MANAGEMENT OF BANKS CIA 3

MCLR CALCULATIO
CENTRAL BANK
ANKS CIA 3

CULATION

DONE BY -
JANANI B S 1828204
SRAVYANJALI 1828147
 PARTICULARS 2018 PARTICULARS
Interest on deposits 162,226,890 Demand deposits
Interest on RBI/interbank 45,704 SB accounts
Other interest 12,912,485 Total Term Deposits
NET 175,139,375

Operating Expenses 64,063,689

less: depn 26,630,498 Borrowings
NET 37,433,191 Total funds

MCLR CALCULATION

Cost of Deposits + Borrowings 5.829% cost of equity=CAPM 0.0944

Cost of Funds 6.118%

Negative carry on CRR 0.255%

Cost of funds + Negative carry on CRR 6.373%

Unallocable Op. exp 1.246%

Tenor Premium 0.5%

Marginal cost of funds 8.12% (Overnight)

Tenor Premium
https://www.centralbankofindia.co.in/english/profressional.aspx
NSE Data
https://www.nseindia.com/products/content/equities/indices/historical_index_data.htm

Central Bank MCLR 8.15%

Source : Bank's Website (overnight)
 2018 Proportion of Total Funds Interest Rate Proportion * Interest Rate
146,864,868 4.89% 0 0
1,105,092,892 36.77% 3.50% 0.0128693722
1,696,430,813 56.45% 8.04% 0.0454045603
0.00% 0
0.00% 0
0.00% 0
57,061,162 1.90% 0.000800965 0.0000152070
3,005,449,735 100.00%

Cost of Equity Calculation

Risk Free Rate (Bond yield) 7.61%
Market Return (NSE - 5years) 8.78% See link
Beta 1.56
CAPM 9.44%

Beta : Source - www.investing.com

38678251.22 SB interest = E3*3.5%
136,461,124 Interest on term deposits
Particulars 2018 2017 Particulars 2018
Interest on deposits 162,226,890 173,303,967 Demand deposits 146,864,868
Interest on RBI/interbank 45,704 37,022 SB accounts 1,105,092,892
Other interest 12,912,485 7,532,970 Term deposits -banks 40,177,032
Term deposits -others 1,656,253,781
Operating Expenses 64,063,689 63,610,278 Total Term Deposits 1,696,430,813
less: Depreciation 26,630,498 16,966,630
Net 37,433,191 46,643,648 Borrowings 57,061,162

NIFTY RETURN CALCULATION

Date Price Returns Yearly Return
1-Mar-19 11,341.70 4.96% 4.32%
1-Feb-19 10,792.50 -0.36%
1-Jan-19 10,830.95 -0.29% Market Return
1-Dec-18 10,862.55 -0.13% 3.10% 8.78%
1-Nov-18 10,876.75 4.61%
1-Oct-18 10,386.60 -5.10%
1-Sep-18 10,930.45 -6.64%
1-Aug-18 11,680.50 2.81%
1-Jul-18 11,356.50 5.82%
1-Jun-18 10,714.30 -0.20%
1-May-18 10,736.15 -0.03%
1-Apr-18 10,739.35 6.00%
1-Mar-18 10,113.70 -3.68%
1-Feb-18 10,492.85 -4.97%
1-Jan-18 11,027.70 4.61%
1-Dec-17 10,530.70 2.93% 25.19%
1-Nov-17 10,226.55 -1.06%
1-Oct-17 10,335.30 5.43%
1-Sep-17 9,788.60 -1.31%
1-Aug-17 9,917.90 -1.59%
1-Jul-17 10,077.10 5.68%
1-Jun-17 9,520.90 -1.05%
1-May-17 9,621.25 3.35%
1-Apr-17 9,304.05 1.41%
1-Mar-17 9,173.75 3.26%
1-Feb-17 8,879.60 3.65%
1-Jan-17 8,561.30 4.49%
1-Dec-16 8,185.80 -0.47% 2.97%
1-Nov-16 8,224.50 -4.91%
1-Oct-16 8,638.00 0.31%
1-Sep-16 8,611.15 -2.01%
1-Aug-16 8,786.20 1.70%
1-Jul-16 8,638.50 4.15%
1-Jun-16 8,287.75 1.55%
1-May-16 8,160.10 3.88%
1-Apr-16 7,849.80 1.43%
1-Mar-16 7,738.40 10.21%
1-Feb-16 6,987.05 -7.93%
1-Jan-16 7,563.55 -4.94%
1-Dec-15 7,946.35 0.14% -4.15%
1-Nov-15 7,935.25 -1.63%
1-Oct-15 8,065.80 1.46%
1-Sep-15 7,948.90 0.00%
1-Aug-15 7,948.95 -7.09%
1-Jul-15 8,532.85 1.94%
1-Jun-15 8,368.50 -0.78%
1-May-15 8,433.65 3.04%
1-Apr-15 8,181.50 -3.71%
1-Mar-15 8,491.00 -4.08%
1-Feb-15 8,844.60 0.40%
1-Jan-15 8,808.90 6.16%
1-Dec-14 8,282.70 -3.62% 21.26%
1-Nov-14 8,588.25 3.15%
1-Oct-14 8,322.20 4.39%
1-Sep-14 7,964.80 0.13%
1-Aug-14 7,954.35 2.97%
1-Jul-14 7,721.30 1.43%
1-Jun-14 7,611.35 5.14%
1-May-14 7,229.95 7.67%
1-Apr-14 6,696.40 52.69%
 2017
132,071,252
1,031,024,978
53,016,251
1,750,599,453

92,824,453