Australians Getting Larger Mortgages at a Fixed Rate

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The global economic crisis that began in 2008 has had a big impact on the real estate market in Australia. A recovering economy caused mortgage interest rates to drop after an initial period of tight lending regulations. More Australians were apt to choose variable rates as interest fell, but the trends in borrowing have started to change.

More Australians Opt for Fixed Rates

Why are Australians more likely to opt for fixed rates when they apply for a mortgage? Rates were steadily dropping, but it now appears that the historically-low rates that are being offered to home buyers are starting to level out. This means that more people are hoping to lock in the lowest rates possible by opting for a fixed rate.

Variable rates change with the market. This was beneficial for borrowers who were taking out mortgages while interest rates continued to drop. Home buyers were able to take advantage of dropping rates without holding off on their home purchase by opting for a variable rate.

Fixed rates lock in current rates for the duration of the mortgage. These interest rates are ideal when interest is low, and Australia is currently experiencing rates that are expected to be as low as they will get. This is why Australians prefer fixed rates at this point.

Low rates are not the only reason that Australians are opting for this type of interest. Fixed rates are always the same, so people who are dealing with a tight household budget are better able to determine how much housing will cost with a fixed-rate mortgage. A mortgage payment will always be the same with fixed rates.

Average Mortgage Increase

There are several reasons for the steady increase in the amount of the average mortgage. One reason for this trend is the fact that the real estate market is steadily recovering. Homes cost more on average now than they have in the past, so it makes sense that this amount would be increasing.

Another reason is the fact that lower mortgage rates are available. People who are able to take advantage of low rates are able to afford more because of the reduced amount that will be going toward interest payments.

The final reason for higher interest rates is the fact that more people are finding employment across the country. A higher rate of employment means that more people are able to afford a home purchase.

The Emergency Budget

I was reading an article on twocents.lifehacker and as I reached the comments section, I noticed two awesome inputs suggested by commenters:

1. Create an emergency budget
When I set my budget, I made one assumption. Ceteris Paribus. All other things constant. I would still have my job and all needs remain the same. But there are other scenarios that might happen like losing main source of income, a brand new member in the family, and so on. So, a quick way to live in a state of an emergency is to reduce and eliminate those that can be eliminated to prioritize the fulfillment of needs. Iheartbudget have a great article on this.

2. Have an emergency fund consisting of a "My Car Died" and "My Job Died" fund.
The second suggestion is to categorize emergency fund into two. An emergency if something happens to your car or appliances and an emergency because you lost your job from downsizing, quitting, or retiring. They are both straight forward and I feel by categorizing it, you have a clearer idea of why the money is lying around, and what to do with it once the situation calls it to action.

My Car Died fund should be a cash account fund because it's something that should be ready to use. My Job Died fund can be a mixed portfolio because in the long run, it doubles as a retirement fund. One caution is if the fund is not diversified and you happen to lose your job and the fund is affected by a greater force like inflation or stock market crash.

So, with both points in mind, I guess it's time for me to modify my budget into budgets, and my emergency fund into funds.

The Power of Habit

I've been trying to figure out whether I have a habit loop regarding my money that consists of a cue to action, an activity leading to a routine, and a reward.

I think that when my income comes in, it is a cue to action. It may be to go eat out, buy something out on impulse, and many other things. Before I had a budget, I basically let myself go without a plan. It didn't work for me, looking at the bigger picture of my finances, because I wasn't getting anywhere. It's been some months that I have a monthly budget, and I realize that my budget has become my routine to quickly allocate my money to certain spending posts. I've been encouraging my wife, and her budget is working for her as well.

I haven't been able to identify the reward. Maybe making my life easier is a reward in itself.

And Allah wants to lighten for you [your difficulties]; and mankind was created weak. 4. Surat An-Nisā' (The Women);28

How to get Quick Money during an Emergency Situation?

