Mathematics · Percentages and Banking Calculations
A bank is calculating its Operational Risk Capital Charge using the Basic Indicator Approach (BIA) as per Basel III / RBI guidelines. The bank's Gross Income for the last three financial years was as follows: Year 1: ₹800 Crore; Year 2: -₹100 Crore (Loss); Year 3: ₹1,100 Crore. According to the BIA formula, the capital charge is 15% of the average positive annual gross income over the previous three years. Calculate the specific Capital Charge (in Crores) that the bank must maintain.
- 1135 Crore
- 2142.5 Crore✓
- 3285 Crore
- 4150 Crore
Correct answer
142.5 Crore
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