The following are the information extracted from financial statements of Bank A and Bank B for the fiscal year 2080/81 (in Million Rs) Bank A Bank B…
BBS Foundation of Financial Systems · 2082 · Solved Question with Answer
The following are the information extracted from financial statements of Bank A and Bank B for the fiscal year 2080/81 (in Million Rs)
| Bank A | Bank B | |
| Total assets | Rs. 50,000 | Rs. 75,000 |
| Non-interest income | 650 | 800 |
| Interest income | 7,000 | 9500 |
| Interest expenses | 3,200 | 4,100 |
| Loans, advances and bill purchased | 25,000 | 30,000 |
| Investments | 8,000 | 10,000 |
| Interest bearing deposits | 34,000 | 42,000 |
| Debenture and bond | 1,200 | 1,500 |
a. Calculate non-interest income ratio of both banks for the fiscal year 2080/81.
b. Calculate net interest margin ratio of both banks for the fiscal year 2080/81.
c. Calculate spread ratio of both banks for the fiscal year 2080/81.
d. How do you evaluate both bank's performance on the basis of calculated ratios?