cross holding
Regulatory Adjustments
Additional Tier 1 Instruments
Perpetual Debts
Subsidiaries Equity
Reciprocal Cross holding Additional Tier 1
Regulatory Adjustments AT-1

Tier-2 Capital Instrument and Provisions

Tier-2 Bonds
Tier 2 instrument issured by subsidiaries
NPA Provision
Reciprocal Cross holding Tier-2 instruments

Total Regulatory Capital

260
363
1936
257
6
3
39
2768
245.38
4
32
5
212.38

577
5
201
7
776
3756.38

Capital Composition
Common Share capital
Share premium
Retained Earnings
Accumulated other reserves
Intangile Reserves
Reciprocal Cross holding
Regulatory Adjustments
Perpetual Debts
Subsidiaries Equity
Reciprocal Cross holding Additional Tier 1
Regulatory Adjustments AT-1
Subordinated Tier-2 Bonds
Tier 2 instrument issued by subsidiaries
NPA Provision
Reciprocal Cross holding Tier-2 instruments
CE Tier 1
Common Share capital
Share premium
Retained Earnings
Accumulated other reserves
Less
Intangile Reserves
Reciprocal Cross holding
Regulatory Adjustments
Additional Tier-1
Perpetual Debts
Subsidiaries Equity
Less
Regulatory Adjustments AT-1
Reciprocal Cross holding Additional Tier 1
Tier-2
Subordinated Tier-2 Bonds
Tier 2 instrument issued by subsidiaries
NPA Provision
Less
Reciprocal Cross holding Tier-2 instruments
Total Regulatory Capital

440
363
3575
257
6
3
39
245.38
4
32
5
1800
5
1175
7
440
363
3575
257

6
3
39
4587
245.38
4
5
32
212.38
1800
5
1175
7
2973
7772.38

Asset Category
Rating/LTV/CC
F
Claims on Sovereign
Claims on PSEs
Claims on Domestic Banks
ACC Cements Term Loans
Reliance Petrochemical WCDL
Jindal Power Term Loans
Individuals Housing Loans( Less than 20 lac)
Commercial Real Estate
Loans to SME ( Turnover less than 50 crore)
Loans to Trusts,Cooperative Societies
Agriculature Loans (Above 2 lac)
NPA(Provision coverage less than 20%)
Venture Capital Funds
Consumer Credit, credit card loans etc
Sigma Food Export (Standby credit) AA
Performance Bonds of NTPC AAA
MBS - Securtised Exposures for originator
MBS -Securitised other than originator

A
AA
A
A1
A
LTV 90

100%
50%
AA
AA

Book Value
(Rs.Crore)
RW
0%
50%
20%
20%
20%
50%
50%
100%
75%
75%
75%
150%
150%
125%
30%
20%
30%
50%

1250
18500
3600
250
124
725
5220
126
1550
187
7525
255
85
1850
75
346
96
12
41776

Collateral Type

NIL
Bonds 7yrs
Bonds 6yrs
Bonds 5 yrs
NSC/Cash
7 yrs bonds
Bond 5 yrs
Cash
cash/nsc
Cash

cash
cash
cash
cash

Haircuts for
Exposure &
Collateral
0
8%
8%
4%
0%
8%
0
4%
0
0
0
0
0
0
0
0
0
0

Adjusted
Book Value

Collateral
Value
0
1651
245
42
8
81
12
127

25

9
5
9
1

1250.00
18593.16
3682.20
221.36
116.00
714.96
5220.00
120.00
1423.00
187.00
7525.00
230.00
85.00
1850.00
66.00
168.00
87.00
11.00

RWA
0.00
9296.58
736.44
44.27
23.20
357.48
2610.00
120.00
1067.25
140.25
5643.75
345.00
127.50
2312.50
19.80
33.60
26.10
5.50
22909.222

Investment Portfolio
Gsec 2036
Gsec 2034
Gsec 2032
Gsec 2028
Gsec 2024
Gsec
Gsec 2018
Gsec 2017
Gsec 2017
Gsec 2017
Bank Bonds
Corporate Bonds
Equity
Open Forex
Total

Residual
Maturity
20100 20 Yr
17000 18 Yr
6500 16 Yr
11500 12 Yr
8200 8 Yr
2400 3 Yr
5000 2 Yr
2500 9 month
1400 8 month
365 9 month
125 9 Yr
375 6 Yr
200
100
75765

Amount

Coupon

Duration
12.75%
12.50%
12.50%
10.25%
11.75%
10.25%
11.25%
8.75%
10.75%
7.25%
8.75%
5.15%
11.25%
8.75%
8.25%
0.55%
7.75%
0.25%
7.50%
0.55%
11.75%
6.75%
11.85%
4.75%

Interest Rate Swaps

Floating
Received

Fixed
Pays

Interest Rate Futures

Amount
2400

Delivery Maturity
6 month
3 Year

Market Risk
Price risk
Specific Risk
VR Risk
HR Risk
RWA Market Risk
RWA Credit Risk
RWA Opt. Risk
Total RWA
CAPITAL
CRAR

338.445778
36
12.52
56.61
443.57578
4928.61975
22909.222
7058.33333
34896.1751
7772.38
22.27%

Residual Maturity Amount

8 yrs
8200

YTM

Rating
12.20% AAA
11.95% AAA
11.20% AAA
10.70% AAA
10.20% AAA
8.20% AAA
10.70% AAA
7.70% AAA
7.20% AAA
6.95% AAA
11.20% AAA
11.30% AAA

Type
HTM
HTM
AFS
AFS
AFS
AFS
AFS
HFT
HFT
HFT
AFS
AFS
HFT
HFT

Price Risk
Gsec 2024

Yield
Change
0.60%
0.60%
0.60%
0.60%
0.60%
0.60%
0.60%
1.00%
1.00%
1.00%
0.60%
0.65%

Specific
Risk

Specific Risk
Amt
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1.80%
2.25
1.80%
6.75
9%
18
9%
9
36

Capital
Charge
Price
Risk
13.43583
9.338991
3.594874
5.45393
3.236842
0.685397
2.371274
0.127669
0.032649
0.01877
0.045526
0.104026
200
100
338.446

Net profit
Operating Expenditure
Provisions for tax Payment
Provisions for lost Assets
Provision for depreciation
HTM Profit
Cash recovery
Insurance payments

1275
2600
310
675
125
175
500
75

Adjusted income
Net profit

Operating Expenditure
Provisions for tax Payment
Provisions for lost Assets
Provision for depreciation
Less
HTM Profit
Cash recovery
Insurance payments
Adjusted income
RWA Operational Risk

1275

2600
310
675
125
4985
175
500
75
750
4235
7058.33333