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7/25/2019 Camel Ratios
1/2
CAMEL RATIOS
CAR=capital/total risk weighted assetsdebt equity ratio = tot liab / tot capitaladvances to assets ratio= total advances/ total assetsgovt sec/total investments
Asset quality
Total npl/advancesNpl / gross advances
Management quality
Total advance/total deposits
NI / no. of employees
Earnings
Roa = NI / TA
Net Int. income / Net Income
Net Non int income/ Net Income
Other income/ Net Income
Liquidity
Liquid assets / total assetsGovt sec/ total assets
Liquid assets / demand deposits
Liquid assets / total deposits
GAP= RSA- RSL (advances+lending to FI+investments+money at call)
( deposits(deduct current account)+borrowing+sub ordinated loans+on call
borrowing)
7/25/2019 Camel Ratios
2/2
Total capital is divided into 2 componentsCore capital tier one capital!"upplementary capital tier 2 capital!
Tier # Core Capital also called tier # capital constituting$ "%&s equity
in paid up share capital or common stock held' plus disclosedreserves(
Tier 2 "upplementary Capital also called tier 2 capital$ consists o)
undisclosed reserves' revaluation reserves' hybrid debt capitalinstruments' general provisions or reserves )or loan loss andsub*ordianted debt
Tier#+tier 2 / total risk weighted assets = ,- at least!Tier # risk ad.usted ratio should be at lease -