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We do not have ready cash at our hands all the time. In the financial conditions of the modern world, savings are next to impossible. Fuel costs are on the rise, groceries are becoming expensive with every passing day, and utility bills are soaring too. With your bank balance not being enough, how do you expect to fix an emergency that requires a big amount of money immediately? What will you do if you do not have enough time to wait until your next wage comes in?

In this post, we will take a look at a few ways that can land you with some quick money and help you tackle a critical emergency situation with ease.

Home Equity Loan

A home equity loan is the most preferred method of getting some fast cash in the US. This loan will allow you to borrow money against your home’s value only if it is more than what you own on it. A home equity loan normally has a low interest rate, and can be applied for, even with a bad credit score. In some cases, moreover, the interest costs on this loan are tax deductible. The most common reasons for going for a home equity loan are usually covering the purchase of a second home, paying for the higher educational charges of a family member, and renovating or remodeling the existing property.

Car Title Loan

The second most popular way of getting fast cash in the US is if you own a car and title loan firm nearby. This loan will allow you to borrow money from a lender by temporarily surrendering him the title of your car. The loan process is simpler and faster than the home equity loans. Lenders do not even mind if you are down with a bad credit score. Moreover, numerous lenders charge a very small rate of interest too. The most common reasons for borrowing a car title loan are usually covering the purchase of another car, and paying for the illness or health issues of a family member.

Local Pawnshop

If you have valuable items like electronic gadgets and gold or silver jewelry at your home, then you can borrow some fast cash in return of keeping your belongings as collateral. Contact a well-reputed local pawnshop, and it can help you out by borrowing you some money in exchange of your valuables. Take this loan seriously though! Your belongings will be owned by the pawnshop if you fail to pay back the amount within the stipulated amount of time.

Signature Loan

You can also opt for a signature loan if you do not have anything to offer as collateral. The lender does not have any belonging of yours to own forever. This is the reason why this loan is also termed as ‘Unsecured Loan’. However, the lender holds the power to ding up your credit by reporting against you in the credit companies. Moreover, you need to be careful before going for this loan as the interest rates are usually higher because of the risk factors involved.

In these 4 ways, you can borrow some quick cash and get yourself out of trouble without much hassle.


About the author: Cayla Silverstone lives in San Diego, California. She is a full-time blogger. In this post, she is talking about some easy ways like cars and title loans and home equity loans that can help you get fast cash during an emergency situation.

Securities and Exchange Board of India

The Securities and Exchange Board of India (frequently abbreviated SEBI) is the regulator for the securities market in India. It was established in the year 1988 and given statutory powers on 12 April 1992 through the SEBI Act, 1992.

  It was officially established by The Government of India in the year 1988 and given statutory powers in 1992 with SEBI Act 1992 being passed by the Indian Parliament. SEBI has its Headquarters at the business district of Bandra Kurla Complex in Mumbai, and has Northern, Eastern, Southern and Western Regional Offices in New Delhi, Kolkata, Chennai and Ahmedabad respectively.
Controller of Capital Issues was the regulatory authority before SEBI came into existence; it derived authority from the Capital Issues (Control) Act, 1947.
Initially SEBI was a non statutory body without any statutory power. However in the year of 1995, the SEBI was given additional statutory power by the Government of India through an amendment to the Securities and Exchange Board of India Act, 1992. In April, 1988 the SEBI was constituted as the regulator of capital markets in India under a resolution of the Government of India.
The SEBI is managed by its members, which consists of following: a) The chairman who is nominated by Union Government of India. b) Two members, i.e. Officers from Union Finance Ministry. c) One member from The Reserve Bank of India. d) The remaining 5 members are nominated by Union Government of India, out of them at least 3 shall be whole-time members.
The office of SEBI is situated at SEBI Bhavan, Bandra Kurla Complex, Bandra East, Mumbai- 400051, with its regional offices at Kolkata, Delhi,Chennai & Ahmadabad. It has recently opened local offices at Jaipur and Bangalore and is

