Introduction to World Banking Structure

The banking structure is one of the most important component in the economy of the

world to get it grow faster. In any of the country the banking is one of the key aspect by

which a country can develop. The bank and the economy of the country are interrelated

with each other. There are number of financial institutions which include Insurance

Companies, investment banks, finance companies but bank is one of the most important

financial institution which helps in creation and flow of money in the economy. The

bank is an institution which helps depositors to deposit their money and with the

deposit money they supply the capital in the economy and bank is the most important

sector which is regulated worldwide. In the economy to get it encourage and make

stability in the financial organization there is an International banking structure and the

financial organization which helps the economy to get it stable.

In generally it is used to say that World Bank has been originated in Italy. In the middle

of the 12th Century, there is a big financial crisis and at that time Italy is lacking behind

because of the effects on the World War in their country. They desperately needs

money in order to cover their war expenses and make country stable so at that time

government comes with a plan and forced their citizen to take loan from world bank at

rate of 5% per annum in order to meet their war expenses. Such loans are known as

‘compare’, ‘Monte’ etc.

The World Bank usually created to meet the needs of the war-torn countries but now

the meaning of World Bank has changed. The mission of World Bank has now globally

wider in the world and the most important mission of the World Bank is to provide

Long-Term Financing for the development of the economy.

WWoorrlldd BBaannkk

International Bank for Reconstruction and Development (IBRD)

International Development Association or IDA.

World Bank is comprises of two main bodies which are International Bank for Reconstruction

and Development (IBRD) & International Development Association, IDA.

International Bank for Reconstruction & Development (IBRD)

IBRD is also known an International Bank for Reconstruction & Development. The name itself

can give you the idea of the functioning of the bank. The main function of this institution is to

provide the funds or finance to developing countries in order of the development of the

country. The institution provide Loans at lower interest rates and moreover at no interest rates.

They also provide technical and research assistance to the developing countries and also

provide loans for developing the economy of the country. They provide infrastructure loans.

They provide loans on various projects which can help in development of the country such as

Power plant, Roads, Rail projects, ports, telecommunication, water system, health, education

and debt relief and all these projects help in the development of any country.

IBRD comprises of 188 members nationwide and each country pays some subscription amount.

Each country has 250 votes and the largest shareholder is USA in IBRD but the decisions are

made by the majority votes and the largest shareholder has benefit and can control the result

because they have most of the votes.

On the other hand International Development Association IDA has started their functioning in

1960. IDA works with IBRD and focuses its efforts on the poorest countries in the world and

they also offer assistance to the poorest countries when their economy is struggling.

Motto Working for a World Free of Poverty

Formation July 1944; 71 years ago

Type Monetary International Financial Organization

Legal status Treaty (Legal Status)

Purpose Main purpose is Crediting

Headquarters USA Washington, D.C

Region Worldwide

Membership IBRD 188 country

IDA 173 country

Key people President - Jim Yong Kim

Parent organization World Bank Group

Data Facts & Figures

GDP Sector Composition

Source: The World Factbook (sector composition)

GDP means monetary value of all goods and services which produced in a country in a specific period of time. Analysis: The GDP of India is around 2048 billion US Dollar in 2014 and GDP value of India represents 3.33% of world economy. Acc. to this report, you can see the contribution of each sector in a GDP. Service sector includes hotel, transport, government services such as health, education. It also includes Bank services and many more services included in GDP. In this report you can see the contribution of service sector in an economy of each country and service sector is one of the most important sectors and it contributes around more than 60% in their GDP. The USA is on the top with high GDP Contribution and their service sector has approx 80% contribution in GDP and India holds 10th position in world in GDP and their service sector holds around 60% contribution in GDP.

Rank Country GDP (millions of $)

