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

🔥 PLATINUM SERIES 2.0 | VOL. 200

📅 16 OCTOBER 2026 | FRIDAY

🎯 TARGET: IBPS PO • SBI PO • IBPS RRB

📝 20 QUESTIONS | 20 MARKS

⏱️ TIME LIMIT: 20 MINUTES

❌ NEGATIVE MARKING: 0.25 PER WRONG ANSWER

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📘 SECTION 1: MOCK TEST

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Q1. A bank earns interest income of ₹840 crore and incurs interest expenses of ₹600 crore. Its average interest-earning assets are ₹4,000 crore. What is its Net Interest Margin (NIM):

A. 4%

B. 5%

C. 6%

D. 7%

E. 8%

Q2. A bank has eligible regulatory capital of ₹1,350 crore and risk-weighted assets of ₹12,000 crore. What is its CRAR, before additional buffers:

A. 11.25%

B. 10.50%

C. 12.50%

D. 9.75%

E. 13.50%

Q3. A term-loan instalment remains overdue for 95 days. Assuming the general RBI IRAC norms apply and no special rule changes the result, how should the account ordinarily be classified:

A. Standard asset

B. SMA-0

C. SMA-1

D. SMA-2

E. Non-Performing Asset (NPA)

Q4. A bank has gross advances of ₹9,000 crore and gross NPAs of ₹540 crore. What is its Gross NPA Ratio:

A. 4%

B. 6%

C. 5%

D. 7%

E. 8%

Q5. A project generates Cash Flow Available for Debt Service (CFADS) of ₹210 lakh. Scheduled principal and interest payments total ₹150 lakh. What is its DSCR:

A. 1.10

B. 1.20

C. 1.30

D. 1.40

E. 1.50

Q6. A viable micro enterprise seeks machinery finance but lacks sufficient collateral. It may qualify for an applicable credit-guarantee scheme. What should the bank do:

A. Sanction the loan without appraisal

B. Assess viability, repayment capacity and scheme eligibility before deciding

C. Reject the proposal solely for lack of immovable property

D. Treat the guarantee as a grant to the borrower

E. Ignore existing liabilities

Q7. A bank's liabilities reprice faster than its assets. Interest rates rise, increasing funding costs before its lending yields adjust. What is the likely consequence:

A. Credit risk automatically disappears

B. NIM must increase

C. Liquidity risk is eliminated

D. All bond prices rise

E. NIM may be compressed

Q8. A bank has current deposits of ₹1,200 crore, savings deposits of ₹2,800 crore and total deposits of ₹16,000 crore. What is its CASA Ratio:

A. 25%

B. 20%

C. 30%

D. 35%

E. 40%

Q9. A bank holds eligible High-Quality Liquid Assets (HQLA) of ₹1,050 crore. Its prescribed net cash outflows over the 30-day stress period are ₹875 crore. What is its LCR:

A. 100%

B. 110%

C. 120%

D. 125%

E. 140%

Q10. A bank issues a financial guarantee for a customer's obligation. The guarantee has not been invoked. How is the obligation generally treated before invocation:

A. Customer deposit

B. Equity investment

C. Fully disbursed term loan

D. Contingent liability

E. Government security

Q11. An employee can initiate, approve and reconcile a high-value payment. Which control would most directly reduce the associated operational risk:

A. Segregation of duties and independent authorisation

B. Increasing the employee's transaction limit

C. Removing audit logs

D. Disabling transaction alerts

E. Allowing self-approval

Q12. An MSME supplies goods to a large buyer and holds eligible accepted invoices. Which platform can facilitate financing of these trade receivables:

A. CERSAI

B. CKYCR

C. NDS-OM

D. TReDS

E. DICGC

Q13. Which statement correctly describes an exclusion under the SARFAESI Act, 2002:

A. All bank loans are covered without exception

B. Banks can ignore all statutory procedures

C. Section 31(i) excludes security interests created in agricultural land from the Act's application

D. Default automatically transfers ownership of secured property

E. Borrowers have no legal remedies

Q14. An NPA borrower makes a partial payment, but the account still does not satisfy the applicable upgradation conditions. What should the bank do:

A. Upgrade the account immediately

B. Upgrade it based only on the borrower's promise

C. Ignore all subsequent repayments

D. Treat the account as permanently irrecoverable

E. Apply the relevant RBI IRAC requirements before considering upgradation

Q15. A bank reports net profit of ₹250 crore and average total assets of ₹12,500 crore. What is its Return on Assets (ROA):

A. 1%

B. 1.5%

C. 2%

D. 2.5%

E. 3%

Q16. For domestic commercial banks to which the general RBI Priority Sector Lending (PSL) target applies, what is the overall PSL target as a percentage of Adjusted Net Bank Credit (ANBC) or the Credit Equivalent of Off-Balance Sheet Exposures, whichever is higher:

A. 18%

B. 25%

C. 32%

D. 35%

E. 40%

Q17. A bank has a large share of its loan portfolio concentrated in one industry. A downturn in that industry affects many borrowers simultaneously. Which risk is most directly illustrated:

A. Settlement risk alone

B. Currency-printing risk

C. Cheque truncation risk

D. Concentration risk

E. Customer authentication risk

Q18. A bank detects a suspicious transaction that may be linked to money laundering. Which approach is appropriate:

A. Inform the customer that an STR is being filed

B. Follow applicable AML procedures, assess reporting obligations and avoid tipping off the customer

C. Delete the transaction record

D. Ignore the transaction if the customer is longstanding

E. Wait for a criminal conviction before taking any reporting action

Q19. A bank finances long-term assets mainly through short-term funding. If that funding cannot be renewed when due, the bank may struggle to meet its obligations. Which risk is most directly involved:

A. Market conduct risk alone

B. Cheque truncation risk

C. Liquidity risk arising from a maturity mismatch

D. Currency-printing risk

E. Deposit-insurance risk

Q20. A customer reports an unauthorised electronic banking transaction. What is the most appropriate initial response:

A. Register the complaint, preserve evidence, investigate promptly and guide the customer on securing the account

B. Reject the complaint without investigation

C. Delete transaction logs

D. Wait until the annual audit

E. Refuse to register the complaint

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Q1. C

Q2. A

Q3. E

Q4. B

Q5. D

Q6. B

Q7. E

Q8. A

Q9. C

Q10. D

Q11. A

Q12. D

Q13. C

Q14. E

Q15. C

Q16. E

Q17. D

Q18. B

Q19. C

Q20. A

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📖 SECTION 3: QUICK EXPLANATIONS

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Q1. C — 6%

NII = ₹840 − ₹600 = ₹240 crore.

NIM = 240 ÷ 4,000 × 100 = 6%.

Q2. A — 11.25%

CRAR = 1,350 ÷ 12,000 × 100 = 11.25%.

Q3. E — NPA

Under the general norm, a term loan is ordinarily classified as NPA when principal or interest remains overdue for more than 90 days, subject to applicable rules.

Q4. B — 6%

Gross NPA Ratio = 540 ÷ 9,000 × 100 = 6%.

Q5. D — 1.40 times

DSCR = 210 ÷ 150 = 1.40.

Q6. B

Assess viability, repayment capacity, liabilities and scheme eligibility. A credit guarantee does not replace appraisal.

Q7. E

If funding costs rise faster than asset yields, NIM may be compressed.

Q8. A — 25%

CASA = (1,200 + 2,800) ÷ 16,000 × 100 = 25%.

Q9. C — 120%

LCR = 1,050 ÷ 875 × 100 = 120%.

Q10. D

A bank guarantee is generally a contingent liability before invocation.

Q11. A

Segregation of duties and independent authorisation help prevent errors and fraud.

