UPSC Prelims Practice Questions — ICICI Bank Q3 net slips on RBI direction

Q1. In ICICI Bank's Q3FY26 results, what was the quantum of the additional standard asset provision the bank was directed by the Reserve Bank of India to make on its non-compliant agricultural priority sector portfolio?

  • A. ₹1,000 crore
  • B. ₹1,283 crore
  • C. ₹2,556 crore
  • D. ₹5,356 crore

Q2. With reference to the Reserve Bank of India's Master Directions on Priority Sector Lending (currently in force), consider the following categories: 1. Agriculture 2. Renewable Energy 3. Social Infrastructure 4. Commercial Real Estate Which of the above is/are correctly identified as eligible priority sector categories?

  1. Agriculture
  2. Renewable Energy
  3. Social Infrastructure
  4. Commercial Real Estate
  • A. 1 and 4 only
  • B. 1, 2 and 3 only
  • C. 2 and 3 only
  • D. 1, 2, 3 and 4

Q3. In the context of the RBI direction that pulled down ICICI Bank's Q3FY26 net profit, the term 'standard asset provision' most precisely refers to:

  • A. A provision created against accounts classified as Non-Performing Assets in proportion to the period of default
  • B. A general provision required to be maintained on performing (non-NPA) loans as a prudential buffer prescribed by the RBI
  • C. A provision created exclusively against restructured accounts during the moratorium period
  • D. A counter-cyclical provision built out of profits during boom years and released during downturns

Q4. With reference to ICICI Bank's Q3FY26 (quarter ended December 2025) performance compared to Q3FY25, consider the following statements: 1. Net profit declined year-on-year even as Net Interest Income grew year-on-year. 2. The Gross NPA ratio improved year-on-year. 3. The Net Interest Margin contracted year-on-year. Which of the statements given above is/are correct?

  1. Net profit declined year-on-year even as Net Interest Income grew year-on-year.
  2. The Gross NPA ratio improved year-on-year.
  3. The Net Interest Margin contracted year-on-year.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q5. The Master Direction on Priority Sector Lending – Targets and Classification, under which ICICI Bank's agricultural loan portfolio was held non-compliant, is issued by which of the following?

  • A. Department of Financial Services, Ministry of Finance
  • B. Financial Inclusion and Development Department (FIDD), Reserve Bank of India
  • C. Department of Regulation, Reserve Bank of India
  • D. National Bank for Agriculture and Rural Development (NABARD)