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

🔥 PLATINUM SERIES 2.0 | VOL. 184

📅 29 SEPTEMBER 2026 | TUESDAY

🎯 TARGET EXAMS

IBPS PO • SBI PO • IBPS RRB • RBI • NABARD

⚡ 20 QUESTIONS | 20 MARKS | 15–18 MINUTES

❌ NEGATIVE MARKING: 0.25 MARK FOR EACH WRONG ANSWER

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🔥 TODAY'S INTELLIGENCE FOCUS

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💰 Capital Adequacy & Basel Framework

📊 Asset Quality & Provisioning

💧 Liquidity Management & VRRR

📈 ALM & Interest-Rate Risk

🏦 Investment Portfolio & Market Risk

🌾 Priority Sector Lending

🏭 MSME & Working Capital

🔐 KYC / CKYCR / AML

💳 UPI & Digital Payments

📊 Credit Information

🛡️ Operational Risk & Internal Controls

🧠 Current Banking Intelligence

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🔥 SECTION A — INTELLIGENCE TEST

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Q1. A bank has CET1 capital of ₹900 crore, Additional Tier 1 capital of ₹150 crore and Tier 2 capital of ₹250 crore against risk-weighted assets of ₹10,000 crore. Ignoring regulatory deductions, its total CRAR is:

A. 11%

B. 12%

C. 13%

D. 14%

E. 15%

Q2. A bank's eligible regulatory capital remains unchanged while its risk-weighted assets rise substantially because its portfolio shifts toward higher-risk exposures. Which consequence is most directly expected:

A. CRAR will tend to decline

B. CRAR will necessarily increase

C. LCR will automatically increase

D. Gross NPA ratio will automatically decline

E. NSFR will automatically become 100%

Q3. An MSME reports 20% growth in sales, but its receivables rise by 45% and inventory by 35%. Its operating cycle also lengthens materially. Which issue should the lender investigate first:

A. Whether the additional sales are being converted into adequate operating cash flows

B. Whether the higher turnover automatically justifies a higher working-capital limit

C. Whether collateral can replace cash-flow assessment

D. Whether the borrower's credit score must necessarily have improved

E. Whether the account should automatically be classified as fraudulent

Q4. A bank's GNPA ratio falls sharply after substantial write-offs, but fresh slippages remain elevated. Which interpretation is most appropriate:

A. The bank has eliminated its credit risk

B. The lower GNPA ratio alone proves that asset quality has improved

C. Write-offs are equivalent to cash recoveries

D. Asset quality should be assessed using GNPA along with slippages, recoveries, upgrades and write-offs

E. Fresh slippages become irrelevant once GNPA declines

Q5. A bank has a large positive one-year interest-rate-sensitive asset gap. If market interest rates rise, which area requires particular attention:

A. Only operational risk

B. Only cyber risk

C. The effect of repricing on net interest income and interest-rate risk

D. Only fraud risk

E. Only priority-sector compliance

Q6. A bank finances a substantial portion of long-term assets through short-term wholesale borrowings requiring frequent rollover. Which risk is most directly indicated:

A. Nomination risk

B. Structural liquidity and funding risk

C. Settlement-finality risk

D. Documentation risk

E. Locker-management risk

Q7. A bank has High-Quality Liquid Assets of ₹1,200 crore and stressed net cash outflows of ₹1,000 crore over the prescribed LCR horizon. Ignoring regulatory adjustments, its simplified LCR is:

A. 100%

B. 110%

C. 120%

D. 125%

E. 130%

Q8. A bank has Available Stable Funding of ₹9,000 crore and Required Stable Funding of ₹10,000 crore. Ignoring other adjustments, its simplified NSFR is:

A. 80%

B. 90%

C. 95%

D. 100%

E. 110%

Q9. An MSME requests enhancement of its working-capital limit. Inventory has increased sharply, receivables have stretched and the creditors' payment period has shortened. Which approach is most appropriate:

