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Bank PO / Clerk / RBI

PO, Clerk, RRB — Quantitative, Reasoning, GK

494 Q 3 Topics Take Test
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Difficulty: All Easy Medium Hard 321–330 of 494
Topics in Bank PO / Clerk / RBI
Q.321 Hard
A bank's Provision Coverage Ratio (PCR) is 65%. Which interpretation is accurate?
A The bank has recovered 65% of NPA
B 65% of Gross NPA is covered by provisions made by the bank
C The bank's profitability margin is 65%
D The bank maintains 65% capital adequacy
Correct Answer:  B. 65% of Gross NPA is covered by provisions made by the bank
EXPLANATION

PCR = (Total Provisions / Gross NPA) × 100. A 65% PCR means the bank has made provisions equivalent to 65% of its gross NPA.

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Q.322 Hard
A bank receives deposits of ₹10 lakh with a CRR of 4% and SLR of 18%. What is the maximum amount the bank can lend?
A ₹7.8 lakh
B ₹8.0 lakh
C ₹7.2 lakh
D ₹6.8 lakh
Correct Answer:  A. ₹7.8 lakh
EXPLANATION

CRR requirement = 4% of ₹10 lakh = ₹0.4 lakh. SLR requirement = 18% of ₹10 lakh = ₹1.8 lakh. Maximum lending = ₹10 lakh - ₹0.4 lakh - ₹1.8 lakh = ₹7.8 lakh

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Q.323 Hard
Which RBI tool is used to control inflation by reducing money supply in the economy?
A Open Market Operations (OMO) - sale of securities
B Reduction in Cash Reserve Ratio (CRR)
C Quantitative Easing (QE)
D Increase in Reserve Repo Rate
Correct Answer:  A. Open Market Operations (OMO) - sale of securities
EXPLANATION

OMO sales of securities reduce liquidity and money supply. CRR reduction increases liquidity. QE and reverse repo rate cuts are expansionary measures.

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Q.324 Medium
A bank's Loan-to-Deposit (LTD) ratio is 78%. If total deposits are ₹5,00,000 crore, what are the total loans and advances?
A ₹3,90,000 crore
B ₹3,50,000 crore
C ₹4,20,000 crore
D ₹4,50,000 crore
Correct Answer:  A. ₹3,90,000 crore
EXPLANATION

LTD Ratio = (Total Loans / Total Deposits) × 100. Therefore, Total Loans = (78/100) × 5,00,000 = ₹3,90,000 crore

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Q.325 Medium
Under RBI's Asset Classification framework, a loan becomes NPA if it remains overdue for how many days?
A 30 days
B 60 days
C 90 days
D 180 days
Correct Answer:  C. 90 days
EXPLANATION

As per RBI's 2015 norms, any loan with outstanding principal or interest remaining unpaid for 90 days (3 months) is classified as NPA.

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Q.326 Medium
A bank's Cost-to-Income ratio decreased from 48% to 43%. Which statement is correct?
A The bank's profitability has declined
B Operating efficiency has improved
C The bank is spending more on operations
D Cost-to-Income ratio is not a measure of efficiency
Correct Answer:  B. Operating efficiency has improved
EXPLANATION

A lower Cost-to-Income ratio indicates better operational efficiency. The bank generates more income per unit of cost, suggesting improved profitability.

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Q.327 Medium
Under Priority Sector Lending (PSL) norms, what is the minimum percentage of credit that Scheduled Commercial Banks must allocate to agriculture?
A 8%
B 10%
C 12%
D 18%
Correct Answer:  C. 12%
EXPLANATION

RBI's PSL guidelines mandate a minimum 18% of Adjusted Net Bank Credit (ANBC) to agriculture, with 8% to small and marginal farmers.

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Q.328 Medium
A bank's advances grew from ₹2,50,000 crore to ₹2,87,500 crore in FY2024. What is the year-on-year growth rate?
A 12%
B 15%
C 18%
D 20%
Correct Answer:  B. 15%
EXPLANATION

Growth = [(2,87,500 - 2,50,000) / 2,50,000] × 100 = [37,500 / 2,50,000] × 100 = 15%

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Q.329 Medium
Which of the following is NOT included in Tier 1 capital under Basel III framework?
A Common Equity Tier 1 (CET1)
B Additional Tier 1 (AT1) bonds
C Subordinated debt instruments
D Retained earnings
Correct Answer:  C. Subordinated debt instruments
EXPLANATION

Subordinated debt is classified as Tier 2 capital. Tier 1 consists of CET1 and AT1 components including common equity and retained earnings.

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Q.330 Medium
A bank's Gross NPA stands at ₹8,000 crore and its total advances are ₹1,00,000 crore. What is the Gross NPA ratio?
A 8%
B 9.2%
C 7.5%
D 10%
Correct Answer:  A. 8%
EXPLANATION

Gross NPA Ratio = (Gross NPA / Total Advances) × 100 = (8,000 / 1,00,000) × 100 = 8%

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