AIWMI Exam CCRA-L2 Topic 6 Question 59 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 59
Topic #: 6

Following is information related banks:

Auckland Ltd is a public sector bank operating with about 120 branches across Indi

a. The bank has been in business since 1971 and has about 40% branches in rural areas and about 75% of all branches are in

Western India. On the basis of the size, Auckland Ltd will be ranked at number 31 amongst 40 banks in India.

Although top management has appointment period of 5 years, generally they retire on ach sieving age of 60 years with an average tenure of only 2 years at the top job.

Profit and Loss Account

Balance Sheet

The rating wise break-up of assets for FY11 is as follows:

The core spreads for FY13 as compared to FY12 have:

AExpanded by 136 bps

BContracted by 327 bps

CContracted by 136 bps

DExpanded by 191 bps

Show Suggested Answer

Suggested Answer: D

by Alaine at Oct 12, 2022, 11:20 AM

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My

2 months ago

327 bps? Ouch, that's gotta hurt. Maybe the bank should consider branching out into the lucrative field of koala bond trading. I hear it's all the rage these days.

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Cora

6 days ago

User 3: B) Contracted by 327 bps

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Alyce

11 days ago

User 2: A) Expanded by 136 bps

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Roy

16 days ago

User 1: 327 bps? Ouch, that's gotta hurt.

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Franklyn

2 months ago

Wow, a contraction of 327 bps in core spreads? That's a pretty steep drop. I hope the bank's management has a solid plan to turn things around.

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Rashida

21 hours ago

It's definitely a cause for worry. Hopefully, the bank can implement some effective measures to reverse this trend.

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Filiberto

13 days ago

I agree, a drop of 327 bps is concerning. Let's hope they have a strategy in place to improve the situation.

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Rene

14 days ago

I know, that's a significant decrease in core spreads. The management really needs to address this issue.

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Rickie

17 days ago

It's crucial for the bank's long-term stability that they find a way to reverse this trend.

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Isabella

1 months ago

Hopefully the bank can implement some effective strategies to improve their core spreads in the future.

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Jesusita

1 months ago

Yes, a drop of 327 bps is definitely concerning. Let's see how the management addresses this.

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Jina

2 months ago

I know, that's a significant decrease in core spreads. The bank must be facing some challenges.

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Tawna

2 months ago

Expanding by 136 bps would have been a more favorable outcome for the bank. I'll need to analyze the balance sheet and P&L in more detail to assess the overall financial health.

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Leandro

2 months ago

User 2

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Mireya

2 months ago

User 1

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Emerson

2 months ago

I'm not sure, but I think the answer might be D) Expanded by 191 bps.

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Anthony

2 months ago

Hmm, a contraction of 327 bps in core spreads? That's quite a drop. I wonder what's driving that - maybe increased competition or rising funding costs?

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Hubert

2 months ago

I agree with Margret, the core spreads must have expanded.

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Raul

2 months ago

The core spreads contracting by 327 bps seems like a significant decline in profitability. I'll need to look closer at the bank's financials to understand the reasons behind this.

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Margret

3 months ago

I think the answer is A) Expanded by 136 bps.

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