Organization structure

Name	Designation
Upendra Kumar Sinha	Chairman
Prashant Saran	Whole Time Member
Rajeev Kumar Agarwal	Whole Time Member
S Raman	Whole Time Member
Prakash Chandra	Joint Secretary, Ministry of Finance
V. K. Jairath magya	Member Appointed
Anand Sinha	Deputy Governor, Reserve Bank of India
Naved Masood	Secretary, Ministry of Corporate Affairs
Raje Kumar	Part Time Member

List of former Chairmen:^[5]

Name	From	To
C. B. Bhave	18 February 2008	18 February 2011
M. Damodaran	18 February 2005	18 February 2008
G. N. Bajpai	20 February 2002	18 February 2005
D. R. Mehta	21 February 1995	20 February 2002
S. S. Nadkarni	17 January 1994	31 January 1995
G. V. Ramakrishna	24 August 1990	17 January 1994
Dr. S. A. Dave	12 April 1988	23 August 1990

Financial Bonds

A financial bond is a documented debt security instrument which is issued by governments and corporate institutions against which a debt is offered to the holder along with a fixed rate of interest which is mentioned in the debt. A bond holder is supposed to pay back the money borrowed with the interest at fixed intervals.

Bondholders are segregated from equity stockholders by the fact that bondholders are the creditors of the company or the institution issuing the bonds whereas stockholders are the owners of the company. The issuer of the bond(borrowers) are legally bound to redeem(repay) the bonds to the bondholders( lenders ) unlike the equity shareholders(owners) who cannot claim their debts back as equity stocks are non-redeemable documents that can accrue indefinitely.

GOI Bonds

GOI (Government of India) bonds are low risk debt instruments issued by the Government of India against underlying assets of the government. The returns on investment (ROI) are generally low on these debts but are guaranteed of being repaid in fixed time intervals along with the interests. With extensive financial experience and high end market research facilities, we are able to find you 8% Savings GOI (Taxable) Bonds which are eligible for investment.
a) The Bonds may be held by
An individual, not being a Non-Resident Indian:

• In his or her individual capacity
• In individual capacity on joint basis
• In individual capacity on anyone or survivor basis
• On behalf of a minor as father/mother/legal guardian

b) A Hindu Undivided Family
c) Charitable Institution' to mean a Company registered under Section 25 of the Indian Companies Act 1956 or
d) An institution which has obtained a Certificate of Registration as a charitable institution in accordance with a law in force
e) Any institution which has obtained a certificate from the Income Tax Authority for the purpose of Section 80G of the Income Tax Act, 1961
f) Limit of Investment:
There will be no maximum limit for investment in the Bond Tax Treatment.
g) Income-tax
Interest on the Bonds will be taxable under the Income-Tax Act, 1961 as applicable according to the relevant tax status of the bond holder
h) Wealth tax
The Bonds will be exempted from Wealth-tax under the Wealth- tax Act, 1957.
I) Issue Price
The Bonds will be issued at par i.e. at Rs.100.00 percent.
The Bonds will be issued for a minimum amount of Rs. 1000/- (face value) and in multiples thereof. Accordingly, the issue price will be Rs.1000/- for every Rs.1, 000/-(Nominal).
j) Form
The Bonds will be issued and held at the credit of the holder in an account called Bond Ledger Account (BLA).  New Bond Ledger series with the prefix (TB) are to be opened. All investment in 8% Savings (Taxable) Bonds by an existing BLA holder will be viewed as a new investment under a new BLA11.
k) Nomination
A sole holder or a sole surviving holder of a Bond, being an individual, may nominate in form B (Anne x– 4) or as near thereto as may be, one or more persons who shall be entitled to the Bond and the payment thereon in the event of his/her death.
l) Transferability
The Bond in the form of Bond Ledger Account shall not be transferable.
m) Interest
The bond will be issued in cumulative and non-cumulative form, at the option of the investor.
The Bond will bear interest at the rate of 8% per annum. Interest on non-cumulative bonds will be payable at half-yearly intervals from the date of issue.
Interest on cumulative bonds will be compounded with half-yearly rests and will be payable on maturity along with the principal.
In the latter case, the maturity value of the Bonds shall be Rs.1601/- (being principal and interest) for every Rs.1, 000/-(Nominal). Interest to the holders opting for non-cumulative Bonds will be paid from date of up to 31st July/31st January, as the case may be and at half-yearly for period ending 31st July/31st January on 1st August and 1st February.
Interest on Bond in the form of "Bond Ledger Account" will be paid, by cheque/warrant or through ECS by credit to bank account of the holder as per the option exercised by the investor/holder.
n) Advances/Tradability against Bonds
The Bonds shall not be tradable in the secondary market and shall not be eligible as collateral for loans from banks, financial Institutions and Non Banking Financial Companies, (NBFC) etc.
o) Repayment
The Bonds shall be repayable on the expiry of 6 (Six) years from the date of issue. No interest would accrue after the maturity of the Bond.

