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WorksheetsMaster revision - recovery management
Total questions: 141
Worksheet time: 1hrs 11mins
Name
Class
Date
1.
One of the following does not fall under pre-sanction monitoring. Identify the same.
a)
Ensuring proper documentation
b)
Ascertaining his business or employment credentials
c)
Checking on the CIBIL scores
d)
Inspecting the security offered
2.
Identify the one which does not come under the purview of monitoring
a)
Keeping track of the borrower's movements
b)
Tracking the level of achievements vis-à-vis the projections
c)
Identifying the warning signals and actioning on the same
d)
Properly charging all assets obtained as security
3.
Which of the following comes under pre-sanction monitoring?
a)
Ascertaining the genuineness of the quotations/proforma invoices submitted
b)
Identifying warning signals
c)
Stipulating the terms of sanction
d)
Releasing specifically wherever asset is to be created
4.
Which one of the following does not come under post sanction and pre-disbursal monitoring?
a)
Periodical visits and Inspection of the asset charged
b)
Ascertaining the genuineness of documents submitted
c)
Releasing specifically wherever asset is to be created
d)
Ensuring proper documentation
5.
While fixing DP based on the satock statement one of the following needs to be excluded. Identify the same.
a)
unpaid stock
b)
insured stock
c)
new stock
d)
paid stock
6.
Identify the one which falls under post disbursal monitoring.
a)
Periodical visits and Inspection of the asset charged
b)
Ensuring proper documentation
c)
Ascertaining applicants' business or employment credentials
d)
Ascertaining the genuineness of the KYC documents
7.
Identify the one which will NOT render the Physical Monitoring effective.
a)
fixing a prior appointment with the borrower for inspection of stock
b)
Verification of books and registers and validation of figures
c)
Collection of Information before Inspection
d)
Recording the observations
8.
Total Stock is Rs.1,000/-. Margin required: 25%. Unpaid stock is Rs.250/-. Obsolete Stock is Rs.250/-. DP would be:
a)
Rs.375/-
b)
Rs.750/-
c)
Rs.812.50
d)
No DP can be fixed as unpaid + obsolete stock is 50% of the total stock
9.
Identify the incorrect statement
a)
Bank shall always be in possession of the security
b)
Bank has to ensure that the Insurance remains in force through out
c)
Insurance Policy should have the Bank’s clause
d)
Primary responsibility of insuring the securities charged is that of the borrower
10.
Which of the following information you would get in QIS-II?
a)
performance during the previous quarter
b)
HY funds flow statement for the previous half year
c)
HY operating statement for the previous HY
d)
Estimate for the ensuing quarter
11.
FFR-II statement is
a)
HY results – operating profit and end use of funds
b)
Quarterly Financial Statement
c)
Estimate for the ensuing quarter
d)
changes in NWC and important financial ratios
12.
FFR is for
a)
the purpose of reviewing the operations in a WC limit and ensuring the end use of funds lent
b)
for the purpose of ensuring that adequate NWC exists in the system
c)
the purpose of calculating the BEP and Margin of Safety in respect of term loans
d)
the purpose of validating the projected sales for acceptance
13.
Identify the incorrect statement on why Limits are to be renewed.
a)
to ensure that the bank lendings do not go down
b)
Non-review or renewal leads the account to NPA status
c)
Revalidate the contract for a year
d)
Re-assess the credit requirement
14.
QIS IIIB is
a)
HY funds flow statement for the previous half year
b)
Performance during the previous quarter
c)
Estimate for the ensuing quarter
d)
for tracing the changes in CA & CL
15.
Submission of QIS statements is as per the recommendations of
a)
Chore Committee
b)
Tandon Committee
c)
Nayak Committee
d)
Nachiket Kor Committee
16.
One of the following is NOT a reason for review & renewal of limits. Identify the same
a)
For ever greening of the asset
b)
To revalidate the limit for one more year
c)
To reassess the credit requirement
d)
To reassess the actual need in case of seasonal industries
17.
BGs are invoked mostly on account of
a)
failure of performance on the part of the borrowing client
b)
the borrower client meeting his commitment
c)
expiry of the BG
d)
testing the Bank's ability to pay
18.
