Central Govt Exam Preparation — SSC, UPSC, Bank, Railway

Q.461 Medium Data Interpretation

A bank's Asset Quality Indicator shows 8% Gross NPAs. If total Advances are ₹4,00,000 crore, and Provision Coverage Ratio is 65%, calculate the Net NPA ratio approximately:

A 2.8%

B 3.2%

C 3.8%

D 4.2%

Correct Answer: A. 2.8%

Explanation:

Gross NPAs = 8% × ₹4,00,000 = ₹32,000 crore. Provisions = 65% × ₹32,000 = ₹20,800 crore. Net NPAs = ₹32,000 - ₹20,800 = ₹11,200 crore. Net NPA ratio = (11,200/4,00,000) × 100 = 2.8%

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Q.462 Medium Data Interpretation

Which of the following is NOT a component of Basel III Tier-I Capital?

A Common Equity Tier 1

B Additional Tier 1 Capital

C Subordinated Debt

D Retained Earnings

Correct Answer: C. Subordinated Debt

Explanation:

Subordinated Debt is part of Tier-II Capital. Tier-I Capital comprises CET1 and AT1 Capital only

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Q.463 Medium Data Interpretation

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 ₹2,000 crore

B ₹2,500 crore

C ₹1,500 crore

D ₹3,000 crore

Correct Answer: A. ₹2,000 crore

Explanation:

ROA decrease = (1.2% - 0.95%) = 0.25%. Decrease in profit = 0.25% × ₹8,00,000 crore = ₹2,000 crore

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Q.464 Medium Data Interpretation

According to RBI's latest guidelines 2024, what is the maximum Loan-to-Value (LTV) ratio for retail housing loans to individual borrowers?

A 70%

B 75%

C 80%

D 85%

Correct Answer: C. 80%

Explanation:

RBI permits maximum 80% LTV for retail housing loans to individuals as per macroprudential guidelines to manage credit risk

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Q.465 Medium Data Interpretation

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:

A 35.8%

B 43.75%

C 52.5%

D 61.2%

Correct Answer: B. 43.75%

Explanation:

Share = (₹35,000 / ₹80,000) × 100 = 43.75% of total advances growth came from consumer segment

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Q.466 Hard Data Interpretation

Examine the data: Bank X's Current Ratio (liquid assets to demand deposits) is 45%, while regulatory requirement is 80%. This indicates:

A Bank has excess liquidity buffer

B Bank has potential liquidity deficit

C Bank's asset quality is improving

D Bank should increase lending

Correct Answer: B. Bank has potential liquidity deficit

Explanation:

45% Current Ratio against 80% requirement indicates the bank is deficient in liquid assets relative to demand deposits, posing liquidity risk

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Q.467 Hard Data Interpretation

A bank's Commercial Advances showed CAR of 18.5%, Agricultural Advances CAR of 15.2%, and Consumer Advances CAR of 11.8%. Which segment carries the highest credit risk as per risk weighting?

A Commercial Advances

B Agricultural Advances

C Consumer Advances

D All carry equal risk

Correct Answer: A. Commercial Advances

Explanation:

Higher CAR for a segment indicates higher risk weights assigned. Commercial Advances at 18.5% CAR carries highest risk weighting under Basel III norms

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Q.468 Hard Data Interpretation

Analyze quarterly trends: Bank Y's Net Interest Income grew 8% while Total Assets grew 12% QoQ. This implies:

A Improving operational efficiency

B Declining Net Interest Margin

C Increase in Non-Interest Income

D Better asset deployment

Correct Answer: B. Declining Net Interest Margin

Explanation:

When assets grow faster (12%) than NII (8%), it indicates NIM is compressing as the bank is earning lower interest on incremental assets

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Q.469 Hard Data Interpretation

Under RBI's Prompt Corrective Action (PCA) framework 2024, at what Capital Adequacy Ratio threshold does a bank enter PCA supervision?

A Below 9.5%

B Below 8.5%

C Below 7.5%

D Below 10.5%

Correct Answer: B. Below 8.5%

Explanation:

Under RBI's PCA framework, SCBs with CAR below 8.5% (along with other indicators) trigger supervisory action and corrective measures

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Q.470 Hard Data Interpretation

A bank's Statutory Liquidity Ratio (SLR) requirement is 18%. If deposits are ₹10,00,000 crore and current SLR maintenance is ₹1,95,000 crore, calculate the deficit/surplus:

A ₹5,000 crore surplus

B ₹5,000 crore deficit

C ₹10,000 crore surplus

D No deficit or surplus

Correct Answer: A. ₹5,000 crore surplus

Explanation:

Required SLR = 18% × ₹10,00,000 = ₹1,80,000 crore. Actual = ₹1,95,000 crore. Surplus = ₹1,95,000 - ₹1,80,000 = ₹15,000 crore

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