A bank's Net Interest Margin (NIM) improved from 2.8% to 3.2% year-on-year. If the bank's total assets are ₹5,00,000 crore, what is the approximate increase in NIM in absolute terms?
Which of the following is NOT a component of Basel III capital framework adopted by RBI?
ACommon Equity Tier 1 (CET1)
BTier 2 Capital
CTier 3 Capital
DPerpetual Subordinated Debt
Correct Answer:
C. Tier 3 Capital
Explanation:
Basel III framework comprises CET1, Tier 1, and Tier 2 capital. Tier 3 Capital was part of Basel II but has been eliminated in Basel III. RBI has adopted Basel III norms.
A bank's Asset Quality Ratio improved from 2.1% to 1.8% in FY 2024. What does this indicate?
ADeterioration in loan quality
BImprovement in loan quality
CNo significant change in portfolio
DIncrease in non-performing assets
Correct Answer:
B. Improvement in loan quality
Explanation:
Asset Quality Ratio (NPA ratio) measures gross NPAs as percentage of gross advances. A decrease from 2.1% to 1.8% indicates improvement in overall loan quality and reduced stressed assets.
Bank B's Cost-to-Income Ratio decreased from 48% to 44% between Q2 and Q3 2024. What is the implication for operational efficiency?
AOperational efficiency has deteriorated
BOperational efficiency has improved
CCost structure remains unchanged
DIncome has decreased significantly
Correct Answer:
B. Operational efficiency has improved
Explanation:
Cost-to-Income Ratio shows operating costs as percentage of operating income. A decrease from 48% to 44% indicates that the bank is spending less to generate each rupee of income, showing improved operational efficiency.
Which regulatory body is responsible for regulating Cooperative Banks in India?
ASEBI
BRBI and State Governments
CIRDA
DMinistry of Finance
Correct Answer:
B. RBI and State Governments
Explanation:
Cooperative Banks are regulated jointly by RBI (for scheduled cooperative banks) and respective State Governments under dual regulatory framework in India.