As per Tandon Committee, off site monitoring is mandatory for
a)
stock and book debt statements only
b)
NFB limits of 50.00 Lakh and above
c)
fund based limit of 50.00 Lakh and above
d)
Term Loans of 50.00 Lakh and above
19.
Review of WC Limits is done through
a)
QIS or FFR Statements
b)
desk top monitoring alone
c)
WC Limits of 50.00 Lakh and above
d)
analysis of account statement alone
20.
Monitoring of LC requires vigil on debits or credits in borrower’s WC account
a)
to ensure that sufficient unutilized drawing power, more than LC value, remains on the day LC matures for payment
b)
to keep the funds ready when the LC is invoked
c)
to extend the validity of the LC issued
d)
to have an idea as to when the LC would be invokd
21.
When an account is overdue for 34 days it falls under the ___________ category
a)
SMA 1
b)
SMA 0
c)
SMA 2
d)
SMA 3
22.
_______ involves modifying EMI repayents without extension of the repayment period.
a)
Rescheduling
b)
Restructuring
c)
Rephasement
d)
Rewinding
23.
JLF is to be formed for all loans with aggregate exposure over and above
a)
1000 million
b)
500 million
c)
10 million
d)
50 million
24.
Which of the following is not a sign of stress
a)
Projected sales falling short of actual sales.
b)
Increase in frequency of overdrafts in current accounts
c)
Reduction of Drawing Power by 20% or more after a stock audit
d)
Devolvement of Deferred Payment Guarantee instalments
25.
Which of the following is not a feature of SMA
a)
Special mention assets require additional provisioning
b)
Accounts may be classified as SMA due to inadequate cash flows and issues in management integrity
c)
SMA is usually a result of a bank's poor origination policy
d)
The asset has potential weakness that requires close management attention.
26.
Which of the following warning signals cannot be identified by scrutinizing financial statements or reports of the borrower.
a)
Labour problem and frequent interruptions in manufacturing
b)
LC devolvement
c)
Dependent on single or few buyers
d)
Failure to pay statutory dues
27.
Which of the following is not an early warning signal under the category of operational/management
a)
Advent of a new technology
b)
Frequent turnover of key personnel
c)
Difference between partners
d)
Frequent breakdown of machinery
28.
Which of the following early warning signals is not an indication of potential fraud?
a)
Decline in profits
b)
Raid by income tax officials
c)
Substantial increase in unbilled revenue year after year
d)
Same collateral charged to a number of lenders
29.
Which of the following signals is directly related to fall in productivity of a business?
a)
Poor maintenance of plant and machinery
b)
Speculative inventory purchase not in line with normal purchasing activities
c)
Frequent changes in management
d)
Failure to pay statutory dues
30.
A borrower's cheques were returned thrice stating he had quoted an amount in the cheque beyond the limit printed on the cheque-leaf. What type of Early warning signal is this?
a)
It is not an Early warning signal. It is an oversight by the borrower.
b)
Industrial
c)
Operational
d)
Financial
31.
__________ involves a complete package that may include either an extension in time or facilities or both.
a)
Restructuring
b)
Rephasement
c)
Reconstitution
d)
Rescheduling
32.
Mr. Chandappa, a farmer is unable to pay his dues due to continuous rains which destroyed his farm completely. He is unable to repay his dues and is in a very poor condition. The bank decides to waive off the interest in order to help him and to recover atleast the principle. Which option is ideal for the bank?
a)
Restructuring
b)
Reconstitution
c)
Rephasement
d)
Rescheduling
33.
Mr. Akash could not pay his EMIs due to a personal emergency. The bank decided to increase his EMI amount to recover the unpaid dues. In this case the bank decided to do a
a)
Rescheduling
b)
Restructuring
c)
Rephasement
d)
Review
34.
During the pandemic, the banks in India gave an option to opt for a moratorium of 3 months. This resulted in extension of the loan tenure. This is a loan _____________
a)
Rephasement
b)
Renewal
c)
Reschedule
d)
Restructure
35.
