Bank J reported Capital Adequacy Ratio (CAR) of 15.2% with CET1 of 9.5%, Tier 1 of 11.8%, and Tier 2 of 3.4%. Is the bank compliant with Basel III norms?
ANon-compliant on CET1
BFully compliant with all requirements
CNon-compliant on Tier 1
DNon-compliant on overall CAR
Correct Answer:
B. Fully compliant with all requirements
Explanation:
Basel III minimums: CET1 6.5%, Tier 1 8.5%, Overall CAR 10.5%. Bank J has CET1 9.5%, Tier 1 11.8%, CAR 15.2% - exceeding all minimums and compliant with conservation buffers.
Bank K's Consumer Advances grew from ₹12,000 crores to ₹14,800 crores while maintaining the same default rate of 1.2%. What was the increase in absolute NPA amount?
A₹33.6 crores
B₹144 crores
C₹178 crores
D₹33.6 crores
Correct Answer:
A. ₹33.6 crores
Explanation:
Original NPA = 1.2% of ₹12,000 = ₹144 cr. New NPA = 1.2% of ₹14,800 = ₹177.6 cr. Increase in NPA = ₹177.6 - ₹144 = ₹33.6 crores.
Bank X's Loan-to-Deposit (LTD) ratio stood at 78% as of March 2024. If the bank's total deposits increased by ₹5,000 crores in Q1 FY2025 while maintaining the same LTD ratio, by how much would the advances increase?
A₹3,900 crores
B₹4,200 crores
C₹3,250 crores
D₹5,000 crores
Correct Answer:
A. ₹3,900 crores
Explanation:
With LTD ratio of 78%, advances are 78% of deposits. If deposits increase by ₹5,000 crores, advances increase by 78% of ₹5,000 = ₹3,900 crores. This tests understanding of key banking ratios and their application in data interpretation.
According to RBI's Monetary Policy 2024-25, the Statutory Liquidity Ratio (SLR) for Scheduled Commercial Banks was set at 18%. Bank Y maintains SLR compliance through Government securities worth ₹45,000 crores. What is Bank Y's approximate total liabilities?
A₹2,50,000 crores
B₹2,25,000 crores
C₹2,00,000 crores
D₹2,75,000 crores
Correct Answer:
A. ₹2,50,000 crores
Explanation:
SLR = 18% of total liabilities. If Government securities (SLR compliance) = ₹45,000 crores, then Total Liabilities = ₹45,000 / 0.18 = ₹2,50,000 crores. Tests understanding of RBI regulations and ratio calculations relevant to banking exams.
