Promotion Exercise - 2024-25

MCQs on GLOBAL CREDIT EXPOSURE

MANAGEMENT POLICY – 2021

Prepared By,

J. Rajesh Kumar,
Chief Manager & Faculty

BARODA ACADEMY, CHENNAI

1. Who among the followingis not in the Core Group of PPAC (product & Process Approval
Committee)?
a) ED (Head)
b) Chief Risk Officer
c) Operations and Services Dept
d) Strategic Planning Dept.
e) None of the above

2. What is RAROC ?
a) Rate of Adjustment of Return of Capital
b) Risk Adjusted Return on Capital
c) Risk Adjusted Rate of Capital
d) Risk Adjusted Risk of Capital

3. What is COE ?
a) Cost of Enterprise
b) Cost of Equity
c) Conversion ofEquity.
d) None of the above.

4. The major guiding principle to assess credit risk proposal are ?

a) Checking eligibility of applicant
b) Applicant’s past, current and projected financials
c) Applicant’s/customers operating /managerial ability
d) Credit risk Rating
e) All the above.

5. Which of the following is not a credit delivery channel?

a) SME LF
b) RAPC
c) CPC
d) None of the above.

6. What is IMBC?
a) International Merchant Banker Committee
b) International Merchant Banking Cell
c) Institute of Merchant and Banker committee
d) None of the above

7. Who arranges ECB Loans to Indian Customers?

a) Bank of Baroda New York Branch
b) Bank of Baroda London Branch
c) Global Syndication Centre
d) International Merchant Banking Cell

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8. What is the activity of GSC?
a) Risk participation/ Trade Finance/ cross border lending.
b) Trade in Bonds/Debt instruments, as per relevant investment policies.
c) Act as a distribution centre in Europe /America for syndicated loans.
d) All the above.

9. Regional Syndication Centre (RSC) is located in ?

a) Singapore,
b) Dubai
c) New York
d) All the above.

10. Unsecured credit facilities to be granted only to customers whose financials are beyond
question and who have a risk rating not lower than ________?
a) BOB2
b) BOB1
c) BOB4
d) BOB3

11. Unsecured loans are to be considered for applicants who are maintaining satisfactorily
conducted accounts with the bank at least for ______ months.
a) 3 months
b) 4 months
c) 6 months
d) 12 months

12. Who has the power to sanction unsecured credit facilities to poorly conducted
transactional accounts under exceptional circumstances upto ZOCC?
a) Next higher Authority
b) RMCC
c) CREC
d) DRMCC

13. As per RBI guidelines what is the single Borrower Exposure ceiling as % of Bank’s total
Capital funds?
a) 20%
b) 15%
c) 10%
d) 5%

14. Who is having the power to sanction/review in accounts where there is dilution of
security?
a) Chief Manager and above
b) Next Higher Authority
c) ZOCC only
d) DRMCC

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15. The single /group exposure limits are not applicable to which of the following:
a) Additional facilities granted to sick/weak industrial units under rehabilitation package
b) Food credit( directly allocated by RBI)
c) Exposure on Central Gov /State Govt
d) Bank’s own Deposits
e) All the above.

16. Large Exposure is defined as the sum of all exposure values of the bank to a counterparty
or a group of connected counterparties if equal to or above ___ % of bank’s Eligible Capital
Base (ECB).
a) 12%
b) 10%
c) 15%
d) 18%

17. The exposures that will not be exempted from the Large Exposure are :
a) Exposure to RBI
b) RIDF deposits placed with NABARD
c) Intra-day interbank exposures; Intra group exposures.
d) Exposure to SBI

18. What is the maximum aggregate exposure (FB + NFB) for an Individual Borrower?
a) 30 crores
b) 15 crores
c) 20 crores
d) 25 crores

19. What percentage of aggregate exposure of the bank’s total capital funds can be extended
for Pvt. Ltd. Company with BOB5 to BOB6 internal Rating?
a) 5%
b) 3%
c) 4%
d) 8%

20. Which of the following is not a restricted exposure?

a) Wilful Defaulters
b) Against Security of Bank’s own shares
c) Loans to Directors of the Bank
d) Loan against NRE and FCNR (B)
e) None of the above.