There is no change in nature, quantum and tenure of the loan facility with respect to
a)
Reschedulement
b)
Rephasement
c)
Renewal
d)
Restructuring
36.
Ensuring ___________ helps prevent diversion and siphoning of funds.
a)
End use of funds
b)
CIBIL score
c)
Nature of operations
d)
Borrower's genuine intent
37.
The evidence of a wilful default has to be examined by a committee headed by ____________
a)
Executive Director or equivalent
b)
Regional Manager or equivalent
c)
Deputy Manager or equivalent
d)
Chief General Manager or equivalent
38.
Find the odd one out
a)
Redifax Credit Information Services Pvt Ltd
b)
Experian Credit Information Company of India Private Limited
c)
Equifax Credit Information Services Private Limited
d)
Credit Information Bureau (India) Limited (CIBIL)
39.
Identify the incorrect action after identifying a wilful default
a)
Legal process can be taken after some time
b)
The bank can take a proactive approach for a change in management
c)
A wilful defaulter must not be a board member of any company seeking loans
d)
Companies involved in fraudulent activities must be debarred from getting institutional finance
40.
Which of the following is not correct with respect to Lok Adalat?
a)
Borrower can appeal against the decree passed by Lok Adalat
b)
All accounts with a maximum ceiling of 20 lakh can be dealt under Lok Adalat
c)
Lok Adalat proceedings are cost effective
d)
Cases filed with DRT can be considered for compromise
41.
Which of the following situations is most ideal for being dealt with Lok Adalat?
a)
Both borrower and banker being ready for a compromise
b)
The total amount of outstanding is Rs. 25 lakh
c)
The borrower is a wilful defaulter
d)
The loan has a security which has a good marketable value
42.
Which of the following is a low cost avenue for recovery?
a)
Lok Adalat
b)
DRT
c)
SARFAESI
d)
Filing a suit
43.
Who among the following does not participate in the regular loan recovery cases in DRT?
a)
Liquidator
b)
Presiding officer
c)
Recovery officer
d)
Registrar
44.
Cases against loans with outstanding amount less than 20 lakh must be dealt in __________.
a)
Civil court
b)
Lok Adalat
c)
DRT
d)
NCLT
45.
Which of the following is not a type of suit?
a)
Principle suit
b)
Money suit
c)
Composite suit
d)
Summary suit
46.
Fast track insolvency resolution process is not available for
a)
Joint stock companies
b)
Unlisted companies with total assets less than 1 crore for the PY
c)
Small company as defined in the Companies Act
d)
Start-up other than partnership
47.
Which of the following in not true with respect to monetary value of cases taken up for recovery under each of the following process/avenues?
a)
SARFAESI = atleast 5 lakh
b)
DRT = above 20 lakh
c)
IBC = atleast 1 lakh
d)
Lok Adalat = maximum ceiling of 20 lakh
48.
Which among the following is not a pillar of IBC?
a)
Registrar
b)
Adjudicating authority
c)
Insolvency professional
d)
Regulator
49.
Identify the incorrect sentence
a)
Cases in DRT cannot be taken up at Lok Adalat
b)
No recovery action can be pursued against a borrower who has filed for insolvency
c)
If a legal notice is not sent to a borrower while filing a suit, the bank cannot claim the court expenses during the time of settlement
d)
There is no appeal against the decree passed by Lok Adalat
50.
Insolvency procedures have to be completed within
a)
330 days including litigation period
b)
360 days excluding litigation period
c)
180 days without extension
d)
90 days with extension
51.
An application with DRT
a)
On rejection, can be appealed to the presiding officer
b)
Cannot be rejected
c)
Has to be filed with DRAT first
d)
Has to be filed with the recovery officer
52.
Which of the following steps comes first in the order of filing a suit?
a)
Recall notice from the bank to the borrower
b)
Exercising the right to set off
c)
Realization and appropriation of existing securities
d)
Preparation of plaint
53.
Post the judgement on a civil suit the lenders should file a ____________ before proceeding on the recovery process.
a)
Execution petition
b)
Execution proceeding
c)
Attachment order
d)
Garnishee order
54.
