Capital of a Bank
i. Tier I capital includes Paid up Capital(Equity & Investment in Subsidiaries, Intangible assets & Losses), Reserves & Surplus & Innovative Perpetual Debt Instruments Less Deferred Tax .
ii. Tier II capital elements are Undisclosed Reserve, Revaluation Reserve, Provision on Standard Assets, Floating provision on NPAs less Investment in Subsidiary(RRB), Subordinated Debts
iii. Risk Weighted Assets includes Fund Based - Cash & Balances, Investment, Loan & Advances, Other Assets + Non-fund Based include Off balance sheet items exposures, Claims on banks not acknowledged as debts + Capital Charge includes Open foreign exchange position Limit , Capital Charge on Investments(Trading Book)
CRAR – percentage of Capital Fund to Risk Weighted Assets