Bank PO / Clerk / RBI Questions & Answers

Q.11 Medium Data Interpretation

Examine the data: Bank X reported ₹5,000 crores in gross advances with ₹150 crores in gross NPAs. The bank maintained a provision coverage ratio of 65%. Calculate the net NPA amount.

A ₹52.5 crores

B ₹95 crores

C ₹150 crores

D ₹97.5 crores

Correct Answer: A. ₹52.5 crores

EXPLANATION

Gross NPAs = ₹150 crores. Provisions made = 65% of ₹150 = ₹97.5 crores. Net NPA = ₹150 - ₹97.5 = ₹52.5 crores.

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Q.12 Medium Data Interpretation

Bank A reported a Net Interest Margin (NIM) of 2.8% in Q3 2024. If the bank's total interest income was ₹15,000 crores, what was the approximate net interest income?

A ₹4,200 crores

B ₹3,900 crores

C ₹4,500 crores

D ₹5,100 crores

Correct Answer: A. ₹4,200 crores

EXPLANATION

NIM = Net Interest Income / Total Assets. Given NIM of 2.8% and interest income of ₹15,000 cr, net interest income approximates to ₹4,200 crores using the relationship between these metrics.

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Q.13 Medium Data Interpretation

A bank's Consumer Advances increased by ₹35,000 crore while Total Advances grew by ₹80,000 crore in FY2024. Calculate the share of Consumer Advances in total advances growth:

A 35.8%

B 43.75%

C 52.5%

D 61.2%

Correct Answer: B. 43.75%

EXPLANATION

Share = (₹35,000 / ₹80,000) × 100 = 43.75% of total advances growth came from consumer segment

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Q.14 Medium Data Interpretation

According to RBI's latest guidelines 2024, what is the maximum Loan-to-Value (LTV) ratio for retail housing loans to individual borrowers?

A 70%

B 75%

C 80%

D 85%

Correct Answer: C. 80%

EXPLANATION

RBI permits maximum 80% LTV for retail housing loans to individuals as per macroprudential guidelines to manage credit risk

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Q.15 Medium Data Interpretation

A bank's Return on Assets (ROA) decreased from 1.2% to 0.95% while maintaining constant total assets of ₹8,00,000 crore. Calculate the decrease in Net Profit in rupees:

A ₹2,000 crore

B ₹2,500 crore

C ₹1,500 crore

D ₹3,000 crore

Correct Answer: A. ₹2,000 crore

EXPLANATION

ROA decrease = (1.2% - 0.95%) = 0.25%. Decrease in profit = 0.25% × ₹8,00,000 crore = ₹2,000 crore

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Q.16 Medium Data Interpretation

Which of the following is NOT a component of Basel III Tier-I Capital?

A Common Equity Tier 1

B Additional Tier 1 Capital

C Subordinated Debt

D Retained Earnings

Correct Answer: C. Subordinated Debt

EXPLANATION

Subordinated Debt is part of Tier-II Capital. Tier-I Capital comprises CET1 and AT1 Capital only

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Q.17 Medium Data Interpretation

A bank's Asset Quality Indicator shows 8% Gross NPAs. If total Advances are ₹4,00,000 crore, and Provision Coverage Ratio is 65%, calculate the Net NPA ratio approximately:

A 2.8%

B 3.2%

C 3.8%

D 4.2%

Correct Answer: A. 2.8%

EXPLANATION

Gross NPAs = 8% × ₹4,00,000 = ₹32,000 crore. Provisions = 65% × ₹32,000 = ₹20,800 crore. Net NPAs = ₹32,000 - ₹20,800 = ₹11,200 crore. Net NPA ratio = (11,200/4,00,000) × 100 = 2.8%

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Q.18 Medium Data Interpretation

A bank's Return on Equity (ROE) improved from 12% to 14.5% while its Net Profit Margin decreased from 28% to 26%. This suggests:

A Decrease in equity base

B Increase in leverage

C Decrease in total assets

D Increase in provisioning

Correct Answer: B. Increase in leverage

EXPLANATION

Improved ROE despite lower NPM indicates higher financial leverage (more debt relative to equity), amplifying returns to equity holders

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Q.19 Medium Data Interpretation

Analyze the quarterly data: Bank A's Non-Performing Assets decreased from ₹18,000 crore to ₹15,000 crore, while its Gross Advances remained ₹3,00,000 crore. Calculate the change in Gross NPA ratio:

A Decreased from 5% to 6%

B Increased from 5% to 6%

C Decreased from 6% to 5%

D Remained constant at 5.5%

Correct Answer: C. Decreased from 6% to 5%

EXPLANATION

Previous NPA ratio = (18,000/3,00,000) × 100 = 6%. New NPA ratio = (15,000/3,00,000) × 100 = 5%. The ratio decreased.

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Q.20 Medium Data Interpretation

A bank's Deposit Growth Rate was 12% and Advances Growth Rate was 15% in FY2024. What does this scenario suggest?

A Loan-to-Deposit ratio is decreasing

B Loan-to-Deposit ratio is increasing

C Credit expansion is slower than deposit mobilization

D The bank faces liquidity risk

Correct Answer: B. Loan-to-Deposit ratio is increasing

EXPLANATION

When advances grow faster than deposits (15% > 12%), the Loan-to-Deposit ratio increases, indicating higher credit expansion relative to deposit mobilization

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