Q.161
Easy
What is the current Statutory Liquidity Ratio (SLR) requirement for Scheduled Commercial Banks as per RBI's 2024 guidelines?
Explanation:
RBI has maintained the SLR requirement at 18% of Net Demand and Time Liabilities (NDTL) since 2020.
Q.162
Easy
A bank approves a working capital loan of ₹50 lakh at 9.5% p.a. for 2 years. Assuming simple interest, what is the total interest payable?
A
₹9.5 lakh
B
₹9.75 lakh
C
₹95,000
D
₹4.75 lakh
Correct Answer:
A. ₹9.5 lakh
Explanation:
Simple Interest = (Principal × Rate × Time) / 100 = (50,00,000 × 9.5 × 2) / 100 = ₹9.5 lakh
Q.163
Medium
A bank's Return on Assets (ROA) improved from 0.8% to 1.1% year-on-year. What is the percentage point improvement?
A
0.3 percentage points
B
37.5% improvement
C
Both A and B are correct
D
1.9 percentage points
Correct Answer:
C. Both A and B are correct
Explanation:
The improvement is 0.3 percentage points (1.1% - 0.8%). In relative terms, this represents a 37.5% increase (0.3/0.8 × 100).
Q.164
Medium
RBI's Liquidity Coverage Ratio (LCR) norm requires banks to maintain high-quality liquid assets (HQLA) equal to what percentage of net cash outflows?
A
50%
B
75%
C
100%
D
125%
Explanation:
Basel III's LCR requirement mandates that HQLA should cover at least 100% of net cash outflows over a 30-day stressed scenario.
Q.165
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?
Explanation:
Gross NPA Ratio = (Gross NPA / Total Advances) × 100 = (8,000 / 1,00,000) × 100 = 8%
Q.166
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.
Q.167
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?
Explanation:
Growth = [(2,87,500 - 2,50,000) / 2,50,000] × 100 = [37,500 / 2,50,000] × 100 = 15%
Q.168
Medium
Under Priority Sector Lending (PSL) norms, what is the minimum percentage of credit that Scheduled Commercial Banks must allocate to agriculture?
Explanation:
RBI's PSL guidelines mandate a minimum 18% of Adjusted Net Bank Credit (ANBC) to agriculture, with 8% to small and marginal farmers.
Q.169
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.
Q.170
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.