In order to stop the borrower from liquidating his existing assets, the lender can request the court to pass a
a)
Attachment before judgement
b)
Realization order
c)
Resolution order
d)
Recovery petition
55.
Which of the following is not true with respect to possession notice under SARFAESI proceedings?
a)
The notice has to be published in 1 national newspaper
b)
The notice has to be published within 7 days of issuance to the borrower
c)
30 days time is given to the borrower post issuance of possession notice
d)
If the possession notice is not published it becomes void and has to be re-issued
56.
Which of the following does not lead to passing of order of liquidation by adjudicating authority?
a)
Debtor insists on liquidation
b)
Resolution plan is not as per rules
c)
Committee of creditors demands liquidation
d)
Debtor violates terms of resolution plan
57.
____________ is the adjudicating authority for insolvency proceedings of Limited liability partnerships.
a)
NCLT
b)
DRT
c)
DRAT
d)
Board of Insolvency & Bankruptcy
58.
An interim professional functions in this capacity for a maximum of
a)
30 days
b)
60 days
c)
90 days
d)
45 days
59.
According to SARFAESI Act, the borrower can repay his dues before
a)
the publication of the sale notice
b)
the publication of the possession notice
c)
the issue of redemption notice
d)
confirmation of sale
60.
Identify the action that would come top-most in the hierarchy of sacrifice by the bank in a negotiated settlement.
a)
Forgoing penal interest
b)
Forgoing interest to be charged from the date of NPA till the current date
c)
Forgoing unrealized interest
d)
Forgoing part of the principle amount
61.
Which of the following factors would not be considered while calculating the negotiable amount by the bank?
a)
Profitability of the borrower's business
b)
Reasons for default
c)
Probability of recovery in the normal course
d)
Provisions made
62.
If the balance in a shadow account is Rs. 358000 which includes principle of Rs. 300000 and a recovery of 320000 is made through an OTS, it would result in a
a)
Waiver
b)
Write off
c)
Review
d)
Full settlement
63.
Identify the correct statement
a)
Banks have formed their own guidelines for OTS settlements
b)
OTS is not the same as negotiated settlement
c)
OTS can be granted irrespective of the impact on P&L
d)
OTS can be given even for accounts that are regular
64.
If the balance in a shadow account is Rs. 358000 which includes principle of Rs. 300000 and a recovery of 250000 is made through an OTS, it would result in a
a)
Waiver and write off
b)
Waiver only
c)
Write off only
d)
Resolution of the account
65.
Which of the following are not the reasons that lead to a compromise from the bank's side?
a)
Existing security value is higher than the outstanding amount
b)
Net worth of the borrower/guarantor is low
c)
Dispute in the title of the security
d)
Ensuring speedy recovery of accounts
66.
Which of the following cannot be waived off with respect to negotiated settlement?
a)
Outstanding principle amount
b)
Penal interest
c)
Notional interest from date of NPA
d)
Legal or any out of pocket expenses
67.
Which of the following accounts are not related to a negotiated settlement?
a)
P & L account
b)
Memorandum account
c)
Shadow account
d)
Real account
68.
Which of the following is not true?
a)
OTS cannot be considered for a suit filed account
b)
There would be a time limit for the payment of dues under OTS
c)
Bank should have a buffer amount over and above the base negotiable amount calculated by the bank
d)
The compromise can be done through Lok Adalat for additional authenticity
69.
Which of the following is not a type of settlement under OTS?
a)
Revival
b)
Full settlement
c)
Waiver
d)
Write off
70.
Which of the following is not a reason behind bank's decision to consider a compromise?
a)
Increased marketability of charged securities
b)
Closure of activity
c)
Death of borrower
d)
Low net worth of borrower and guarantor
71.
If the outstanding in a shadow account is Rs. 165800, with a principle of Rs. 134100 and Rs. 22000 notional interest post NPA date, which amount is most likely to be initially forgone by the bank as a sacrifice?
a)
22000
b)
9700
c)
134100
d)
156100
72.
One time settlement is also called as
a)
Compromise settlement
b)
Court settlement
c)
Legal settlement
d)
Decree of the court
73.
