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 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:
A35.8%
B43.75%
C52.5%
D61.2%
Correct Answer:
B. 43.75%
Explanation:
Share = (₹35,000 / ₹80,000) × 100 = 43.75% of total advances growth came from consumer segment
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.
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.
Under RBI's revised norms for 2024, what is the minimum Common Equity Tier 1 (CET1) ratio that banks must maintain?
A5.5%
B6.5%
C7.0%
D8.0%
Correct Answer:
B. 6.5%
Explanation:
As per Basel III implementation in India, RBI mandates a minimum CET1 ratio of 6.5% (including capital conservation buffer of 1.875%), increased from the earlier 5.5%.
Bank C's Loan-to-Deposit Ratio (LDR) increased from 78% to 83% in Q3 2024. What risk does this indicate?
AIncreased liquidity risk
BDecreased credit risk
CImproved deposit mobilization
DReduced loan portfolio
Correct Answer:
A. Increased liquidity risk
Explanation:
LDR of 83% means the bank is deploying 83% of deposits as loans. An increase towards the upper threshold (80% is regulatory comfort zone) indicates higher liquidity risk if deposits decline.
Bank D's Earning Per Share (EPS) grew from ₹45 to ₹54 between FY2023 and FY2024. The stock price remained at ₹1,080. What is the Price-to-Earnings (P/E) ratio for FY2024?
A18x
B20x
C24x
D25x
Correct Answer:
B. 20x
Explanation:
P/E Ratio = Stock Price / EPS = ₹1,080 / ₹54 = 20x. This indicates the market values the bank at 20 times its annual earnings.
According to RBI's latest circular on Liquidity Coverage Ratio (LCR) for 2024, what is the minimum percentage?
A80%
B90%
C100%
D110%
Correct Answer:
C. 100%
Explanation:
RBI mandates a minimum LCR of 100% for all banks, meaning banks must maintain high-quality liquid assets to cover net cash outflows over 30 days under stress scenarios.
