RBI's Liquidity Coverage Ratio (LCR) requirement for banks is minimum how much as of 2024?

The correct answer is C: 100%. As per Basel III implementation in India, RBI requires banks to maintain a minimum LCR of 100%.

Bank O's Net Interest Income is ₹3,000 crore and Total Operating Expenses are ₹1,200 crore. What is the Operating Profit?

The correct answer is C: ₹1,800 crore. Operating Profit = NII - Operating Expenses = 3,000 - 1,200 = ₹1,800 crore

Which regulatory framework mandates that banks maintain a minimum Liquidity Coverage Ratio (LCR)?

The correct answer is C: Basel III. Basel III framework requires banks to maintain a minimum Liquidity Coverage Ratio of 100% to ensure they have sufficient high-quality liquid assets.

If Bank C's Earnings Per Share (EPS) is ₹45 and its stock price is ₹900, what is the Price-to-Earnings (P/E) ratio?

The correct answer is B: 20. P/E Ratio = Stock Price / EPS = 900 / 45 = 20

Bank M's Tier 1 Capital is ₹5,000 crore and Risk-Weighted Assets are ₹40,000 crore. Calculate Tier 1 CAR.

The correct answer is B: 12.5%. Tier 1 CAR = (Tier 1 Capital / RWA) × 100 = (5,000 / 40,000) × 100 = 12.5%

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Bank PO / Clerk / RBI
Data Interpretation

PO, Clerk, RRB — Quantitative, Reasoning, GK

26 Q 3 Topics Take Mock Test

Difficulty: All Easy Medium Hard 11–20 of 26

Topics in Bank PO / Clerk / RBI

All General Awareness 200 Banking Awareness 18 Data Interpretation 100

Q.11 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

Test

Q.12 Hard Data Interpretation

Under RBI's resolution framework for financial stress, what is the key trigger for invoking prompt corrective action (PCA) for a bank?

A When net profit declines by 10% YoY

B When capital ratio falls below specified thresholds or when net NPA exceeds 6%

C When operating expenses exceed 50% of operating income

D When return on assets becomes negative for a quarter

Correct Answer: B. When capital ratio falls below specified thresholds or when net NPA exceeds 6%

EXPLANATION

RBI's PCA framework is triggered when a bank's capital ratio, asset quality (Net NPA > 6%), or profitability metrics breach specified thresholds. This is designed to protect financial stability.

Test

Q.13 Hard Data Interpretation

Analyze the quarterly data: A bank's Advances grew 14% QoQ while Deposits grew 8% QoQ. If this trend continues, which regulatory metric is most at risk?

A Return on Equity (ROE)

B Loan-to-Deposit ratio and liquidity coverage metrics

C Gross NPA ratio

D Cost-to-Income ratio

Correct Answer: B. Loan-to-Deposit ratio and liquidity coverage metrics

EXPLANATION

Advances growing faster (14%) than deposits (8%) will increase LTD ratio unsustainably and strain liquidity metrics. If continued, it could breach LCR and NSFR requirements, risking regulatory non-compliance.

Test

Q.14 Hard Data Interpretation

A bank reports Floating Rate Advances of ₹1,50,000 crore and Fixed Rate Advances of ₹90,000 crore. If rates rise by 200 bps, what is the repricing benefit compared to a bank with 60% floating rate portfolio?

A The first bank benefits more due to higher floating rate exposure

B Both banks benefit equally regardless of floating rate mix

C The second bank (60% floating) would benefit more

D Cannot be determined without deposit repricing data

Correct Answer: A. The first bank benefits more due to higher floating rate exposure

EXPLANATION

First bank has 62.5% floating rate (150,000/240,000), second bank has 60%. First bank will capture more repricing benefit when rates rise as more of its portfolio reprices upward, enhancing net interest income.

Test

Q.15 Hard Data Interpretation

A bank's Return on Assets (ROA) is 1.2% with a Net Profit Margin of 24%. What is the implied Asset Turnover Ratio?

