CAIIB Discussions thread July 2017

Latest Provisioning Vs Accelerated Provisioning Friends, Please don't get confused with Accelerated Provisioning to the latest provisioning norms What is Accelerated Provisioning? Refer : RBI/2015-16/101, DBR.No.BP.BC.2/21.04.048/2015-16 dated 01.07.2015 As a measure to ensure adherence to the proposals made in RBI guidelines as also to impose disincentives on borrowers for not maintaining credit discipline, accelerated provisioning norms are being introduced. In cases where banks fail to report SMA status of the accounts to CRILC or resort to methods with the intent to conceal the actual status of the accounts or evergreen the account, banks will be subjected to accelerated provisioning for these accounts and/or other supervisory actions as deemed appropriate by RBI. In all other cases, the existing provisioning norms will only apply. Sub-Standard (Secured) - 15% Sub-Standard (Unsecured) - 25% (other than infrastructure loans) Sub-Standard (Unsecured) - 20% (infrastructure loans) Doubtful-I (Secured) - 25% Doubtful-I (Unsecured) - 100% Doubtful-II (Secured) - 40% Doubtful-II (Unsecured) - 100% Doubtful-III (Secured) - 100% Doubtful-III (Unsecured) - 100% Loss - 100% Accelerated Provisioning (only applicable if banks fail to report SMA status of the accounts to CRILC or resort to methods with the intent to conceal the actual status of the accounts or evergreen the account) Sub-Standard (Secured-upto 6 months) - 15% Sub-Standard (Secured-6 months to 1 year) - 25% Sub-Standard (Unsecured-upto 6 months) - 25% Sub-Standard (Unsecured-6 months to 1 year) - 40% Doubtful-I (Secured) - 40% Doubtful-I (Unsecured) - 100% Doubtful-II (Secured) - 100% Doubtful-II (Unsecured) - 100% Doubtful-III (Secured) - 100% Doubtful-III (Unsecured) - 100% Loss - 100%

 

With god' s Grace.... cleared CAIIB... thanx to this group and murugan sir and all those who helped in this purpose

 

Sir, please provide some sample question for IT also

 

Got 43 in BFM...hard luck this time..will reappear in nov..

 

A bank has compiled following data for computing its CRAR as on 30 Sep 2016 Tier I capital 2500 Tier ii capital 2000 RWA for credit risk other than retail assets (include 2000 crores of commercial real estate - 35,500 Exposure on retail assets - 8,700 Total eligible financial collaterals available for retail assets - 1200 Capital charge for general market risk net position - 450 Capital charge for specific risk - 190 Capital charge for equity - 150 Vertical adjustment - 15 Horizontal adjustment - 10 Total capital charge for options - 70 Gross income for the previous year - 495 Gross income for the year before previous year - 450 Gross income for 2nd year before previous year - 390 Based on the data given above, answer the following questions. The capital required for credit risk at minimum required rate as per RBI is ...... a. Rs. 4585 Crores b. Rs. 4383 Crores c. Rs. 3701 Crores d. Rs. 3508 Crores Ans - c = 8700-1200=7500 @ 75% =5625 35500+5625=41125 9%= 3701 Crs ............................................. Total Risk weighted assets for market risk is ...... a. Rs. 9833 Crores b. Rs. 9553 Crores c. Rs. 8952 Crores d. Rs. 7156 Crores Ans - a Total Risk weighted assets for market risk = 450+190+15+10+150+70 = 885/.09 = 9833 Crores ............................................. Total weighted assets for operational risk is ...... a. Rs. 4944 Crores b. Rs. 4323 Crores c. Rs. 9553 Crores d. Rs. 7156 Crores Ans - a 1335/3 =885/.09 =4944 ............................................. The CRAR of the bank as on 30th Sept 2016 is ...... a. 7.35 % b. 8.05 % c. 9.22 % d. 10.23 % Ans - b 41125+9833+4944 = 55902 4500/55902 = 8.049 .............................................. What would be the issue price of a CP (Face value of Rs. 100) carrying an interest rate of 10 % and maturity of 1 year expressed as % of notional value? a. 100 b. 96.15 c. 90.90 d. 92.50 Ans - c Explanation : Interest rate = 10 % annual CPs are issued at discount prices. . So if face value is 100, then Issue price × (1+10%) = 100 Issue price × 1.10 = 100 Issue price = 100/1.10 = 90.9090 = 90.90

