GST Practitioner & Accounts
15029 Points
Joined March 2014
Ratio is for minimum capital requirement as per the statutes
Capital adequacy ratio worked out as follows
Capital fund * 100 / Risk weighted assets and off balance sheet items
Also capital fund define to two Tier-I and Tier-II
Tier I - core capital for permanent support against unexpected losses
Tier II - capital is less permanent and support against unexpected losses .