21. Identify from among the following the exposures which are not restricted as per Selective
Credit Control (SCC).
a) Pulses & Cereals
b) Sugar
c) cotton
d) None of the above

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22. As per RBI Guidelines the LTV for advances against Gold ornaments and Jewellery is :
a) 80%
b) 75%
c) 90%
d) 85%

23. Which of the following exposures are not restricted as per SCC?
a) Bridge Loan /interim finance against capital/debenture.
b) Finance for construction of buildings meant for Government /Semi Govt. Officers.
c) Advances against Bullion/Primary Gold.
d) None of these.

24. Which are exempted from the framework of RAROC?

a) Regulatory Retail portfolio less than 5 crores
b) Staff loans
c) Credit exposure on counterparty banks
d) All the above

25. Internal credit rating forms the basis for which of the following:
a) Acceptance criteria
b) Pricing
c) DLP for sanction
d) Inspection of securities
e) All the above

26. Customers with aggregate credit exposure of Rs. ____ lacs and above are rated through
BOBICON rating model.
a) 25
b) 50
c) 100
d) 2

27. Which of the following is not an internal rating model

a) BOBRAM Model
b) Score Card Model SME 2 lacs to Rs.200 lacs
c) Score card model for Retail
d) None of the above

28. What is the minimum Obligor Rating under BOBRAM Rating for investment by Bank?
a) BOB4
b) BOB2
c) BOB6
d) BOB5

29. What is the exposure limit below which external rating may be exempted?
a) 50 Crores
b) 3 Crores
c) 5 Crores
d) 6 cores

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30. Which is an External Rating Agency as approved by RBI?
a) ICRA Limited
b) CRISIL
c) India Ratings &Research Pvt. Ltd.
d) CARE
e) All the above.

31. Which is the type of exposure which is exempted from external rating criteria:
a) Domestic Sovereign
b) Direct Housing Loan to individuals
c) Commercial Real Estate
d) NBFC, Staff loans
e) All the above

32. What is the Risk Weight for unrated borrower?

a) 100%
b) 125%
c) 150%
d) 50%

33. Which is the risk weight allotted for Central Govt. Exposure?
a) 20%
b) 0%
c) 80%
d) 25%

34. What is the exposure Limit upto which margin is not collected for Agriculture advance
except to Food & Agro Based units?
a) Rs.2 lacs
b) Rs.1 lac
c) Rs.1.60 lacs
d) Rs.5 lacs

35. What is the minimum margin for advances against Land & Building in case of
construction of Warehouse, market yard, godowns, silos, etc?
a) 25%
b) 30%
c) 40%
d) 50%

36. What is the minimum margin requirement for finance against stock and bookdebts in
MSME finance?
a) 10%
b) 25%
c) 30%
d) 15%

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37. What is the minimum margin requirement for export credit?
a) 15%
b) 10%
c) 5%
d) 20%

38. What is the minimum margin requirement for Real Estate Exposure?
a) 35%
b) 30%
c) 15%
d) 25%

39. What is the method of lending adopted to arrive at the MPBF for MSE enterprise upto
Rs.5 crores.
a) Tandon committee Ist Method and Turnover method whichever is lower.
b) Tandon committee IInd Method and Turnover method whichever is lower.
c) Tandon committee Ist Method and Turnover method (25%) whichever is higher.
d) Tandon committee IIIrd Method only.

40. What is the Gross Working Capital assumed as percentage of Projected Sales Turnover in
case of MSE borrower seeking limits upto Rs.5 crores.
a) 30%
b) 25%
c) 20%
d) 31.25%

41. What is the Gross Working capital assumed as percentage of Projected Sales Turnover in
case of MSE borrowers seeking limits more than Rs.5 crores?
a) 30%
b) 25%
c) 20%
d) 31.25%

42. What is the Gross Working capital assumed as percentage of Projected Sales Turnover in
case of MSE borrowers seeking limits less than Rs.5 crores and making Digital sales of more
than 25%?
a) 30%
b) 37.50%
c) 20%
d) 31.25%

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43. What is the quantum of MPBF sanctioned as percentage to the Accepted Projected sales
Turnover, in case the MSE unit is projecting a digital sales of more than 25% in the Projected
sales?
a) 30% of the digital sales turnover on the projected digital sales plus 20% or
25% over the non-digital sales as the case may be for MSE with limits less than
5 crore limits and MSE with more than 5 crores limits.
b) No additional working capital is to be provided
c) Additional 10% of the digital sales turnover will be added to the total assessment of
working capital.
d) Additional 8% of the digital sales turnover will be added to the total assessment of
working capital.

