PracticeVideosBlogFlashcardsEspañol
All Practice Exams

100+ Free PNB LBO Practice Questions

Pass your Punjab National Bank Local Bank Officer exam on the first try — instant access, no signup required.

✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately
Highly competitive (under 5% selection rate) Pass Rate
100+ Questions
100% Free

Loading practice questions...

Same family resources

Explore More India Banking & Financial Sector Exams

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

Bank of Baroda Local Bank Officer (LBO)

Practice Questions

Bank of Baroda Office Assistant Recruitment Exam

Practice Questions

Bank of India Credit Officer (GBO Stream) Exam

Practice Questions

Bank of Maharashtra Generalist Officer (Scale II/III) Exam

Practice Questions

Bihar State Co-operative Bank Clerk / Assistant Exam

Practice Questions

Central Bank of India Apprentice Recruitment Exam

Practice Questions
2026 Statistics

Key Facts: PNB LBO Exam

150 MCQs

Total questions in the online exam across 5 sections

PNB Official Notification

180 Minutes

Total duration allowed with sectional timings

PNB Official Notification

0.25 Penalty

Negative marking deducted for each incorrect answer

PNB Evaluation Scheme

₹1,180

Application fee for General / OBC / EWS applicants (GST included)

PNB Fee Guidelines

LLPT

Local Language Proficiency Test required if not studied in school

PNB Eligibility Criteria

The exam consists of 150 questions (150 marks) in 180 minutes: Reasoning (25), Data Analysis (25), English (25), Quant (25), and Banking Awareness (50). Penalty is 0.25 marks per incorrect answer. Fee is ₹1,180 for General and ₹59 for SC/ST.

