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The provision coverage ratio is calculated by dividing the total provisions for bad debts by the total non-performing assets (NPAs). The formula is: Provision Coverage Ratio = (Total Provisions / Total NPAs) x 100. This ratio indicates the extent to which a bank's provisions cover its bad loans, reflecting its ability to absorb potential losses. A higher ratio suggests better financial health and risk management.
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How to calculate the adversely classified items coverage ratio?
Adersely Classified Assets/Tier 1 Capital +Allowance
Is it true that a ratio is a rate?
No. It can be but need not be. For example, you might calculate the ratio of today's temperature in Celsius and in Fahrenheit and calculate the ratio. That is not a rate.
How to get a ratio?
calculate the ratio between proton&electron
How do you calculate sharpe ratio in Excel?
The related link provides an excel template and some notes on how to calculate the sharpe ratio..pretty simple and effective.
How do you calculate net capital ratio?
Net Capital Ratio =Total assets / Total Liabilities