44. What is the method of lending adopted to arrive at the MPBF for Medium enterprise
upto Rs.5 crores.
a) Tandon committee Ist Method and Turnover method whichever is lower.
b) Tandon committee IInd Method and Turnover method whichever is lower.
c) Tandon committee Ind Method and Turnover method (20%) whichever is
higher.
d) Tandon committee IIIrdMethod only.

45. What is the method of lending adopted to arrive at the MPBF, for other than MSME
Regulatory and other borrowers?
a) Tandon committee Ist Method
b) Tandon committee IInd Method
c) Nayak Committee IInd Method
d) Nayak committee Ist Method and Tandon committee Ist Method.

46. Name the guideline for takeover of MSME accounts?

a) Accounts should be profit making for the last two audited balance sheets.
b) Account in the existing lender should be classified as “Standard Asset” and should not
have been classified under SMA-1/SMA-2 during the last one year.
c) External rating should be below BBB and equivalent.
d) Tangible security should be available.
e) All the above.

47.What is the deferment period of DCCO in case of Infrastructure projects, upto which
account will not be degraded as NPA.
a) The account will not slip to NPA if Deferment of DCCO is upto 2 years.
b) The account will not slip to NPA if DCCO deferment is allowed upto 2 years which
can be extended for 2 more years in case of infrastructure projects which are involved
in court cases.(i.e., in total -4- years)
c) The account will not slip to NPA if deferment of the revised DCCO is allowed upto 2
years and extended by another 1 year, where delay is beyond the control of the
promoters.
d) All the above.

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48. What is the Maximum DLP for ZOCC GM?
a) Rs.50 Crores
b) Rs.75 Crores
c) Rs.100 crores
d) Rs.40 Crores

49. Bank lending is permitted in which of the following activities?

a) Manufacturers dealing with CFCs
b) For acquiring NSC/KVP
c) Aviation
d) Against Fixed Deposits issued by other Banks

50. For which activities, Activity Clearance need not be obtained?

a) Infrastructure – Power
b) Advances to Co-op Banks
c) Advances to Commercial Real Estate Malls
d) Cinema halls/Auditorium /Kalyanamandap
e) None of these.

51. What is the limit of exposure beyond which AIP is required to be obtained from Central
office?
a) Rs.50 Crores
b) Rs.75 Crores
c) Rs.100 crores
d) Rs.25 Crores

52. For which industry, Industry licence is not compulsory?

a) Electronic Aerospace &DefenceEqipment
b) Drugs and Pharmaceuticals
c) Manufacture of Cigars of tobacco
d) Distillation and brewing of alcoholic drinks.
e) None of these.

53. Which of the exposures are exempted from RAROC framework?

a) Regulatory retail with exposure not exceeding Rs.5 crores and annual turnover not
exceeding Rs.50 crores.
b) Individual loans irrespective of ticket size, where interest rate concession/processing
charges concession is not involved.
c) Loan against Bank’s own deposits
d) Exposure under Regulatory instance, say RIDF.
e) All the above

54. What is the Rating Model adopted for assessing the Credit Risk rating of an MSME upto
2 crores exposure.
a) Bank of Baroda Risk Assessment Model
b) Score Card Model
c) No raring is required
d) Rating should be done by External Rating Agencies

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55. What is the exposure limit upto which External Credit Rating may be exempted?
a) Rs.5 Crores
b) Rs.50 Crores
c) Rs.10 Crores
d) Rs.25 Crores

56. How many domestic rating models are available in BOBRAM?

a) 12
b) 15
c) 14
d) 10

57. Which is the type of exposure which not exempted from external rating criteria?
a) Direct Housing loan to individuals
b) Commercial Real Estate
c) Capital Market Exposure
d) MSME loans

58. What is the margin required for Land & Building in case of exposure for setting up silos?
a) 40%
b) 30%
c) 25%
d) 10%

59. In case of C&IC what is the margin required for Stocks and Bookdebts under working
capital finance?
a) 25% on stocks and 25% on Bookdebts
b) 25% on stocks and 40% on Bookdbets
c) 10% on Stocks and 25% on Bookdebts
d) None of these

