Sufficient capital is required by banks to absorb any losses that arise during the normal course of the bank’s operations. The Capital of a bank is divided into different tiers according to the characteristics / qualities of each qualifying instrument. The Basel III framework tightens the capital requirements by limiting the type of capital into…
A Deferred Tax Asset is an asset on an organisation’s balance sheet that may be used to reduce taxable income. The DTAs are associated with accumulated losses and other such assets. Such losses should be deducted in full from CET1 capital of the Banks. The Common Equity Tier 1 (CET1) is a component of Tier…
“No Progress in Talks! Stalemate continues” “In today’s discussion with IBA, we (UFBU) reiterated 1. Their offer of 6% should be substantially improved 2. Performance Linked Pay should be delinked from wage revision and 3. Resolution of mandate issue – IBA repeated their proposal that wage increase should be linked to paying capacity – we…
From the UIIC/IBA circular dated 06-10-18, on UIIC Group Health Insurance Policy for Bank Retirees, it could be interpreted as under: A cover of RS 4 lakh WITHOUT Domiciliary, costs annual premium including GST is Rs 28,792/- to a retiree officer. Whereas for a cover of RS 4 lakh WITH Domiciliary annual premium (including GST)…
Renewal of UIIC Group Health Insurance Policy for Bank Retirees’ for the period 01.11.2018 to 31.10.2019 The renewal premium payable as per last year options and options for reduced basic insurance are given below under Option I, Option II, Option III & Option IV(a) & IV (b) OPTION I RENEWAL WITHOUT DOMICILIARY…
The Government of India has announced Sovereign Gold Bond Scheme 2018-19 (“the Bonds”). The Bonds under this Scheme may be held by a person resident in India, being an individual, in his capacity as such individual, or on behalf of minor child, or jointly with any other individual. The bond may also be held by…
Value at risk is a statistic technique that measures and estimates the level of financial risk within an organization or investment portfolio or position over a specific time frame (holding period). The three major methods are used to calculate VaR are (i) Parametric Estimates (ii) Monte Carlo simulation (iii) Historical simulation. Parametric Estimates: The method…
Let us take an example, one of your friends borrowed a sum of Rs.10000/-from you, but he was unable to repay because of his unusual financial difficulties. You have realized the situation of your friend that the repayment of loan is beyond his control; so you forgave the loan amount given to him and informed…
This post elucidates Asset Liability Committee (ALCO) that evaluates the risk associated with Assets and Liability of banks, financial institutions and also the practice of managing risks that arise due to mismatches between the assets and liabilities known as Asset Liability Management (ALM). ALCO (Asset Liability Committee): A risk management committee in a bank that…
Documentary Collection or bill collection refers to the collection of financial and/or commercial documents. The documentary collection is one of the conventional methods of payment in international trade whereby the seller forwards financial and/or commercial documents to the buyer through his bankers against cash payment or acceptance of a bill of exchange. Unlike a bill…