OTS has to be considered after
a)
recovering dues of subsidies and agencies like CGTMSE/ECGC
b)
filing insolvency petition
c)
extending the loan
d)
restructuring the loan
74.
What would lead to write off?
a)
Unrecovered principle amount
b)
Unrecovered interest amount
c)
Unrecovered principle & interest amount
d)
Unrecovered legal expenses
75.
What would lead to waiver?
a)
Unrecovered interest and other charges
b)
Unrecovered principle
c)
Unrecovered principle and interest
d)
Unrecovered penal interest
76.
In which of the following cases, banks must not consider negotiating a settlement?
a)
Case of wilful default
b)
Case of business failure
c)
Case of crop failure
d)
Case of borrower's death
77.
What is the maximum amount of loan value that can be considered under OTS?
a)
There is no maximum limit
b)
5 crores
c)
25 lakh
d)
1 lakh
78.
Which of the following is not an advantage of OTS?
a)
Haircut to the borrower
b)
Low cost
c)
Speedy recovery
d)
Simple procedure compared to other avenues
79.
Which of the following do not constitute the five categories of non-financial credit administration parameters?
a)
Loan disbursed
b)
Sanction expiry
c)
Security details not updated
d)
Expiry of insurance
80.
Valuers pertaining to category B can be assigned property worth upto _____ for valuation.
a)
Rs. 50 crore
b)
Rs. 5 crore
c)
Rs. 1 crore
d)
Rs. 100 crore
81.
____________ would be recruited to ensure safekeeping of assets charged to the bank.
a)
Security agencies
b)
Resolution agencies
c)
Recovery agents
d)
Valuers
82.
What is the maximum timeline for recovery/resolution of NPA accounts entrusted to a Resolution Agency after obtaining necessary approvals?
a)
12 months
b)
3 months
c)
6 months
d)
9 months
83.
Identify the wrong statement with regard to E Auction Service Providers.
a)
They can negotiate with the NPA borrowers on compromise settlements for an additional fee
b)
They can be engaged for all NPA accounts wherein secured assets are eligible for auction
c)
The duration of empanelment shall be for a period of maximum 5years from the date of approval by Delegated authority for empanelment
d)
They can provide marketing support by way of linkages of the bid details with data base of bidders/potential customers and by publicizing the sale by way of telephone calls etc. amongst the specific list of investors
84.
A detective agency can be empanelled for a maximum duration of _________from the date of approval from the delegated authority for empanelment.
a)
5 years
b)
6 years
c)
1 year
d)
3 years
85.
Data sourced on the CBS is available on the SAJAG portal within
a)
T+1 days
b)
On the same day
c)
T+2 days
d)
T+3 days
86.
Identify the incorrect statement
a)
The valuation report of a building should always indicate the total value of the land and building and not separately.
b)
The valuation report should speak about the tenants of the building.
c)
Topography of an area and the location value are linked.
d)
Every location will have its own circle rate.
87.
Which of the following does not have an initial empanelment of 5 years?
a)
Resolution agency
b)
E-Auction service providers
c)
Recovery agency
d)
Security agency
88.
Who among the following requires a qualification of Direct Recovery Agent's certificate course with 50/100 hours of training?
a)
Resolution agent
b)
Detective agent
c)
E-Auction service providers
d)
Security agency
89.
Which of the following is not an external agency empanelled by banks to aid them in recovery?
a)
Advocate agency
b)
Resolution agency
c)
Security agency
d)
Recovery agency
90.
Which of the following is not a reason behind recruiting a valuer?
a)
To ascertain the value of securities in the court of law.
b)
To ascertain the adequacy of security.
c)
To monitor security by periodically valuing security.
d)
To ascertain value of properties owned by banks.
91.
Which of the following would require a valuation on yield potential?
a)
Farm land
b)
Plant and machinery
c)
Vacant land
d)
Flat
92.
Which of the following is not mandatory to be put in a valuation report?
a)
Valuer's experience
b)
Caveats, limitations or disclosures
c)
Inspection / investigation details
d)
Restrictions on use of the report
93.