60. What is the margin required for Post Shipment Finance in Export Credit?
a) 10%
b) 25%
c) 15%
d) None of these

61. What is the overall margin for Real Estate Exposure?

a) 25%
b) 40%
c) 35%
d) 50%

62. What is the margin required in case of Second Hand Imported machinery under MSME/
C & IC?
a) 60%
b) 50%
c) 40%
d) 30%

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63. What is the minimum level of Loan component in the working capital finance above
Rs.150 crores, in case of Loan System of Delivery of Bank Credit?
a) 40%
b) 25%
c) 50%
d) 60%

64. Which facilities are excluded from the total working capital limits for carving out
Loancomponent, under Loan System for Delivery of Bank Credit?
a) Export Credit
b) Bill Finance Limit
c) Both the above
d) None of the above.

65. Which of the following facilities are considered outside the overall working capital limit
i.e., MPBF?
a) Letter of Credit
b) Bank Guarantee
c) Both a & b
d) None of the above

66. The Bank will not expose to which of the following facilities for non-customers?
a) Bill discounting
b) Adhoc/additional facilities
c) Discounting Bills drawn under LCs
d) All the above

67. What is the acceptable current ratio as per Global Credit Exposure Management Policy
2021?
a) 1.00
b) 1.10
c) 1.17
d) 1.33

68. What is the indicative Benchmark current ratio for Export oriented MSME having
morethan 50% turnover from export activities?
a) 1.10
b) 1.00
c) 1.17
d) 1.20
69. What is the exposure per project under Real Estate Finance?
a) Rs.1000 Crores
b) Rs.1500 Crores
c) Rs.1000 Crores or if the the requirement from banking system is more than
Rs.1000 crores, the Bank’s exposure is restricted to Rs.1000 crores or 50% of the
project cost whichever is lower.
d) Rs.1000 Crores or if the the requirement from banking system is more than Rs.1000
crores, the Bank’s exposure is restricted to Rs.1000 crores or 50% of the project cost
whichever is higher.

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70. What is the project cost upto which TEV study is not insisted by Bank?
a) Rs.10 Crores
b) Rs.20 Crores
c) Rs.25 Crores
d) Rs.15 Crores
71. What is the currency in which export credit limit in Foreign Currency given?
a) US Dollar
b) Euro
c) Japanese Yen
d) Pound Sterling
e) All of the above

72. Post shipment finance can be extended up to ______ % of the invoice value of goods?
a) 80%
b) 75%
c) 90%
d) 100%

73. In all cases of Pre-shipment credit “Running Account” facility, Letter of credit/firm
orders should be produced within a reasonable time not exceeding _____ days.
a) 60 days
b) 180 days
c) 90 days
d) 30 days

74. Which of the following regarding premium paid to ECGC is correct in case of Export
Finance?
a) Premium payable to ECGC for Pre-Shipment facilities is recovered from the borrower
b) Premium payable to ECGC Post shipment facilities is borne by the bank.
c) Under Export Gold Card Scheme the premium payable to ECGC is borne by the
Bank.
d) All the above.

75. What is the minimum amount of FCNR (B) loan is ?

a) USD 5.0 million
b) USD 0.5 million
c) USD 0.5 million or its equivalent
d) USD 10 million

76. The rate of interest on FCNR (B) loans is linked to ?

a) MIBOR
b) LIBOR
c) MCLR
d) BRLLR
77. The Import Borrowers who do not have a natural hedge are required to?
a) Maintain cash margin in the current ac.
b) Cover the exposure with a forward cover
c) Give suitable good collateral security
d) None of the above.

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78. What is the maximum repayment period allowed for import of non-capital goods under
Trade Credit?
a) 270 days
b) 180 days
c) 1 year
d) 300 days

79. What is the maximum repayment period allowed for import of capital goods under Trade
Credit?
a) 2 years
b) 3 years
c) 1 year
d) 300 days

80. What is the amount per import transaction beyond which import transactions are
considered by RBI under approval Route.
a) USD 25 million and above
b) USD 50 million and above
c) USD 150 million and above
d) USD 100 million

81. What is the maximum ceiling per annum in interest rate for Import credit?
a) The all-in-cost ceiling per annum should not exceed 250 basis points over and
above the bench mark rate.
b) The all-in-cost ceiling per annum should not exceed 150 basis points over and above
the bench mark rate.
c) The all-in-cost ceiling per annum should not exceed 200 basis points over and above
the bench mark rate.
d) None of the above.

