Computation of capital adequacy ratio

[sunandaC]

For Computation Of CAR, We Need To Calculate:
Tier-I capital
Tier-II capital
Risk Weighted Assets (RWA)

Step 1:Compute Tier-I Capital:

Paid up Equity Capital

Statutory Reserves

Capital Reserves

Other Disclosed Free Reserves

LESS:

Equity Investments in Subsidiaries

Intangible Assets

Current and Accumulated Losses, if any

Step 2: Compute Risk Weighted Assets:

Domestic Operations:

Funded Risk Asset

1. Cash, balances with RBI, balances with other banks, money at call and short notice and investments in Govt. and other trustees securities...Percentage Weights 0%


2. Claims on commercial banks such as certificates of deposits etc.Percentage Weights 20%


3. Other Investments ...Percentage Weights 100%

4. Loans and advances including bills purchased and unsecured and other credit facilities 2.5

A. Loans guaranteed by GOI 2.5%
B. Loans guaranteed by State Govt. 2.5%
C. Loans guaranteed by PSUs of GOI 100%
D. Loans guaranteed by PSUs of State Govt.100%
E. Others 100%
5. Premises, furniture and fixtures 100%
6. Other Assets 100%

Step 3: Compute Tier-II Capital

Undisclosed reserves and cumulative perpetual preference shares.

Revaluation Reserves (RR).

General Provisions and Loss Reserves(GPLR)

Hybrid Debt Capital Instruments

Subordinated Debts

 

[rosemarry2]

Re: Computation pf capital adequacy ratio

For Computation Of CAR, We Need To Calculate:
Tier-I capital
Tier-II capital
Risk Weighted Assets (RWA)

Step 1:Compute Tier-I Capital:

Paid up Equity Capital

Statutory Reserves

Capital Reserves

Other Disclosed Free Reserves

LESS:

Equity Investments in Subsidiaries

Intangible Assets

Current and Accumulated Losses, if any

Step 2: Compute Risk Weighted Assets:

Domestic Operations:

Funded Risk Asset

1. Cash, balances with RBI, balances with other banks, money at call and short notice and investments in Govt. and other trustees securities...Percentage Weights 0%


2. Claims on commercial banks such as certificates of deposits etc.Percentage Weights 20%


3. Other Investments ...Percentage Weights 100%

4. Loans and advances including bills purchased and unsecured and other credit facilities 2.5

A. Loans guaranteed by GOI 2.5%
B. Loans guaranteed by State Govt. 2.5%
C. Loans guaranteed by PSUs of GOI 100%
D. Loans guaranteed by PSUs of State Govt.100%
E. Others 100%
5. Premises, furniture and fixtures 100%
6. Other Assets 100%

Step 3: Compute Tier-II Capital

Undisclosed reserves and cumulative perpetual preference shares.

Revaluation Reserves (RR).

General Provisions and Loss Reserves(GPLR)

Hybrid Debt Capital Instruments

Subordinated Debts

Yo Sunanda nice post!,

Here I am uploading Capital Adequacy of Banks in India, so please download and check it.