INDIAN BANKING RADAR (IBR) - IBPS PO MAINS — BANKING INTELLIGENCE MOCK

🔥 PLATINUM SERIES 2.0 | VOL. 221

📅 THURSDAY, 5 NOVEMBER 2026

🎯 TARGET EXAMINATIONS

IBPS PO Mains • SBI PO • Other Banking Examinations

📝 20 QUESTIONS | 20 MARKS | 15 MINUTES

📊 Basel III • Capital Adequacy • Liquidity Management • NPA Classification • Recovery Mechanisms • Insolvency Resolution • Factoring • Treasury Operations • Bond Valuation • ALM • Derivatives • International Banking • Bank Guarantees • Customer Protection

━━━━━━━━━━━━━━━━━━━━

SECTION I — ADVANCED BANKING INTELLIGENCE MCQs

Q1. A bank reports the following regulatory capital and risk-weighted assets:

Common Equity Tier 1 (CET1): ₹650 crore

Additional Tier 1 (AT1): ₹150 crore

Tier 2 Capital: ₹200 crore

Risk-Weighted Assets: ₹10,000 crore

What is the bank's Capital to Risk-Weighted Assets Ratio (CRAR):

A. 6.5%.

B. 8%.

C. 9%.

D. 10%.

E. 11.5%.

Q2. A commercial bank has a CET1 ratio of 6.5% against risk-weighted assets. Under the Basel III framework applicable to Indian commercial banks, the minimum CET1 requirement is 5.5%, and the Capital Conservation Buffer is 2.5%. What is the bank's actual CET1 capital held above the minimum CET1 requirement:

A. 0.5% of RWA.

B. 1% of RWA.

C. 1.5% of RWA.

D. 2.5% of RWA.

E. 3% of RWA.

Q3. During a liquidity stress assessment, a bank has eligible High Quality Liquid Assets (HQLA) of ₹1,500 crore and projected total net cash outflows over the next 30 calendar days of ₹1,200 crore. What is its Liquidity Coverage Ratio (LCR):

A. 80%.

B. 100%.

C. 110%.

D. 120%.

E. 125%.

Q4. A bank reports Available Stable Funding (ASF) of ₹840 crore and Required Stable Funding (RSF) of ₹1,000 crore. Which conclusion is correct under the Net Stable Funding Ratio (NSFR) framework:

A. NSFR is 84%, indicating a shortfall against the prescribed 100% minimum.

B. NSFR is 100%, indicating full compliance.

C. NSFR is 116%, indicating excess stable funding.

D. NSFR is 84%, indicating excess liquidity.

E. NSFR cannot be calculated without risk-weighted assets.

Q5. A term loan instalment became due on 1 August. The borrower failed to repay the overdue amount, and it continued to remain overdue beyond 90 days. On 1 November, the bank runs its applicable day-end classification process. Assuming no applicable exception, what is the appropriate classification:

A. Standard Asset.

B. SMA-0.

C. SMA-1.

D. SMA-2.

E. Non-Performing Asset.

Q6. A cash credit account has an outstanding balance below the sanctioned drawing power. However, no credits have been received continuously for 90 days. How should the account be treated under RBI's out-of-order criteria:

A. Standard, because the balance is within the drawing power.

B. SMA-0, irrespective of the period.

C. Out of order, and consequently classified as NPA if the prescribed conditions are met.

D. Automatically written off.

E. Doubtful Asset without passing through NPA classification.

Q7. A bank's advance has already been classified as an NPA and has remained in the substandard category for 13 months. What should be its subsequent classification under the conventional asset classification framework:

A. Standard Asset.

B. Doubtful Asset.

C. Loss Asset automatically.

D. SMA-2.

E. Written-off Asset.

Q8. A secured creditor issues a demand notice under Section 13(2) of the SARFAESI Act, 2002. The borrower fails to discharge the liability within the stipulated period. What is the minimum period ordinarily allowed before the secured creditor can proceed with measures under Section 13(4):

A. 15 days.

B. 30 days.

C. 45 days.

D. 60 days.

E. 90 days.

Q9. An operational creditor intends to initiate the Corporate Insolvency Resolution Process (CIRP) against a corporate debtor under the Insolvency and Bankruptcy Code, 2016. After delivering the demand notice or invoice demanding payment, what is the statutory period ordinarily available to the corporate debtor to bring to the notice of the operational creditor the existence of a dispute or repay the unpaid operational debt:

A. 5 days.

B. 10 days.

C. 15 days.

D. 30 days.

E. 60 days.

Q10. A factoring company purchases a business's trade receivables under a with-recourse arrangement. The buyer subsequently defaults on payment. Which statement best describes the arrangement:

A. The factor must absorb every credit loss without recourse.

B. The seller is automatically discharged from all obligations.

C. The factor cannot recover the unpaid amount from the seller.

D. The arrangement converts receivables into equity.

E. The factor may have recourse to the seller in accordance with the contractual terms.

Q11. A 91-day Treasury Bill with a face value of ₹100 is purchased for ₹98 and redeemed at face value on maturity. Using the investment-price basis and a 365-day year, what is the approximate annualised investment yield:

A. 6.50%.

B. 7.25%.

C. 8.18%.

D. 9.50%.

E. 10.25%.

Q12. A bond portfolio has a modified duration of 4.2 years. If market yield increases by 50 basis points, what is the approximate percentage change in the bond portfolio's price, assuming a small yield movement and ignoring convexity:

A. 2.1% increase.

B. 4.2% decrease.

C. 1.05% increase.

D. 2.1% decrease.

E. 4.2% increase.

Q13. A bank reports the following figures for a financial year:

Interest income: ₹1,250 crore.

