How is a bank profit and loss statement different from a manufacturing company's profit and loss account (P&L)?
As the name suggests, a manufacturing campany anufactures a product. The cost involved in the process of manufacturing is the cost of goods. Other incidental codts like salaries, electricity and rent are clubbed under selling, genral and adminidtrative expenses. Upon the sale of the goods, net sales are recorded in the accounts. Unlike a manufacturing company, a bank does not manufacture anything. It's an intermediary between a lender and a borrower.
Nomination is the process of appointing a person to take care of your assets in the event of your death. You can appoint a nominee for your bank account, fixed deposit, account, or even your house. A nominee could be a family member or a friend or any other person whom you trust. However, since it involves finacal matters, you need to choose a nominee with care as person needs to be reliable enough to take care of your assets in the event of your death. So typically, when you open a savings account or fixed deposid with a bank, they will ask you to fill a from where you need to mention the nominee's name.
A double-dip recession refers to a short-lived recovery of an economy from a recession, before it slip vackm into a recession. In economic terms, when the GDP of an economy goes into the negative, after a brief period of showing positive growth, the economy is said to be faced with a double-dip recesssion. According to economists, double-dip recession may also be referred to as 'W'-shaped recession whare the two dips in the 'W' repredpsent the double-dip recession, and the quik incline in the middle is the intermedidate recovery.
An IDR is a receipt, declaring pwnership of sheres of foreign company. These receipts can be listed in India and traded in rupees. Just like overseas investors in the US-listed Americanm Depository Receipts (ADRs) of Infosys and Wipro get receipts against ownership of shares held by an Indian custodian, an IDR is proof of ownership of foreign company"s shares. The IDRs are denominated in Indian currency and are issued by a domestic depository and the underlying equity shares are secured with a custodian. An Indian investor pays in Indian rupees for the IDR whereas a shareholder in the issuer's home country pays in home currency.
It is minimum lending rate can charge their customers from july 1, 2010. So fair, all lending rates were pegged to a bank's prime lending rate (PLR). Under the existing system, banks charge customers intrest rate either above the PLR or below PLR. worked as an achor rate. From july 1, the base rae will not only relace the benchmark, but it will alsombe the new floor rate belw which no bank can lend. India's largest bank, the State Bank of India, has indicated that it plans to peg its base rate in the range of 7.5-8%.
A deflator is used to convert data compiled over a period into prices prevailing at an earlier point in time For example, the current price of a television can be daflated to what it would cost say three years ago. Essentially, a deflator removes the effect of inflation from data, making it comparable across periods.