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Hey guys, i've a doubt.... For the final solution, why do u need to divide by the %age capacity utilisation??

Originally Posted by gaurav200x

Hey guys, i've a doubt.... For the final solution, why do u need to divide by the %age capacity utilisation??

I shall explain you the way I have gone about this.

Lets take the eg of MAC. 1.54 is their current production and 59.35% is their capacity, ie 1.54 tonnes corresponds to 59.35%. So then we can find out 100% by cross multiplying (1.54/59.35)*100 = 2.59 (This is their total capacity available)

MAC's unutilised capacity 100 - 59.35= 40.65%

So unutilised capacity in tonnes 40.65% * 2.59 which is approx 1.05

Cheers!!!

Originally Posted by shrijit_s

I shall explain you the way I have gone about this.

Lets take the eg of MAC. 1.54 is their current production and 59.35% is their capacity, ie 1.54 tonnes corresponds to 59.35%. So then we can find out 100% by cross multiplying (1.54/59.35)*100 = 2.59 (This is their total capacity available)

MAC's unutilised capacity 100 - 59.35= 40.65%

So unutilised capacity in tonnes 40.65% * 2.59 which is approx 1.05

Cheers!!!

Oohk... the same thing was done in one step here..... !!

Ok, here are the next set of questions.

1) Which bank showed a loss whose deviation from the average was maximum?

a) Indian Bank
b) Vijaya Bank
c) Central Bank
d) United Bank

2) Which of the following is true?
I. The loss incurred by Indian Bank is equal to the loss incurred by all the other banks given
II. If the Reserve Bank of India ploughs in approx. Rs. 2300 crore, the losses suffered by the given banks can be offset.
III. Indian Bank will almost surely lose its popularity soon.

a) I & II
b) II only
c) II & III
d) I, II & III

3) Finding no other alternative of increasing the income, Vijaya Bank decided to generate income by raising the lending rates. If the total amount loaned out by it was Rs. 8250 crore, by how many percent points would it have to increase the lending rates so as to offset its losses?

a) Around 5
b) Around 2.5
c) Around 1
d) Can't determine


4) The total assets of Indian Bank are Rs. 75000 crore. The assets of Vijaya Bank, UCO Bank, United Bank, Punjab & Sind Bank, Central Bank are respectively 23%, 19%, 17%, 13% & 12% of the assets of the Indian Bank. Which of the following banks shows the maximum loss per crore rupees of assets?

a) Indian
b) Vijay
c) UCO
d) United


5) The total assets of Indian Bank are Rs. 75000 crore. The assets of Vijaya Bank, UCO Bank, United Bank, Punjab & Sind Bank, Central Bank are respectively 23%, 19%, 17%, 13% & 12% of the assets of the Indian Bank. What change would have to be made in the assets of the Indian Bank if its loss per crore of asset was to be made equal to that in case of Central Bank?

a) They will have to be increased by 62%

b) They will have to be reduced by 15%

c) They will have to be increased by 215%

d) They will have to be reduced by 25%

1) A
2) B
3) D
4) A

Cheers!!!!.......................................

My guess .........................

1) A
2) D
3) D
4) A

Originally Posted by shrijit_s

1) A
2) B
3) D
4) A

Cheers!!!!.......................................

Question 1
Which bank showed a loss whose deviation from the average was maximum?
(1) Indian Bank (2) Vijaya Bank (3) Central Bank (4) United Bank

The right answer is Indian Bank.

Solutions 1 – 5
:
For 1995-96, the net losses incurred by the banks are around :
Indian Bank – 1350; Vijaya – 250; UCO – 250; United – 250; Punjab and Sind – 150; Central – 100.

The average net loss was (2350/6) = 325. Indian Bank shows a maximum deviation from this average. ‘Can be observed directly. Notice that excepting IB, all are in similar losses. This implies the average to be nearer them than IB viz., IB deviation maximum.
================================================== ==========================

Question 2

Which of the following is true?
I. The loss incurred by Indian Bank is equal to the loss incurred by all the other banks given
II. If the Reserve Bank of India ploughs in approx. Rs. 2300 crore, the losses suffered by the given banks can be offset.
III. Indian Bank will almost surely lose its popularity soon.
(1) I & II (2) II only (3) II & III (4) I, II & III

The right answer is II only.
Since the total net loss is 2350, the Reserve Bank of India would have to plough in around 2300 to offset this loss. The validity of the other statements cannot be determined on the basis of the information provided. In fact since all options accept second statement as true, this need not be computed.
================================================== ==========================

Question 3
Finding no other alternative of increasing the income, Vijaya Bank decided to generate income by raising the lending rates. If the total amount loaned out by it was Rs. 8250 crore, by how many percent points would it have to increase the lending rates so as to offset its losses?
(1) Around 5 (2) Around 2.5 (3) Around 1 (4) Can't determine

The right answer is Can't determine.
Loss of 250 is 3% of 8250. So, if lending rate is increased by 3%, losses can be offset.
Note that the value 250 is an approximation, so the answer cannot be exact.
================================================== ==========================

Question 4
The total assets of Indian Bank are Rs. 75000 crore. The assets of Vijaya Bank, UCO Bank, United Bank, Punjab & Sind Bank, Central Bank are respectively 23%, 19%, 17%, 13% & 12% of the assets of the Indian Bank. Which of the following banks shows the maximum loss per crore rupees of assets?
(1) Indian (2) Vijay (3) UCO (4) United

The right answer is United.
The assets of the all the other banks are less than 25% of Indian Bank’s assets. It we assume that the assets of all the other banks are 25%, it is easier to compare figures without actually calculating :

Indian Bank Vijaya UCO United Punjab & Sind Central
Loss 1350 250 250 250 150 100

Assets 75,000 17,250 1,4250 12,750 9,750 9,000


Thus, it can be seen that the maximum loss per crore rupees of assets is incurred by Indian Bank.
================================================== =======================Question

5
The total assets of Indian Bank are Rs. 75000 crore. The assets of Vijaya Bank, UCO Bank, United Bank, Punjab & Sind Bank, Central Bank are respectively 23%, 19%, 17%, 13% & 12% of the assets of the Indian Bank. What change would have to be made in the assets of the Indian Bank if its loss per crore of asset was to be made equal to that in case of Central Bank?
(1) They will have to be increased by 62% (2)
They will have to be reduced by 15% (3) They will have to be increased by 215% (4) They will have to be reduced by 25%

The right answer is They will have to be increased by 62%.
To make the loss per crores of rupees equal to Central Bank, Indian Bank has to increase its assets.
Therefore, 1350/x = 100/9000. Thus, x = 1,21,500
This is an increase of (1,21,500 – 75,000), i.e., 46,500, i.e., 62%
Note the even if we approximate as 1350/x = 75/9000, x = 1,62,000, i.e., increase of 116%.
So, closest option is chosen.

Sirji..for Q104 first you have mentioned United Bank and later Indian bank as the answer..

@shrijit,

can u give some explanation to ur solutions.... esp the 4th and the 5th. I also want to know what is meant by the 3rd choice of the 2nd question. It is not clear.

Originally Posted by shrijit_s

Sirji..for Q104 first you have mentioned United Bank and later Indian bank as the answer..

yeah, i am also confused, bcoz the answer booklet shows both. I think it is Indian Bank only. Can u justify ur solution. From that we can find out the correct answer.

Damn.. Mere bohot kum right jaa raha hai..

. I need more practise guys