Free 2026 CAIIB Mock Exam
CAIIB Paper 1: Advanced Bank Management
Full 2026 IIBF pattern mock exam environment. Answer questions, flag items for review, and receive an instant diagnostic scorecard with topic breakdowns free.
Exam Attempt Completed
IIBF Passing Threshold is 50%. Your final scorecard breakdown is below.
Topic Performance & Weakness Diagnostics
| Topic Tested | Score | Accuracy (%) | Strength Status |
|---|---|---|---|
| MCLR Component calculation | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Standard and Sub-Standard Asset Provisioning | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Tandon Committee Method II (MPBF) | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Risk Weighted Assets (RWA) & Capital Requirement | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Sub-Standard & Doubtful NPA Norms | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Large Exposure limits | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Working Capital for MSMEs | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Bond Yield to Maturity (YTM) | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Debt Service Coverage Ratio (DSCR) | 0 / 1 | 0% | WEAK - REVISION NEEDED |
| Altman Z-Score Model | 0 / 1 | 0% | WEAK - REVISION NEEDED |
Detailed Solved Question Key & Explanations
Which of the following is NOT one of the four components prescribed by the RBI for calculating the Marginal Cost of Funds based Lending Rate (MCLR)?
MCLR is calculated using the *Marginal* Cost of Funds (not the average cost of deposits), negative carry on CRR, operating costs, and tenor premium. The average cost of deposits was used under the older Base Rate system.
For a standard commercial real estate (residential housing sector) advance, what is the standard asset provisioning rate mandated by the RBI?
RBI standard asset provisioning rates are: (a) Agricultural & MSME standard accounts = 0.25%; (b) Commercial Real Estate (CRE) - Residential Housing = 0.75%; (c) CRE - General/Others = 1.00%; (d) Other Standard advances = 0.40%.
Under Tandon Committee Method II, a borrower has Total Current Assets of Rs. 400 Lakhs and Current Liabilities (other than bank borrowings) of Rs. 90 Lakhs. What is the Maximum Permissible Bank Finance (MPBF)?
Under Method II of Tandon Committee norms, MPBF = 0.75 * (Current Assets - Non-Bank Current Liabilities) = 0.75 * (400 - 90) = 0.75 * 310 = Rs. 233 Lakhs.
MPBF = 0.75 * (Total CA - Non-Bank CL)A bank advances a commercial loan of Rs. 200 Crores to a corporate borrower with a Risk Weight of 75% under Basel III Standardised Approach. If minimum RBI CRAR requirement is 11.5%, how much total capital must the bank hold for this loan?
RWA = Exposure * Risk Weight = 200 Crores * 75% = Rs. 150 Crores. Capital Required = RWA * 11.5% = 150 * 0.115 = Rs. 17.25 Crores.
Capital Required = (Exposure * Risk Weight %) * RBI CRAR %A Term Loan account has remained an NPA for 18 months as of March 31, 2026 (D1 Category). Tangible collateral security value is Rs. 40 Lakhs against an outstanding balance of Rs. 100 Lakhs. What is the total RBI provision required?
Outstanding = 100 L. Tangible Security = 40 L. Unsecured portion = 100 - 40 = Rs. 60 Lakhs. In Doubtful D1 stage (NPA between 12 to 24 months): Provision = 100% on Unsecured shortfall (60 L) + 25% on Secured portion (25% of 40 = 10 L) = Total Provision of Rs. 70 Lakhs.
Provision = (100% * Unsecured Shortfall) + (25% D1 Rate * Secured Value)Under the RBI Large Exposure Framework (LEF), what is the maximum sum of all exposure values of a bank to a single counterparty at any point of time?
Under the RBI Large Exposure Framework, the exposure limit to a single counterparty is 20% of the bank's Tier 1 Capital. The board can approve an additional 5% (raising the cap to 25%) under exceptional circumstances.
A small manufacturing enterprise projects an annual turnover of Rs. 260 Lakhs. According to Nayak Committee recommendations for MSMEs (working capital limit up to Rs. 5 Crores), what is the minimum bank finance requirement?
As per Nayak Committee norms for MSMEs, Working Capital requirement is assessed at 25% of projected turnover (Rs. 65 Lakhs), promoter margin is 5% (Rs. 13 Lakhs), and minimum Bank Limit = 20% of Rs. 260 Lakhs = Rs. 52 Lakhs.
Bank Limit = 20% of Projected Annual TurnoverA 10-year bank bond with face value of Rs. 1,000 pays an annual coupon of 8% (Rs. 80). If the current market price of the bond is Rs. 950, what is the approximate YTM of the bond?
Approximate YTM = [ Coupon + (Face Value - Price)/n ] / [ (Face Value + Price)/2 ] = [ 80 + (1000 - 950)/10 ] / [ (1000 + 950)/2 ] = [ 80 + 5 ] / 975 = 85 / 975 = 8.718% ≈ 8.72%. When market price is below face value, YTM > Coupon Rate.
YTM ≈ [ C + (F - P)/n ] / [ (F + P)/2 ]A borrowing firm has Net Profit (PAT) of Rs. 40 Lakhs, Depreciation of Rs. 10 Lakhs, Annual Interest Expense of Rs. 15 Lakhs, and Term Loan Principal Repayment of Rs. 30 Lakhs due this year. What is the DSCR?
DSCR = (PAT + Depreciation + Interest) / (Interest + Principal Repayment) = (40 + 10 + 15) / (15 + 30) = 65 / 45 = 1.44.
DSCR = (PAT + Depr + Interest) / (Interest + Principal Repay)In Altman's Z-Score model for predicting corporate bankruptcy, if a manufacturing company has a computed Z-Score of 1.50, which zone of financial health does this place the borrower in?
In the Altman Z-Score model for public manufacturers: Z-Score < 1.81 is the 'Distress Zone' (insolvency likely); 1.81 <= Z-Score <= 2.99 is the 'Grey Zone' (moderate risk); Z-Score > 2.99 is the 'Safe Zone'. A score of 1.50 signals distress.
Welcome Back
Sign in to save reports and access premium credit tools.