Your money should be parked in scheduled commercial Banks
Scheduled Commercial Banks
-PSU Banks
-Private Banks
-Foreign Banks
-Small Finance Banks
Do not park money is Co-operative/Regional Banks
List is shown below
(2/20)
So many terminologies in Banking!
Confused?😥🤔
Dont worry.
A thread🧵 on basics of Banking
Hit "Retweet" to educate Maximum Investors
Lets go👇
(1/20)
Your money should be parked in scheduled commercial Banks
Scheduled Commercial Banks
-PSU Banks
-Private Banks
-Foreign Banks
-Small Finance Banks
Do not park money is Co-operative/Regional Banks
List is shown below
(2/20)
Gross NPA (GNPA)-
It is the total loans on which no payment has been paid for 90 days or more.
GNPA % is usually shown in each Bank’s quarterly results. The percentage is basically the GNPA amount as a % of the total advances.
(3/20)
The total figure left after deducting provisions made for bad loans from GNPA.
(GNPA – Provisions+upgrades/writeoffs = NNPA)
(4/20)
SMA-0
SMA-0 is a category in which stress with respect to the principal and interest has remained overdue for a period of 0 to 30 days.
(5/20)
SMA-1 is a category in which stress with respect to the principal and interest has remained overdue for a period of 30-60 days.
SMA-2
SMA-1 is a category in which stress with respect to the principal and interest has remained overdue for a period of 60-90 days.
(6/20)
This is the spread the bank makes on its lending. It is calculated as Interest Income – Interest Expended
(7/20)
This is the spread the bank makes on its lending. It is the earning which is left after deducting the cost paid to depositors from its yields on Loans. This is denoted in % terms.
The formula is Yield on Loans – Cost of funds
(8/20)
The capital adequacy ratio (CAR) is a measure of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures.
Basically Capital available to lend
(9/20)
In simple words this capital is freely available with the bank to lend
Tier II Capital-
This is capital tied up somewhere and is less freely available to https://t.co/e9uhzxH6ps adverse events a bank can use this capital to lend
(10/20)
(11/20)
This limitation is added by RBI on banks to make funds available to customers on-demand at your earliest convenience.
(12/20)
Banks are required to hold a certain proportion of their deposits in the form of cash.
Banks don’t hold these as cash with themselves, but deposit such amounts with RBI / currency chests.
(13/20)
The rate at which the RBI lends short-term money to the banks.
Reverse Repo rate-
The rate at which banks park their short-term excess liquidity with the RBI.
(14/20)
There is no interest paid on the Current Account and a small interest rate is paid on a savings account. The combination of both is called CASA which shows the number of liabilities that the bank pays relatively less interest on.
(15/20)
A methodology by the Reserve Bank of India (RBI) for setting the lending rates on loans by commercial banks.
(16/20)
This is the ratio of provisioning to GNPA and indicates the extent of funds a bank has kept aside to cover loan losses. For Instance, a company has GNPAs of Rs 100 and they have set aside 50 Rs, then the PCR is 50%.
(17/20)
When banks refer to credit costs they are talking about the amount they expect to lose because of standard credit risks.
It is basically the cost of doing business for a bank. NPA/advance is the credit cost
It is usually denoted and guided for in % terms
(18/20)
More from Aditya Shah
SEBI cuts REIT lot size to 1 unit....this will boost the liquidity and encourage more participation!
REIT is like a mutual fund that invests in physical real estate assets!
Read more
REIT is like a mutual fund that invests in physical real estate assets!
Read more
Real Estate Investment Trusts (REITs) Simplified.
— JST Investments (@JstInvestments) June 9, 2021
A product that provides a fixed income that is better than FD +an upside like equity.
A Thread \U0001f9f5\U0001f447
What to do when u first save money?❓
Do u straight away invest in equities/shares?🤔
A simple thread🧵explaning how u can systematically create a structured portfolio on ur own.
Hit "Retweet" to educate maximum retail/small investors
Lets go👇
(1/14)
Step No 1.-
Golden Rule of Finance-
Expenses=Income-Saving
🧪In the starting years as an investor save as much as u can.
🧪Cut down as much as u can on discretionary spending.
🧪Initial years are tough as capital comes in slowly and seeds for compounding are being laid
(2/14)
Step No 2:-
Buy a health insurance:-
Health insurance will protect your portfolio against undue shocks of unforeseen hospitalization
A detailed review of how to buy health insurance is
Step No 3:-
Buy a Life Insurance(If required):-
Evaluate the need for life insurance.
If need be buy a term plan.
A detailed review of how to buy life insurance is
Step 4:-
Evaluate ur life goals
Goals can be:-
🧪Retirement
🧪Buying a house
🧪Child's Marriage
🧪Child's Education
Evaluate the year in which the goal will be achieved with the amount of estimated amount
(5/14)
Do u straight away invest in equities/shares?🤔
A simple thread🧵explaning how u can systematically create a structured portfolio on ur own.
Hit "Retweet" to educate maximum retail/small investors
Lets go👇
(1/14)
Step No 1.-
Golden Rule of Finance-
Expenses=Income-Saving
🧪In the starting years as an investor save as much as u can.
