Really, Outstanding session Ma'am !! Preparing for rbi for 1yr, but I didnt find any other lecture on the net with such clarity on the background of AT1 bonds along with its current aspects chronologically ! Plz bring on more such sessions and thank you. 🙂
Q1 (D) December 31, 2023 Q2 (D) correction : ‘Principal can be written off only with RBI’s permission. Banks can at the most skip the interest payment by their discretion’
1. 31 dec 2023 2. D- as RBI has the right to do so,not banks. Mam i have a small doubt. Since these AT-1 bonds are unsecured, neither they are given priority in payments nor they have any guarantee , how come these AT-1 bonds will protect depositors. Pls explain mam.
Hello Anmol Thanks for writing to us. AT 1 bonds are used for raising the capital for the banks. That capital is kept as buffer for the bank. Now the unsecured aspect is from the investors point of view. The bank gets the capital and thus can use this capital to maintain capital buffer protecting its own position. The investors still invest in AT1 for higher returns and rarely any bank can go down like yes Bank is the first case in which AT1 were written off. Regards, Kritika
Thanks mam
Thank You
You are most welcome, Nawed.
Regards
Kritika
HW Answer -
1)D
2)D
Thank you ma'am
You are most welcome, Srihari.
Regards,
Kritika
1 D
2 D
Thank you madam.
I think nobody in India will ever invest in AT1 bonds now. for AT1 bonds.
Hi Ma'am.
Thankyou for the wonderful session.
Can u plz tell whether any other bank can buy these AT 1 bonds from the investors ???
Very well explained. Just one query. Initially you mentioned CAR as 9%. But later you added 2.5%CCB to make it 11.5%. So, is the CAR inclusive of CCB?
Hello Shashwat
Yes the 11.5% is inclusive of CCB and is considered as the complete CRAR.
Regards,
Kritika
Ok Thanks
Really, Outstanding session Ma'am !!
Preparing for rbi for 1yr, but I didnt find any other lecture on the net with such clarity on the background of AT1 bonds along with its current aspects chronologically ! Plz bring on more such sessions and thank you. 🙂
Hello Sourish
Thank you for your kind words.
Regards
Kritika
Ans 1 - D (31 dec 2023)
Ans 2 - D (banks cannot write off RBI can)
Q 1 : 31 st dec
Q2 : option D
Q1 (D) December 31, 2023
Q2 (D) correction : ‘Principal can be written off only with RBI’s permission. Banks can at the most skip the interest payment by their discretion’
Just loved the session.... Simple and effective explanation to the point 👍
1. 31 dec 2023
2. D- as RBI has the right to do so,not banks.
Mam i have a small doubt.
Since these AT-1 bonds are unsecured, neither they are given priority in payments nor they have any guarantee , how come these AT-1 bonds will protect depositors.
Pls explain mam.
Hello Anmol
Thanks for writing to us.
AT 1 bonds are used for raising the capital for the banks. That capital is kept as buffer for the bank.
Now the unsecured aspect is from the investors point of view.
The bank gets the capital and thus can use this capital to maintain capital buffer protecting its own position.
The investors still invest in AT1 for higher returns and rarely any bank can go down like yes Bank is the first case in which AT1 were written off.
Regards,
Kritika
If you still have any query kindly ask further.
Regards,
Kritika
@@kritikasharma7938 Thanks for clearing my query mam.
31 December 2023 extended
awesome session, mam, thanks
Hello Dhiraj
You are most welcome.
Keep watching.
Regards,
Kritika
@@kritikasharma7938 mam I am solely dependent on your lecture for finance CA, thanks
Mam very well explained
Thanks and regards