82. Hedging is required in which of the cases in case of importers?

a) If natural hedge is available for the importer
b) Sight LC
c) Usance LC
d) If customer is ready to pay additional 0.5% p.a. commission.

83. As per RBI Guidelines banks are prohibited to issue which of the following:
a) Bank Guarantee to a new customer.
b) LOU
c) LOC
d) B & C

84. From which scale “Authority for take over of advances from other Banks/FIs “ is not
necessary?
a) Senior Manager Scale – III
b) Senior Branch Manager Scale – III
c) Chief Manager and above
d) Asst. General Manager and above.

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85. In case of takeover of agricultural advance upfront fee @ 0.25% is to be charged if_____
a) Proposal had fallen in SMA1 or SMA2 during the last 1 year.
b) Existing sanction is with deviations
c) Balance sheet is not available.
d) None of the above.
86. What is the time frame for disposal of MSME application for credit limit from 5 lacs to
25 lacs?
a) Within 15 working days
b) Within 3 weeks
c) Within 10 working days
d) Within 25 working days
87. What is the time frame for disposal of Retail Loans at Branch Level?
a) Within 10 working days
b) Within 15 working days
c) Within 7 working days
d) Within 1 week

88. How is the valuation of sugar stocks done in case of finance to sugar mills?
a) The stock of free sale sugar is valued at current market price.
b) All the stock should be valued at market price.
c) The unreleased stocks of levy sugar charged to the bank to be valued at levy price
fixed by govt.
d) (a) and (c)
89. Which type of usance bills are not to be discounted?
a) Unaccepted usance bills accompanied with documents of title to goods to be delivered
against acceptance.
b) Accepted usance bills
c) Usance Bills co-accepted by other banks.
d) Bills discounted under other Bank’s LCs.
e) None of the above.

90. What is the validity of Term Loan sanction and working capital sanction?
a) 6 months and 3 months respectively
b) 3 months and 6 months respectively
c) 3 months and 2 months respectively
d) 1 week only.
91. Will revalidation of sanction extend the review date?
a) Yes
b) No.
92. On what portion of the limit is penal interest charged in case of breach of terms and
conditions.
a) Only on principal
b) Only on interest
c) Both principal and interest
d) In case of Govt. Sponsored Schemes and Retail Loans penal interest per annum is
levied on overdue portion only.
e) Both c & d

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93. What percentage of working capital finance if not utilised commitment charges are
levied?
a) 50%
b) 75%
c) 60%
d) 80%

94. What are the exposures on which commitment charges are levied?
a) All advances except retail loans
b) All advances
c) All working capital advances
d) All working capital advances excluding retail loans other than Baroda Mortgage
Loan.

95. Which are the sanctions which have to be reported under Post Sanction Reporting.
a) All sanctions of the branch
b) All sanctions and credit decisions viz
fresh/increase/renewal/Rejection/adhoc/Modification / waivers/restructuring
/rescheduling.
c) All sanctions and credit decisions viz
fresh/increase/renewal/Rejection/adhoc/Modification / waivers/restructuring
/rescheduling excluding staff advances and LABOD.
d) None of these.

96. What is the limit beyond which proposals have to be submitted under PSR, to Regional
Office in case of Retail Lending?
a) Rs.6 lacs
b) Rs.10 lacs
c) Rs.5 lacs
d) Rs.10 lacs in Rural and Semi urban and Rs.25 lacs in Urban and Metro branches.

97. As per law of limitation, what is the validity of a Demand Promissory Note from the date
it is executed?
a) 5 years
b) 3 years
c) 12 years
d) 2 years

98. Who is the vetting authority in case of credit exposure of -2- crores and above?
a) Panel Advocate
b) Legal Manager
c) Legal Manager or Panel Advocate
d) Legal Manager for the first time and subsequently Panel advocate, other than
the one who have give Title clearance Report, can vet the documents subject to a
condition that there is no fresh mortgage involved during the renewal.

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99. Which are the credit facilities which are exempted from review?
a) LABOD
b) Staff Loans
c) For sanctions made for less than -1- year.
d) All the above.

100. What is the period of short review?

a) 6 months
b) 270 days
c) 3 months
d) 2 months

101. What is the frequency of inspection in case of latest Credit Rating BOB-5?
a) Half-yearly basis
b) Quarterly basis
c) Bi-monthly
d) Monthly

102. What is the periodicity for valuing the Immovable Property, given as security, in case of
Housing Loan which is standard and regular?
a) Once in 3 years
b) Once every year
c) Once in 5 years
d) No valuation is required

103. What are the exposures which are excluded from the purview of Credit Audit?
a) All self liquidating advances against Bank’s own deposits, 100% cash margin, Govt.
Securities like NSC/KVP/IVP etc.
b) All short term clean loans
c) All short review and NPA accounts.
d) All the above.

104. What is the periodicity of Stock audit of stocks and Book-debts?

a) Bi-annual in case of working capital exposure of over Rs.5 crores
b) Annually in case of working capital exposure from Rs.1 crore to 5 crores.
c) No Stocks audit for working capital exposure less than Rs.1 crore & where branches
are subject to Concurrent audit.
d) All the above.

105. Insurance of primary security is waived in which of the following for fire and other
risks on equipment and current assets?
a) All categories of priority sector advances up to and inclusive of Rs.10,000/-
b) Composite loans to artisans and KVIC
c) All term loans upto to Rs.25,000/- to MSE
d) All the above.

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106. What is the period for short review of advances?
a) Three months.
b) Four months.
c) Six months.
d) None of the above.

107. What is PSLC ?

a) Post Shipment Letter of Credit
b) Post Shipment Line of Credit
c) Priority Sector Lending Certificate
d) Pre shipment Letter of credit

108. What is curing policy?

a) Hand holding operations
b) Cut bank arrangements
c) (a) & (b)
d) None of the above

109. What is Hand holding operations?

a) Helping the borrower in times of difficulties.
b) Allowing the distressed borrowers to draw funds from the CC account to the extent of
their deposit of sale proceeds during the hand holding period.
c) Allowing the distressed borrower to draw funds from the CC account leaving behind
5% of the sale proceeds deposited.
d) All the above.

110. Who is the authority to monitor credit exposure beyond Rs.5 crores and upto 10 crores?
a) Zonal Head
b) Regional Head
c) ZOCC
d) RMCC

111. What is the minimum period of training, annually to each of the officers working in the
area of Credit, Treasury, Credit monitoring and Risk Management is ?
a) 2 weeks
b) 1 week
c) 3 weeks
d) 4 weeks

112. Who is the authority to approve accounts identified under Exit Policy where remedy is
not possible in case of accounts falling within the delegated powers of
DRMCC/RMCC/DNCC
a) ZOCC-GM
b) COCC-ED
c) CACB
d) MCB

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113. What are the triggers for an account to be identified for Exit Policy?
a) Credit Rating score of the account is deteriorating for the past two years
b) The financial performance of the account is showing deterioration for the past two years
c) The conduct of the account is showing unsatisfactory trends such as, poor turnover,
return of cheques for financial reasons, consistent overdues in the account, quality of the
assets charged to the bank is deteriorating steadily.
d) All the above.

114. In case of Consortium accounts identified under Exit Policy for High Risk borrowal
accounts, to what extent should our maximum share reduced to?
a) Less than 20%
b) Less than 15%
c) Less than 5%
d) Less than 10%

115. What is the lot size in Rupees in lacs for PSLC?

a) 10 Lacs
b) 20 Lacs
c) 50 Lacs
d) 25 Lacs

116. What is the validity of PSLC ?

a) 30th of June
b) 30th of September
c) 31st of December
d) 31st of March

117. Upto what extent of the PSL achievement, a PSLC can be issued?
a) 40%
b) 25%
c) 50%
d) 60%

118. Can a current be opened to a borrower who is enjoying credit facilities in the form of
Cash Credit or OD from the banking system?
a) We can open Current account in case our bank’s exposure is less than 10% of the
aggregate exposure from the entire banking system.
b) Yes
c) We may depending on the credit rating of the borrower
d) No

119. Which one of these is a type of PSLC?

a) PSLC Agriculture
b) PSLC Small & Marginal farmer
c) PSLC General
d) PSLC - Micro Enterprises
e) All of the above

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120. Can we extend a CC/OD facility to a borrower with less than 10% of the aggregate
exposure from the entire banking system?
a) May be opened.
b) No
c) May extend if the credit rating is BOB4 or less
d) Can be extended CC/OD facility subject to the condition that the CC/OD should be
used only for credits into such account and that the debit should be only to remit
the funds to the CC/OD account of the borrower with a bank that has 10% or
more of the exposure, at a frequency agreed between the bank and the borrower.