Find the mis-match between the category and parameter.
a)
Technical defaults & slippage - DCCO details not indicated
b)
Security details not updated in SRM - Security valuation expired
c)
Sanction expiry - Review of term loan pending
d)
Follow up - document expiry
94.
How many categories of non-financial CAPs are available in SAJAG?
a)
5
b)
6
c)
3
d)
4
95.
An enforcement agency helps in assisting in matters of
a)
SARFAESI
b)
DRT
c)
Lok Adalat
d)
IBC
96.
Which of the following is not a requisite while engaging an external agency for aiding in debt recovery?
a)
Conflict of interest
b)
Adequacy of experience
c)
Requisite qualification
d)
No existing grievances
97.
______ % of NPA of a particular region has to be allocated to a recovery agency which can be increased later.
a)
25
b)
40
c)
30
d)
15
98.
Identify the one whicb is NOT a recommendation of NARASIMHAM COMMITTEE-I
a)
Narrow Banking
b)
abolition of branch licencing
c)
ending of dual control
d)
abolition of directed credit programmes
99.
Identify the one which is not a classification in NPAs
a)
irregular
b)
sub standard
c)
doubtful
d)
loss
100.
A Crop Loan given for cultivation of a short term crop slips down to NPA after ____________ of becoming due.
a)
two harvest seasons
b)
90 days
c)
one harvest season
d)
180 days
101.
A Cash Credit or an Overdraft account is NOT considered "out of order" under which of the following instances?
a)
if stock statement is not submitted beyond 30 days
b)
balance outstanding remains continuously above the sanctioned limit or Drawing Power for a period of 90 days
c)
Credits not adequate to cover the interest debited during the period
d)
outstanding balance is within the sanctioned limit or DP fixed, then, if there are no credits into the account continuously for 90 days as on the date of Balance Sheet
102.
For a secured SSA, the provisioning requirement is
a)
15% of the balance o/s
b)
15% of the original advance
c)
15% of the overdue portion
d)
15% of the security value
103.
The EMI due on 28-02-22 in case of a Poultry Loan is not paid. When will this account slip down to NPA, assuming there are no repayments.
a)
2022-05-29 00:00:00
b)
2022-05-28 00:00:00
c)
2022-05-31 00:00:00
d)
2023-02-28 00:00:00
104.
The provision requirement for a NPA classified as DA-2 on the secured portion is
a)
0.4
b)
0.15
c)
1
d)
0.25
105.
A Loan account is classified as Loss Asset. Bal O/s is Rs.100/- and security value is Rs.5/-. What is the Provisioning requirement?
a)
Rs.100/-
b)
Rs.97.50
c)
Rs.97/-
d)
Rs.95/-
106.
Provisioning on NPA accounts does not depend upon one of the following factors:
a)
net worth of the borrower
b)
security value
c)
age of the NPA
d)
availability and value of security
107.
Normal provisioning on other standard asset is done at
a)
0.004
b)
0.0025
c)
0.01
d)
0.05
108.
In case of loans given to one of the following, the classification is made facility-wise and not borrower-wise
a)
PACS & FSS
b)
State Govt Guaranteed Accounts
c)
Central Govt guaranteed accounts
d)
staff members
109.
In case of consortium Loans, the NPA classification is based on
a)
track of recovery of individual banks
b)
classification done by majority of consortium members
c)
as determined by the Bank's Board
d)
the lead bank classification
110.
In case of Loan a/cs guaranteed by the Central Government, NPA classification is done only
a)
when the guarantee is revoked
b)
there is an overdue beyond 180 days
c)
there is an overdue beyond 90 days
d)
the project is not completed as per time schedule
111.
Country Risk Provisioning is to be made
a)
for their net exposure, if more than 1% of the total assets
b)
for their net exposure, if more than 5% of the total assets
c)
for their net exposure, if more than 2% of the total assets
d)
for their net exposure, if more than 1o% of the total assets
112.
Identify the incorrect statement on country risk provisioning:
a)
Provisions including the Country Risk Provision shall exceed 100% of the balance outstanding
b)
Provisions have to be made for Country Risks by the Banks for their net exposure, if more than 1% of the to total assets
c)
ECGC has graded the Country Risk from Lowest to Highest Risk Category, basis the risk category
d)
This provision is in addition to the normal provisions that would be made as applicable to the category of the account.