A. Approve the enhancement because inventory has increased

B. Assess the revised operating cycle, projected cash flows, drawing power and genuine working-capital requirement

C. Ignore receivables because they are current assets

D. Rely entirely on collateral value

E. Treat turnover growth as sufficient evidence of repayment capacity

Q10. A loan is proposed for classification under Priority Sector Lending merely because its amount falls below a particular monetary threshold. What should the bank verify:

A. Only the borrower's credit score

B. Only the collateral value

C. Only the interest rate

D. Whether the applicable PSL category, purpose and prescribed eligibility conditions are satisfied

E. Whether the borrower maintains a current account

Q11. A corporate customer's ownership structure contains several holding companies and individual shareholders across multiple layers. Which KYC consideration is most important:

A. Identifying only the authorised signatory

B. Obtaining only the registered office address

C. Identifying and verifying the beneficial owner(s) as required under applicable KYC norms

D. Obtaining only the latest balance sheet

E. Verifying only the company's annual turnover

Q12. A customer's account, historically used for domestic business receipts, suddenly receives multiple unrelated credits followed by rapid outward transfers. What should the bank primarily do:

A. Ignore the pattern because individual transactions are small

B. Close the account immediately without examination

C. Inform the customer that money laundering has been conclusively established

D. Treat the transactions as normal if sufficient balance is maintained

E. Assess the activity against the customer's profile, purpose and available information and escalate where warranted

Q13. A customer receives a call stating that a failed UPI transaction will be refunded only if the customer enters the UPI PIN. What is the safest response:

A. Enter the PIN if the caller knows the transaction amount

B. Share the OTP but not the PIN

C. Enter the PIN after verifying the caller's mobile number

D. Refuse to disclose credentials and contact the bank or service provider through an authorised channel

E. Follow the instructions if the amount involved is small

Q14. A bank discovers that an incorrect overdue amount has been reported to a Credit Information Company. What should be the immediate control response:

A. Verify the underlying records and initiate correction through the prescribed process

B. Wait for the next annual reporting cycle

C. Close the borrower's account

D. Classify the borrower as a wilful defaulter

E. Ask the borrower to approach another lender

Q15. Internal audit finds that the same employee can create a beneficiary, initiate a payment and approve that payment using privileged access. Which control weakness is most directly involved:

A. Liquidity mismatch

B. Segregation of duties and privileged-access control

C. Interest-rate risk

D. Priority-sector classification

E. Capital adequacy

Q16. A bank holds a conventional fixed-rate bond portfolio. Market yields rise sharply, while credit quality and other relevant factors remain unchanged. What is the most likely immediate market-value effect:

A. Bond prices generally rise

B. Bond prices remain unchanged

C. Bond prices generally decline

D. Bond prices automatically become equal to face value

E. Bond prices are unaffected until maturity

Q17. In the RBI's overnight VRRR auction conducted on 23 September 2026, the notified amount was ₹75,000 crore and the amount accepted was ₹75,026 crore at a cut-off rate of 5.24%. What was the primary monetary-management objective of the operation:

A. Permanent recapitalisation of banks

B. Absorption of surplus banking-system liquidity for the operation period

C. Creation of additional customer deposits

D. Reduction of banks' risk-weighted assets

E. Conversion of deposits into regulatory capital

Q18. A bank holds securities belonging to different regulatory investment classifications. Which principle should govern their valuation:

A. Every security must be carried at face value

B. Market movements can always be ignored until maturity

C. All securities must be valued using one uniform methodology

D. Valuation should follow the methodology applicable to the relevant investment classification

E. Valuation is required only when the security is sold

Q19. A bank records repeated operational losses from the same manual process across several branches. Which management response is most appropriate:

A. Stop reporting individual incidents

B. Treat every loss as an isolated event

C. Remove the control generating the exceptions

D. Wait until the cumulative loss becomes material

E. Identify the root cause, strengthen the control, assign accountability and monitor remediation

Q20. Under the UPI MDR framework scheduled from 15 October 2026, specified Person-to-Merchant transactions above ₹2,000 are subject to the new MDR regime. Following the Supreme Court proceedings of 28 September 2026, which statement is correct:

