Q.81
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.82
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.83
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.84
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.85
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.86
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.87
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.
Q.88
Medium
A bank's Loan-to-Deposit (LTD) ratio is 78%. If total deposits are ₹5,00,000 crore, what are the total loans and advances?
A
₹3,90,000 crore
B
₹3,50,000 crore
C
₹4,20,000 crore
D
₹4,50,000 crore
Correct Answer:
A. ₹3,90,000 crore
Explanation:
LTD Ratio = (Total Loans / Total Deposits) × 100. Therefore, Total Loans = (78/100) × 5,00,000 = ₹3,90,000 crore
Q.89
Medium
Which of the following is a measure of bank's profitability?
A
Capital Adequacy Ratio
B
Return on Assets (ROA)
C
Statutory Liquidity Ratio
D
Priority Sector Lending
Correct Answer:
B. Return on Assets (ROA)
Explanation:
Return on Assets (ROA) measures how efficiently a bank uses its assets to generate profit. It's calculated as Net Income / Total Assets.
Q.90
Medium
What is the minimum Statutory Liquidity Ratio (SLR) as per RBI norms in 2024?
A
18%
B
19.5%
C
20%
D
21.5%
Explanation:
The Statutory Liquidity Ratio is currently maintained at 19.5% of net demand and time liabilities, as per RBI guidelines.