Agriculture Industry Services Year

GDP Share GDP Share GDP Share GDP Sector

1 USA 17,420,000 278,720 1.6 3,605,940 20.7 13,535,340 77.7 2014 2014

2 China 10,360,000 1,004,920 9.7 4,548,040 43.9 4,807,040 46.4 2014 2014

3 Japan 4,770,000 57,240 1.2 1,225,890 25.7 3,486,870 73.1 2014 2014

4 Germany 3,820,000 34,380 0.9 1,176,560 30.8 2,612,880 68.4 2014 2014

5 France 2,902,000 49,334 1.7 562,988 19.4 2,289,678 78.9 2014 2014

6 United Kingdom 2,848,000 17,088 0.6 586,688 20.6 2,244,224 78.8 2014 2014

7 Brazil 2,244,000 130,152 5.8 534,072 23.8 1,579,776 70.4 2014 2014

8 Italy 2,129,000 46,838 2.2 508,831 23.9 1,573,331 73.9 2014 2014

9 Russia 2,057,000 82,280 4 746,691 36.3 1,228,029 59.7 2014 2014

10 India 2,048,000 366,592 17.9 495,616 24.2 1,185,792 57.9 2014 2014

11 Canada 1,794,000 30,498 1.7 505,908 28.2 1,257,594 70.1 2014 2014

12 Australia 1,483,000 54,871 3.7 428,587 28.9 999,542 67.4 2014 2014

13 South Korea 1,449,000 34,776 2.4 560,763 38.7 853,461 58.9 2014 2014

14 Spain 1,400,000 44,800 3.2 355,600 25.4 999,600 71.4 2014 2014

GDP growth (annual %)

Country Name Indicator Name 2010 2011 2012 2013 2014

China GDP growth (annual %) 10.63 9.48 7.75 7.68 7.27

United Kingdom GDP growth (annual %) 1.54 1.97 1.18 2.16 2.94

India GDP growth (annual %) 10.26 6.64 5.08 6.90 7.29

United States GDP growth (annual %) 2.53 1.60 2.32 2.22 2.39

Source: http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG/countries/GB-US-CIN?display=graph

In above data the growth of India is impressive and it is growing since 2012 as compared to other countries growth rate which are stable or not growing. .

Market Capitalization of Banks in the World with Ranking (US $ billions) (March, 2016)

Rank Bank Country Market Cap

Rank Bank Country Market Cap

1 Wells Fargo & Co (US) 254.19B 25 Bank of Communications China 55.08B

2 Industrial & Commercial Bank of China (ICBC)

China 226.55B 26 Intense Sanpaolo Italy 51.40B

3 JP Morgan Chase & Co US 217.79B 27 Itau Unibanco Holding Brazil 51.007

4 China Construction Bank China 155.97B 28 Morgan Stanley US 50.92B

5 Agricultural Bank of China

China 155.04B 29 Shanghai Pudong Development Bank

China 48.71B

6 Bank of China China 144.16B 30 HDFC Bank Limited India 48.45B

7 Bank of America US 142.39B 31 China Minsheng Banking Corp (CMBC)

China 47.67B

8 HSBC Holdings UK 128.91B 32 BBVA Spain 46.60B

9 Citigroup Inc US 126.74B 33 Sumitomo Mitsui Financial Japan 45.53B

10 Commonwealth Bank of Australia

Australia 99.69B 34 Industrial Bank Co China 44.48B

11 Westpac Banking Corporation

Australia 83.53B 35 Nordea Bank Sweden 44.19B

12 Royal Bank of Canada Canada 83.36B 36 PNC Financial Services US 43.30B

13 TorontoDominion Bank Canada 77.11B 37 Banco Bradesco Brazil 40.87B

14 Lloyds Banking Group UK 73.777 38 Bank of New York Mellon US 40.62B

15 Banco Santander Spain 71.16B 39 Barclays Plc UK 40.60B

16 US Bancorp US 70.24B 40 Mizuho Financial Group Japan 39.95B

17 Mitsubishi UFJ Financial Group (MUFG)

Japan 69.43B 41 China Citic Bank China 39.41B

18 Goldman Sachs Group US 67.91B 42 Royal Bank of Scotland Group UK 38.94B

19 UBS Group AG Switzerland 65.33B 43 Bank of Montreal (BMO) Canada 38.05B

20 BNP Paribas France 62.60B 44 Capital One Financial US 37.46B

21 China Merchants Bank China 59.17B 45 Charles Schwab US 37.24B

22 Bank of Nova Scotia (Scotiabank)

Canada 56.62B 46 Sberbank of Russia Russia 36.43B

23 Australia & New Zealand Banking (ANZ)

Australia 56.48B 47 Societe Generale France 33.02B

24 National Australia Bank Australia 56.27B 48 Hang Seng Bank Limited Hong Kong

32.49B

Source: http://www.relbanks.com/worlds-top-banks/market-cap

In the above data you can conclude the rank of various banks as per their Market Cap. in the

world and India states at 30th position.

Banking Structure of Some Developed Countries

Till now , the banking structure of the world with some facts and figures have been shown to

you, now we are going to see the working of the banking structure of some developed

countries. The countries which have been taken into consideration are.

