20 Multiple Choice Questions (MCQs) on PSU Banks
Multiple Choice Questions (MCQs) on PSU Banks
Practice exam-oriented questions on Indian Public Sector Banks (PSBs): NPAs, profitability, RBI actions, digital initiatives, MSME support, and more.
1.
As of March 2025, what was the gross Non-Performing Asset (NPA) ratio reported by India's Public Sector Banks (PSBs)?
Explanation: The Ministry of State for Finance reported on 22 July 2025 that the gross NPA of public sector banks fell from 9.11% (March 2021) to 2.58% (March 2025).
2.
What is the total cumulative net profit achieved by India's Public Sector Banks in Financial Year (FY) 2025?
Explanation: India's public sector banks posted a record cumulative net profit of ₹1.78 trillion in FY 2025, a 26% year-on-year increase.
3.
Which Public Sector Bank (PSB) had the highest number of UPI transaction failures among large banks in Financial Year (FY) 2025?
Explanation: An analysis of UPI transaction failures showed that, among large banks, State Bank of India recorded the highest number of failed UPI transactions in FY 2025.
4.
Which bank became the first major Public Sector Bank to implement a blanket waiver of minimum balance penalties across all categories of saving bank accounts, effective June 1, 2025?
Explanation: Canara Bank removed charges for non-maintenance of minimum balance across all saving bank accounts, effective from 1 June 2025, becoming the first major PSB to do so.
5.
What is the name of the collateral-free digital loan scheme launched by State Bank of India (SBI) exclusively for women-led Micro, Small, and Medium Enterprises (MSMEs)?
Explanation: SBI launched Amita, a fully digital, collateral-free loan product designed specifically for women-led MSMEs, timed around International Women's Day.
6.
What unique mobile application was recently launched by Bank of Baroda (BoB) as a dedicated cash management solution exclusively for corporate clients?
Explanation: Bank of Baroda launched the Baroda MD Next mobile app as a dedicated cash management solution for its corporate clients, becoming one of the few banks with such a focused offering.
7.
For what primary purpose did IDBI Bank recently authorize the issuance of long-term bonds worth up to ₹10,000 crore?
Explanation: IDBI Bank approved long-term bonds of up to ₹10,000 crore to fund infrastructure and affordable housing, supporting long-gestation projects.
8.
Union Bank of India (UBI) was penalized ₹63.6 lakh by the RBI for regulatory non-compliance related to which specific area?
Explanation: RBI fined Union Bank of India ₹63.6 lakh for violating the Banking Regulation Act, 1949 and instructions on credit flow to agriculture, including collateral-free agricultural loans.
9.
Which Public Sector Bank, according to a CII report, partnered with the Indian Green Building Council (IGBC) to promote green building financing?
Explanation: Indian Overseas Bank signed an MoU with CII and the Indian Green Building Council to provide easier finance for IGBC-certified green buildings.
10.
Which Public Sector Bank introduced "Patrons" and "Her Lucknow," two new deposit schemes specifically designed for super senior citizens aged 80 and above?
Explanation: State Bank of India launched the "Patrons" and "Her Lucknow" deposit schemes for super senior citizens aged 80 years and above.
11.
What is the name of the specialized suit of current and saving accounts launched by Canara Bank for institutional clients across sectors like healthcare, education, and religious organizations?
Explanation: Canara Bank rolled out Canara True Edge, a specialized suite of current and savings accounts tailored to institutional segments like hospitals, schools, and religious bodies.
12.
Which Public Sector Bank intends to introduce an instant loan program for MSMEs with a maximum loan amount of up to ₹25 lakh, using a straight-through process (STP) on a predefined business rule engine?
Explanation: Punjab and Sind Bank plans an instant MSME loan scheme up to ₹25 lakh using an automated straight-through processing model based on predefined rules.
13.
What was the percentage growth in State Bank of India's (SBI's) net profit for Quarter 3 (Q3) of Financial Year (FY) 2025 compared to the previous year?
Explanation: SBI reported an 84.32% year-on-year increase in net profit for Q3 FY 2025, reflecting strong operational performance and lower provisions.
14.
As part of its 131st foundation day celebration in April 2025, how many new products were launched by Punjab National Bank (PNB)?
Explanation: On its 131st foundation day (12 April 2025), Punjab National Bank unveiled 34 new products and initiatives.
15.
What is the name given to the support staff that State Bank of India (SBI) is deploying from its subsidiary to assist customers in adopting alternate banking channels?
Explanation: SBI is deploying staff called Grahak Mitras (customer friends) from its subsidiary, State Bank Operation Support Services, to guide customers in using alternate banking channels.
16.
What amount did State Bank of India (SBI) raise through the largest dollar-denominated syndicated loan from India in 2025?
Explanation: SBI raised \$1 billion through a syndicated loan, the largest dollar-denominated syndicated loan from India in 2025.
17.
Which PSU bank is collaborating with IIT Madras to launch a cyber security and fintech hackathon in April 2025?
Explanation: Indian Bank announced a cyber security and fintech hackathon in partnership with IIT Madras, scheduled for April 2025.
18.
Bank of Maharashtra (BoM) recently extended a ₹1,500 crore loan to which organization for its first slum redevelopment project in Kartar Coop, Mumbai?
Explanation: The Mumbai Metropolitan Region Development Authority (MMRDA) received a ₹1,500 crore loan from Bank of Maharashtra for its first slum redevelopment project in Kartar Coop, Mumbai.
19.
How many physical branches does Bank of Baroda (BoB) currently operate across India, as reported following the opening of a branch at Kolkata NSB airport?
Explanation: After inaugurating its first physical branch in Kolkata at NSB airport, Bank of Baroda was reported to have seven physical branches across India.
20.
Which bank, mentioned as a top-tier public sector bank, recently partnered with Tata Power Renewable Energy Limited to finance residential rooftop solar systems under the Pradhan Mantri Suryaghar Yojana (PM-JAY)?
Explanation: Bank of Baroda partnered with Tata Power Renewable Energy Limited to finance rooftop solar systems under the Pradhan Mantri Suryaghar Yojana (PM-JAY).
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