In a bank, rate sensitive asset is Rs 5000 with yield of 7.5% per annum (PA), fixed rate asset is Rs 3500 with yield of 8% PA, not earning asset is Rs 500. In the liability side rate sensitive liability is Rs 4500 with a cost of 2.75% PA, fixed rate liability is Rs 3500 PA with a cost of 6.50% PA, not earning liability is Rs 500 and equity capital is Rs.500. Calculate the Net Interest Income (NII) and Net Interest Margin (NIM).
In a bank, rate sensitive asset is Rs 5000 with yield of 7.5% per annum (PA), fixed rate asset is Rs 3500 with yield of 8% PA, not earning asset is Rs 500. In the liability side rate sensitive liability is Rs 4500 with a cost of 2.75% PA, fixed rate liability is Rs 3500 PA with a cost of 6.50% PA, not earning liability is Rs 500 and equity capital is Rs.500. Calculate the Net Interest Income (NII) and Net Interest Margin (NIM).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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In a bank, rate sensitive asset is Rs 5000 with yield of 7.5% per annum (PA), fixed rate asset is Rs 3500 with yield of 8% PA, not earning asset is Rs 500. In the liability side rate sensitive liability is Rs 4500 with a cost of 2.75% PA, fixed rate liability is Rs 3500 PA with a cost of 6.50% PA, not earning liability is Rs 500 and equity capital is Rs.500.
Calculate the Net Interest Income (NII) and Net Interest Margin (NIM).
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