Govt. Exams
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Topics in Bank PO / Clerk / RBI
Q.391
Easy
If Bank E's Interest Margin is 2.5% and advances are ₹40,000 crore, what is the annual interest margin income?
Correct Answer:
C. ₹1,000 crore
EXPLANATION
Interest Margin Income = (2.5 / 100) × 40,000 = ₹1,000 crore
Q.392
Easy
Bank D's Cost-to-Income ratio is 45%. This means for every ₹100 of income, operating costs are:
Correct Answer:
B. ₹45
EXPLANATION
Cost-to-Income ratio of 45% means 45% of income is spent on operating costs, which is ₹45 per ₹100 of income
Q.393
Easy
If Bank C's Deposits are ₹80,000 crore and Advances are ₹60,000 crore, what is the Advances-to-Deposits ratio?
Correct Answer:
B. 75%
EXPLANATION
Advances-to-Deposits = (60,000 / 80,000) × 100 = 75%
Q.394
Easy
A bank's Non-Performing Assets (NPA) ratio is 2.8%. If total advances are ₹50,000 crore, what is the amount of NPAs?
Correct Answer:
B. ₹1,400 crore
EXPLANATION
NPA Amount = (2.8 / 100) × 50,000 = ₹1,400 crore
Q.395
Easy
Bank B's Capital Adequacy Ratio under Basel III is 12.5%. If the minimum required CAR is 10.5%, what is the excess CAR?
Correct Answer:
A. 2.0%
EXPLANATION
Excess CAR = 12.5% - 10.5% = 2.0%
Q.396
Easy
If Bank A's Net Profit is ₹2,500 crore and Shareholder's Equity is ₹12,500 crore, what is the Return on Equity (ROE)?
Correct Answer:
A. 20%
EXPLANATION
ROE = (Net Profit / Shareholder's Equity) × 100 = (2,500 / 12,500) × 100 = 20%
Q.397
Medium
Bank K's Operating Expenses decreased from ₹3,500 crore to ₹3,150 crore while revenue remained ₹8,000 crore. What is the new Cost-to-Income Ratio?
Correct Answer:
B. 39.375%
EXPLANATION
CIR = (Operating Expenses / Revenue) × 100 = (3,150 / 8,000) × 100 = 39.375%
Q.398
Hard
Under Basel III regulations (2024 update), if a bank's RWA is ₹80,000 crore and CET1 is ₹4,200 crore, is it compliant with minimum CET1 requirement?
Correct Answer:
A. Yes, CET1 ratio is 5.25%
EXPLANATION
CET1 Ratio = (4,200 / 80,000) × 100 = 5.25%, which exceeds the 4.5% minimum. Bank is compliant.
Q.399
Easy
Bank J's Total Assets grew from ₹2,00,000 crore to ₹2,20,000 crore in one year. What is the Asset Growth Rate?
Correct Answer:
B. 10%
EXPLANATION
Growth Rate = ((220,000 - 200,000) / 200,000) × 100 = (20,000 / 200,000) × 100 = 10%
Q.400
Medium
Which of the following represents the core banking operation under the Scheduled Bank definition?
Correct Answer:
B. Accepting deposits and making loans/advances
EXPLANATION
Core banking operations involve accepting deposits and advancing loans/credits as primary functions.