Showing 31–40 of 141 questions
Q.31
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)?
Explanation:
ROE = (Net Profit / Shareholder's Equity) × 100 = (2,500 / 12,500) × 100 = 20%
Q.32
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?
A
2.0%
B
2.5%
C
1.5%
D
3.0%
Explanation:
Excess CAR = 12.5% - 10.5% = 2.0%
Q.33
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?
A
₹1,200 crore
B
₹1,400 crore
C
₹1,500 crore
D
₹1,600 crore
Correct Answer:
B. ₹1,400 crore
Explanation:
NPA Amount = (2.8 / 100) × 50,000 = ₹1,400 crore
Q.34
Easy
If Bank C's Deposits are ₹80,000 crore and Advances are ₹60,000 crore, what is the Advances-to-Deposits ratio?
Explanation:
Advances-to-Deposits = (60,000 / 80,000) × 100 = 75%
Q.35
Easy
Bank D's Cost-to-Income ratio is 45%. This means for every ₹100 of income, operating costs are:
Explanation:
Cost-to-Income ratio of 45% means 45% of income is spent on operating costs, which is ₹45 per ₹100 of income
Q.36
Easy
If Bank E's Interest Margin is 2.5% and advances are ₹40,000 crore, what is the annual interest margin income?
A
₹800 crore
B
₹900 crore
C
₹1,000 crore
D
₹1,100 crore
Correct Answer:
C. ₹1,000 crore
Explanation:
Interest Margin Income = (2.5 / 100) × 40,000 = ₹1,000 crore
Q.37
Easy
As per RBI's latest 2024 guidelines, what is the minimum Capital Adequacy Ratio (CAR) that a bank must maintain?
Explanation:
RBI mandates a minimum CAR of 10.5% for scheduled commercial banks under Basel III framework as of 2024.
Q.38
Easy
Which of the following is NOT a component of a bank's tier 1 capital?
A
Common Equity Tier 1 (CET1)
B
Additional Tier 1 (AT1) capital
C
Subordinated debt
D
Share capital and reserves
Correct Answer:
C. Subordinated debt
Explanation:
Subordinated debt is a component of Tier 2 capital, not Tier 1. Tier 1 consists of CET1 and AT1 capital only.
Q.39
Easy
RBI's Monetary Policy Committee (MPC) reviews rates how many times a year as per 2024 guidelines?
A
4 times
B
6 times
C
8 times
D
12 times
Correct Answer:
B. 6 times
Explanation:
As per RBI's framework, the MPC conducts 6 monetary policy reviews annually (bimonthly).
Q.40
Easy
A bank's Net Interest Margin (NIM) increased from 2.8% to 3.1% in FY2024. What is the percentage point increase?
A
0.3 percentage points
B
1.07%
C
10.7%
D
0.03%
Correct Answer:
A. 0.3 percentage points
Explanation:
The difference is 3.1% - 2.8% = 0.3 percentage points. This is different from percentage change.
