Bank PO / Clerk / RBI - MCQ Practice Questions

Basel III's LCR requirement mandates that HQLA should cover at least 100% of net cash outflows over a 30-day stressed scenario.

Gross NPA Ratio = (Gross NPA / Total Advances) × 100 = (8,$\frac{000}{1}$,00,000) × 100 = 8%

Subordinated debt is classified as Tier 2 capital. Tier 1 consists of CET1 and AT1 components including common equity and retained earnings.

Growth = [(2,87,500 - 2,50,000) / 2,50,000] × 100 = [37,$\frac{500}{2}$,50,000] × 100 = 15%

RBI's PSL guidelines mandate a minimum 18% of Adjusted Net Bank Credit (ANBC) to agriculture, with 8% to small and marginal farmers.

A lower Cost-to-Income ratio indicates better operational efficiency. The bank generates more income per unit of cost, suggesting improved profitability.

As per RBI's 2015 norms, any loan with outstanding principal or interest remaining unpaid for 90 days (3 months) is classified as NPA.

LTD Ratio = (Total Loans / Total Deposits) × 100. Therefore, Total Loans = ($\frac{78}{100}$) × 5,00,000 = ₹3,90,000 crore

Return on Assets (ROA) measures how efficiently a bank uses its assets to generate profit. It's calculated as Net Income / Total Assets.

The Statutory Liquidity Ratio is currently maintained at 19.5% of net demand and time liabilities, as per RBI guidelines.

Cash Credit is a short-term credit facility provided to businesses for meeting their working capital requirements on a revolving basis.

PSL mandates banks to lend a certain percentage of advances to priority sectors like agriculture, SMEs, and education for inclusive growth.

Capital Adequacy Ratio (CAR) is a regulatory requirement ensuring banks maintain sufficient capital to absorb potential losses from their risk-weighted assets.

A higher NPA ratio indicates that a larger portion of the bank's loans are in default or arrears, reflecting deteriorating asset quality and credit risk.

SEBI (Securities and Exchange Board of India) regulates and develops the securities market, protecting investor interests and ensuring fair market practices.

Bajaj Finance Limited is an NBFC that provides financial services like loans and deposits but doesn't have a banking license like commercial banks.

RBI mandates a minimum CRAR of 10.5% for scheduled commercial banks under Basel III framework, which includes capital buffers and conservation requirements.

Goldman Sachs is an investment bank, not a credit rating agency. CRISIL, ICRA, Care Ratings, and Brickwork Ratings are recognized credit rating agencies by SEBI.

DICGC covers deposits up to Rs. 5 lakh per depositor per bank as per the latest amendment effective from 2024, increased from the previous Rs. 1 lakh.

The Kelkar Committee (2003) recommended the implementation of GST in India, which was later formally implemented on July 1, 2017.