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Suppose the initial deposits are Rs.1000 cr and the Statuary Liquidity Ratio is 20%. How much loan the bank can give from the given initial deposits?

Solution

✅ Correct Option: 1

With SLR of 20%, the bank must keep 20%×1000=Rs. 20020\% \times 1000 = Rs.\ 200 cr as reserves and can lend the rest.

Loanable amount =1000−200=Rs. 800= 1000 - 200 = Rs.\ 800 cr.

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