🧪Cut down as much as u can on discretionary spending.
🧪Initial years are tough as capital comes in slowly and seeds for compounding are being laid
(2/14)
Step No 2:-
Buy a health insurance:-
Health insurance will protect your portfolio against undue shocks of unforeseen hospitalization
A detailed review of how to buy health insurance is
As part of financial planning
— JST Investments (@JstInvestments) December 24, 2020
A thread on health insurance
What is health insurance?
Health insurance is a insurance that covers medical expenses that arise due to an illness. These expenses could be related to hospitalisation costs, cost of medicines etc.
1/
Step No 3:-
Buy a Life Insurance(If required):-
Evaluate the need for life insurance.
If need be buy a term plan.
A detailed review of how to buy life insurance is
Term Plan or a ULIP or a endowment plan?\U0001f914
— JST Investments (@JstInvestments) April 5, 2021
Life Insurance simplified:
Do 're-tweet' & help us educate more investors
A Thread \U0001f9f5\U0001f447
(1/15)
Step 4:-
Evaluate ur life goals
Goals can be:-
🧪Retirement
🧪Buying a house
🧪Child's Marriage
🧪Child's Education
Evaluate the year in which the goal will be achieved with the amount of estimated amount
(5/14)
More from Sectorlearnings
You May Also Like
I'm going to do two history threads on Ethiopia, one on its ancient history, one on its modern story (1800 to today). 🇪🇹
I'll begin with the ancient history ... and it goes way back. Because modern humans - and before that, the ancestors of humans - almost certainly originated in Ethiopia. 🇪🇹 (sub-thread):
The first likely historical reference to Ethiopia is ancient Egyptian records of trade expeditions to the "Land of Punt" in search of gold, ebony, ivory, incense, and wild animals, starting in c 2500 BC 🇪🇹
Ethiopians themselves believe that the Queen of Sheba, who visited Israel's King Solomon in the Bible (c 950 BC), came from Ethiopia (not Yemen, as others believe). Here she is meeting Solomon in a stain-glassed window in Addis Ababa's Holy Trinity Church. 🇪🇹
References to the Queen of Sheba are everywhere in Ethiopia. The national airline's frequent flier miles are even called "ShebaMiles". 🇪🇹
I'll begin with the ancient history ... and it goes way back. Because modern humans - and before that, the ancestors of humans - almost certainly originated in Ethiopia. 🇪🇹 (sub-thread):
The famous \u201cLucy\u201d, an early ancestor of modern humans (Australopithecus) that lived 3.2 million years ago, and was discovered in 1974 in Ethiopia, displayed in the national museum in Addis Ababa \U0001f1ea\U0001f1f9 pic.twitter.com/N3oWqk1SW2
— Patrick Chovanec (@prchovanec) November 9, 2018
The first likely historical reference to Ethiopia is ancient Egyptian records of trade expeditions to the "Land of Punt" in search of gold, ebony, ivory, incense, and wild animals, starting in c 2500 BC 🇪🇹
Ethiopians themselves believe that the Queen of Sheba, who visited Israel's King Solomon in the Bible (c 950 BC), came from Ethiopia (not Yemen, as others believe). Here she is meeting Solomon in a stain-glassed window in Addis Ababa's Holy Trinity Church. 🇪🇹
References to the Queen of Sheba are everywhere in Ethiopia. The national airline's frequent flier miles are even called "ShebaMiles". 🇪🇹
A THREAD ON @SarangSood
Decoded his way of analysis/logics for everyone to easily understand.
Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen
1. Keeps following volatility super closely.
Makes 7-8 different strategies to give him a sense of what's going on.
Whichever gives highest profit he trades in.
2. Theta falls when market moves.
Falls where market is headed towards not on our original position.
3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result
He believes in a market operator, if market mover sells volatility Sarang Sir joins him.
4. Theta decay vs Fall in vega
Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.
Decoded his way of analysis/logics for everyone to easily understand.
Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen
1. Keeps following volatility super closely.
Makes 7-8 different strategies to give him a sense of what's going on.
Whichever gives highest profit he trades in.
I am quite different from your style. I follow the market's volatility very closely. I have mock positions in 7-8 different strategies which allows me to stay connected. Whichever gives best profit is usually the one i trade in.
— Sarang Sood (@SarangSood) August 13, 2019
2. Theta falls when market moves.
Falls where market is headed towards not on our original position.
Anilji most of the time these days Theta only falls when market moves. So the Theta actually falls where market has moved to, not where our position was in the first place. By shifting we can come close to capturing the Theta fall but not always.
— Sarang Sood (@SarangSood) June 24, 2019
3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result
He believes in a market operator, if market mover sells volatility Sarang Sir joins him.
This week has been great so far. The main aim is to be in the right side of the volatility, rest the market will reward.
— Sarang Sood (@SarangSood) July 3, 2019
4. Theta decay vs Fall in vega
Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.
There is a difference between theta decay & fall in vega. Decay is certain but there is no guaranteed profit as delta moves can increase cost. Fall in vega on the other hand is backed by a powerful force that sells options and gives handsome returns. Our job is to identify them.
— Sarang Sood (@SarangSood) February 12, 2020