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.
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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.
