An increase in the salaries of the bank employees due to new bank employee pay commission implemented by the Central Government will lead to deterioration of which of the following ratios: A: Cost to Income Ratio B: Net Interest Margin C: Core Spread

Question

Quizplus · Accepted Answer

An increase in salaries of bank employees will lead to an increase in expenses, which will in turn increase the cost to income ratio, thus deteriorating this ratio. Net interest margin and core spread will not be affected by the increase in salaries of bank employees.

An Increase in the Salaries of the Bank Employees Due