Latest Commercial Banking question papers, test pattern and Placement papers
Q1. What Is The Meaning Of Capital Adequacy Ratio (car)?
Percentage ratio of a financial institution's primary capital to its assets (lo and investments), used as a degree of its financial electricity and stability. According to the Capital Adequacy Standard set via Bank for International Settlements (BIS), banks need to have a number one capital base same at the least to eight percentage in their assets: a bank that lends 12 greenbacks for every greenback of its capital is within the prescribed limits.
Q2. Describe The Other Types Of Banks?
Central banks are commonly government owned and assigned with regulatory responsibilities, along with supervising industrial banks or controlling the coins interest quotes and many others.
Islamic Banks are hooked up according of standards of Islamic Law. This form of banking revolves around several nicely hooked up ideas primarily based on Islamic canons.
Q3. List The Banks Under Retail Banks?
Credit Union Banks
Postal Saving Banks
Q4. What Is Cash Reserve Ratio?
Cash Reserve Ratio (CRR) is a particular minimum fraction of the total deposits of customers, which business banks ought to preserve as reserves either in cash or as deposits with the important financial institution. CRR is ready in line with the tips of the imperative bank of a country.
Q5. State The Discussion On Liquidity Vs Profitability?
Profitability is the relationship among income and capital (the "static" assets set aside to earn the ones income). Measuring profitability me that you have to relate a earnings figure (from the Profit and Loss Account) to a sources figure (from the Balance Sheet).
Liquidity can be defined because the ability of a firm to satisfy its monetary obligations as they fall due. The balance sheet (described as "a established declaration of property and liabilities")measures these sources and claims.
Q6. Name The Two Expert Committees Which Were Set Up In Nineteen Nineties?
The first Narasimham Committee turned into appointed by using Manmohan Singh as India's Finance minister on 14th August 199@And the second was appointed with the aid of P.Chidambaram Finance minister in December 1997.
Q7. What Are Investment Banks?
An funding financial institution (IB) is a financial intermediary that performs a spread of services. Investment banks focus on big and complicated financial tractions such as underwriting, performing as an intermediary among a securities company and the making an investment public, facilitating mergers and other company reorganizations, and appearing as a broking and/or financial adviser for institutional customers.
Q8. State The Sources And Application Of Funds Of Commercial Banks?
Sources of Funds:
Reserves and Surplus
Application of Funds:
Cash and cash Balance with RBI
Cash stability with other banks
Q9. Give The Functions Of Commercial Banks?
(1) Primary Function:
Advancing of Lo
(2) Secondary Function:
Public Utility Functions
Q10. State The Role Commercial Banks?
Mobilizing Saving for Capital Formation
Financing Consumer Activities
Financing Employment Generating Activities
Help in Monetary Policy
Q11. What Is The Meaning Of Non Performing Asset (npa)?
A mortgage or hire that is not meeting its stated primary and hobby bills. Banks typically classify as nonperforming assets any business lo which can be extra than 90 days late and any patron lo that are more than a hundred and eighty days overdue. More normally, an asset which isn't always producing income.
Q12. State The Purpose Of Narasimham Committee?
To observe all components regarding the shape and procedures of the economic systems.
To propose improvements in their performance and productiveness.
To reform the Indian Banking area.
Q13. Give The Meaning Of Combined Banks?
Combined Banks are also called as Universal banks. These are typically referred to as economic services groups; have interaction in numerous of varied monetary offerings.
Q14. State The Principles Of The Investment Policy Of Commercial Banks?
Stability of securities
Q15. Describe The Nature Of Commercial Banks?
Commercial Banks are the companies which cater sure economic tractions.
Its aim is to earn earnings.
Tractions are socially and legally approved.
Responsible for patron deposits within the financial institution.
Established and operated beneath the manage of important bank of a country.
Q16. What Is The Meaning Of A Bank?
An establishment legal by way of a government to simply accept deposits, pay hobby, clear assessments, make lo, act as an middleman in monetary tractions, and offer different monetary services to its customers.
Q17. State The Meaning Of Commercial Banks?
A business financial institution is a economic organization that gives offerings, which include accepting deposits, giving business lo and auto lo, loan lending, and basic funding merchandise like financial savings bills and certificates of deposit.
Q18. Give The List Of Commercial Banks In India?
List of Commercial Banks in India:
Reserve Bank of India
Abu Dhabi Commercial Bank
Bank of India
Bank of Madura
Bank of Punjab
Chinatrust Commercial Bank
City Union Bank