Q.61
Medium
Bank S's EMI on a ₹10 lakh loan at 8% p.a. for 5 years is approximately ₹24,324. What is the total interest paid?
A
₹3,59,440
B
₹4,59,440
C
₹4,59,840
D
₹3,59,840
Correct Answer:
C. ₹4,59,840
Explanation:
Total Amount = 24,324 × 60 = 14,59,440; Interest = 14,59,440 - 10,00,000 = ₹4,59,440
Q.62
Medium
A bank offers a home loan at 7.5% p.a. for 20 years. If you borrow ₹25 lakhs, what is your approximate monthly EMI?
A
₹17,850
B
₹19,420
C
₹21,560
D
₹23,750
Correct Answer:
B. ₹19,420
Explanation:
Using EMI formula: EMI = P[r(1+r)^n]/[(1+r)^n-1], where P=25,00,000, r=7.5%/12=0.00625, n=240. EMI ≈ ₹19,420.
Q.63
Medium
Under RBI's Priority Sector Lending (PSL) norms, what is the minimum percentage of advances that scheduled commercial banks must lend to priority sector?
Explanation:
RBI mandates 40% of net bank credit to be allocated to Priority Sector Lending for scheduled commercial banks.
Q.64
Medium
If a bank's Return on Assets (ROA) is 1.2% and Total Assets are ₹8 lakh crore, what is the bank's Net Profit?
A
₹96 crore
B
₹960 crore
C
₹9,600 crore
D
₹96,000 crore
Correct Answer:
C. ₹9,600 crore
Explanation:
Net Profit = ROA × Total Assets = 1.2% × ₹8,00,000 crore = ₹9,600 crore.
Q.65
Medium
RBI's Liquidity Coverage Ratio (LCR) requirement for banks is minimum how much as of 2024?
A
75%
B
85%
C
100%
D
110%
Explanation:
As per Basel III implementation in India, RBI requires banks to maintain a minimum LCR of 100%.
Q.66
Medium
A bank's Cost-to-Income Ratio is 45%. This indicates:
A
The bank is highly inefficient
B
The bank spends ₹45 to generate ₹100 in operating income
C
The bank's profitability is below industry standard
D
The bank must reduce its workforce
Correct Answer:
B. The bank spends ₹45 to generate ₹100 in operating income
Explanation:
Cost-to-Income Ratio = Operating Expenses/Operating Income. 45% means ₹45 spent to generate ₹100 in income, which is relatively good.
Q.67
Medium
Which banking regulation in India is NOT implemented under Basel III framework?
A
Capital Adequacy Ratio
B
Liquidity Coverage Ratio
C
Statutory Liquidity Ratio (SLR)
D
Net Stable Funding Ratio
Correct Answer:
C. Statutory Liquidity Ratio (SLR)
Explanation:
SLR is an RBI-specific regulation predating Basel III. Basel III includes CAR, LCR, and NSFR.
Q.68
Medium
A bank's deposits grew from ₹3,00,000 crore to ₹3,54,000 crore in one year. What is the YoY growth rate?
Explanation:
Growth = (3,54,000 - 3,00,000) / 3,00,000 × 100 = 54,000/3,00,000 × 100 = 18%.
Q.69
Medium
A bank's Provision Coverage Ratio (PCR) improved from 62% to 71% YoY. This indicates:
A
Deteriorating asset quality
B
Improving asset quality and risk management
C
Increased loan disbursement
D
Lower profitability
Correct Answer:
B. Improving asset quality and risk management
Explanation:
Higher PCR indicates better provision coverage against stressed assets, reflecting stronger risk management and improving asset quality.
Q.70
Medium
Under RBI's Know Your Customer (KYC) norms, what is the minimum frequency for KYC updation?
A
Every year
B
Every 2 years
C
Every 5 years
D
Every 10 years
Correct Answer:
C. Every 5 years
Explanation:
RBI mandates KYC updation every 10 years for regular customers, though higher-risk categories may require more frequent updates.
