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    MCLR - Central Bank of India

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    Sravya Namburi
    This document provides information on the calculation of the marginal cost of funds lending rate (MCLR) for a bank. It includes details of the bank's interest income and expenses, cost of various types of funds, and calculation of the risk free rate and cost of equity. Based on this information, the overnight MCLR is calculated as 8.12% and the 1 year MCLR is set at 8.15% by adding a tenor premium of 0.03%.

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    MCLR - Central Bank of India

    Uploaded by

    Sravya Namburi
    58 views8 pages
    This document provides information on the calculation of the marginal cost of funds lending rate (MCLR) for a bank. It includes details of the bank's interest income and expenses, cost of various types of funds, and calculation of the risk free rate and cost of equity. Based on this information, the overnight MCLR is calculated as 8.12% and the 1 year MCLR is set at 8.15% by adding a tenor premium of 0.03%.

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    MCLR - Central Bank of India.xlsx

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    This document provides information on the calculation of the marginal cost of funds lending rate (MCLR) for a bank. It includes details of the bank's interest income and expenses, cost of various types of funds, and calculation of the risk free rate and cost of equity. Based on this information, the overnight MCLR is calculated as 8.12% and the 1 year MCLR is set at 8.15% by adding a tenor premium of 0.03%.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    58 views8 pages

    MCLR - Central Bank of India

    Uploaded by

    Sravya Namburi
    This document provides information on the calculation of the marginal cost of funds lending rate (MCLR) for a bank. It includes details of the bank's interest income and expenses, cost of various types of funds, and calculation of the risk free rate and cost of equity. Based on this information, the overnight MCLR is calculated as 8.12% and the 1 year MCLR is set at 8.15% by adding a tenor premium of 0.03%.

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    © All Rights Reserved
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    You are on page 1of 8

    MANAGEMENT OF BANKS CIA 3

    MCLR CALCULATIO
    CENTRAL BANK
    ANKS CIA 3

    CULATION

    DONE BY -
    JANANI B S 1828204
    SRAVYANJALI 1828147
    PARTICULARS 2018 PARTICULARS
    Interest on deposits 162,226,890 Demand deposits
    Interest on RBI/interbank 45,704 SB accounts
    Other interest 12,912,485 Total Term Deposits
    NET 175,139,375

    Operating Expenses 64,063,689


    less: depn 26,630,498 Borrowings
    NET 37,433,191 Total funds

    MCLR CALCULATION

    Cost of Deposits + Borrowings 5.829% cost of equity=CAPM 0.0944

    Cost of Funds 6.118%

    Negative carry on CRR 0.255%

    Cost of funds + Negative carry on CRR 6.373%

    Unallocable Op. exp 1.246%

    Tenor Premium 0.5%

    Marginal cost of funds 8.12% (Overnight)

    Tenor Premium
    https://www.centralbankofindia.co.in/english/profressional.aspx
    NSE Data
    https://www.nseindia.com/products/content/equities/indices/historical_index_data.htm

    Central Bank MCLR 8.15%


    Source : Bank's Website (overnight)
    2018 Proportion of Total Funds Interest Rate Proportion * Interest Rate
    146,864,868 4.89% 0 0
    1,105,092,892 36.77% 3.50% 0.0128693722
    1,696,430,813 56.45% 8.04% 0.0454045603
    0.00% 0
    0.00% 0
    0.00% 0
    57,061,162 1.90% 0.000800965 0.0000152070
    3,005,449,735 100.00%

    Cost of Equity Calculation


    Risk Free Rate (Bond yield) 7.61%
    Market Return (NSE - 5years) 8.78% See link
    Beta 1.56
    CAPM 9.44%

    Beta : Source - www.investing.com


    38678251.22 SB interest = E3*3.5%
    136,461,124 Interest on term deposits
    Particulars 2018 2017 Particulars 2018
    Interest on deposits 162,226,890 173,303,967 Demand deposits 146,864,868
    Interest on RBI/interbank 45,704 37,022 SB accounts 1,105,092,892
    Other interest 12,912,485 7,532,970 Term deposits -banks 40,177,032
    Term deposits -others 1,656,253,781
    Operating Expenses 64,063,689 63,610,278 Total Term Deposits 1,696,430,813
    less: Depreciation 26,630,498 16,966,630
    Net 37,433,191 46,643,648 Borrowings 57,061,162

    NIFTY RETURN CALCULATION


    Date Price Returns Yearly Return
    1-Mar-19 11,341.70 4.96% 4.32%
    1-Feb-19 10,792.50 -0.36%
    1-Jan-19 10,830.95 -0.29% Market Return
    1-Dec-18 10,862.55 -0.13% 3.10% 8.78%
    1-Nov-18 10,876.75 4.61%
    1-Oct-18 10,386.60 -5.10%
    1-Sep-18 10,930.45 -6.64%
    1-Aug-18 11,680.50 2.81%
    1-Jul-18 11,356.50 5.82%
    1-Jun-18 10,714.30 -0.20%
    1-May-18 10,736.15 -0.03%
    1-Apr-18 10,739.35 6.00%
    1-Mar-18 10,113.70 -3.68%
    1-Feb-18 10,492.85 -4.97%
    1-Jan-18 11,027.70 4.61%
    1-Dec-17 10,530.70 2.93% 25.19%
    1-Nov-17 10,226.55 -1.06%
    1-Oct-17 10,335.30 5.43%
    1-Sep-17 9,788.60 -1.31%
    1-Aug-17 9,917.90 -1.59%
    1-Jul-17 10,077.10 5.68%
    1-Jun-17 9,520.90 -1.05%
    1-May-17 9,621.25 3.35%
    1-Apr-17 9,304.05 1.41%
    1-Mar-17 9,173.75 3.26%
    1-Feb-17 8,879.60 3.65%
    1-Jan-17 8,561.30 4.49%
    1-Dec-16 8,185.80 -0.47% 2.97%
    1-Nov-16 8,224.50 -4.91%
    1-Oct-16 8,638.00 0.31%
    1-Sep-16 8,611.15 -2.01%
    1-Aug-16 8,786.20 1.70%
    1-Jul-16 8,638.50 4.15%
    1-Jun-16 8,287.75 1.55%
    1-May-16 8,160.10 3.88%
    1-Apr-16 7,849.80 1.43%
    1-Mar-16 7,738.40 10.21%
    1-Feb-16 6,987.05 -7.93%
    1-Jan-16 7,563.55 -4.94%
    1-Dec-15 7,946.35 0.14% -4.15%
    1-Nov-15 7,935.25 -1.63%
    1-Oct-15 8,065.80 1.46%
    1-Sep-15 7,948.90 0.00%
    1-Aug-15 7,948.95 -7.09%
    1-Jul-15 8,532.85 1.94%
    1-Jun-15 8,368.50 -0.78%
    1-May-15 8,433.65 3.04%
    1-Apr-15 8,181.50 -3.71%
    1-Mar-15 8,491.00 -4.08%
    1-Feb-15 8,844.60 0.40%
    1-Jan-15 8,808.90 6.16%
    1-Dec-14 8,282.70 -3.62% 21.26%
    1-Nov-14 8,588.25 3.15%
    1-Oct-14 8,322.20 4.39%
    1-Sep-14 7,964.80 0.13%
    1-Aug-14 7,954.35 2.97%
    1-Jul-14 7,721.30 1.43%
    1-Jun-14 7,611.35 5.14%
    1-May-14 7,229.95 7.67%
    1-Apr-14 6,696.40 52.69%
    2017
    132,071,252
    1,031,024,978
    53,016,251
    1,750,599,453

    92,824,453

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