Interest expenditure: ₹800 crore.

Average interest-earning assets: ₹15,000 crore.

What is the bank's Net Interest Margin (NIM):

A. 2%.

B. 2.5%.

C. 3%.

D. 3.5%.

E. 4%.

Q14. A bank's Asset-Liability Management Committee identifies the following repricing position in a particular time bucket:

Rate-sensitive assets: ₹6,000 crore.

Rate-sensitive liabilities: ₹7,500 crore.

Assuming both assets and liabilities reprice fully and simultaneously within the relevant period, what is the approximate impact on Net Interest Income (NII) if interest rates increase by 1 percentage point:

A. NII increases by ₹15 crore.

B. NII decreases by ₹15 crore.

C. NII increases by ₹75 crore.

D. NII decreases by ₹60 crore.

E. No impact on NII.

Q15. A bank maintains eligible HQLA of ₹1,800 crore against projected 30-day net cash outflows of ₹1,200 crore. What is its LCR, and how does it compare with the generally prescribed minimum:

A. 100%; exactly at the minimum.

B. 110%; above the minimum.

C. 125%; above the minimum.

D. 150%; above the minimum.

E. 180%; above the minimum.

Q16. A bank's Available Stable Funding is ₹900 crore, while its Required Stable Funding is ₹1,000 crore. What additional stable funding would it need to reach the minimum NSFR of 100%, assuming RSF remains unchanged:

A. ₹50 crore.

B. ₹75 crore.

C. ₹100 crore.

D. ₹125 crore.

E. ₹200 crore.

Q17. An Indian importer is concerned that the US dollar may appreciate against the rupee before a payment falls due. It purchases a foreign exchange option giving it the right, but not the obligation, to buy dollars at a predetermined exchange rate. Which statement is correct:

A. The importer is purchasing a currency call option on the US dollar.

B. The importer is entering into a compulsory spot transaction.

C. The importer is entering into an interest-rate swap.

D. The importer is selling a dollar put option.

E. The importer is entering into a currency futures contract with no market risk.

Q18. An Indian bank maintains an account with a foreign correspondent bank in US dollars. From the perspective of the Indian bank, this account is known as:

A. Vostro Account.

B. Loro Account.

C. Escrow Account.

D. Suspense Account.

E. Nostro Account.

Q19. A bank issues an unconditional and irrevocable bank guarantee in favour of a beneficiary. The beneficiary invokes the guarantee in accordance with its terms and within its validity period. Which principle generally governs the bank's obligation:

A. The bank can refuse payment merely because the underlying contract is disputed.

B. The bank must honour a valid invocation in accordance with the guarantee terms, subject to recognised legal exceptions.

C. The bank must first obtain the applicant's fresh consent.

D. The bank is required to verify the physical performance of the underlying contract before honouring the invocation.

E. The guarantee automatically becomes void when the applicant disputes the claim.

Q20. A customer submits a complaint concerning deficiency in service to a bank. The bank rejects the complaint, or the customer receives no satisfactory response within the prescribed period. Which statement correctly describes the RBI Integrated Ombudsman Scheme, 2021:

A. The customer must approach a civil court before approaching the Ombudsman.

B. The Scheme deals exclusively with complaints relating to loan defaults.

C. The Scheme is applicable only to public sector banks.

D. An eligible customer can approach the RBI Ombudsman without charge, subject to the Scheme's conditions and procedural requirements.

E. The Ombudsman automatically awards compensation in every complaint.

━━━━━━━━━━━━━━━━━━━━

SECTION II — ANSWER KEY

Q1.D

Q2.B

Q3.E

Q4.A

Q5.E

Q6.C

Q7.B

Q8.D

Q9.B

Q10.E

Q11.C

Q12.D

Q13.C

Q14.B

Q15.D

Q16.C

Q17.A

Q18.E

Q19.B

Q20.D

━━━━━━━━━━━━━━━━━━━━

SECTION V — IBR READER ENGAGEMENT & CALLS TO ACTION

🔥 IBR PLATINUM CHALLENGE

Attempt all 20 questions in 15 minutes without referring to the answer key.

EVALUATE YOUR PERFORMANCE

18–20: Excellent — Strong Mains readiness.

15–17: Very Good — Strong conceptual understanding.

12–14: Needs Improvement — Revise key banking concepts.

Below 12: Strengthen fundamentals and practise more.

━━━━━━━━━━━━━━━━━━━━

🏦 INDIAN BANKING RADAR (IBR)

Banking Knowledge. Competitive Edge.

📘 Daily Banking & Economy Intelligence

🎯 IBPS PO • SBI PO • IBPS CSA • AFO • NABARD • RBI

🌐 Learn. Practise. Analyse. Excel.

🔥 IBR PLATINUM SERIES 2.0

Preparing Bankers for the Next Level!