Bank Promotion Exam Quiz: Trivia!

Upto Rs 10 crores

Upto Rs 50 crores

Upto Rs 100 Crores

No Sales Turnover norms

Only Size of Balance Sheet is reckoned

Basle Committee on Banking Supervision

Bank of Commerce Bumiputra Shd

Banking Companies Binary Software

Bilingual Committee on Banking Supervision

None of the above

Impaired Assets

Stressed Assets

Assets with well defined credit weakness

Underperfoming assets

A & B & C above

Standardised Approach

Basic Indicator Approach

Standardised Duration Approach

Standardised Duration Approach

Health Code System

Quick NPA

Short Mortality Account

Immortality Account

Immature Asset

Quick Mortality Account

Perpetual

5 years

Short Term equivalent to the maximum maturity of Treasury Bill

5 years with an enxtension of another 5 years

7 years

Paid-up equity capital, statutory reserves, and other disclosed free reserves, if any

Capital reserves representing surplus arising out of sale proceeds of assets

Innovative perpetual debt instruments eligible for inclusion in Tier 1 capital, which comply with the regulatory require

Perpetual Non-Cumulative Preference Shares (PNCPS), which comply with the regulatory requirements

All the above

A Group of Banks

A Group of entities where a licensed bank is the controlling entity

A Group of Banks likely to be merged

State Bank of India

Indian Banks Association

The person who stands across the counter to remit the EMI or part payment.

The third paty guarantor

The Co obligant

A party to whom a bank has an on- or off-balance sheet credit exposure.

The consultant who canvasses business

Interest rate risk in the banking book and Credit concentration risk

Liquidity risk Settlement risk Reputational risk Strategic risk Risk of weakness in the credit-risk mitigants

Risk of under-estimation of credit risk under the Standardised approach

“Model risk” i.e., the risk of under-estimation of credit risk under the IRB approaches Residual risk of securitisation

All the above

A haircut is a percentage that is subtracted from the par value of the assets that are being used as collateral

The size of the haircut depends on the riskiness of the security offered as collateral

Deduction from Capital

Deduction from risk weight

A & B above

Cushions

Deductions

Discount

Haircut

Exemptions

Perpetual Non-Cumulative Preference Shares

Preferred Non Cumulative Preference Shares

Prirority Non Credit Purchase System

Primary Novel Cash Purchase Scheme

None of the above

Separate programme, results, annual

Parallel run, Board, Quarterly

Simple MIS , CMD, Monthly

Simulation tehnique, auditors, half yearly

None of the above

Exchange , 0.25

Cap , 100%

Premium , 25

Discount , 55

None of the above

100%

2%

75%

50%

1.25%

It is high yielding variety of capital

Created by artificial semanation techniques

A & B above

Which combine certain characteristics of equity and certain characteristics of debt

Quasi equity

The instrument should be fully paid-up and unsecured

It should be subordinated to the claims of other creditors,free of restrictive clauses

They should not be redeemable at the initiative of the holder or without the consent of the Reserve Bank of India.

A & B above

A & C above

Minimum five years

Residual maturity should bot be less than one year

Less Than five years and residual maturity less than 5 years

A & B above

A , B , C above

Intangible assets and losses in the current period and those brought forward from previous periods should be deducted from Tier 1 capital

Good will

Investment in Subsidiaries

Other intangible Assets

All the above

5 years

5 years with an option to extend by another 5 years

Perpetual

Short Term equivalent to the maximum maturity of Treasury Bill

None of the above

Other Time Liability

As Tier II Capital

Subject to limits prescribed for Tier 2 capital

B & C above

All the above

At a fixed rate

Or at a floating rate referenced to a market determined rupee interest benchmark rate

Bench Mark Prime Lending Rate (BPLR)

Bank Rate

A & B above

Call Option

Put Option

American Option

European Option

In the Money or Out of the Money Option

After the instrument has run for at least ten years

Call option shall be exercised only with the prior approval of RBI (Department of Banking Operations & Development).

