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

🔥 PLATINUM SERIES 2.0 | VOL. 197

📅 13 OCTOBER 2026 | TUESDAY

🎯 TARGET: IBPS PO • SBI PO • IBPS RRB

📝 20 QUESTIONS | 20 MARKS

⏱️ TIME: 20 MINUTES

❌ NEGATIVE MARKING: 0.25 PER WRONG ANSWER

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🔥 THE INTELLIGENCE CHALLENGE

DATA → FORMULA → CALCULATE → ANALYSE → DECIDE

🎯 TARGET SCORE: 18+

This advanced practice set tests financial analysis, credit appraisal, treasury operations, profitability, liquidity management, banking technology and risk-based decision-making.

INSTRUCTIONS

Attempt all 20 questions before checking the answer key.

Select the single best answer.

Each correct answer carries 1 mark.

Each wrong answer attracts a penalty of 0.25 marks.

Apply the assumptions stated in each question.

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🔥 SECTION A — ADVANCED INTELLIGENCE TEST

Q1. A bank evaluates a corporate exposure of ₹80 crore. The probability of default is estimated at 1.5% and loss given default at 45%. Assuming these estimates apply to the entire exposure, what is the expected credit loss:

A. ₹0.36 crore

B. ₹0.45 crore

C. ₹0.54 crore

D. ₹0.90 crore

E. ₹1.20 crore

Q2. A bank reports operating income of ₹1,250 crore and operating expenses of ₹725 crore. Using operating expenses divided by operating income, what is its cost-to-income ratio:

A. 58%

B. 52%

C. 62%

D. 45%

E. 60%

Q3. A project requires an initial investment of ₹200 lakh and generates ₹120 lakh at the end of each of the next two years. If the annual discount rate is 10%, what is the approximate net present value (NPV):

A. Negative ₹8.26 lakh

B. Zero

C. ₹18.26 lakh

D. ₹20.00 lakh

E. Positive ₹8.26 lakh

Q4. A company has current assets of ₹480 crore, including inventory of ₹150 crore and prepaid expenses of ₹30 crore. Its current liabilities are ₹300 crore. Using the conventional quick-ratio formula, what is the quick ratio:

A. 1.60:1

B. 1.00:1

C. 1.20:1

D. 0.75:1

E. 1.40:1

Q5. A bank has eligible regulatory capital of ₹1,800 crore and risk-weighted assets of ₹15,000 crore. It raises an additional ₹150 crore of eligible capital, while risk-weighted assets increase by ₹1,000 crore. What is the revised capital adequacy ratio:

A. 10.50%

B. 11.25%

C. 11.80%

D. 12.19%

E. 13.00%

Q6. For a particular repricing period, a bank has rate-sensitive assets of ₹2,400 crore and rate-sensitive liabilities of ₹3,000 crore. Both categories reprice fully within the period, and balances remain unchanged. If interest rates rise uniformly by 75 basis points, what is the approximate change in net interest income for that period, ignoring other effects:

A. Increase of ₹4.50 crore

B. Increase of ₹45 crore

C. Decrease of ₹4.50 crore

D. Decrease of ₹45 crore

E. No change

Q7. A bank has total deposits of ₹25,000 crore, comprising current-account deposits of ₹6,000 crore, savings-account deposits of ₹9,000 crore and other deposits of ₹10,000 crore. Current deposits decline by 5%, savings deposits increase by 8%, and other deposits remain unchanged. What is the revised CASA ratio:

A. Approximately 60.66%

B. 59.00%

C. 62.50%

D. 65.00%

E. 55.80%

Q8. A borrower generates annual cash flow available for debt servicing of ₹360 crore. Annual interest obligations are ₹50 crore and scheduled principal repayments are ₹190 crore. Assuming these are the complete debt-servicing obligations, what is the debt service coverage ratio (DSCR):

A. 1.20 times

B. 1.33 times

C. 1.40 times

D. 1.45 times

E. 1.50 times

Q9. The USD/INR exchange rate is ₹86.40 per US dollar, while EUR/USD is US$1.08 per euro. Assuming consistent quotations and no transaction costs, what is the implied EUR/INR exchange rate:

A. ₹80.00 per euro

B. ₹93.312 per euro

C. ₹92.40 per euro

D. ₹94.10 per euro

E. ₹95.04 per euro

Q10. A government bond with a face value of ₹100 is purchased for ₹97.50 and subsequently sold for ₹98.40. Ignoring accrued interest, transaction costs and taxes, what is the percentage capital gain on the purchase price:

A. 0.50%

B. 1.50%

C. 1.00%

D. Approximately 0.92%

E. 2.50%

Q11. A bank projects cash inflows of ₹1,100 crore and cash outflows of ₹1,460 crore over a specified seven-day period. It has an available, unencumbered liquidity buffer of ₹220 crore that can be used for these payments. Assuming no other funding sources, what is the remaining funding shortfall:

A. ₹140 crore

B. ₹220 crore

C. ₹360 crore

D. ₹80 crore

E. No shortfall

Q12. A bank's fraud-monitoring system identifies 2,500 suspicious payment attempts. Its controls prevent 72% from becoming successful transactions. Assume all remaining attempts succeed, with an average loss of ₹12,500 per successful transaction. What is the resulting total loss:

A. ₹72.00 lakh

B. ₹75.00 lakh

C. ₹87.50 lakh

D. ₹90.00 lakh

E. ₹1.00 crore

Q13. A company has an average inventory holding period of 72 days, a receivables collection period of 38 days and a payables payment period of 26 days. Using the conventional net operating-cycle formula, what is its net operating cycle:

A. 64 days

B. 72 days

C. 98 days

D. 110 days

E. 84 days

Q14. A bank obtains 45% of its funding at an annual cost of 4.8%, 35% at 6.2% and the remaining 20% at 8.5%. Assuming the funding proportions remain constant, what is the weighted average cost of funds:

A. 5.80%

B. 6.20%

C. 6.50%

D. 6.03%

E. 6.80%

Q15. A borrower reports sales growth of 18%, but receivables have increased by 35% and inventory by 28%. The borrower requests an enhancement of its working-capital limit. Which assessment is most appropriate:

A. Approve the enhancement automatically because sales have increased

B. Analyse receivable ageing, inventory movement, cash conversion and projected working-capital requirements before deciding

C. Reject the proposal automatically because receivables have increased

D. Assess only the value of fixed assets offered as collateral

E. Increase the limit solely on the basis of the previous year's sanction

Q16. A bank reports net profit of ₹180 crore and average shareholders' equity of ₹1,500 crore. Using net profit divided by average equity, what is its return on equity (ROE):

A. 12%

B. 10%

C. 15%

D. 8%

E. 18%

Q17. A fixed-income portfolio has a modified duration of 4.2 years. If its yield rises by 75 basis points, estimate the percentage change in market value using the duration approximation and ignoring convexity:

A. Increase of 3.15%

B. Decrease of 0.75%

C. Decrease of 4.20%

D. Decrease of approximately 3.15%

E. Increase of 3.15 percentage points in yield

Q18. A bank discovers that a privileged system administrator changed critical payment-system settings outside the approved change-management process. Which response provides the strongest basis for investigation and accountability:

A. Accept the administrator's verbal explanation without further review

B. Delete older logs to simplify the investigation

C. Preserve tamper-resistant logs, review privileged-access records and verify approval and change-management evidence

D. Permit shared administrator credentials to avoid delays

E. Disable alerts until the investigation is complete

Q19. A bank's net interest income increases from ₹410 crore to ₹451 crore. Its average interest-earning assets increase from ₹8,200 crore to ₹9,800 crore. Using net interest income divided by average interest-earning assets for both periods, which conclusion is correct:

A. NIM rises from 5.0% to 5.5%

B. NIM remains unchanged at 5.0%

C. NIM rises from 4.5% to 5.0%

D. NIM falls from 5.5% to 4.6%

E. NIM declines from 5.0% to approximately 4.60%, despite higher net interest income

Q20. A bank's individual exposures to three companies are within its internal borrower limits. However, all three companies belong to the same corporate group and depend heavily on the same industry. Which approach best addresses the resulting risk:

A. Treat the companies as completely independent because they have separate legal identities

B. Assess aggregate group exposure, common risk drivers, connected relationships and applicable concentration limits

C. Approve further lending because each individual exposure is within its limit

D. Assess only the highest-rated company in the group

E. Replace individual credit appraisal with a single group credit rating

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🗝️ ANSWER KEY

Q1. C

Q2. A

Q3. E

Q4. B

Q5. D

Q6. C

Q7. A

Q8. E

Q9. B

Q10. D

Q11. A

Q12. C

Q13. E

Q14. D

Q15. B

Q16. A

Q17. D

Q18. C

Q19. E

Q20. B

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🧠 IBR QUICK REVISION — HIGH-VALUE CONCEPTS

1. Expected Credit Loss

Expected loss = Exposure at default × Probability of default × Loss given default.

Q1: ₹80 crore × 1.5% × 45% = ₹0.54 crore.

2. Cost-to-Income Ratio

Operating expenses ÷ Operating income × 100.

Q2: ₹725 crore ÷ ₹1,250 crore × 100 = 58%.

3. Net Present Value

NPV = Present value of future cash inflows − Initial investment.

Q3: ₹120/1.10 + ₹120/1.21 − ₹200 = approximately ₹8.26 lakh positive.

4. Quick Ratio

(Current assets − Inventory − Prepaid expenses) ÷ Current liabilities.

Q4: (₹480 − ₹150 − ₹30) ÷ ₹300 = 1.00:1.

5. Capital Adequacy Ratio

CAR = Eligible regulatory capital ÷ Risk-weighted assets × 100.

Q5: ₹1,950 crore ÷ ₹16,000 crore × 100 = 12.19% approximately.

6. Repricing Gap

Repricing gap = Rate-sensitive assets − Rate-sensitive liabilities.

Q6: ₹2,400 − ₹3,000 = −₹600 crore.

Estimated NII impact = −₹600 crore × 0.75% = −₹4.50 crore.

7. CASA Ratio

CASA ratio = (Current deposits + Savings deposits) ÷ Total deposits × 100.

Q7: Revised CASA = ₹15,420 crore; revised total deposits = ₹25,420 crore.

CASA ratio = ₹15,420 ÷ ₹25,420 × 100 = 60.66% approximately.

8. Debt Service Coverage Ratio

DSCR = Cash flow available for debt servicing ÷ Total debt-service obligations.

Q8: ₹360 crore ÷ (₹50 crore + ₹190 crore) = 1.50 times.

9. Cross-Currency Calculation

EUR/INR = EUR/USD × USD/INR.

Q9: 1.08 × ₹86.40 = ₹93.312 per euro.

10. Bond Capital Gain

Capital gain percentage = (Selling price − Purchase price) ÷ Purchase price × 100.

Q10: (₹98.40 − ₹97.50) ÷ ₹97.50 × 100 = 0.92% approximately.

11. Liquidity Shortfall

Net outflow = Cash outflows − Cash inflows.

Q11: ₹1,460 − ₹1,100 − ₹220 = ₹140 crore shortfall.

12. Fraud-Loss Calculation

Successful transactions = 2,500 × 28% = 700.

Total loss = 700 × ₹12,500 = ₹87.50 lakh.

13. Net Operating Cycle

Inventory holding period + Receivables collection period − Payables payment period.

Q13: 72 + 38 − 26 = 84 days.

14. Weighted Average Cost of Funds

(45% × 4.8%) + (35% × 6.2%) + (20% × 8.5%) = 6.03%.

15. Working-Capital Assessment

Sales growth must be assessed alongside receivable ageing, inventory turnover, cash conversion and repayment capacity.

16. Return on Equity

ROE = Net profit ÷ Average shareholders' equity × 100.

Q16: ₹180 crore ÷ ₹1,500 crore × 100 = 12%.

17. Modified Duration

Approximate percentage price change = −Modified duration × Change in yield.

Q17: −4.2 × 0.0075 × 100 = −3.15% approximately.

18. Cybersecurity Controls

Preserve audit logs, establish individual accountability, verify approvals and investigate unauthorised privileged activity.

19. Net Interest Margin

NIM = Net interest income ÷ Average interest-earning assets × 100, using the stated simplified calculation.

Period 1: ₹410 ÷ ₹8,200 × 100 = 5.00%.

Period 2: ₹451 ÷ ₹9,800 × 100 = 4.60% approximately.

20. Group Concentration Risk

Assess connected exposures and common risk drivers alongside individual borrower limits. Separate legal identities do not eliminate correlated credit risk.

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📊 PERFORMANCE BENCHMARK

🔥 18–20 → EXCELLENT

🟢 16–17 → STRONG

🟡 13–15 → REVISE

🟠 10–12 → STRENGTHEN BASICS

🔴 BELOW 10 → REBUILD FUNDAMENTALS

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