Tax Planning

We provide our clients with efficient services of Tax Planning, that help them in profitably secure their wealth by investing in government securities and bonds. The funds that otherwise would be liable to taxation, is efficiently invested in variable securities spread across an array of industries to minimize risk on investment. These investments earn a higher rate of return than savings in banks which are further liable to taxation.

In order to make investments in the most effective manner, our professionals analyze the requisites and risks involved in various scenarios and situations. The following parameters are used to determine the allocation of investments:

Taxation Planning And Solutions

We provide advisory and assistance services for Tax Planning to our clients. These services include Tax solutions by investing in government securities and bonds. Since investments in government securities are exempt from taxation, these solutions enhance savings of the user. This is not only profitable for the investors but also for the nation at large, as these investments in prioritized sectors help bring down the inflation rate, which in turn, is beneficial for the all citizens. The Central and State governments mobilize these funds from investments and utilize it for the welfare of the nation. Supreme Court observed in a case that "Tax planning may be legitimate provided it is within the framework of Law".

 

International Investing

 

Trade Stocks from 20+ Countries

Scottrade offers access to foreign stocks, providing customers the ability to trade international equities alongside domestic equities via one central account. Most trades are just $7. And, with international stock offerings from foreign companies in various sectors and industries, Scottrade’s international investing opportunities might match your strategy.

Trading Foreign Stocks

Scottrade is dedicated to providing you with advanced research and trading tools to help you manage your investments on your own terms. Find international investing opportunities or get an online quote with our stocks screener. Or start your research online with news, charts and stock information for many international stocks, available free of charge with your Scottrade account.

Trading International Stocks via American Depository Receipts (ADR)

Owning shares in foreign markets expands and diversifies investors’ stock portfolios, and can play a part in achieving a balanced financial strategy. American depository receipts, called ADRs, are receipts for shares in foreign companies that trade on the U.S. stock market. So you can buy or sell shares in companies from across the globe, and you can trade your ADR stocks from the comfort of your online trading account.
Scottrade offers ADRs for companies in over 20 countries throughout Europe, Africa, South America, and Asia Pacific. Login to your online trading account, and use the stock screener to explore ADR stocks that you can use to expand your portfolio's investments internationally.
 

International Monetary Market

The International Monetary Market (IMM), a spin-off from the old Chicago Mercantile Exchange and largely the creation of Leo Melamed, is today one of four divisions of the Chicago Mercantile Exchange (CME), the largest futures exchange in the United States, for the trading of futures contracts and options on futures. The IMM was started on May 16, 1972.Two of the more prevalent contracts traded are currency futures and interest rate futures, specifically, 3-month Eurodollar time deposits and 90-day U.S. Treasury bills. The other two CME divisions includes the Index and Option Market (IOM) and Growth and Emerging Markets (GEM). All products fall under one of these three divisions.


A division of the Chicago Mercantile Exchange (CME) that deals with the trading of currency and interest rate futures and options. Trading on the IMM started in May 1972 when the CME and the IMM merged.

