CRAR calculation

Dear all, can any one guide 

Tier1 + Tier2 capital is Rs.1215-----1 

Aggregate Risk Wt.Assts is Rs.965------2

CRAR ratio is  1 / 2 which  is (1215 / 965) = 125%

Our auditor says  CRAR  is 1/125% = i.e 80% whihc is correct  125% or 80% can any one give a correct guidance  why it is divided again by 1

 

Reg,

 

Replies (1)

Your correct so far. I couldn’t find the logic behind 1. 

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