Suppose you are working with an Indian commercial Bank, which has sanctioned a portfolio loan of 100 accounts with an average sanction limit of Rs. 1,000,00/- to an NBFC. Based on history on an average 60.00% of the loans amount remain outstanding on the book of the bank. The bank's internal rating analysis has estimated a probability of portfolio default equivalent to 1.5% over the next year and a loss rate of 35% if the portfolio defaults. You have to calculate Bank's expected loss if the bank is approving the above portfolio loan. [8]