Bank exams reward accuracy under time pressure more than depth, and prelims is often decided by a few marks in a twenty minute section. Questions here follow the IBPS PO, IBPS Clerk, SBI PO, SBI Clerk and RBI Grade B pattern across quantitative aptitude, reasoning ability, English language, general and banking awareness, and computer aptitude. Data interpretation sets are included in full rather than as single questions, since that is how they appear in the paper.
Study the data: A private bank's customer deposits grew from ₹8,50,000 crore (Q1 FY2024) to ₹9,25,000 crore (Q4 FY2024). What is the percentage growth in deposits?
If a bank's Statutory Liquidity Ratio (SLR) requirement is 18% and total deposits are ₹6,00,000 crore, what is the minimum amount it must invest in specified securities?
A bank maintains a Cash Reserve Ratio (CRR) of 4.5% as per RBI mandate. If its total liabilities are ₹10,00,000 crore, calculate the minimum cash reserve required.
A bank's Loan-to-Deposit (LTD) ratio increased from 78% in FY2023 to 82% in FY2024. What does this indicate?
Answer: A
LTD ratio measures advances as a percentage of deposits. An increase from 78% to 82% means the bank is lending more aggressively relative to deposits, which could indicate higher credit expansion or lower deposit growth.
Q.126Easy
A bank reports Operating Profit of ₹8,500 crore and Provisions & Contingencies of ₹2,100 crore. Calculate the Pre-tax Profit.
Answer: A
Pre-tax Profit = Operating Profit - Provisions & Contingencies = 8,500 - 2,100 = ₹6,400 crore. Provisions are deducted before arriving at pre-tax profit.
Q.127Easy
A bank's Total Income grew by 18% YoY while Operating Expenses grew by 24% YoY. What does this indicate about Cost-to-Income Ratio?
Answer: B
When operating expenses grow faster (24%) than total income (18%), the Cost-to-Income Ratio deteriorates, indicating reduced operational efficiency. A lower C/I ratio is preferable.
Q.128Easy
A bank's Liquidity Coverage Ratio (LCR) for the quarter is reported as 145%. What does this indicate about regulatory compliance?
Answer: B
RBI's minimum LCR requirement is 100%, to be maintained on a daily basis. At 145%, the bank is compliant with a comfortable liquidity buffer of 45% above the minimum.
Q.129Easy
A bank's Interest Earned increased by ₹850 crore while Interest Expended increased by ₹620 crore. What is the impact on Net Interest Income (NII)?
Answer: A
NII = Interest Earned - Interest Expended. If Interest Earned increases by ₹850 crore and Interest Expended increases by ₹620 crore, the net increase in NII = 850 - 620 = ₹230 crore.
Q.130Easy
A bank's efficiency ratio (operating expenses to operating income) is 42%. What does this indicate about the bank's operational health?
Answer: A
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.
Q.131Easy
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?
According to RBI guidelines 2024, what is the minimum Common Equity Tier 1 (CET1) ratio required for Scheduled Commercial Banks?
Answer: B
Under Basel III framework as implemented by RBI in 2024, the minimum CET1 ratio for SCBs is 6.5%, with an additional buffer requirement
Q.133Easy
A bank's Cost to Income Ratio decreased from 48% to 42% in FY2024. This indicates:
Answer: B
Lower Cost to Income Ratio indicates better operational efficiency as operating costs are lower relative to income generated
Q.134Easy
If a bank's Tier-II Capital is ₹45,000 crore and total Risk-Weighted Assets are ₹6,00,000 crore, calculate the Tier-II Capital Ratio:
Answer: C
Tier-II Capital Ratio = (Tier-II Capital / RWA) × 100 = (45,6000,00,000) × 100 = 7.5%
Q.135Easy
As per RBI's Monetary Policy 2024, what is the current Repo Rate (as of latest announcement)?
Answer: C
The RBI Repo Rate stands at 6.5% as per the latest Monetary Policy Committee decision in 2024
Q.136Easy
Which regulatory body in India is responsible for issuing Unified Payment Interface (UPI) guidelines and overseeing digital banking infrastructure?
Answer: B
The Reserve Bank of India (RBI) is the primary regulator responsible for UPI guidelines, digital banking infrastructure, and payment system oversight
Q.137Easy
Which of the following is NOT a component of Basel III capital framework adopted by RBI?
Answer: C
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.
Q.138Easy
A bank's Asset Quality Ratio improved from 2.1% to 1.8% in FY 2024. What does this indicate?
Answer: B
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.
Q.139Easy
Bank B's Cost-to-Income Ratio decreased from 48% to 44% between Q2 and Q3 2024. What is the implication for operational efficiency?
Answer: B
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.
Q.140Easy
Which regulatory body is responsible for regulating Cooperative Banks in India?
Answer: B
Cooperative Banks are regulated jointly by RBI (for scheduled cooperative banks) and respective State Governments under dual regulatory framework in India.