113.
The surplus of the provision under PCR vis-à-vis as required as per prudential norms should be segregated into an account styled as
a)
Counter Cyclical Buffer
b)
Dynamic Provisioning Buffer
c)
Floating Provisioning Buffer
d)
Additional Provisioning Buffer
114.
Bal O/s is Rs.1000/-. Security Value is Rs.800/-. NPA DA-1. What would be the provision?
a)
Rs.400/-
b)
Rs.600/-
c)
Rs.520/-
d)
Rs.1000/-
115.
A Loan is sanctioned for direct agriculture. It is a Performing Loan. Bal O/s is Rs.10,000/-. What would be the provision requirement?
a)
Rs.25/-
b)
Rs.100/-
c)
Rs.40/-
d)
Rs.200/-
116.
An agricultural loan is sanctioned for growing sugarcane (long term crop). The account is due on 14-05-21. No repayment made. When will this account slip down to NPA?
a)
2022-05-14 00:00:00
b)
2021-09-13 00:00:00
c)
2022-04-14 00:00:00
d)
2023-05-14 00:00:00
117.
Your Bank has sanctioned a Project Loan for Infrastructure and the DCCO is fixed at 18-08-21. However, it has been restructured on 13-09-22 on account of some arbitration proceedings pending. This account will continue as Standard Asset for a period of
a)
4 years from the original DCCO
b)
4 years from the date of restructuring
c)
1 year from the date of restructuring
d)
2 years from the date of original DCCO
118.
The provision that has to be made in case of standard restructured accounts is
a)
5% from the date of restructuring till the date of revised DCCO or two years from restructuring whichever is later
b)
5% from the date of restructuring till the date of revised DCCO or two years from restructuring whichever is earlier
c)
2% from the date of restructuring till the date of revised DCCO or two years from restructuring whichever is later
d)
2% from the date of restructuring till the date of revised DCCO or two years from restructuring whichever is earlier
119.
In case of revaluation of assets because of foreign exchange rate fluctuations, there is a loss, the same shall be
a)
booked in P&L account
b)
made good from out of the provisions, if made earlier
c)
deducted from the value of the asset in the B/S
d)
debited to revaluation reserve
120.
A post shipment advance given by you is due on 17-09-21. However, the money is not received by the exporter even by 31-01-22 despite the importer having paid the money to his bank because of political upheaval in the importer's country. What would be the asset classification?
a)
If lending bank in India is able to establish this fact through documentary evidence before the account turned NPA, THEN Asset classification may be made after a period of one year from the date the amount was deposited by the importer in the bank abroad.
b)
If lending bank in India is able to establish this fact through documentary evidence before the account turned NPA, THEN the account need not be classified as a NPA
c)
If lending bank in India is able to establish this fact through documentary evidence before the account turned NPA, THEN Asset classification may be made after a period of two years from the date the amount was deposited by the importer in the bank abroad.
d)
If lending bank in India is able to establish this fact through documentary evidence before the account turned NPA, THEN only additional provision need to be made
121.
Identify the one which is NOT a recommendation of Narasimham Committee-II.
a)
merger of weak banks with strong banks
b)
government ownership of banks to be reviewed
c)
RBI being a regulator should not have ownership of any Banks
d)
not to merge weak banks with strong banks
122.
Provision to be made on performing advances to Commercial Real Estate Sector (residential housing sector) is
a)
0.0075
b)
0.01
c)
0.02
d)
0.004
123.
The major challenges posed to the Banking Industry by the rising NPAs
a)
Capital Adequacy & Profitability
b)
harnessing human resources and capital adequacy
c)
operational risk mitigation and profitability
d)
operational risk mitigant & capital adequacy
124.
The Gross NPA of our Bank as on 31-03-22 stands at
a)
34,115.22 Crore
b)
47,272.37 Crore
c)
34,407.79 Crore
d)
2,132.39 Crore
125.
