1. Home
  2. |  
  3. Bank Recruitment|  

Cloze Test Quiz for Bank Exams: India's Banking Sector Just Got Worse

Jan 16, 2017 16:56 IST

    It is very important these days to take care of your English section in each and every banking examination as it determines your selection at the end of the day. In this article, you will get a cloze test taken from an article from the newspaper. Practice it and measure your preparation on a scale relative to your competitors.

    Question (1-10): In the following passage, there are blanks each of which is numbered. These numbers are printed below and against each, five words are suggested out of which only one fits the blank properly. Find out that word in each case.

    Bad loans at Indian banks have ………. an unprecedented 30% in the third quarter and things are likely to get ……. This follows an official review last quarter by Reserve Bank of India governor Raghuram Rajan, when India's banking regulator started a bank-by-bank review of stressed accounts. For all the past few years of growth and …….., banks in India have …….. rolling over troubled loans or restructured them to make terms favorable to borrowers. Rajan has set banks a March 2017 deadline to …….. their balance sheets and treat some troubled loan accounts as bad and make provisions for them by the end of this March. The aim is that the clean-up, which started in the December quarter, will restore the health of banks,  .…….. lending and, in turn, boost economic growth.

    But there's still time for that.

    According to a report by Credit Suisse, bad loans are likely to …….. further to 6.6% of loans by Mar 2016 as most banks have ………. the impact over two quarters. (On Tuesday,  State Bank of India , the country's largest state-owned bank said bad loans are expected to ……… in the coming quarter and this will likely hit profitabiliy.) The provision coverage--having enough capital in the bank to provide for any bad loans--has also ………to 43%. Meaning, only 43% of the loans are provided for. At state-owned banks the unprovided non performing assets (NPAs) are now 30–75% of their capital and un-provided problem loans (loans which are in trouble and could turn into NPAs) even higher at 65–200%, the report said. (Once a borrower has failed to make interest or principal payments for 90 days, the loan is considered to be a non-performing asset or NPA.)

    That's a huge number.

    "As was our concern, the RBI audit revealed significant under-recognition of NPAs. However based on our analysis full recognition is yet to happen," the report said.

     

    the report said.


    1. Find out the right word

    a)      Jumped

    b)      Stand

    c)       Ended

    d)      Declined

    e)      Other than those as given in the options

    Ans: Option (a)

    Explanation: In the context of the passage, at Indian banks bad loans have soared an unprecedented 30% in the third quarter. It makes option (a) the right choice among the given options


    2. Find out the right word

    a)      Worse

    b)      Better

    c)       Improved

    d)      Healthier

    e)      Other than those as given in the options

    Ans: Option (a)

    Explanation: Bad loans at Indian banks have jumped an unprecedented 30% in the third quarter and there is possibility that things get worse. It makes option (a) the right choice among the given options.


    3. Find out the right word

    a)      Broke

    b)      Damage

    c)       Reform

    d)      Wave

    e)      Other than those as given in the options

    Ans: Option (c)

    Explanation: The passage talks about that for all the past few years of development and improvement, Indian public sector banks have continued rolling over troubled loans or. It makes option (c) the right choice among the given options.


    4. Find out the right word

    a)      Stopped

    b)      Ceased

    c)       Continued

    d)      Quitted

    e)      Other than those as given in the options

    Ans: Option (c)

    Explanation: The passage is saying that for all the past few years of development, Indian banks have continued rolling over troubled loans or restructured them to make terms favorable to borrowers. This makes option (c) the right choice among the given options.


    5. Find out the right word

    a)      Forfeit

    b)      Scattered

    c)       Dwindled

    d)      Clean up

    e)      Other than those as given in the options

    Ans: Option (d)

    Explanation: According to the passage, the former governor of central bank Raghu ram Rajan has set banks a March 2017 deadline to clean up their balance sheets. This makes option (d) the right choice among the given options.


    6. Find out the right word

    a)      Weaken

    b)      Revive

    c)       Suppress

    d)      Agitate

    e)      Other than those as given in the options

    Ans: Option (b)

    Explanation: The aim is that the clean-up of the balance sheet aims to restore the health of banks, revitalize lending and, in turn, enhance economic growth. This makes option (b) the right choice among the given options.


    7. Find out the right word

    a)      Keep

    b)      Move up

    c)       Retard

    d)      Take back

    e)      Other than those as given in the options

    Ans: Option (b)

    Explanation: The passage is about a report by Credit Suisse. According to the report, bad loans are likely to move up further to 6.6% of loans by March 2016. This makes option (b) the right choice among the given options.


    8.Find out the right word

    a)      Deferred

    b)      Advanced

    c)       Furthered

    d)      Forwarded

    e)      Other than those as given in the options

    Ans: Option (a)

    Explanation: According to a report by Credit Suisse, bad loans are likely to move up further to 6.6% of loans by March 2016 as most banks have delayed the impact over two quarters. This makes option (a) the right choice among the given options.

    9. Find out the right word

    a)      Decrease

    b)      Worsen

    c)       Decline

    d)      Surge

    e)      Other than those as given in the options

    Ans: Option (d)

    Explanation: The passage says that the largest commercial bank of the country, SBI told bad loans are expected to surge in the coming quarter and this will result in profitability. It makes option (d) the right choice among the given options.


    10. Find out the right word

    a)      Slipped

    b)      Corrected

    c)       Remained

    d)      Fall

    e)      Other than those as given in the options

    Ans: Option (a)

    Explanation: In the context of the passage, the provision of the coverage--having enough capital in the bank to provide for any bad loans--has also slipped to 43%. It makes option (a) the right choice among the given options.

    DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.

    Latest Videos

    Register to get FREE updates

      All Fields Mandatory
    • (Ex:9123456789)
    • Please Select Your Interest
    • Please specify

    • ajax-loader
    • A verifcation code has been sent to
      your mobile number

      Please enter the verification code below

    This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK
    X

    Register to view Complete PDF