Shuchi Nahar's Weekend Blog!

How Banks make Money through Credit Cards? SHUCHI.P.NAHAR   To understand how credit cards works, which customer segments it serves, what it offers to its customer segments, and how does it makes money from them, we need to get familiar with few terms. Credit cards classifies the banks as either Issuers or Acquirers. Issuers issue cards to the cardholders, whereas the Acquirers manage the relationship with the merchants. The diagram below explains what happens behind-the-scenes when a cardholder presents a card for payment to a merchant. What types of risk bank accepts? Bank usually accepts three types of risk  1) Credit  2)Liquidity  3)Interest rate and they get paid   to take on the risk. Managing credit risk Credit risk is the core part of the lending business . investors can get a sense of a banks credit quality by examining its balance sheet , loan categories , trends in non performing loans and charge off rates as well as managemen...

In-depth understanding of Important Financial Formula and Ratios Twitter: shuchi_nahar What are Financial Ratios? Financial ratios are created with the use of numerical values taken from financial statements to gain meaningful information about a company. The numbers found on a company’s financial statements – balance sheet, income statement, and cash flow statement – are used to perform quantitatively analysis and assess a company’s liquidity, leverage, growth, margins, profitability, rates of return, valuation, and more. Return on Assets (ROA) ROA tells an investor how much Profit or Return a company generated for each Rupee of Assets. The formula for Return on Assets ROA = Earnings/Assets Alternatively, this can also be expressed as ROA = (Earnings/Sales) x (Sales/Assets), or Formula Dissection ROA = Net Margin x Asset Turnover The first component of Return on Assets is simply Net Margin or Net Income divided by Sales. It tells us how much of each Rupee o...

Probably the last straw of distress, disturbance, down- turn , and misery of the Overall Economy..  !  SHUCHI.P.NAHAR When we consider India and track the past few years , it will show a rigorous downfall , recession all over, considering it a textile , banking, or pharma whatever the sector you choose there was no phenomenal improvement or upturn seen. Looking to today's scenarios when worse have become the worst we can say that its "Always Darkest Before the Dawn ." Right now we are in the darkest possible situation that one could have ever imagined and hopefully we will come out of this together in the most awaited dawn.. The world is changing due to Covid-19. I am not here to tell you that same story, but to look beyond the current news cycle. Which fundamental shifts are here to stay, how will they turn industries upside down, and which strategic options do you have to go on offense. Nearly 162 countries are steadily going into lock dow...