Sources of revenue of a Bank:
1. Interest Earned
- Discount bills
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Income on investments
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Balances with other banks & FIs
2. Other Income
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Commission, exchange, brokerage
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Sale of investments
- Revaluation of investments
-
Sale of land building and other assets
- Exchange transactions
Areas of expenses of a bank:
1. Interest Expense
-
Interest on deposits
-
Interest on borrowings to other banks & FIs
- Others
2. Operating Expenses
- Provisions
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Rent, taxes
-
Printing, stationery, advertising, publicity
- Depreciation
-
Fees of auditors & advocacy
- Utility bill
-
Repairs and maintenance
-
Insurance
Sources of revenue of a Insurance Company:
-
Premiums paid by Policy owners
- Income from investments
Areas of expenses of a Insurance Company:
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Commissions paid to agents
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Expenses to investigate, litigate, settle claims
- Advertising
-
Computerized racing and policy issuance systems
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Postage and telephone charges
- Travel expenses
- Salaries