Free 2026 CAIIB Mock Exam
Paper 2: Bank Financial Management (BFM)

Peninsular Commercial Bank's Integrated Treasury & Risk Division reports the following positions as of March 31, 2026: (1) Spot USD/INR is trading at 83.07, with 6-month risk-free rates at 7% p.a. in India and 5% p.a. in the US; (2) A newly sanctioned commercial corporate credit exposure of Rs. 400 Crores carries a 75% risk weight under Basel III (minimum RBI CRAR including CCB = 11.5%); (3) The fixed-income trading book of Rs. 300 Crores has a daily volatility (σ) of 1.5% (99% confidence Z = 2.33, √10 = 3.162); (4) In the 1-year ALM maturity bucket, Rate Sensitive Assets (RSA) are Rs. 6000 Crores against Rate Sensitive Liabilities (RSL) of Rs. 7500 Crores; and (5) Stock of High Quality Liquid Assets (HQLA) is Rs. 180 Crores against 30-day stressed net cash outflows of Rs. 150 Crores.