A 0.05 times

B 0.10 times

C 0.20 times

D 0.50 times

Correct Answer: A. 0.05 times

EXPLANATION

ROA = Net Profit / Total Assets. Net Profit Margin = Net Profit / Revenue. Asset Turnover = Revenue / Assets. ROA = NPM × Asset Turnover. 1.2% = 24% × Asset Turnover. Asset Turnover = 0.05 times.

Test

Q.16 Hard Data Interpretation

Examine the comparative data: Bank A has NPA ratio of 1.8% with provision coverage of 72%, Bank B has NPA ratio of 2.2% with provision coverage of 68%. Which bank has better asset quality indicators in terms of net NPA?

A Bank A with 0.50% net NPA

B Bank A with 0.35% net NPA

C Bank B with 0.70% net NPA

D Both banks are equivalent

Correct Answer: B. Bank A with 0.35% net NPA

EXPLANATION

Net NPA = GNPA × (1 - Provision Coverage). Bank A: 1.8% × (1 - 0.72) = 1.8% × 0.28 = 0.504% ≈ 0.50%. Bank B: 2.2% × 0.32 = 0.704% ≈ 0.70%. Bank A is better

Test

Q.17 Hard Data Interpretation

A bank's treasury portfolio shows: Government Securities ₹1,50,000 crore (YTM: 6.8%), Corporate Bonds ₹75,000 crore (YTM: 7.8%), Money Market Instruments ₹25,000 crore (YTM: 6.2%). Calculate the portfolio's weighted average yield.

A 6.95%

B 7.15%

C 7.35%

D 7.55%

Correct Answer: B. 7.15%

EXPLANATION

WAY = [(1,50,000×6.8) + (75,000×7.8) + (25,000×6.2)] / (1,50,000+75,000+25,000) = [10,20,000 + 5,85,000 + 1,55,000] / 2,50,000 = 17,60,000 / 2,50,000 = 7.04% ≈ 7.15%

Test

Q.18 Hard Data Interpretation

Study the multi-year data: CAR in FY2022: 13.2%, FY2023: 13.8%, FY2024: 14.5%. If RWA increased by 18% from FY2023 to FY2024, what is the percentage change in capital?

A 18.5%

B 21.2%

C 24.8%

D 28.3%

Correct Answer: C. 24.8%

EXPLANATION

CAR = Capital/RWA. 14.5% = Capital / (RWA×1.18). If FY2023 CAR was 13.8%, capital must have grown at: 14.5/13.8 × 1.18 = 1.248 = 24.8% growth

Test

Q.19 Hard Data Interpretation

A bank's Effective Interest Rate (EIR) on advances is 9.2% and on deposits is 4.1%. If advances constitute 65% of total earning assets and deposits form 75% of total liabilities, calculate the approximate Net Interest Spread (NIS).

A 4.1%

B 4.8%

C 5.1%

D 5.8%

Correct Answer: C. 5.1%

EXPLANATION

NIS = (Yield on Advances × Advances % / Total Assets) - (Cost of Deposits × Deposits % / Total Liabilities). Simplified: 9.2% - 4.1% = 5.1% as basic spread

Test

Q.20 Hard Data Interpretation

Analyze the stress test data: Under the baseline scenario, a bank's CRAR is 12.5%. Under the adverse scenario (with 200 bps slippage in NPA), the CRAR drops to 10.8%. What is the impact on capital adequacy?

A 170 bps decline, still above minimum threshold

B 170 bps decline, below Basel III minimum

C 200 bps decline, above Basel III minimum

D 220 bps decline, significantly below threshold

Correct Answer: A. 170 bps decline, still above minimum threshold

EXPLANATION

Decline = 12.5% - 10.8% = 1.7% = 170 bps. 10.8% is still above Basel III minimum CRAR of 10.5%

Test

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Bank PO / Clerk / RBI Data Interpretation

Bank PO / Clerk / RBI
Data Interpretation