(Non Interest Op Expenditure - Non Interest Income)/ Average Assets
(Non-interest operating Expenditure - Non-interest operating income ) / Average Total Assets A bank with a low burden ratio is more better off. An increasing trend would show lack of burden bearing capacity
Cash and near cash/Customers deposit and other current liabilities
The NPA is a Non Performing Asset as defined by the Reserve Bank of India. To calculate the Net NPA you take the Gross NPA minus the balance of a suspense account, DICGC claims, part payments received, and the provisions held.
The loan to deposit ratio of a bank is a measure of how much money the bank has lent out compared to how much it has in deposits. It is calculated by dividing the total loans by the total deposits. A higher ratio indicates that the bank is lending out more money relative to its deposits.
multiplication
The way to calculate DBR (Debt Burden Ratio) is to take all of a persons debt burden and add it together. Next, divide that debt burden by the after-tax income. This is the DBR.
(Non-interest operating Expenditure - Non-interest operating income ) / Average Total Assets A bank with a low burden ratio is more better off. An increasing trend would show lack of burden bearing capacity
(Non-interest operating Expenditure - Non-interest operating income ) / Average Total Assets A bank with a low burden ratio is more better off. An increasing trend would show lack of burden bearing capacity
Texas Ratio FormulaTo calculate the Texas Ratio, you divide a bank's bad debt on the books by the amount of money it has to absorb the bad debt.
Cash and near cash/Customers deposit and other current liabilities
Formula to calculate the ratio
The spread ratio of a bank is calculated by taking the difference between the interest income generated from loans and the interest expense paid on deposits, then dividing that figure by the bank's total assets. The formula can be expressed as: Spread Ratio = (Interest Income - Interest Expense) / Total Assets. This ratio helps assess the bank's profitability and efficiency in managing its interest-earning and interest-paying activities. A higher spread ratio typically indicates better financial health and profitability.
Burden Coverage Ratio = EBIT/Interest Expense+[Principal Payment*(1-Tax Rate)
how do we calculate credit loss ratio in banks financials
No. It can be but need not be. For example, you might calculate the ratio of today's temperature in Celsius and in Fahrenheit and calculate the ratio. That is not a rate.
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