Q12. D — TReDS

TReDS facilitates financing or discounting of eligible MSME trade receivables.

Q13. C

Section 31(i) of the SARFAESI Act excludes security interests created in agricultural land from the Act's application.

Q14. E

A partial payment does not automatically justify upgrading an NPA. Applicable RBI IRAC conditions must be met.

Q15. C — 2%

ROA = 250 ÷ 12,500 × 100 = 2%.

Q16. E — 40%

The general overall PSL target for the specified category of domestic commercial banks is 40% of ANBC or the Credit Equivalent of Off-Balance Sheet Exposures, whichever is higher. Applicable bank-category rules and current RBI directions should be checked.

Q17. D

Concentration risk arises from excessive exposure to a borrower, group, sector or common risk source.

Q18. B

Follow applicable AML procedures and reporting obligations. Suspicious transaction reporting does not require a prior criminal conviction; tipping off must be avoided.

Q19. C

A maturity mismatch can create liquidity pressure if short-term funding cannot be renewed when obligations fall due.

Q20. A

Register the complaint, preserve evidence, investigate promptly and guide the customer on securing the account. Customer liability depends on applicable RBI directions and the facts of the case.

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⚠️ SECTION 4: EXAM TRAPS

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🔹 NIM uses average interest-earning assets.

🔹 CRAR = eligible capital ÷ RWA.

🔹 General term-loan NPA norm: more than 90 days overdue.

🔹 DSCR = CFADS ÷ debt service.

🔹 CASA includes current and savings deposits.

🔹 LCR covers prescribed 30-day net cash outflows.

🔹 A credit guarantee is not a grant.

🔹 A guarantee is generally contingent before invocation.

🔹 TReDS supports eligible MSME receivables financing.

🔹 SARFAESI contains statutory exclusions and procedural safeguards.

🔹 AML reporting must follow applicable requirements.

🔹 Maturity mismatch can create liquidity risk.

🔹 General overall PSL target covered here: 40%, subject to applicable bank-category rules.

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📊 SECTION 5: CHECK YOUR SCORE

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✅ Correct: +1

❌ Wrong: −0.25

➖ Unattempted: 0

Score = Correct answers − (0.25 × wrong answers)

🏆 18–20: Excellent

🌟 16–17.75: Strong

📘 13–15.75: Revise weak areas

🛠️ 10–12.75: Strengthen fundamentals

🔄 Below 10: Revisit core concepts

These are practice benchmarks, not official IBPS cut-offs.

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⚡ SECTION 6: 60-SECOND RECALL

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📌 NIM → NII ÷ average interest-earning assets

📌 CRAR → eligible capital ÷ RWA

📌 Gross NPA Ratio → Gross NPAs ÷ gross advances

📌 DSCR → CFADS ÷ debt service

📌 CASA → current + savings deposits ÷ total deposits

📌 LCR → eligible HQLA ÷ prescribed 30-day net cash outflows

📌 MSME receivables → TReDS

📌 NPA upgradation → applicable IRAC conditions

📌 AML → identify, assess, document and report as required

📌 PSL → apply the target relevant to the bank category

📌 Liquidity risk → ability to meet obligations when due

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🚀 SECTION 7: YOUR ACTION ZONE

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✅ ATTEMPT within 20 minutes.

🧮 CALCULATE your score honestly.

🔍 ANALYSE every wrong answer.

📚 REVISE the concepts you missed.

📲 SHARE your score and challenge a fellow aspirant.

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📚 SECTION 8: JOIN IBR PREMIUM

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🔥 SIX EXAM-PREPARATION PROGRAMMES

1. IBPS PRELIMS

• Reasoning • Quantitative Aptitude • English

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• Banking Awareness • Financial Intelligence

• Advanced MCQs • Case-Based Questions

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• Agricultural Finance

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5. JAIIB

• Banking Concepts • Rules

• Practical Applications

6. CAIIB

• Advanced Banking • Risk Management

• Professional Knowledge

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