Bank PO / Clerk / RBI - MCQ Practice Questions

According to Basel III framework implemented in India, what is the minimum Common Equity Tier 1 (CET1) ratio for banks?

A bank's Net Interest Margin (NIM) decreased from 3.2% to 2.8% YoY. If gross advances are ₹400,000 crore, what is the approximate impact on net interest income?

If a bank's loan-to-deposit ratio increased from 0.72 to 0.81 in one year, and deposits grew by 12%, approximately by what percentage did loans grow?

Study complex data: Bank A has ROA of 1.2% with assets of ₹5 lakh crore. Bank B has ROA of 0.9% with assets of ₹8 lakh crore. Which bank generated more absolute profit, and by how much?

A bank's Interest Coverage Ratio (ICR) is 3.5x. If interest expenses are ₹2,800 crore, what is the approximate profit before interest and taxes (EBIT)?

A bank's Total Assets grew from ₹18,00,000 crore to ₹19,80,000 crore. Simultaneously, its Total Liabilities increased from ₹17,10,000 crore to ₹18,81,000 crore. What is the growth rate of equity?

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 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).

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 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.

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

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?

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?

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

Examine the data: Bank X's Current Ratio (liquid assets to demand deposits) is 45%, while regulatory requirement is 80%. This indicates:

A bank's Commercial Advances showed CAR of 18.5%, Agricultural Advances CAR of 15.2%, and Consumer Advances CAR of 11.8%. Which segment carries the highest credit risk as per risk weighting?

Analyze quarterly trends: Bank Y's Net Interest Income grew 8% while Total Assets grew 12% QoQ. This implies:

Under RBI's Prompt Corrective Action (PCA) framework 2024, at what Capital Adequacy Ratio threshold does a bank enter PCA supervision?

A bank's Statutory Liquidity Ratio (SLR) requirement is 18%. If deposits are ₹10,00,000 crore and current SLR maintenance is ₹1,95,000 crore, calculate the deficit/surplus: