🌾 INDIAN BANKING RADAR (IBR) - IBPS PO MAINS MOCK TEST

🔥 PLATINUM SERIES 2.0 | VOL. 198 📅 14 OCTOBER 2026 | WEDNESDAY

🎯 TARGET: IBPS PO • SBI PO • IBPS RRB

📝 20 QUESTIONS | 20 MARKS ⏱️ TIME LIMIT: 20 MINUTES ❌ NEGATIVE MARKING: 0.25 MARK PER WRONG ANSWER

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🔥 THE BANKING INTELLIGENCE CHALLENGE

Test your ability to calculate, interpret financial indicators, assess risk and apply banking concepts to practical situations.

Instructions

Attempt all 20 questions before viewing the answer key.

Select the single best answer.

Correct answer: +1 mark.

Incorrect answer: −0.25 mark.

Unattempted answer: 0 marks.

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🔥 SECTION: ADVANCED PRACTICE

Q1. A bank has High-Quality Liquid Assets (HQLA) of ₹1,050 crore and projected net cash outflows of ₹840 crore over the prescribed 30-day stress period. Its Liquidity Coverage Ratio (LCR) is:

A. 120%

B. 125%

C. 130%

D. 133.33%

E. 150%

Q2. A borrower generates ₹540 crore in annual cash flow available for debt servicing. Its annual interest obligation is ₹60 crore, and scheduled principal repayment is ₹300 crore. The Debt Service Coverage Ratio (DSCR) is:

A. 1.20 times

B. 1.35 times

C. 1.40 times

D. 1.45 times

E. 1.50 times

Q3. A project requires an initial investment of ₹200 lakh and generates ₹130 lakh at the end of each of the next two years. At a 10% annual discount rate, its approximate net present value (NPV) is:

A. Negative ₹25.62 lakh

B. Zero

C. Positive ₹18.18 lakh

D. Positive ₹20 lakh

E. Positive ₹25.62 lakh

Q4. A government-security portfolio has a modified duration of 3.8 years. Market yields rise by 50 basis points. Ignoring convexity and other market effects, the approximate percentage change in portfolio value is:

A. Increase of 1.90%

B. Decrease of 0.50%

C. Decrease of 3.80%

D. Decrease of 1.90%

E. Increase of 3.80%

Q5. A company has interest-bearing debt of ₹360 crore and shareholders' equity of ₹240 crore. Its debt-equity ratio is:

A. 1.25:1

B. 1.50:1

C. 1.80:1

D. 2.00:1

E. 0.67:1

Q6. A bank assesses eligible stock at ₹16 crore and relevant creditors at ₹3 crore. The stipulated margin is 25% on the net eligible stock value. The drawing power is:

A. ₹9.75 crore

B. ₹10 crore

C. ₹12 crore

D. ₹13 crore

E. ₹6.50 crore

Q7. A bank's net interest income increases from ₹520 crore to ₹570 crore, while its average interest-earning assets increase from ₹10,400 crore to ₹12,000 crore. Using the simplified NIM calculation, which conclusion is correct?

A. NIM increases from 5% to 5.25%.

B. NIM remains unchanged at 5%.

C. NIM declines from 5% to 4.75%.

D. NIM declines from 5% to 4%.

E. NIM cannot be calculated from the given data.

Q8. A bank estimates exposure at default of ₹120 crore, probability of default of 2% and loss given default of 40%. Using the simplified expected credit loss model, the estimated expected credit loss is:

A. ₹0.48 crore

B. ₹0.60 crore

C. ₹0.80 crore

D. ₹0.96 crore

E. ₹1.20 crore

Q9. For this question, assume a bank's applicable priority-sector lending target is 40% of Adjusted Net Bank Credit (ANBC) of ₹15,000 crore. Its eligible priority-sector lending is ₹5,760 crore. The additional eligible lending needed to reach the assumed target is:

A. ₹120 crore

B. ₹200 crore

C. ₹240 crore

D. ₹300 crore

E. ₹600 crore

Q10. A company has an average inventory holding period of 65 days, a receivables collection period of 42 days and a payables payment period of 35 days. Its net operating cycle is:

A. 65 days

B. 72 days

C. 80 days

D. 107 days

E. 142 days

Q11. A bank initially has eligible regulatory capital of ₹2,200 crore and risk-weighted assets of ₹20,000 crore. It subsequently adds ₹100 crore of eligible capital, while its risk-weighted assets rise by ₹1,000 crore. Its revised capital adequacy ratio is approximately:

A. 10.50%

B. 11.00%

C. 10.95%

D. 12.00%

E. 11.50%

Q12. A fraud-monitoring system identifies 4,000 suspicious payment attempts. Its controls prevent 85% of these attempts from becoming successful transactions. If every remaining attempt succeeds and the average loss is ₹8,000 per transaction, the total loss is:

A. ₹32 lakh

B. ₹40 lakh

C. ₹45 lakh

D. ₹48 lakh

E. ₹60 lakh

Q13. In a particular maturity bucket, a bank expects cash inflows of ₹500 crore and cash outflows of ₹800 crore. Using the convention of inflows minus outflows, the maturity mismatch is:

A. Positive ₹300 crore

B. Negative ₹300 crore

C. Negative ₹1,300 crore

D. Zero

E. Positive ₹1,300 crore

Q14. A bank detects repeated cash deposits inconsistent with a customer's known business profile, followed by rapid transfers to unrelated accounts. Which is the most appropriate compliance response?

A. Close the account immediately in every such case, without investigation.

B. Ignore the pattern if individual deposits are below a reporting threshold.

C. Inform the customer that a Suspicious Transaction Report is being considered.

D. Wait for a criminal conviction before taking any compliance action.

E. Conduct a risk-based investigation, document findings and file an STR with FIU-IND where required, without tipping off the customer.

Q15. A company records annual sales of ₹900 crore and average working capital of ₹150 crore. Its working-capital turnover ratio is:

A. 4 times

B. 5 times

C. 6 times

D. 7 times

E. 9 times

Q16. A bank has rate-sensitive assets of ₹1,800 crore and rate-sensitive liabilities of ₹2,300 crore in a particular repricing period. Assume both reprice fully, with no other changes. If interest rates rise by one percentage point, the approximate change in net interest income is:

A. Decrease of ₹3 crore

B. Decrease of ₹5 crore

C. Increase of ₹5 crore

D. Decrease of ₹18 crore

E. No change

Q17. A bank's exposures to three companies belonging to the same corporate group are ₹300 crore, ₹250 crore and ₹150 crore. Its internal aggregate group exposure limit is ₹600 crore. The extent to which the combined exposure exceeds the limit is:

A. ₹100 crore

B. ₹150 crore

C. ₹200 crore

D. ₹300 crore

E. Nil

Q18. A privileged system administrator changes critical payment-system settings without approved authorisation. Which action best supports cybersecurity investigation and accountability?

A. Accept a verbal explanation and close the matter.

B. Delete older system logs to reduce storage requirements.

C. Preserve tamper-resistant logs, appropriately restrict unauthorised access and independently verify the authorisation trail.

D. Continue using shared administrator credentials without review.

E. Disable monitoring alerts until the investigation is completed.

Q19. An importer must pay US$2 million after 60 days. Its bank offers a forward exchange rate of ₹88.10 per US dollar. If the importer hedges the entire liability at this rate, its locked-in rupee cost, excluding charges, is:

A. ₹17.50 crore

B. ₹17.52 crore

C. ₹17.62 crore

D. ₹18.00 crore

E. ₹176.20 crore

Q20. An exporter expects to receive US$1 million after 60 days and fears that the rupee may appreciate against the US dollar. Which transaction would directly hedge the exchange-rate risk?

A. Buy US dollars forward.

B. Sell US dollars forward.

C. Leave the exposure unhedged.

D. Buy an unrelated foreign currency forward.

E. Enter into a forward contract for a larger dollar receipt than the expected exposure without assessing the additional risk.

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🗝️ ANSWER KEY

Q1. B

Q2. E

Q3. E

Q4. D

Q5. B

Q6. A

Q7. C

Q8. D

Q9. C

Q10. B

Q11. C

Q12. D

Q13. B

Q14. E

Q15. C

Q16. B

Q17. A

Q18. C

Q19. C

Q20. B

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📘 ANSWERS EXPLAINED — QUICK REVISION

Q1. LCR

LCR = HQLA ÷ Net cash outflows × 100

= ₹1,050 ÷ ₹840 × 100 = 125%

Q2. DSCR

DSCR = Cash flow available for debt servicing ÷ (Interest + Principal repayment)

= ₹540 ÷ (₹60 + ₹300) = 1.50 times

Q3. NPV

NPV = Present value of future cash flows − Initial investment

= ₹130/1.10 + ₹130/1.21 − ₹200

= Positive ₹25.62 lakh, approximately.

Q4. Modified duration

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

= −3.8 × 0.005 × 100 = −1.90%

Bond prices generally fall when market yields rise.

Q5. Debt-equity ratio

= Interest-bearing debt ÷ Shareholders' equity

= ₹360 ÷ ₹240 = 1.50:1

Q6. Drawing power

= (Eligible stock − Relevant creditors) × (1 − Margin)

= (₹16 − ₹3) × 75% = ₹9.75 crore

Q7. Net interest margin

Simplified NIM = Net interest income ÷ Average interest-earning assets × 100

Initial NIM = ₹520/₹10,400 × 100 = 5%.

Revised NIM = ₹570/₹12,000 × 100 = 4.75%.

Net interest income rises, but NIM declines.

Q8. Expected credit loss

ECL = Exposure at default × Probability of default × Loss given default

= ₹120 crore × 2% × 40% = ₹0.96 crore

Q9. Priority-sector lending

Assumed target = ₹15,000 crore × 40% = ₹6,000 crore

Shortfall = ₹6,000 − ₹5,760 = ₹240 crore

The 40% target is an assumption supplied for this question; actual regulatory targets depend on the applicable category and RBI directions.

Q10. Net operating cycle

= Inventory days + Receivables days − Payables days

= 65 + 42 − 35 = 72 days

Q11. Capital adequacy ratio

Revised capital = ₹2,200 + ₹100 = ₹2,300 crore

Revised risk-weighted assets = ₹20,000 + ₹1,000 = ₹21,000 crore

CAR = ₹2,300/₹21,000 × 100 = 10.95%, approximately.

Q12. Fraud-loss calculation

Successful attempts = 4,000 × 15% = 600

Total loss = 600 × ₹8,000 = ₹48 lakh

Q13. ALM maturity mismatch

Mismatch = Inflows − Outflows

= ₹500 − ₹800 = −₹300 crore

This indicates a net cash outflow requirement in the specified bucket.

Q14. AML compliance

Unusual transaction patterns require risk-based scrutiny, appropriate documentation and reporting to FIU-IND where required. Customer tipping-off must be avoided.

Q15. Working-capital turnover

= Annual sales ÷ Average working capital

= ₹900 ÷ ₹150 = 6 times

Q16. Repricing gap

Gap = Rate-sensitive assets − Rate-sensitive liabilities

= ₹1,800 − ₹2,300 = −₹500 crore

Approximate NII change = −₹500 crore × 1% = −₹5 crore

This is a simplified gap-analysis estimate, not a complete earnings forecast.

Q17. Group exposure

Combined exposure = ₹300 + ₹250 + ₹150 = ₹700 crore

Excess = ₹700 − ₹600 = ₹100 crore

Q18. Cybersecurity

Preserve logs, restrict unauthorised access, review privileged-account activity and verify the change-management approval trail independently.

Q19. Importer forex hedge

US$2 million × ₹88.10 = ₹176.2 million

₹176.2 million = ₹17.62 crore

Q20. Exporter forex hedge

Selling the expected dollar receipt forward locks in the exchange rate and protects the exporter against a fall in the rupee value of the future dollar proceeds.

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🏆 POST-MOCK PERFORMANCE ANALYSIS

Score: ____ / 20

Wrong answers: ____

Unattempted questions: ____

Conceptual errors: ____

Calculation errors: ____

Careless errors: ____

Scoring formula: Correct answers − (0.25 × Wrong answers). Unattempted questions carry zero marks.

IBR Self-Assessment Benchmark (not official IBPS cut-offs)

🔥 18–20: Excellent

🟢 16–17: Strong

🟡 13–15: Needs revision

🟠 10–12: Strengthen fundamentals

🔴 Below 10: Revisit core concepts

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🎯 FINAL REVISION STRATEGY

CALCULATE: NPV, DSCR, ECL, CAR and working-capital ratios.

ANALYSE: Liquidity gaps, interest-rate sensitivity, maturity mismatches and concentration risk.

APPLY: Forex hedging, AML compliance and cybersecurity controls.

IMPROVE: Review incorrect answers and identify whether each error arose from a concept, formula, calculation or careless reading.

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🔥 IBR EXAM MANTRA

DATA → FORMULA → ANALYSE → DECIDE

READ SMART • THINK BANKING • ANSWER ACCURATELY

— INDIAN BANKING RADAR (IBR)