MANAGEMENT

Detailed explanation-1: -Banks must maintain a ratio of 100% to satisfy the requirement. Introduced as part of the post-crisis banking reforms known as Basel III, the ratio ensures banks do not undertake excessive maturity transformation, which is the practice of using short-term funding to meet long-term liabilities.

Detailed explanation-2: -“Available stable funding” is defined as the portion of capital and liabilities expected to be reliable over the time horizon considered by the NSFR, which extends to one year.

Detailed explanation-3: -The Bank is required to maintain the NSFR on an ongoing basis on a standalone Bank and on a Group Level. The minimum NSFR requirement set out in the RBI guideline for the Bank effective October 1, 2021 is 100%.

Detailed explanation-4: -What is the Net Stable Funding Ratio? The NSFR presents the proportion of long term assets funded by stable funding and is calculated as the amount of Available Stable Funding (ASF) divided by the amount of Required Stable Funding (RSF) over a one-year horizon.