GLOBALIZATION

The term globalization has acquired a variety of meanings, but in economic terms it refers to the move that is taking place in the direction of complete mobility of capital and labour and their products, so that the world's economies are on the way to becoming totally integrated. The driving forces of the process are reductions in politically imposed barriers and in the costs of transport and communication (although, even if those barriers and costs were eliminated, the process would be limited by inter-country differences in social capital).
It is a process which has ancient origins^{[citation needed]}, which has gathered pace in the last fifty years, but which is very far from complete. In its concluding stages, interest rates, wage rates and corporate and income tax rates would become the same everywhere, driven to equality by competition, as investors, wage earners and corporate and personal taxpayers threatened to migrate in search of better terms. In fact, there are few signs of international convergence of interest rates, wage rates or tax rates. Although the world is more integrated in some respects, it is possible to argue that on the whole it is now less integrated than it was before the first world war.,and that many middle-east countries are less globalised than they were 25 years ago.
Of the moves toward integration that have occurred, the strongest has been in financial markets, in which globalisation is estimated to have tripled since the mid-1970s. Recent research has shown that it has improved risk-sharing, but only in developed countries, and that in the developing countries it has increased macroeconomic volatility. It is estimated to have resulted in net welfare gains worldwide, but with losers as well as gainers. .
Increased globalisation has also made it easier for recessions to spread from country to country. A reduction in economic activity in one country can lead to a reduction in activity in its trading partners as a result of its consequent reduction in demand for their exports, which is one of the mechanisms by which the business cycle is transmitted from country to country. Empirical research confirms that the greater the trade linkage between countries the more coordinated are their business cycles.
Globalisation can also have a significant influence upon the conduct of macroeconomic policy. The Mundell–Fleming model and its extensions are often used to analyse the role of capital mobility (and it was also used by Paul Krugman to give a simple account of the Asian financial crisis). Part of the increase in income inequality that has taken place within countries is attributable - in some cases - to globalisation. A recent IMF report demonstrates that the increase in inequality in the developing countries in the period 1981 to 2004 was due entirely to technological change, with globalisation making a partially offsetting negative contribution, and that in the developed countries globalisation and technological change were equally responsible.

International finance

For the academic journal or financial magazine, see International Finance (journal) and Global Finance (magazine).

International finance (also referred to as international monetary economics or international macroeconomics) is the branch of financial economics broadly concerned with monetary and macroeconomic interrelations between two or more countries.^[1][2] International finance examines the dynamics of the global financial system, international monetary systems, balance of payments, exchange rates, foreign direct investment, and how these topics relate to international trade.^[1][2][3]
Sometimes referred to as multinational finance, international finance is additionally concerned with matters of international financial management. Investors and multinational corporations must assess and manage international risks such as political risk and foreign exchange risk, including transaction exposure, economic exposure, and translation exposure.^[4][5]
Some examples of key concepts within international finance are the Mundell–Fleming model, the optimum currency area theory, purchasing power parity, interest rate parity, and the international Fisher effect. Whereas the study of international trade makes use of mostly microeconomic concepts, international finance research investigates predominantly macroeconomic concepts.

Profit and Loss Statement - P&L

Definition of 'Profit and Loss Statement - P&L'

A financial statement that summarizes the revenues, costs and expenses incurred during a specific period of time - usually a fiscal quarter or year. These records provide information that shows the ability of a company to generate profit by increasing revenue and reducing costs. The P&L statement is also known as a "statement of profit and loss", an "income statement" or an "income and expense statement".

The statement of profit and loss follows a general form as seen in this example. It begins with an entry for revenue and subtracts from revenue the costs of running the business, including cost of goods sold, operating expenses, tax expense and interest expense. The bottom line (literally and figuratively) is net income (profit). Many templates can be found online for free, that can be used in creating your profit and loss, or income statement.

The balance sheet, income statement and statement of cash flows are the most important financial statements produced by a company. While each is important in its own right, they are meant to be analyzed together.
 

