Case 1. Bank of Indians had paid up capital of Rs 500 crore, Reserves of Rs 250 cr, , Revaluation reserve of Rs 100 cr, Perpetual non-cumulative preference shares (PNCPS) of Rs 50 cr and subordinated debts of Rs 200 cr. Calculate Tier I and Tier II capital of Bank of Indians and total capital fund of the Bank.
Tier I capital of the Bank = Paid up capital + Reserves+ PNCPS = 500 + 250+ 50 = 800 cr
Tier II Capital = Revaluation reserves at the discount of 55% + Subordinated Debt = 45+ 200 = 245 cr *(Remember 55% of discount means, only 45% of revaluation reserve will be considered) Total Capital of Bank = 800+245 = 1045 cr