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The ratio of provision against total NPA

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12y ago

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What ratios are important in banking sector?

Credit to deposit ratioCapital adequacy ratioNon-performing asset ratioProvision coverage ratioReturn on assets ratio


How do you calculate provision coverage ratio?

The provision coverage ratio is calculated by dividing the total provisions for bad debts by the total non-performing assets (NPAs). The formula is: Provision Coverage Ratio = (Total Provisions / Total NPAs) x 100. This ratio indicates the extent to which a bank's provisions cover its bad loans, reflecting its ability to absorb potential losses. A higher ratio suggests better financial health and risk management.


How to calculate the adversely classified items coverage ratio?

Adersely Classified Assets/Tier 1 Capital +Allowance


How calculat npl Coverage Ratio?

The NPL coverage ratio is calculated by taking a the total number of non-performing loans and dividing them the total amount of all loans withing a financial entity. Non-performing loans are defined as loans that have been delinquent for over ninety days.


How do you measure the NPA?

You can measure NPA (Non-Performing Assets) by calculating the ratio of NPA to total assets or total loans. NPA is typically expressed as a percentage of the total loan portfolio or total assets of a bank or financial institution. A higher NPA ratio indicates a higher level of non-performing assets relative to the total portfolio.


How do you measure NPA?

Non-performing assets (NPAs) are typically measured as a percentage of the total assets held by a financial institution. This ratio is calculated by dividing the total value of NPAs by the total value of assets. The higher the NPA ratio, the greater the risk exposure for the institution.


What is the Earning assets to total assets ratio?

Its the ratio between the assets which generate income for the business to total assets owned by the business.If the ratio is higher, that shows business is in good position.


What is non current assets to total assets ratio?

Fixed assets to total assets ratio describe about the percentage or number of time fixed assets are of total assets. It helps the management to find out that either they are maintaining proper fixed assets and current assets ratio or there may be any changes required in the ratio which is to be maintained because if they maintain high ratio it will affect the depreciation expense and ultimately net income as well.


What is net sales divided by tangible assets ratio?

fixed assets turnover ratio


The ratio of current assets to current liabilities is called the?

The ratio between current assets to current liability is called "Current Ratio".


quick ratio?

quick ratio analyzes whether a company can pay off its short-term obligations using its most liquid assets. the ideal quick ratio for companies is 1.50. quick ratio is calculated as follows:Quick ratio = Quick assets / Current liabilitiesQuick assets = Current assets - Inventory


Fixed assets to current asset ratio?

fixed assets / current assets