CURRENT AFFAIRS

Detailed explanation-1: -Credit and Finance for MSMEs: The bank’s loan book in the financial year 2021-22 stood at Rs 43,898 crore, of which large corporates’ share was around 60 per cent while the remaining exposure was equally divided between SME and retail.

Detailed explanation-2: -Recorded on the right side of the balance sheet, liabilities include loans, accounts payable, mortgages, deferred revenues, bonds, warranties, and accrued expenses.

Detailed explanation-3: -A bank’s balance sheet does not contain inventories or typical accounts payable. Banks do not produce physical goods. Instead, they borrow and lend funds. A bank’s income comes primarily from the spread between the cost of capital and interest income it earns by lending out money to the public.

Detailed explanation-4: -Loans are IOU’s to the bank. They are on the assets side of the balance sheet because these promises to pay are worth the amount of the loan.