1. United Kingdom

2. China

3. United States of America

While studying the banking structure of these countries you will able to know how the banking

structure work in other developed countries apart from India and the main purpose of

explaining these banking structure are to make you aware about the banking around the world

in other developed countries.

A bank is institutions which accepts deposit from the general public and provide loans to other

individuals, households, government, corporate and in return earn interest in order to make

profit. In every country the main function of public bank is same. Each country has central bank

which makes policies to make financial and price stability in a country by structuring various

types of interest and make changes in their policies as per economy demands. A bank plays a

vital role in growth of an economy in every country and it creates financial stability in a country

for smooth functioning of economy in various ways.

Bank Of England

History

Bank Of England was founded in 27 July 1694, and Bank Of England is the central bank of the

united kingdom and the model on which most of the central banks has been placed. The bank

was in private stakeholders but since 1946 it is nationalized.

On 1998 , the bank became the independent public organization and wholly controlled by

treasury solicitor on behalf of the government which give them right or freedom to set

monetary policy. The mission of Bank of England is to promote the best for the people of

England by maintaining monetary and financial stability and the most recognizable

responsibility of bank is to maintain confidence on the bank notes. It sets interest rates,

manages the government stock register. The central bank or Bank of England issue or prints

notes in their country in Pounds (£) which is made under proper security by having best quality

and also ensure steps against counterfeiting (fraud).

Website www.bankofengland.co.uk Founded 1694

Headquarter Headquarters Type Government

Size Size Revenue 50 to 100 billion (INR) per year

Source: https://www.glassdoor.co.in/Overview/Working-at-Bank-of-England

Working Of Bank of England

Bank Of England WorkingBank Of England

Source: https://www.youtube.com/watch?v=b75qgqHqV98

Bank of England operates in 2 key areas:

1. Set interest rates to keep inflation in line with the government targets to maintain price

stability.

2. Monitor and take appropriate action in order to maintain financial stability and reduce risk.

These responsibilities are shared with the 3 important bodies which are MPC (Monetary Policy

Committee), PRA (Prudential Regulation Authority) and FPC (Financial policy committee). All

are chaired by the Governor of the Bank of England.

Monetary Policy Committee (MPC)

The MPC is made up of 9 members comprises of 5 within the bank and 4 external members

appointed by the Chancellor of the Exchequer. The role of the external member is to give

committee access to thinking and expertise beyond the bank itself.

The MPC meets to monitor development in the new economy and set interest rates and adjust

the amount of money in the economy to meet government inflation target of 2%.The minutes

of meeting of this committee published so anyone can see how each individual voted.

Once in 3 months committee publish their inflation report which shows in more details that

how Bank of England judges the outlook for the economy and inflation.

Prudential Regulation Authority (PRA)

The PRA is a part of the bank. It regulates individual financial institution to improve their safety

and soundness.

It is responsible for the regulation and supervision of 1700 banks.

Financial policy committee (FPC)

The FPC Job is to access the risk facing by financial system and the action needed or finding out

the ways to tackle them. It meets formally 4 times a year and publishes its record of meeting

and twice yearly their financial stability report.

The FPC has 10 members which comprises of 5 members from the bank itself, 4 external

members appointed by the chancellor and 1 chief executive of Financial Conduct Authority

(FCA).FCA is an independent regulatory body responsible for protecting consumers and

promotion confidence in financial product and services. It is not a part of the bank. The FPC can

consider a range of action to help strengthen the financial system. In some areas it gives

directions to MPC & PRA. In others, it can make recommendations to them or to other bodies.

If lending is increasing fast, the FPC might for example want banks to raise more capital as an

extra buffer in case things turn sour. In this may FPC give recommendation.

List of biggest Banks in United Kingdom with reference to their Asset Size.

Source: http://www.advisoryhq.com/articles/top-5-uk-banks-ranking-biggest-british-banks-best-banks-in-the-uk/

Banks Total Assets (Billions)

HSBC Holdings $2,634.14

Barclays PLC $2,114.13

Royal Bank of Scotland Group $1,635.93

Lloyds Banking Group $1,333.99

Standard Chartered PLC $725.91

CHINA BANKING SYSTEM

History

The central bank of china is known as People’s Bank of China (PBC). The main functions of this

bank are to regulate and supervise the financial institution and maintain financial and monetary

stability in a country. This bank is the second largest bank in terms of financial assets after

Federal Reserve System of USA.

