Which one of the following is not a correct method of calculating profitability ratio in banking sector?
A. Burden ratio = Man power expenses ratio + other establishment expenditure ratio – non interest income ratio.
B. Profitability ratio = Spread ratio – burden ratio
C. Spread ratio = Interest earned ratio + Interest paid ratio
D. Interest earned ratio = Interest earned/volume of business
Answer:C
Which one of the following is not a correct method of calculating profitability ratio in banking sector?
A. Burden ratio = Man power expenses ratio + other establishment expenditure ratio – non interest income ratio. B. Profitability ratio = Spread ratio – burden ratio C. Spread ratio = Interest earned ratio + Interest paid ratio D. Interest earned ratio = Interest earned/volume of business