CAIIB · BFM · Chapter 1

Components of Assets and Liabilities in Banks Balance Sheet and their Management

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Bank Financial Management — CAIIB.

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Q

Capital?

A

Cash in Hand & Balances with RBI

Q

Reserves & Surplus?

A

Balances with Banks & Money at Call and Short Notice

Q

Deposits?

A

Investments

Q

Borrowings?

A

Advances

Q

Other Liabilities and Provisions?

A

Fixed Assets

Q

Contingent Liabilities (off balance sheet — disclosed separately)?

A

Other Assets

Q

Statutory Reserves?

A

created under Section 17 of the Banking Regulation Act, 1949. Every scheduled bank in India must transfer at least 25% of disclosed profits to this reserve every year before declaring any dividend.

Q

Capital Reserves?

A

amounts transferred from the P&L account, including revaluation reserves on fixed assets.

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