Urban Co-operative Banks (UCBs) are required to fix exposure limits for individual borrowers to mitigate credit risk. If a UCB, after assessing its financial position, calculates that its Tier-I capital for the preceding financial year is ₹50 crore, what would be the maximum amount that the bank can expose to an individual borrower under the prescribed norms?
Under the exposure norms for UCBs, the maximum exposure to an individual borrower cannot exceed 15% of the bank’s Tier-I capital. In this case, 15% of ₹50 crore amounts to ₹7.5 crore. However, to comply with the 15% cap, the maximum exposure the bank can take to a single borrower is ₹5 crore. This ensures that the bank doesn’t over-concentrate its exposure to one entity, thereby managing its credit risk effectively.
A pull strategy occurs when:
The Make-your-pot Workshop in Crossroad Mall sells custom made pots designed to be given as gifts for almost every occasion imaginable. For the make-you...
Thinking, reasoning, and mental problem solving without direct experience describes ________.
To be identified as a market segment, its members must:
A new start-up recently finished prototyping their invisiblity gown, and they are now available at select retailers across the country. What stage of th...
When Several artists in Delhi create an arrangement to sell their paintings by setting up an art gallery in Vasant Vihar, so tourists and art lovers can...
Short-term price reductions, commonly used to increase trial among potential customers or to retaliate against a competitor's actions are called:
Direct mail and catalogues involve relatively ______ active customer involvement and relatively _______ active retailer involvement.
The offer of one free pizza with the purchase of two pizzas at the regular price might appeal to you one evening. This type of incentive offer is an exa...
Each of the following is a technique for handling objections EXCEPT: