Which regulatory framework applies to payments and settlement systems in India?

The correct answer is B: Payment and Settlement Systems Act, 2007. The Payment and Settlement Systems Act, 2007 specifically regulates payment systems including RTGS, NEFT, and other settlement mechanisms.

A bank's efficiency ratio (operating expenses to operating income) is 42%. What does this indicate about the bank's operational health?

The correct answer is A: The bank is highly efficient; below 45% is considered strong. Efficiency ratio of 42% (operating expenses/operating income) indicates strong operational efficiency. Industry benchmark for healthy banks is typically 40-50%. Lower ratios indicate better cost management.

Which of the following is NOT a tool of monetary policy used by RBI?

The correct answer is C: Direct Tax Collection. Direct Tax Collection is a fiscal policy tool, not a monetary policy tool. RBI uses OMO, RRR, and repo rate adjustments.

If the RBI reduces the Repo Rate by 50 basis points, what is the likely impact on a bank's Net Interest Margin (NIM) in the short term?

The correct answer is B: NIM will decrease as deposit rates lag behind lending rate cuts. When repo rate decreases, banks cut lending rates faster than deposit rates, compressing NIM (interest spread)

According to RBI's latest circular on Liquidity Coverage Ratio (LCR) for 2024, what is the minimum percentage?

The correct answer is C: 100%. RBI mandates a minimum LCR of 100% for all banks, meaning banks must maintain high-quality liquid assets to cover net cash outflows over 30 days under stress scenarios.

Home

Home › Subjects › Bank PO / Clerk / RBI

Bank PO / Clerk / RBI

PO, Clerk, RRB — Quantitative, Reasoning, GK

246 Q 3 Topics Take Mock Test

Difficulty: All Easy Medium Hard 11–20 of 246

Topics in Bank PO / Clerk / RBI

All General Awareness 200 Banking Awareness 18 Data Interpretation 100

Q.11 Medium Data Interpretation

Examine the data: Bank X reported ₹5,000 crores in gross advances with ₹150 crores in gross NPAs. The bank maintained a provision coverage ratio of 65%. Calculate the net NPA amount.

A ₹52.5 crores

B ₹95 crores

C ₹150 crores

D ₹97.5 crores

Correct Answer: A. ₹52.5 crores

EXPLANATION

Gross NPAs = ₹150 crores. Provisions made = 65% of ₹150 = ₹97.5 crores. Net NPA = ₹150 - ₹97.5 = ₹52.5 crores.

Test

Q.12 Medium Data Interpretation

Bank A reported a Net Interest Margin (NIM) of 2.8% in Q3 2024. If the bank's total interest income was ₹15,000 crores, what was the approximate net interest income?

A ₹4,200 crores

B ₹3,900 crores

C ₹4,500 crores

D ₹5,100 crores

Correct Answer: A. ₹4,200 crores

EXPLANATION

NIM = Net Interest Income / Total Assets. Given NIM of 2.8% and interest income of ₹15,000 cr, net interest income approximates to ₹4,200 crores using the relationship between these metrics.

Test

Q.13 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

Test

Q.14 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

Test

Q.15 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

Test

Q.16 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

Test

Q.17 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%

Test

Q.18 Medium Data Interpretation

A bank's Return on Equity (ROE) improved from 12% to 14.5% while its Net Profit Margin decreased from 28% to 26%. This suggests:

A Decrease in equity base

B Increase in leverage

C Decrease in total assets

D Increase in provisioning

Correct Answer: B. Increase in leverage

EXPLANATION

Improved ROE despite lower NPM indicates higher financial leverage (more debt relative to equity), amplifying returns to equity holders

Test

Q.19 Medium Data Interpretation

Analyze the quarterly data: Bank A's Non-Performing Assets decreased from ₹18,000 crore to ₹15,000 crore, while its Gross Advances remained ₹3,00,000 crore. Calculate the change in Gross NPA ratio:

A Decreased from 5% to 6%

B Increased from 5% to 6%

C Decreased from 6% to 5%

D Remained constant at 5.5%

Correct Answer: C. Decreased from 6% to 5%

EXPLANATION

Previous NPA ratio = (18,000/3,00,000) × 100 = 6%. New NPA ratio = (15,000/3,00,000) × 100 = 5%. The ratio decreased.

Test

Q.20 Medium Data Interpretation

A bank's Deposit Growth Rate was 12% and Advances Growth Rate was 15% in FY2024. What does this scenario suggest?

A Loan-to-Deposit ratio is decreasing

B Loan-to-Deposit ratio is increasing

C Credit expansion is slower than deposit mobilization

D The bank faces liquidity risk

Correct Answer: B. Loan-to-Deposit ratio is increasing

EXPLANATION

When advances grow faster than deposits (15% > 12%), the Loan-to-Deposit ratio increases, indicating higher credit expansion relative to deposit mobilization

Test

1 2 3 4…25

All Subjects & Topics

Govt. Exams

Entrance Exams

Teacher Exams

Subjects

Quick Links

Bank PO / Clerk / RBI