121. What type of facility can be extended to a borrower for working capital requirements,
whose exposure is less than 10% of the aggregate credit exposure from the banking industry?
a) DL
b) TL
c) WCDL/WCTL
d) None of the above.

122. What is the minimum surplus is percentage terms upon which a Bank may issue PSLC,
subject to meeting respective sector/sub sector targets?
a) 10%
b) 5%
c) 15%
d) 2%

123. Can a non-lending bank open a current account in case the aggregate exposure of a
borrower is more than Rs.50 crores?
a) Yes
b) No
c) May be
d) None of the above.

124. What is IBPC?

a) IBPC stands for Inter Bank Participation Certificate. It is a financial instrument to
manage short term liquidity as well as to meet short fall in priority targets
b) Participation in this instrument is restricted to Scheduled commercial banks and
RRBs.
c) IBPCs can be issued with or without risk sharing basis.
d) All the above.

125. What is down-selling?

a) Opposite of up-selling
b) The bank taking an exposure in a credit proposal syndicated /underwritten by
another lender /lead manager.
c) Selling NPAs
d) None of the above.

Baroda Academy, Chennai [19] Inventing Methods for Igniting minds

126. When can conversion in NFB and FB limits be allowed?
a) Cannot be allowed
b) Can be interchanged by proper sanction only when both are used for purchase of raw
material/stocks.
c) Post-conversion both FB and NFB limits shall be within the assessed MPBF.
d) b&c

127. Who has the authority for allocation of sub-limits/parking limits/transfer of loan
accounts?
a) Regional Authorities for allocation of sub-limits/ parking limits/transfer of loans
within the Region.
b) Zonal Authorities for allocation of sub-limits/ parking limits/transfer of loans
within the Zone.
c) No authority
d) None of the above.

128. Who is the sanctioning authority, in case of substitution of security, where the
substituting security is either equivalent or more than the security to be substituted?
a) The respective sanctioning authority.
b) The next higher authority
c) Zonal Authority
d) COCC.

129. Who is the sanctioning authority in case of dilution of security during substitution of
security?
a) The next higher authority
b) The next higher authority upto COCC-CGM.
c) No permission is allowed.
d) Full powers to the respective sanctioning authorities.

130. What is TABIT?

a) Account opening through TAB.
b) Loan origination application for Pre-approved Retail Loans
c) A customised TAB used by IT department for Finacle
d) A Finacle platform for customising menus.

131. What is purpose of KGR system?

a) KisanGrameen Reporting system
b) VaR monitoring of various limits & counterparty Bank Exposure
c) To monitor KG Register
d) None of the above.

132. In case one of the group accounts is an NPA, the decision as to the impact on
Group/Individual enterprise, their feasibility and viability may be taken ________.
a) By the respective sanctioning authority
b) By the next higher authority
c) By ZOCC or at the level of General Manager
d) By the branch head

Baroda Academy, Chennai [20] Inventing Methods for Igniting minds

133. What is hand holding in curing policy?
a) Holding the hand of the borrower in case of distress.
b) Allowing borrower to draw funds from CC a/c upto the deposit of sale proceeds.
c) Allowing temporary excess to the extent of 10% in genuine cases
d) Restructuring the account by carving out the overdue position as a fresh limit.

134. Who has the authority to reduce the minimum cut back arrangement of 5% upto the DLP
of COCC-CGM?
a) The sanctioning authority
b) COCC-ED
c) ZOCC
d) Next higher authority

135. Which statement is not true in providing assistance to borrowers suffering from
temporary problems to recover from financial distress?
a) To allow extension of DCCO upto a period of 1 year for non-infrastructure projects
b) To allow extension of DCCO upto a period of 2 years in case of infrastructure projects
c) DCCO extension can be considered upto -4- years in case of Infra projects involving
court cases.
d) No extension in DCCO is allowed in any situation.

136. Which statement is true in case of monitoring of Large Value credit exposure?
a) Branch to engage Agencies for Specialized Monitoring (ASM) in case of Large
borrower accounts.
b) The ASM to be appointed in borrower accounts where the limit is beyond Rs.250
crores
c) Scope of work to be assigned to the ASM as per guidelines of our Bank or IBA.
d) All the above.