The PBS established in Dec 1, 1948 by the unification of 3 banks named as XIBEI Farmer bank,

BEIHAI Bank and HUABEI Bank. The headquarter of PBS is in Shanghai and Beijing.

The PBC has a regulatory power to make monetary policy for their country and also regulate

the banking system in their country and control all banking business. In china 97% of bank

owned by central government and by the state government

Central Government

State Government

Privately Owned

11 Banks 18 Banks 3 Banks

Source: Wikipedia

Financial Structure of China

Below is the Financial System Architecture of the china which explains how each department is

interrelated with each other.

Source https://www.imf.org/external/pubs/ft/scr/2011/cr11321.pdf

Bank Non- Performing Loans

Non Performing Assets are those assets in which interest or installment has not been paid for

more than 6 months. Banking sector in china is growing every year and their NPA is decreasing

each year which means bank is able to recollect its loans given to public or corporate which

implies a strong policy is made by their central banks.

Bank nonperforming loans to total gross loans (%)

Country Name 2010 2011 2012 2013 2014 2015

China 1.132370451 0.961586 0.953674 0.999703 1.248733

United Kingdom 3.954833788 3.961868 3.586284 3.111742 1.757659

India 2.386132864 2.670195 3.373954 4.027729 4.34585 4.2312

United States 4.4 3.8 3.3 2.452391 1.850712 1.71379

Source: World Development Indicators

When it comes to external funding of a banking sector in china than in china banks funds their

most of the money from the depositors around 60% is funded by depositors and 30% around by

loans. It means banking structure in china is very vast and the depositors rely on their banks

and deposit most of the money into banks which bank use and invest in other sources.

Source: the people bank of china

In above data, the funding structure of china has been showed and in china banking structure

has dominated their financial structure a lot as compared to other developed countries. It

means bank has a strong financial position in their financial structure which has shown in below

diagram.

Credit Intermediation 2013

Capital markets (in trillions USD$)

Sector Bank Credit Stock Fixed Income Insurance Asset Management Companies

Size(China) 10.7 3.7 3.4 1.2 0.4

Size(US) 7.6 18.7 38 4.8 36

% GDP China 128% 44% 41% 14% 5%

% GDP US 48% 118% 240% 32% 230%

Note: all values computed for end of year 2012 except for the value of china bank credit which taken from Q1, 2013

Source: people republic of china

Above diagram clearly shows how dominant is china banking structure in their country as

compared to USA banking structure dominance. With high dominance the banking structure

has 128 % contribution in their GDP in china.

Below the TOP 4 banks in china.

Below are the top 4 banks of china as per their market cap.

Rank Bank name

Market capitalization (US$ billions)

1 Wells Fargo & Co 254.19

2 Industrial & Commercial Bank of China (ICBC) 226.55

3 JP Morgan Chase & Co 217.79

4 China Construction Bank Corporation 155.97

Source: Wikipedia

Below the details of Central Bank of the Republic of China which shows some old facts about

the central bank including headquarter, establishment and many more.

Headquarters Beijing and Shanghai

Established 1-Dec-48

Governor Zhou Xiaochuan Central bank of People's Republic of China Currency Renminbi (RMB)

CNY (ISO 4217) Reserves US$3.201 trillion[1]

Bank rate

6.00%

Interest on reserves 3.50%

Preceded by Central Bank of the Republic of China Website www.pbc.gov.cn

Source: Wikipedia

United States of America (USA) Banking Structure

Federal Reserve System History

Before coming of a Federal Reserve System there were two banks in United States which had

tenure of 20 years each. First bank has tenure between 1791-1811 and the second bank has

tenure between 1817-1836. Both banks is responsible for issue currency, accept the deposit

from the general public, purchase and sell securities more or less they are working as a fiscal

agents for a US treasury.

In Nov, 1910 the secret meeting took place which have 6 bankers and economy policy makers

who represented financial elite of the western world. It was hosted at the JP Morgan State

Jekyll Island in Georgia and in attendance was Senator Nelson w Aldrich, Abram haytt junior

(assistant secretary of the treasury), Frank vandella (president at national city bank of new

York), Henry P Davidson (Senior partner JP Morgan & Com), Charles Dean Nortan (President of

the first national bank of new York), Paul Warburg (Director Of wells Fargo) and the Benjamin

Strong(Emissary for J&P Morgan) and coincidentally the First president of the Federal Reserve.

