Why in the News?
- State Bank of India (SBI) aims to expand its balance sheet to 25% of India’s GDP by 2030 (from ~20% currently).
What is a Bank’s Balance Sheet
- A balance sheet shows: Liabilities + Capital = Assets
Components
1. Liabilities
- Deposits
- Borrowings
- Other obligations
2. Capital
- Tier I capital
- Tier II capital
- Reserves
3. Assets
- Loans and advances
- Investments
- Cash balances (including with Reserve Bank of India)
| [2018] With reference to the governance of public sector banking in India, consider the following statements: 1. Capital infusion into public sector banks by the Government of India has steadily increased in the last decade. 2. To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected. Which of the statements given above is/are correct? (a) 1 only(b) 2 only(c) Both 1 and 2(d) Neither 1 nor 2 [2015] With reference to ‘Basel III Accord’, sometimes seen in the news, which of the following statements is/are correct? 1. It strives to improve the banking sector’s ability to deal with financial and economic stress and improve risk management. 2. It aims at making the banks more capital-intensive. Select the correct answer: (a) 1 only(b) 2 only(c) Both 1 and 2(d) Neither 1 nor 2 |
