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100+ Free BOI Credit Officer Practice Questions

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Key Facts: BOI Credit Officer Exam

125 Q

Total questions in online examination

Bank of India recruitment notification

120 min

Total duration of the objective test

Bank of India exam structure

₹850

Application fee for General/OBC/EWS

Bank of India fee schedule

60%

Minimum graduation marks required

Bank of India eligibility criteria

25-32 Yrs

Age range for MMGS-II candidates

Bank of India officer age criteria

BOI Credit Officer: 125 questions, 120 minutes, +1/−0.25 marking. Graduation with 60% required. Age limit 25-32 years for MMGS-II. Application fee ₹850/₹175. Practice bank includes 100 free model questions.

Sample BOI Credit Officer Practice Questions

Try these sample questions to test your BOI Credit Officer exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1A firm has Current Assets of ₹600 lakhs and Current Liabilities (excluding bank borrowings) of ₹200 lakhs. Calculate the Maximum Permissible Bank Finance (MPBF) under the First Method of the Tandon Committee guidelines.
A.₹300 lakhs
B.₹450 lakhs
C.₹250 lakhs
D.₹400 lakhs
Explanation: Under the First Method of the Tandon Committee, the borrower is expected to contribute 25% of the working capital gap as margin. Working Capital Gap = Current Assets (CA) - Current Liabilities other than bank borrowings (CL) = ₹600 lakhs - ₹200 lakhs = ₹400 lakhs. MPBF = 75% of Working Capital Gap = 0.75 * 400 = ₹300 lakhs.
2Using the same figures (Current Assets of ₹600 lakhs and Current Liabilities excluding bank borrowings of ₹200 lakhs), calculate the MPBF under the Second Method of the Tandon Committee.
A.₹300 lakhs
B.₹250 lakhs
C.₹150 lakhs
D.₹200 lakhs
Explanation: Under the Second Method of the Tandon Committee, the borrower must contribute 25% of total Current Assets as margin. Margin = 25% of CA = 0.25 * ₹600 lakhs = ₹150 lakhs. MPBF = (CA - CL) - Margin = (600 - 200) - 150 = ₹250 lakhs.
3A company has a Net Profit After Tax of ₹120 lakhs, Depreciation of ₹30 lakhs, Non-operating income of ₹10 lakhs, Interest on Long-term debt of ₹40 lakhs, and principal repayment of long-term debt of ₹50 lakhs. Calculate the Debt Service Coverage Ratio (DSCR).
A.2.11
B.1.50
C.2.00
D.1.70
Explanation: DSCR is calculated as (Net Profit + Depreciation + Interest on Long-term Debt) / (Principal Repayment + Interest on Long-term Debt). Substituting the values: (₹120 lakhs + ₹30 lakhs + ₹40 lakhs) / (₹50 lakhs + ₹40 lakhs) = ₹190 lakhs / ₹90 lakhs = 2.11. Non-operating income is already included in Net Profit, so no adjustment is needed unless specified.
4If a borrower's Balance Sheet shows Total Debt of ₹800 lakhs and Tangible Net Worth of ₹400 lakhs, what is the Debt-Equity Ratio, and what does a high ratio generally indicate to a credit officer?
A.0.50; indicates low financial risk and high solvency.
B.2.00; indicates high leverage and higher financial risk to creditors.
C.1.50; indicates balanced gearing and moderate leverage.
D.2.50; indicates extremely high equity funding relative to debt.
Explanation: Debt-Equity Ratio = Total Debt / Tangible Net Worth = 800 / 400 = 2.00. A high debt-equity ratio indicates that the firm is highly leveraged, relying heavily on debt to fund operations, which increases the financial risk for lenders and creditors in case of liquidation.
5An asset is classified as 'Substandard' under RBI's IRAC guidelines. If the asset has a secured balance of ₹200 lakhs and is entirely secured by primary collateral, what is the minimum provision required by the bank?
A.₹20 lakhs (10%)
B.₹30 lakhs (15%)
C.₹50 lakhs (25%)
D.₹100 lakhs (50%)
Explanation: Under the RBI guidelines for asset classification and provisioning (IRAC norms), a substandard asset that is fully secured requires a uniform provisioning rate of 15%. Minimum provision = 15% of ₹200 lakhs = ₹30 lakhs.
6Calculate the provisioning required for a 'Doubtful-1' (D1) asset with a outstanding balance of ₹500 lakhs, where the realizable value of the secured collateral is ₹300 lakhs.
A.₹200 lakhs
B.₹275 lakhs
C.₹325 lakhs
D.₹125 lakhs
Explanation: Under RBI guidelines, the unsecured portion of a doubtful asset must be provided for at 100%, and the secured portion of a D1 asset (up to 1 year in doubtful category) requires a 25% provision. Unsecured portion = ₹500 lakhs - ₹300 lakhs = ₹200 lakhs (Provision = ₹200 lakhs). Secured portion = ₹300 lakhs (Provision = 25% of 300 = ₹75 lakhs). Total provision = ₹200 lakhs + ₹75 lakhs = ₹275 lakhs.
7Calculate the provisioning required for a 'Doubtful-2' (D2) asset (in the doubtful category for 1 to 3 years) with a total outstanding balance of ₹400 lakhs, where the value of the security is ₹250 lakhs.
A.₹250 lakhs
B.₹150 lakhs
C.₹210 lakhs
D.₹260 lakhs
Explanation: For a D2 asset, the provisioning rate is 40% on the secured portion and 100% on the unsecured portion. Unsecured portion = ₹400 lakhs - ₹250 lakhs = ₹150 lakhs (Provision = ₹150 lakhs). Secured portion = ₹250 lakhs (Provision = 40% of 250 = ₹100 lakhs). Total provision = ₹150 lakhs + ₹100 lakhs = ₹250 lakhs.
8A firm has Current Assets of ₹500 lakhs, Current Liabilities of ₹300 lakhs, and Inventory of ₹150 lakhs. What are the Current Ratio and the Quick Ratio (Acid Test Ratio) of the firm respectively?
A.1.67 and 1.17
B.1.67 and 1.67
C.1.67 and 0.83
D.1.67 and 0.50
Explanation: Current Ratio = Current Assets / Current Liabilities = 500 / 300 = 1.67. Quick Ratio = (Current Assets - Inventory) / Current Liabilities = (500 - 150) / 300 = 350 / 300 = 1.17. Therefore, the Current Ratio is 1.67 and the Quick Ratio is 1.17.
9Which of the following legal concepts describes the transfer of an interest in specific immovable property for securing the payment of money advanced or to be advanced by way of loan?
A.Pledge
B.Hypothecation
C.Mortgage
D.Lien
Explanation: Section 58 of the Transfer of Property Act, 1882 defines a mortgage as the transfer of an interest in specific immovable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability.
10Which type of charge is typically created over stock-in-trade (inventory) and book debts when the bank allows the borrower to retain possession and trade in those assets?
A.Pledge
B.Lien
C.Hypothecation
D.Assignment
Explanation: Hypothecation is a charge created on movable property in favor of a secured creditor without delivery of possession of such property. The borrower holds the inventory or book debts in trust for the bank, conducts sales, and submits periodic stock statements, which makes hypothecation the standard charge for working capital loans.