The meeting held was so secret that no one knows about that and then drafts a Federal Reserve

Act. On Dec 23, 1913 the Act was signed into Law by President Woodrow Wilson’s.

Source: Wikipedia

Structure of Federal Reserve System

There are three levels in Federal Reserve System. At the Top level there is a Board of Governor

with his chairman and the Federal open market committee and the federal advisory council. In

the middle level it consists of 12 Federal Reserve banks located throughout the US and in the

bottom there is a third level consists of thousands of member banks located throughout the

US and the American people. Board of Governor consists of 7 members were appointed by the

president for 14 year term and they are not responsible for the re-appointment and presidents

also appoints one of the seven members as the chairman of the board for a term of 4 yrs and

chairman may be reappointed . The board of governor is the main authority and responsible for

creating and implementing monetary policies in US because the decisions is made by the board

of governor in not required to be approved by the government or even president.

The Federal Reserve System has a power of issue currency and manipulates interest rates and

run secrets Bailouts and the congress and the president is not allowed full oversight over this

powerful organization. The Federal Reserve System is the Private owned body which does not

work under government and is not responsible to disclose their funding and they are the

most powerful organization which works on their own and not under government. It is also

called that the Chairman of the Federal Reserve is the second most powerful person in the US.

The Fed enjoys a monopoly over a creation of nation’s money and credit. The accountings laws

apply to rest of the America do not apply to Fed. From last 100 years Fed are not completely

accountable and transparent to anyone. Fed gives trillions of dollars in bailout and loan but

they never disclosed to whom how much they have paid. In 2009 congress asked the chairman

of the Fed to disclose whom they have paid 2.2 trillions of dollars for bailout but they refused to

tell to them. Many economist called this as a ‘’the biggest robbery ever enacted on the

American people’’.

Working of Federal Reserve System

Suppose if USA needs money so they issue Treasury bonds and sell these T-Bonds to Federal

Reserve and Fed buys this bond out of the money they created out of their thin air and Fed

gave money as loans to USA on behalf of T-Bill and then USA pay interest on the money that

Fed has lent to them which means Fed makes money out of nothing. In other words we can say

that if Fed buys a 1000 $ bond by government and after keeping 10 % in reserve they lend rest

of the 900 $ in an economy which means that 1000 $ T-Bond is safe in their deposit and 900 $

in loan proceeds more money in the economy by which total of 1900 $ money is created out of

nothing and this process go on and on and the origin of 1000 $ bond which is created from

nothing is created 10000 $ in an economy. It means that Fed makes money in their office by

their equipment and lends it to US on behalf of T-bonds but not keeping some equivalent value

like gold .In USA bank is free to give up to 90 % of their deposit to public as a loan. The main

primary focus of Fed is on monetary policy mean that how Fed influence Price Stability.

Suppose if supply of money grows and more money available in an economy, than more money

created more demand and by this demand will increase than supply of money which leads to

inflation on the other hand if supply of money decreases the demand will also decrease and in

extreme cases prices will fall and by this the Recession will come.

The main aim of Fed is to stabilize the money in an economy and prevent both inflation and

recession. The proper way that Fed does this is buying and selling of government securities. If

Fed finds that if there is too much money in an economy in circulation which leads to inflation,

it will sell securities and take excess money out of circulation to stabilize economy and if there

is less money in circulation than Fed buy securities this will put money in circulation and again

stabilize economy.

By studying this, we can get to know that in USA the Banking structure works in another way as

compared to other developed banking structure. Below you can find the analysis of the Balance

sheet of the Federal Reserve System with comparison to Balance sheet of RBI. The Federal

Reserve discloses their balance sheet every week on Thursday, around 4.30PM.

Balance Sheet Of Federal Reserve System As on 27 April, 2016 (Millions of

dollars)

