As the name suggest there are three broad components to NDTL.
A Netting Amount that is reduced from the Demand and Time Liabilities.
Additionally Demand and Time Liabilities (DTL) are further broken up into
DTL to Others;
RBI has been empowered to decide on what kind of liabilities fall under DTL. In case of doubt, banks are advised to get a clarification from RBI.
NDTL Base for CRR and SLR
Is CRR and SLR maintained on the same base – viz NDTL?
The short answer is, No.
While the NDTL calculation is broadly the same, there are some important differences when it comes to it’s use to compute CRR and SLR.
Some items are exempt for CRR purposes and so, the base on which CRR is to be maintained is not the same as the base on which SLR is computed. We shall look at these differences in the base a little later.
Demand Liabilities of a bank are liabilities which are payable on demand.
Time Liabilities of a bank are those liabilities that are payable other than on demand.
Any amounts due to the banking system which are not in the nature of deposits or borrowing are also to be included in other demand and time liabilities. Such liabilities may arise due to items like (i) collection of bills on behalf of other banks, (ii) interest due to other banks and so on.
Fund Flow Statement:
This statement analyses the borrower fund position with reference to the working capital analysis given in MPBF calculations & projected balance sheets. Basic objective of this statement is to capture the funds movement of the borrower for the given period.
This statement gives the key ratios to the banker based on the CMA data prepared. Basic key ratios are Gross Profit ratio, Net profit ratio, Current ratio, Net worth, Debt/Equity ratio, etc.