About the BOI Credit Officer Exam

The Bank of India Credit Officer (MMGS-II) exam is a specialized banking recruitment test conducted by Bank of India through IBPS. It consists of an online objective examination of 125 questions covering Professional Knowledge and English Language, followed by a personal interview. This practice bank provides 100 curated practice questions mirroring the official Professional Knowledge syllabus including credit appraisal, financial analysis, banking laws, risk management, and NPA rules.

Assessment

Online computer-based test: 125 questions in 120 minutes, comprising Professional Knowledge (100 Q, 100 marks) and English Language (25 Q, 25 marks - qualifying). Negative marking of 0.25 marks per incorrect answer. Followed by a personal interview.

Time Limit

120 minutes

Passing Score

Cut-off marks set dynamically by the bank based on category and overall merit.

Exam Fee

₹850 for General/OBC/EWS and ₹175 for SC/ST/PwBD candidates (Bank of India)

BOI Credit Officer Exam Content Outline

25%

Credit Appraisal & Management

Credit appraisal process, loan documentation, credit assessment, and credit risk-return analysis.

25%

Financial Statement Analysis

Balance Sheet and Profit & Loss analysis, working capital assessment (MPBF), cash flow, and ratio analysis.

15%

Banking Laws & Regulation

Banking Regulation Act, RBI guidelines, Negotiable Instruments Act, SARFAESI Act, and IBC 2016.

15%

Risk & NPA Management

Asset classification, provisioning (IRAC norms), CIBIL reports, Basel III norms, and capital adequacy.

10%

Lending Products & Priority Sector Lending

Retail loan products, mortgages, Priority Sector Lending (PSL) targets, and Kisan Credit Cards.

10%

English Language

Reading comprehension, cloze test, error detection, synonyms/antonyms, and grammar.

How to Pass the BOI Credit Officer Exam

What You Need to Know

  • Passing score: Cut-off marks set dynamically by the bank based on category and overall merit.
  • Assessment: Online computer-based test: 125 questions in 120 minutes, comprising Professional Knowledge (100 Q, 100 marks) and English Language (25 Q, 25 marks - qualifying). Negative marking of 0.25 marks per incorrect answer. Followed by a personal interview.
  • Time limit: 120 minutes
  • Exam fee: ₹850 for General/OBC/EWS and ₹175 for SC/ST/PwBD candidates

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

BOI Credit Officer Study Tips from Top Performers

1Prioritize Financial Ratio Analysis and Working Capital Assessment, as these involve numerical calculations frequently tested.
2Stay updated on current RBI notifications, particularly circulars on IRAC norms, NPA classification, and provisioning.
3Thoroughly study the SARFAESI Act, IBC 2016, and the Banking Regulation Act.
4Understand priority sector lending (PSL) targets and targets for sub-sectors like agriculture and micro-enterprises.
5Practice solving credit-related case studies and cash flow statements.

Frequently Asked Questions

What is the exam pattern for the BOI Credit Officer exam?

The online exam consists of 125 questions (100 Professional Knowledge and 25 English Language) with a total time duration of 120 minutes. There is negative marking of 0.25 marks for every wrong answer.

Is the English section counted for final merit?

No, the English section is qualifying in nature. Marks scored in Professional Knowledge are used to determine the merit list for interview shortlisting.

What is the application fee for the BOI Credit Officer exam?

The application fee is ₹850 for General/OBC/EWS candidates and ₹175 for SC/ST/PwBD candidates.

What are the educational qualifications required for MMGS-II?

Candidates must have a Graduation degree with at least 60% marks. Additional professional qualifications like CA, CMA, CS, or CFA are highly preferred.

Are there calculations in the Professional Knowledge section?

Yes, candidates should expect calculations on financial ratios (current ratio, DSCR, debt-equity), working capital requirements (MPBF methods), and asset provisioning percentages.