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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:
Suggested Answer: C
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26 comments · newest first
GA
Gayla
3 days ago
I’m leaning towards D, it makes sense.
MA
Marion
9 days ago
The trend suggests expansion, so A.
PE
Pearly
14 days ago
I agree with 136 bps contraction.
GA
Gaynell
19 days ago
Expanded by 191 bps seems right.
CR
Crista
24 days ago
I feel like they contracted.
GO
Golda
29 days ago
I think the core spreads expanded.
DE
Deja
1 month ago
I agree with A. The trend suggests expansion in core spreads.
SU
Sue
1 month ago
I’m unsure, but B could reflect market conditions.
CO
Cordell
1 month ago
I lean towards D. Expanded by 191 bps feels accurate.
CH
Charisse
2 months ago
A seems right. The bank's growth looks promising.
PO
Pok
2 months ago
I feel like B is more likely. Contracted by 327 bps makes sense.
RU
Ruthann
2 months ago
I think the answer is A. Expanded by 136 bps.
BU
Bulah
2 months ago
Wait, they’re ranked 31 out of 40? That’s surprising!
ES
Esteban
2 months ago
Totally agree, the management stability is a concern.
VI
Vivienne
3 months ago
I doubt they can maintain growth with such a high turnover in management.
SA
Sanjuana
3 months ago
40% of branches in rural areas is impressive.
FE
Felton
3 months ago
Auckland Ltd has been around since 1971!
WA
Walker
3 months ago
Wait, how did they get ranked 31 out of 40?
NA
Nakita
3 months ago
Totally agree, that’s a short time for leadership!
MA
Marguerita
3 months ago
I doubt their average tenure of 2 years at the top.
KA
Kathrine
4 months ago
40% of branches in rural areas is impressive.
RE
Reynalda
4 months ago
Auckland Ltd has been around since 1971!
MA
Marti
4 months ago
I think I read that core spreads can expand when interest rates rise, but I'm confused about the specific bps changes here.
JA
Jani
4 months ago
I feel like I might have seen a similar question before, but I can't remember if the spreads typically expand or contract in a growing economy.
LO
Lonna
4 months ago
This question reminds me of a practice question we did on bank performance metrics. I think the core spreads usually indicate profitability, but I can't recall the exact numbers.
BR
Britt
6 months ago
I remember studying how to analyze core spreads, but I'm not entirely sure how to apply it to this specific case.