There should not have been any default in payment of interest

There should not be a run on Banks during this period

A & B above

CRAR at the time of Call Option

CRAR after exercise of the call option

Net Interest Margin

Return on Assets

A & B above

None

Foreclosure

Step Up Option

Step Down

Conversion

If the bank’s CRAR is below the minimum regulatory requirement prescribed by RBI

If the impact of such payment results in bank’s capital to risk assets ratio (CRAR) falling below or remaining below the minimum regulatory requirement prescribed by Reserve Bank of India

A & B above

Payment of Interest cannot be defaulted

Payment of Interest can be deferred

Equal to regulatory norm

Above

Below

Plus or Minus the regulatory norm by 5%

None of the above

Regular

Irregular

Cumulative

Non Cumulatice

Alternative

Superior to the claims of investors in equity shares

Subordinated to the claims of all other creditors

Subordinated to the International claims of all other creditors

A & B above

Subordinated to the Sovereign Claim

Reserve , CRR/ SLR

Reserve, Repo/Reverse Repo

Quantitative, Rate/Bank Rate

Qualitative, Credit Control

All the above

10

15

25

40

None of the above

25% of Face Value of the instruments

25% of The Maturity Value of the instrument

25% of Market Value of the instrument

25% of the YTM value of instrument

No loan can be granted

Can be exercised only once during the whole life of the instrument

In conjunction with the call option

After the lapse of ten years from the date of issue

The step-up shall not be more than 100 bps

All the above

Disclosures

Procedures

Practices

Principles

Ethics

Supervisory Review and Evaluation Process

Special Regulatory Enabling Provision

Special Regional Economic Package

Systems Regulated Embedded Package

None of the above

Internal Capital Adequacy Assessment Process

Institute of Chartered Accountants Accounting Procedures

Institute of Cost Accountants Accounting Practices

Internal Capital Adequacy Actuarial Practices

None of the above

Banks should have a process for assessing their overall capital adequacy in relation to their risk profile and a strategy for maintaining their capital levels

Supervisors should review and evaluate the banks’ internal capital adequacy assessments and strategies, as well as their ability to monitor and ensure their compliance with the regulatory capital ratios. Supervisors should take appropriate supervisory action if they are not satisfied with the result of this process

Supervisors should expect banks to operate above the minimum regulatory capital ratios and should have the ability to require the banks to hold capital in excess of the minimum.

Supervisors should seek to intervene at an early stage to prevent capital from falling below the minimum levels required to support the risk characteristics of a particular bank and should require rapid remedial action if capital is not maintained or restored.

All the above

Interest rate risk in the banking book and Credit concentration risk

Liquidity risk Settlement risk Reputational risk Strategic risk Risk of weakness in the credit-risk mitigants

“Model risk” i.e., the risk of under-estimation of credit risk under the IRB approaches Residual risk of securitisation

Risk of under-estimation of credit risk under the Standardised approach

All the above

Dr Manmohan Singh Committee

P Chidambaram Commmittee

S S Tarapore Committee

Robin Cook Committee

Narasimham Committee

When it fails to generate any income for the borrower

When it fails to generate any income forthe Bank

When it is dead

When there is no performance in the unit

When the Bank declares the asset as non performing

An account should be treated as 'out of order' if the outstanding balance remains continuously in excess of the sanctioned limit/drawing power

In cases where the outstanding balance in the principal operating account is less than the sanctioned limit/drawing power, but there are no credits continuously for 90 days as on the date of Balance Sheet or credits are not enough to cover the interest debited during the same period

I f such accounts are not renewed within 180 days from the due date

All the above

A & B above A & B above

2 monthly dues arrears

3 monthly dues arrears

Any amount due to the bank under any credit facility is ‘overdue’ if it is not paid on the due date fixed by the bank.

6 monthly dues arrears

Depends upon the repayment fixation

Accrual basis

Actual record of recovery

Actuarial basis

Accounting Standard basis

Case to case to basis

Advances against term deposits, NSCs, IVPs, KVPs and Life policies

However adequate Margin should be available in such accounts

Fees and commissions earned by the banks as a result of re­negotiations or rescheduling of outstanding debts should be recognised on an accrual basis over the period of time covered by the re­negotiated or rescheduled extension of credit.

All the above

A & B above

NI Act

Sch of Charges

Notes on Accounts

AS 19 of ICAI

All the above

Interest Suspense Account

Any Proforma Account like undebited interest

Banks can use their discretion

Banks can use their discretiion to choose either A or B

None of the above

Balance in Interest Suspense Account

DICGC/ECGC claims received and held, pending adjustment

Part payment received and kept in Sundry creditors account pending adjustment

Total provisions held

All the above

Technical write off

Provision on standard assets

Recovery in Writtenn off accounts

A & B above

A & B & C above