Assets, liabilities, and capital Total

Assets

11,037 Gold certificate account

Special drawing rights certificate acct. 5,200

Coin 1,867

Securities, unamortized premiums and

discounts, repurchase agreements,

4,401,115 and loans

Securities held outright1 4,233,335

U.S. Treasury securities 2,461,413

Bills2 0

Notes and bonds3 2,461,413

Federal agency debt securities2 27,096

Mortgage-backed securities4 1,744,826

Unamortized premiums on securities

183,791 held outright5

Unamortized discounts on securities

-16,082 held outright5

Repurchase agreements6 0

Loans 70

Net portfolio holdings of Maiden

1,714 Lane LLC7

Items in process of collection 182

Bank premises 2,222

Central bank liquidity swaps8 0

Foreign currency denominated

20,772 assets9

Other assets10 30,557

Interdistrict settlement account 0 Total assets 4,474,665

Assets, liabilities, and capital Total

Liabilities

1,571,140 Federal Reserve notes outstanding

Less: Notes held by F.R. Banks 168,538

Federal Reserve notes, net 1,402,602

Reverse repurchase agreements11 267,113

Deposits 2,757,987

Term deposits held by depository

0 institutions

Other deposits held by depository

2,353,257 institutions

U.S. Treasury, General Account 372,499

Foreign official 5,174

Other12 27,056

Deferred availability cash items 842

Earnings remittances due to the U.S.

1,430 Treasury13

Other liabilities and accrued

4,654 Dividends

Total liabilities 4,434,628

Capital 30,038 Capital paid in

Surplus 10,000

Other capital 0

Total liabilities and capital 4,474,665

Analysis Of Balance Sheet of Federal Reserve

I am analyzing the balance sheet of the Fed according to the concepts I explained in above banking structure of the USA. 1. First see the total assets number which are 4,474,665 million $ of assets. 2. Bank has a 11 billion $ of Gold certificate account and coins of 1 billion $ which means bank has extreme less value which can converted into cash. 3. Securities, Repurchase and loans are around 4401 billion $ so this is a big piece of Fed Balance sheet out of the whole total assets. In above you can see the breakup of these which shows that the bulk of them are the US Treasury Loans which means these are the loans to government for up to or more than 10 years. So you can most of the Fed assets are treasuries, loans to the US.

Assets Amt

U.S. Treasury securities(Notes and bonds) 2461413

Federal agency debt securities 27096

Mortgage-backed securities 1744826

Unamortized discounts on securities outright 183791

Unamortized discounts on securities outright -16082

Loans 70

Total 4401114

3. Bank premises means the buildings of the Fed which are about 2 billion $. These are small bunch of assets the most of the assets are US Treasury Loans. 4. Now come to liabilities, so Fed Reserve notes , net of federal reserve bank holdings which are 1402 billion $ . These are Fed Reserve notes which have been printed and these are liabilities because the Fed printed these notes and will use them as currency which means if someone come back and say give the value of these things . 5. Reverse repurchase agreement means Fed used repurchase agreement to borrow from someone else. 6. The deposits are the main portion in liabilities which are around 2757 billion $ so these are the deposits which other banks keep with Fed Reserve but the Fed doesn’t pay interest on these deposits and they can take these deposits and buy treasuries and other securities and get interest on them and that’s what they are getting free interest and in this way US usually fund their operations. Below you can find the balance sheet of the Reserve Bank of India and you relate the Fed balance sheet analysis with the RBI balance sheet and easily can see the differences between the working of these two central banks in their country.

RESERVE BANK OF INDIA

BALANCE SHEET AS ON JUNE 30, 2015

(Amount in Billion)

Liabilities Schedules 2013-14 2014-15 Assets Schedules 2013-14 2014-15

Capital 0.05 0.05 Assets of Banking Department (BD)

Reserve Fund 65.00 65.00 Notes, rupee coin, small coin 5 0.11 0.11

Other Reserves 1 2.20 2.22 Gold Coin and Bullion 6 590.24 578.84

Deposits 2 3769.45 5186.86 Investments-Foreign-BD 7 4,796.21 7,276.29 Other Liabilities and Provisions 3 8961.70 8905.03 Investments-Domestic-BD 8 6,684.68 5,174.97

Bills Purchased and Discounted 0.00 0.00

Loans and Advances 9 370.83 802.32

Investment in Subsidiaries 10 13.20 13.20

Other Assets 11 343.13 313.43

Liabilities of Issue Department

Assets of Issue Department (ID)

Notes issued 4 13,445.27 14,732.43 Gold Coin and Bullion (as 6 649.78 637.23 backing for Note issue)

Rupee coin 1.72 1.99

Investment-Foreign-ID 7 12,783.31 14,082.75

Investment-Domestic-ID 8 10.46 10.46

Domestic Bills of Exchange and 0.00 0.00

other Commercial Papers

Total Liabilities 26,243.67 28,891.59 Total Assets 26,243.67 28,891.59

Regards,

Aakash Singh

MBA(Finance)