Compute the Net Demand and Time Liabilities (NDTL) of The Kuber Bank Ltd. as on 31.03.2017. Calculate and comment on the levels of CRR and SLR maintained by the bank. (Assuming that the current level stipulated by RBI is

Calculation of NDTL: Net Demand and time liabilities (₹ in crore) Total deposits from others (3214.40+9043.60+14248.00) 26,506.00 Bills payable 270.80 Inter-office adjustments (Net) 183.19 Interest accrued 123.99 50% of others (assumption) 350.21 Total 27,434.19 Liabilities with banking system Demand deposits from banks 66.85 Term deposits from banks 1,117.05 Borrowings from banks 0.00 Total 1,183.90 Assets with banking system Balances with banks in India 354.25 Total 354.25 NDTL = Liabilities to others + Net Inter-Bank Liabilities (NIBL) Where NIBL = Liabilities to banking system - Assets with banking system Net Inter-Banking Liabilities (NIBIL) = 1183.90 - 354.25 = 829.65 NDTL = 27,434.19 + 829.65 = 28,263.84 CRR maintained = Balance with RBI NDTL = 2,232.26 = 7.90% 28,263.81 CRR is maintained at 7.90% Assuming CRR of 7.5%, the additional amount of cash with RBI in current account is considered for SLR purpose. SLR maintained = Cash + Government securities + Approved securities + Net balances with banks in current accounts + Excess cash reserve = 182.07 + 7,588.15 + 160.76 + (254.25-66.85) + [2,232.26-(0.075*28,263.84)] = 8,230.85 SLR as % of NDTL = 8,230.85 = 29.12% 28,263.84 Bank is maintaining SLR at 29.12%.