The percentage of net NPA to the total advances of our Bank as on 31-03-22 is:
a)
0.0127
b)
0.0419
c)
0.0162
d)
0.2092
126.
One of the following is NOT an accepted measure of reducing the NPA percentage. Identify.
a)
indiscriminte expansion of advances
b)
recovering only the critical amount
c)
initiating timely recovery action
d)
tighten the monitoring
127.
One of the following is not an identified cause for divergence in IRCA Norms basis the findings of P R Khanna Committee.
a)
Lack of authentic information
b)
non compliance with RBI guidelines
c)
absence of specific guidelines on certain issues
d)
flexibility in guidelines issued
128.
If the Drawing Power is fixed in a WC Limit based on the stock statement of 90 days or more, the limit is to be treated as:
a)
irregular account
b)
sub-standard account
c)
special monitoring account
d)
red flagged account
129.
A Working Capital Limit has been sanctioned on 14th Jan 21 valid upto 31-12-21. If the limit remains unreviewed and unrenewed - what would be the classification as on 31-03-22?
a)
irregular account
b)
non-performing asset
c)
special monitoring account
d)
sub-standard asset
130.
You have a Working Capital Limit of Rs.25.00 Lakh where the Bal O/s is Rs.21.89 Lakh. Interest serviced regularly and on time. However, during an internal Inspection duing Dec 21, the Inspectors have commented that the DP is fixed based on the stock statement of April 2021. This account is now:
a)
a NPA
b)
a special monitoring account
c)
an irregular account
d)
a red flagged account
131.
In Consortium Loans, the categorization of an account as NPA or otherwise is based on:
a)
the track of repayment of individual banks
b)
the classification done by the Lead Bank
c)
the classification done by the majority of the banks in the consortium
d)
individual bank board's guidelines
132.
An account has slipped down to NPA and at the time of slip down, the value of security is Rs.5,000 and the balance outstanding is Rs.70,000/-. This account is to be categorized as - on slippage:
a)
loss asset
b)
sub standard asset
c)
doubtful asset
d)
fraudulent account
133.
In which of the following agricultural loans, would the Bank apply the 90 days concept for NPA classifying?
a)
Poultry Loans
b)
tractor loans
c)
long term crop loans
d)
short term crop loans
134.
In which of the following agricultural loans would you apply the concept of harvest seasons for classifying the account as NPA?
a)
loan given for crop cultivation
b)
dairy loans
c)
horticulture loans
d)
floriculture loans
135.
On slippage, if there is an erosion in value of security of 50% or more, the account can be straightway classified as:
a)
doubtful asset
b)
loss asset
c)
red flagged account
d)
fraudulent account
136.
Pick up the correct answer on CGTMSE covered accounts as suggested by P R Khanna Committee.
a)
no provision required on CGTMSE covered portion
b)
no provision required on CGTMSE covered accounts
c)
no asset classification required for CGTMSE covered accounts
d)
CGTMSE portion to be treated as unsecured portion only till actually received
137.
Rising NPAs and consequent provisioning have resulted in
a)
shrinking NIMs and NIIs
b)
corresponding increase in NIMs and NIIs
c)
NIMs and NIIs remaining the same
d)
expanding NIMs and NIIs
138.
hen the recoveries are not managed effectively, the capital requirement
a)
goes up
b)
comes down
c)
remains the same
d)
will be marginally affected
139.
One of the recommendations of P R Khanna committee with regard to appropriation of recovery in NPA accounts is that:
a)
banks shall adopt an accounting principle and exercise the right of recovery appropriation in an uniform and consistent manner.
b)
it should be mandatorily appropriated towards Principal first
c)
it should be mandatorily appropriated towards interest first
d)
shall be based on the classification of the account
140.
P R Khanna Committee recommended that in case of NPAs of Rs._______ Crore and above, immovable property taken as security, shall be valued once in _____ years
a)
5.00/3 years
b)
5.00/5 years
c)
1.00/every year
d)
3.00/5 years
141.
For direct agricultural lending, the basis for classification as NPA is
a)
number of harvest seasons due
b)
90 days overdue norms
c)
duration of irregularity
d)
45 days overdue norms
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