A. The Court permanently cancelled the framework

B. The framework applies equally to all P2P UPI transfers

C. The Court granted an interim stay until final judgment

D. The framework was withdrawn by NPCI

E. The Court declined interim stay and sought responses from the concerned authorities

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🗝️ ANSWER KEY

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Q1.C

Q2.A

Q3.A

Q4.D

Q5.C

Q6.B

Q7.C

Q8.B

Q9.B

Q10.D

Q11.C

Q12.E

Q13.D

Q14.A

Q15.B

Q16.C

Q17.B

Q18.D

Q19.E

Q20.E

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🧠 IBR QUICK REVISION

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💰 1. CRAR

CRAR = Eligible Regulatory Capital ÷ Risk-Weighted Assets × 100

Q1:

₹900 + ₹150 + ₹250 = ₹1,300 crore

₹1,300 ÷ ₹10,000 × 100 = 13%

🎯 CAPITAL ÷ RWA → CRAR

📊 2. RWA & CAPITAL ADEQUACY

If RWA increases while eligible capital remains unchanged, the capital ratio tends to decline.

🎯 RWA ↑ + CAPITAL CONSTANT → CRAR ↓

📈 3. CREDIT MONITORING

Sales growth is not sufficient evidence of financial strength.

Watch:

Sales ↑ + Receivables ↑↑ + Inventory ↑↑ + Operating Cycle ↑

🎯 TURNOVER ≠ CASH FLOW

📊 4. ASSET QUALITY

GNPA must be analysed alongside:

Slippages + Recoveries + Upgrades + Write-offs

🎯 ONE RATIO ≠ COMPLETE ASSET-QUALITY PICTURE

📈 5. ALM

Repricing mismatches expose banks to interest-rate risk.

🎯 REPRICING GAP → NII / ECONOMIC-VALUE IMPACT

💧 6. LCR

LCR = HQLA ÷ Stressed Net Cash Outflows

Q7:

₹1,200 ÷ ₹1,000 × 100 = 120%

🎯 LCR → SHORT-TERM LIQUIDITY

🏦 7. NSFR

NSFR = Available Stable Funding ÷ Required Stable Funding

Q8:

₹9,000 ÷ ₹10,000 × 100 = 90%

🎯 NSFR → STRUCTURAL FUNDING

🌾 8. PSL

A loan does not become PSL merely because its amount is small.

🎯 CATEGORY + PURPOSE + CONDITIONS

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🏆 5-MINUTE POST-MOCK ANALYSIS

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📌 SCORE: ____ / 20

📌 WRONG: ____

📌 UNATTEMPTED: ____

📌 CONCEPTUAL ERRORS: ____

📌 CARELESS ERRORS: ____

📌 TWO-OPTION CONFUSIONS: ____

📌 CURRENT-AFFAIRS ERRORS: ____

🎯 TOP 2 WEAK AREAS

📚 ACTION: Revise both concepts before attempting tomorrow's mock.

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📊 SCORE GUIDE

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🔥 18–20 → EXCELLENT COMMAND

🟢 16–17 → STRONG PERFORMANCE

🟡 13–15 → GOOD — REVISE WEAK AREAS

🟠 10–12 → CONCEPT REVISION REQUIRED

🔴 BELOW 10 → STRENGTHEN CORE CONCEPTS

🎯 IBR PRACTICE TARGET: 18+

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📢 IBR DAILY PRACTICE CHALLENGE

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🎯 Attempt today's mock within 15–18 minutes.

📝 Record your score.

🔍 Identify your TOP 2 weaknesses.

📚 Revise them today.

🔥 Return tomorrow for the next IBR Intelligence Mock.

ONE MOCK A DAY.

🏦 THAT IS THE IBR INTELLIGENCE APPROACH.

🎯 READ SMART • THINK BANKING • ANSWER INTELLIGENTLY

— INDIAN BANKING RADAR (IBR)