Portfolio (finance)

The term portfolio refers to any collection of financial assets such as cash. Portfolios may be held by individual investors and/or managed by financial professionals, hedge funds, banks and other financial institutions. It is a generally accepted principle that a portfolio is designed according to the investor's risk tolerance, time frame and investment objectives. The monetary value of each asset may influence the risk/reward ratio of the portfolio and is referred to as the asset allocation of the portfolio.^[2] When determining a proper asset allocation one aims at maximizing the expected return and minimizing the risk. This is an example of a multi-objective optimization problem: more "efficient solutions" are available and the preferred solution must be selected by considering a tradeoff between risk and return. In particular, a portfolio A is dominated by another portfolio A' if A' has a greater expected gain and a lesser risk than A. If no portfolio dominates A, A is a Pareto-optimal portfolio. The set of Pareto-optimal returns and risks is called the Pareto Efficient Frontier for the Markowitz Portfolio selection problem.^[3]...

There are many types of portfolios including the market portfolio and the zero-investment portfolio.^[4] A portfolio's asset allocation may be managed utilizing any of the following investment approaches and principles: equal weighting, capitalization-weighting, price-weighting, risk parity, the capital asset pricing model, arbitrage pricing theory, the Jensen Index, the Treynor the Sharpe diagonal (or index) model, the value at risk model, modern portfolio theory and others.
There are several methods for calculating portfolio returns and performance. One traditional method is using quarterly or monthly money-weighted returns, however the true time-weighted method is a method preferred by many investors in financial markets.^[5] There are also several models for measuring the performance attribution of a portfolio's returns when compared to an index or benchmark, partly viewed as investment strategy.

7 Reasons why India is staring at a currency crisis

1. Rupee weakness
Further weakening of the rupee due to a lower supply of dollars and higher interest rates abroad.
2. GDP growth
Economists predicting a lower GDP for the current fiscal year, a disastrous sign since we just witnessed a GDP drop from 6.2% to 5% from the last fiscal year to the current fiscal year.
3. Current account deficit
A further rise in India's current account deficit.
4. Foreign reserves
The government signaling that within months it might run out of foreign reserves.
5. Short-term debt
$170 billion in short-term debt to pay, while in 2008 it was just $80 billion.
6. FII investment
From May to August 2013, FII investments in India having gone down by $2 billion.
7. Elections
Both the private and public sectors staying clear on investment strategies until next year's elections.
When taking all of this into account, it will require a heroic effort by the newly appointed RBI governor, Raghuram Rajan, to prevent a currency crisis from unfolding.
Raghu Kumar is the co-founder of RKSV, a broking company. The opinions expressed here are the personal opinions of the author. NDTV is not responsible for the accuracy, completeness, suitability or validity of any information given here. All information is provided on an as-is basis. The information, facts or opinions appearing on the blog do not reflect the views of NDTV and NDTV does not assume any responsibility or liability for the same.

 

LEVARAGE

Leverage (finance) In finance, leverage (sometimes referred to as gearing in the United Kingdom and Australia) is a general term for any technique to multiply gains and losses.^[1] Common ways to attain leverage are borrowing money, buying fixed assets and using derivatives.^[2] Important examples are:

• A public corporation may leverage its equity by borrowing money. The more it borrows, the less equity capital it needs, so any profits or losses are shared among a smaller base and are proportionately larger as a result.^[3]
• A business entity can leverage its revenue by buying fixed assets. This will increase the proportion of fixed, as opposed to variable, costs, meaning that a change in revenue will result in a larger change in operating income.^[4][5]
• Hedge funds often leverage their assets by using derivatives. A fund might get any gains or losses on $20 million worth of crude oil by posting $1 million of cash as margin.^[6]

Measuring leverage

A good deal of confusion arises in discussions among people who use different definitions of leverage. The term is used differently in investments and corporate finance, and has multiple definitions in each field.^[7]

