One Bank stress Testing.

3. Stress testing

5. a) Core capital (Tier I) TK
Fully Paid-up Capital 2,057,210,100
Statutory Reserve 1,449,995,550
Surplus in Profit & Loss Account 225,613,894
Proposed Bonus Share 1,1 31,465,555
Total Eligible Tier-I Capital 3,732,819,544
b)Supplementary capital (Tier II)
General provision on Unclassified Loan & Advances 550,368,554
Provision for Off Balance Sheet Items 222,792,684
Surplus value of equity instruments up to 10% 318,485,035
Total Eligible Tier-II Capital 1,091,646,273
A. Total Eligible Capital 4,824,465,817
Total risk-weighted assets (RWA) 44569332290
B. Total required capital (10% of Total RWA) 4,456,933,229
Capital Surplus / (Shortfall) [A-B] 367,532,588
Capital adequacy ratio 10.82%

6. Interest Rate Shock
tk in mn.
a Magnitude of Shock 1% 2% 3%
b Fall in MVE‐(on‐balance sheet) 139 278 416
c Net fall in MVE‐(on‐balance sheet & off‐balance sheet) 139 278 416
d Tax Rate 42.50% 42.50% 42.50%
e Tax adjusted loss 80 160 239
f Total Regulatory capital 4,824 4,824 4,824
g Revised Capital 4,745 4,665 4,585
h Risk weighted assets 44,569 44,569 44,569
i Revised risk weighted assets 44,490 44,410 44,330
j CAR 10.82% 10.82% 10.82%
k Revised CAR 10.66% 10.50% 10.34%
l Fall in CAR (% age points) 0.16% 0.32% 0.48%

7. Exchange rate Shock
Adverse Movement 5% 10% 15%
Net Exposure 10072 10072 10072
Exchange rate loss 504 1007 1511
Tax Rate 42.50% 42.50% 42.50%
Tax adjusted loss 290 579 869
Revised Capital 4535 4245 3956
Revised risk weighted assets 44280 43990 43701
Revised CAR (%) 10.24% 9.65% 9.05%
Fall in CAR (%) 0.58% 1.17% 1.77%

9. 1. Increase in NPLs: 2010
1% 2% 3%
Total Loan (in million) 42190.40 42190.40
42190.4
0
Total Performing Loan 39983.53 39983.53
39983.5
3
Total NPLs 2206.87 2206.87 2206.87
NPLs to Loan(%) 5.23% 5.23% 5.23%
Increase in NPLs 399.84 799.67 1199.51
Increase in Provisions (after 399.84 799.67 1199.51
Tax adjusted Provision (not 399.84 799.67 1199.51
Revised Capital 4424.63 4024.80 3624.96
Revised risk weighted assets 44169.50 43769.66 43369.8
CAR 10.82% 10.82% 10.82%
Revised CAR (%) 10.02% 9.20% 8.36%

10. 2.DownwardShiftinNPLscatagories 50% 80% 100%
Weightedamountofprovision 1297.72 1297.72 1297.72
Provisionaftershiftincategories 1506.69 1588.32 1642.73
IncreaseinProvision 208.97 290.60 345.01
TaxadjustedProvision(notapplicable) 208.97 290.60 345.01
RevisedCapital 4,615.49 4,533.87 4,479.45
Revisedriskweightedassets 44,360.36 44,278.73 44,224.32
CAR 10.82% 10.82% 10.82%
RevisedCAR(%) 10.40% 10.24% 10.13%

11. 3.IncreaseofNPLsinparticular1or2sectors
ReadymadeGarments
5.00% 7.50% 10.00%
TotalLoansinGarmentsandtextilesectorsector 10383 10383 10383
IncreaseinNPLsunderB/Lcategory 519 779 1038
Increaseinprovision 519 779 1038
RevisedCapital 4,305.30 4,045.71 3,786.13
Revisedriskweightedassets 44,050.16 43,790.58 43,530.99
CAR 10.82% 10.82% 10.82%
RevisedCAR(%) 9.77% 9.24% 8.70%
FallinCAR(%) 1.05% 1.59% 2.13%
2010

12. 4.IncreaseinNPLsduetodefaultofTop10borrowers
5.00% 7.50% 10.00%
TotalLoantoTop10largeborrowers 1,135.21 1,135.21 1,135.21
IncreaseinNPLsunderB/LCategory 56.76 85.14 113.52
IncreaseinProvisions 56.76 85.14 113.52
TaxadjustedProvision(notappilcable) 56.76 85.14 113.52
RevisedCapital 4,767.71 4,739.33 4,710.94
Revisedriskweightedassets 44,512.57 44,484.19 44,455.81
RevisedCAR(%) 10.71% 10.65% 10.60%
FallinCAR(%) 0.11% 0.17% 0.23%
2010

13. 5.Increase inNPLsuptothatpositioninwhichwhole capital willbe wipedout 2010
Total Loan(inmillion) 42,190
Total PerformingLoan(inmillion) 39,984
Total NPLs 2,207
NPLstototalLoan(%) 5.23%
Total Capital (inmillion) 4,824
Increase inNPL 4,824
RevisedCapital 0.00
Revisedriskweightedassets 39,744.87
RevisedCAR(%) 0
Fall inCAR(%) 10.82%
RevisedNPLs 7,031
Revised NPLs to Loans (%) 16.67%

14. 10% 20% 40%
Total Exposure in Stock
market 1,714 1,714 1,714
Fall in Stock Prices 171 343 686
Tax 42.5% 42.5% 42.5%
Tax adjusted loss 99 197 394
Revised Capital 4726 4627 4430
Revised risk weighted assets 44471 44372 44175
Revised CAR (%) 10.63% 10.43% 10.03%
Fall in CAR (%) 0.20% 0.40% 0.80%

15. 2010
10% 20% 30%
Liquidity Ratio 24% 24% 24%
Fall in Liquid Liabilities 5109 10217 15326
Revised Liquid Assets 7274 2166 -2943
Revised Liquid Liabilities 45977 40869 35760
Revised Liquidity Ratio 16% 5% -8%