 

eductn loan relatd and credit card relatd que case study with solutn post kr do plz any1

 

God stopped their reply.. As a result failed by 1 mark.. 49☺️

 

There is a chance of increase in Interest rate in floating rate scenario..at that time borrower may feel emi burden..he can opt for emi reset..not sure .. just told as per my knowledge

 

pls explain written down value with example and explanation

 

Finally caiib clear with 45, 50 and 57 thank you so much murugan sir for your last minitue short note and questions...

 

Cleared CAIIB in first attempt... ABM:55, BFM:51, Retail: 63 Thanks to K Cbi sir

 

Thanks K Cbi sir and group members...caiib cleared in 1st attempt.

 

Can anyone pls guide me regarding what typ of questions come in RISK MGMT elective subject?@ sir. pls share some questions or mock tests.

 

Thanks sir for your guidance. Please guide on where we can get the total list of RWA for different assets and liabilities of the bank as per Basel III norms to calculate the Tier 1 and Tier 2 requirements of the bank.

 

so far I know fixed rate of int is valid for 1st 3 yrs only. from this point of view pl confirm whether the ans will be b or c.

 

Very tough.. These type of questions are coming in exam sir

 

Hearty Congrats Dear. Post some Recollected Questions...

 

Q-3-RWA for operational risk indicated 1335/3=885/.09=4944. My working 1335/3=445X15%=66.75X.09=741.66.Pl. confirm the working.

 

sir. Please send CAIIB material in my mail .....vikrambirendra@yahoo.com

 

its gross inc of prev yr+yr bfr pr yr+yr before 2 yr

 

Comgrats pls post q s it wil useful for next batches

 

Bcsbi mudra depreciation and edu loan prob. All from your material only Case study on bharat bill payment system, cerasi, ckyc,

 

Which material we need to study... short notes pdf files are enough to clear CAIIB... PLS GUIDE

 

Kindly anyone guide me to pass Caiib in my 5th attempt since I have to write all three papers. In my earlier attempts my missed the marks by 47 45 48 anyone from Karnataka Bank in this group.

 

@Sunil Parashar sir plz send material for BFM if possible.. kapiljuneja013@gmail.com

 

Practice Yourself - Sinking Fund -------------------------------- What will be sinking fund for redeeming capital of Rs. 20 lacs at the end of 20 years @ 8% compound interest? ............................................. What will be the capitalized value of a property purchased for Rs. 6,00,000 for income @ 12% rate of interest and redemption of capital @ 8% rate of interest for a period of 15 years? ............................................. What will be sinking fund for redeeming capital of Rs. 50 lacs at the end of 15 years @ 9% compound interest? ............................................. What will be the capitalized value of a property purchased for Rs. 9,00,000 for income @ 6% rate of interest and redemption of capital @ 6% rate of interest for a period of 20 years?

 

Stock XYZ whose earning per share is Rs 50 is trading in the market at Rs 2000. What is the price to earnings ratio for XYZ? a. 20 b. 40 c. 60 d. 10 Ans - b Solution: Price earnings Ratio= Market price per share / annual earning per share = 2000/50 = 40

 

Hi I am having a doubt, if some one complete 1 or 2 papers of caiib in 5th attempt, whether the scores will be forward or we have to write all three papers in 6th attempt.??? Thanks in advance...

 

CAIIB cleared in first attempt. Feeling happy. Thank you K Cbi @ N.S.Toor

 

aml & kyc exam may 17,did anyone receive the certificate.