Investments

Accounting leverage is total assets divided by the total assets minus total liabilities.^[8] Notional leverage is total notional amount of assets plus total notional amount of liabilities divided by equity.^[1] Economic leverage is volatility of equity divided by volatility of an unlevered investment in the same assets. To understand the differences, consider the following positions, all funded with $100 of cash equity:^[9]

• Buy $100 of crude oil with money out of pocket. Assets are $100 ($100 of oil), there are no liabilities, and assets minus liabilities equals owners' equity. Accounting leverage is 1 to 1. The notional amount is $100 ($100 of oil), there are no liabilities, and there is $100 of equity, so notional leverage is 1 to 1. The volatility of the equity is equal to the volatility of oil, since oil is the only asset and you own the same amount as your equity, so economic leverage is 1 to 1.
• Borrow $100 and buy $200 of crude oil. Assets are $200, liabilities are $100 so accounting leverage is 2 to 1. The notional amount is $200 and equity is $100, so notional leverage is 2 to 1. The volatility of the position is twice the volatility of an unlevered position in the same assets, so economic leverage is 2 to 1.
• Buy $100 of crude oil, borrow $100 worth of gasoline, and sell the gasoline for $100. You now have $100 cash, $100 of crude oil, and owe $100 worth of gasoline. Your assets are $200, and liabilities are $100, so accounting leverage is 2 to 1. You have $200 in notional assets plus $100 in notional liabilities, with $100 of equity, so your notional leverage is 3 to 1. The volatility of your position might be half the volatility of an unlevered investment in the same assets, since the price of oil and the price of gasoline are positively correlated, so your economic leverage might be 0.5 to 1.
• Buy $100 of a 10-year fixed-rate treasury bond, and enter into a fixed-for-floating 10-year interest rate swap to convert the payments to floating rate. The derivative is off-balance sheet, so it is ignored for accounting leverage. Accounting leverage is therefore 1 to 1. The notional amount of the swap does count for notional leverage, so notional leverage is 2 to 1. The swap removes most of the economic risk of the treasury bond, so economic leverage is near zero.

Abbrevations

• EBIT means Earnings before interest and taxes.
• DOL is Degree of Operating Leverage
• DFL is Degree of Financial Leverage
• DCL is Degree of Combined Leverage
• ROE is Return on Equity
• ROA is Return on assets

Corporate finance

Accounting leverage has the same definition as in investments.^[10] There are several ways to define operating leverage, the most common.^[11] is:

Financial leverage is usually defined^[8][12] as:

or:

Banking in India

Banking in India in the modern sense originated in the last decades of the 18th century. The first banks were Bank of Hindustan (1770-1829) and The General Bank of India, established 1786 and since defunct.
The largest bank, and the oldest still in existence, is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955. For many years the presidency banks acted as quasi-central banks, as did their successors, until the Reserve Bank of India was established in 1935.
In 1969 the Indian government nationalised all the major banks that it did not already own and these have remained under government ownership. They are run under a structure know as 'profit-making public sector undertaking' (PSU) and are allowed to compete and operate as commercial banks. The Indian banking sector is made up of four types of banks, as well as the PSUs and the state banks, they have been joined since the 1990s by new private commercial banks and a number of foreign banks.
Generally banking in India was fairly mature in terms of supply, product range and reach-even though reach in rural India and to the poor still remains a challenge. The government has developed initiatives to address this through the State Bank of India expanding its branch network and through the National Bank for Agriculture and Rural Development with things like microfinance.
Indian Banking Industry currently employes 1,175,149 employees and has a total of 109,811 branches in India and 171 branches abroad and manages an aggregate deposit of 67504.54 billion (US$1.1 trillion or €840 billion) and bank credit of 52604.59 billion (US$870 billion or €650 billion). The net profit of the banks operating in India was 1027.51 billion (US$17 billion or €13 billion) against a turnover of 9148.59 billion (US$150 billion or €110 billion) for the financial year 2012-13