137. In which cases, insurance of securities charged to the bank, is waived?

a) All categories of priority sector advances upto Rs.10000/-
b) Term loans given to MSE upto Rs.25000/-
c) Working capital finance against non hazardous goods to MSE upto Rs.25,000/-
d) All the above.

138. The execution of Credit Audit will be done through____

a) Loan Review Mechanism
b) Loan Documentation Audit
c) Credit Concurrent Audit
d) Onsite Credit Audit
e) All the above

139. Regarding monitoring and controlling of large advances which is true?

a) Three lines of defence were adopted
b) First line of defence - Customer Relationship department
c) Second line of defence - Risk Management
d) Third line of defence - Audit department
e) All the above

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140. In case of general advances what is the periodicity for valuation of property offered as
security?
a) Every two years
b) Every three years
c) Every five years
d) Every year

141. What is DCCO?

a) Documentary Credit of Company
b) Date of Commencement of Commercial Operations
c) Deferred Credit for company
d) None of these

142. In case of Commercial Real Estate (CRE) projects, Bank may revise the DCCO for
_______ period from original DCCO without categorising it as restructuring.
a) 6 months
b) 3 months
c) 1 year
d) 18 months

143. Which of the following is true regarding discounting of Bills?

a) Bank shall not extend funded or non-funded facilities to non-constituent borrower.
b) Bank’s shall open LC and purchase/ discount/negotiate bills under LCs only in respect
of genuine commercial and trade transactions.
c) Banks are prohibited to negotiate unrestricted LCs of non-constitutents.
d) Banks are restricted to purchase/discount bills drawn otherwise under LC on without
recourse basis.
e) None of the above.

144. Which of the following exposures are NOT required to be routed thorugh credit Risk
Evaluation Process?
a) Loan/OD against Bank of deposits
b) Facilities backed by 100% cash collaterals
c) Write off /compromise proposals
d) Adhoc proposals
e) All the above.
145. Which entities are classified under corporate and Institutional credit (C& IC)
a) Gross Annual Turnover including export sales of over Rs. 500 crores
b) Gross Annual Turnover excluding export sales of over Rs 250 crores
c) Gross Annual Turnover including export sales of over Rs 250 crores
d) Gross Annual Turnover excluding export sales of over Rs 500 crores

146. In case of Baroda property pride loans what is the threshold above which valuation
should be obtained from two empanelled valuers approved by the bank.
a) Rs.1.00 crore
b) Rs.2.00 crores
c) Rs.5.00 crores
d) Rs.10.00 crores

Baroda Academy, Chennai [22] Inventing Methods for Igniting minds

147. While purchasing of bills of exchange which of the following is false?
a) Bills/cheques should be purchased from account holders only.
b) Cheques drawn on scheduled and other first class bank should only be purchased.
c) Post dated cheques can be purchased.
d) Where clean bills are dawn in respect of goods already supplied, branches should
ensure that no finance is made against ‘accoimmodation bills’ or kite flying.

148. What is COCC-ED?

a) Central office Cordination Committee
b) Corporate Office Level credit Committee headed by EDs
c) Central office Credit Committee
d) None of these.

148. What is order of appropriation of recovery proceeds in standard accounts?

i. Towards all costs, commission, charges and expenses paid or incurred.
ii. Towards interest, additional interest, further interest, penal interest due to the Bank
iii. Towards payment to the principal money

a) i, ii, iii
b) ii, iii, i
c) iii, ii, i
d) ii, i, iii

150. Which are the advances, excluded from the scope and coverage of Credit Audit?
a) All self-liquidating advances granted against Bank’s own deposits
b) Advances against 100% cash margin.
c) Advances agsinst Govt. Securities like NSC/KVP/IVP
d) All the above.

******
“Disclaimer”
This reading material is intended to facilitate learning and enhance knowledge of the subject only. It
should not be construed as a substitute to Bank’s operational guidelines issued from time to time.
Though care has been taken to keep the reading content updated, learners are advised to refer to
Bank’s guidelines/circulars while taking business/operational decisions.This question bank is for
refresher purpose and it is not an exhaustive coverage of all the expected questions in the promotion
test, for which readers are expected to be thorough Hand book/ manuals / circulars of the bank.

Baroda Academy, Chennai [23] Inventing Methods for Igniting minds