Sample PNB LBO Practice Questions

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

1Under the mega-merger of public sector banks in India, which of the following banks were merged into Punjab National Bank (PNB) with effect from April 1, 2020?
A.Oriental Bank of Commerce and United Bank of India
B.Syndicate Bank and Canara Bank
C.Andhra Bank and Corporation Bank
D.Allahabad Bank and Indian Bank
Explanation: Effective from April 1, 2020, Oriental Bank of Commerce (OBC) and United Bank of India were amalgamated into Punjab National Bank (PNB), making PNB the second-largest public sector bank in India at that time.
2Punjab National Bank (PNB), established in 1894, commenced its operations from Lahore. Who among the following was one of the key national leaders and founders of PNB?
A.Lala Lajpat Rai
B.Bal Gangadhar Tilak
C.Dadabhai Naoroji
D.Gopal Krishna Gokhale
Explanation: Lala Lajpat Rai, the prominent Swadeshi leader (known as Punjab Kesari), was one of the key founders of Punjab National Bank in 1894, along with Dyal Singh Majithia, establishing it as the first Swadeshi bank.
3What is the official tagline of Punjab National Bank (PNB)?
A.The name you can bank upon
B.A tradition of trust
C.Relationship beyond banking
D.Good people to bank with
Explanation: The official tagline of Punjab National Bank is 'The name you can bank upon', reflecting its long-standing reputation and customer trust.
4Which of the following statements best defines the term 'Repo Rate' in the context of the Reserve Bank of India's monetary policy?
A.The rate at which RBI lends short-term money to commercial banks against government securities
B.The rate at which commercial banks park their excess funds with the Reserve Bank of India
C.The rate at which RBI provides long-term loans to commercial banks without collateral
D.The rate charged by commercial banks on loans extended to their prime corporate customers
Explanation: Repo Rate (Repurchase Option) is the rate at which the RBI lends money to commercial banks for short periods against the security of government debt.
5Under Section 24 of the Banking Regulation Act, 1949, commercial banks in India are required to maintain a certain percentage of their Net Demand and Time Liabilities (NDTL) in the form of liquid assets like cash, gold, or unencumbered government securities. What is this ratio called?
A.Statutory Liquidity Ratio (SLR)
B.Cash Reserve Ratio (CRR)
C.Marginal Standing Facility (MSF)
D.Capital Adequacy Ratio (CAR)
Explanation: Statutory Liquidity Ratio (SLR) is the reserve requirement that commercial banks in India are required to maintain in the form of gold, cash, or government-approved securities before providing credit to customers.
6What rate of interest is paid by the Reserve Bank of India (RBI) to commercial banks on the Cash Reserve Ratio (CRR) balances maintained by them?
A.No interest is paid
B.Equivalent to the prevailing Repo Rate
C.Equivalent to the savings bank interest rate
D.Equivalent to the Bank Rate
Explanation: The RBI does not pay any interest to commercial banks on the Cash Reserve Ratio (CRR) balances they park with the RBI. This acts as a cost to banks.
7What is the primary target for Priority Sector Lending (PSL) prescribed by the RBI for domestic scheduled commercial banks (excluding Regional Rural Banks and Small Finance Banks)?
A.40% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher
B.75% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher
C.18% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher
D.10% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher
Explanation: Domestic scheduled commercial banks are mandated to allocate 40% of their Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure (CEOBE), whichever is higher, to the priority sector.
8Within the overall Priority Sector Lending (PSL) target of 40% for domestic commercial banks, what is the specific sub-target allocated to the Agriculture sector?
A.18% of ANBC or CEOBE, whichever is higher
B.7.5% of ANBC or CEOBE, whichever is higher
C.12% of ANBC or CEOBE, whichever is higher
D.10% of ANBC or CEOBE, whichever is higher
Explanation: Out of the 40% PSL target, domestic commercial banks must direct 18% of their Adjusted Net Bank Credit (ANBC) or CEOBE (whichever is higher) to agriculture, with a sub-target of 10% for Small and Marginal Farmers.
9Under the revised MSME classification in India, an enterprise is classified as a 'Medium Enterprise' if it meets which of the following criteria regarding investment and turnover?
A.Investment in plant and machinery does not exceed Rs. 50 crore, and annual turnover does not exceed Rs. 250 crore
B.Investment in plant and machinery does not exceed Rs. 10 crore, and annual turnover does not exceed Rs. 50 crore
C.Investment in plant and machinery does not exceed Rs. 1 crore, and annual turnover does not exceed Rs. 5 crore
D.Investment in plant and machinery does not exceed Rs. 100 crore, and annual turnover does not exceed Rs. 500 crore
Explanation: Under the revised MSME definitions, Medium Enterprises are defined as units having investment in plant/machinery up to Rs. 50 crore and annual turnover up to Rs. 250 crore.
10What is the maximum insurance cover provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC) per depositor, per bank, for both principal and interest amounts?
A.Rs. 5,000,000 (Rs. 5 Lakh)
B.Rs. 1,000,000 (Rs. 10 Lakh)
C.Rs. 100,000 (Rs. 1 Lakh)
D.Rs. 250,000 (Rs. 2.5 Lakh)
Explanation: The DICGC, a wholly-owned subsidiary of the RBI, insures bank deposits. The current maximum insurance cover is Rs. 5,00,000 (Rs. 5 Lakh) per depositor in the same capacity and right, per bank.

About the PNB LBO Exam

The Punjab National Bank (PNB) Local Bank Officer (LBO) Exam is a competitive recruitment examination for appointing bank officers in local branches. The exam is divided into five sections: Reasoning & Computer Aptitude (25 Q), Data Analysis & Interpretation (25 Q), English Language (25 Q), Quantitative Aptitude (25 Q), and General/Economy/Banking Awareness (50 Q). Candidates must score at least 40% (35% for reserved categories) in each section, with a penalty of 0.25 marks for wrong answers. This practice bank provides 100 high-yield questions matching the exact structure and complexity of the online exam.

Questions

150 scored questions

Time Limit

3 hours (180 minutes)

Passing Score

40% per section (35% for SC/ST/OBC/PwBD)

Exam Fee

₹1,180 for UR/EWS/OBC (₹1,000 + 18% GST); ₹59 for SC/ST/PwBD (₹50 + 18% GST). (Punjab National Bank (PNB))

PNB LBO Exam Content Outline

33.33%

General / Economy / Banking Awareness

Focuses on banking industry concepts, RBI policies, union budget, financial systems, static GK, and current national/international affairs.

16.67%

Reasoning & Computer Aptitude

Tests logical reasoning, puzzles, seating arrangements, coding-decoding, syllogisms, alongside computer basics and security.

16.67%

Data Analysis & Interpretation

Tests ability to extract, analyze, and interpret data presented via charts, tables, line graphs, pie diagrams, and word problems.

16.67%

Quantitative Aptitude

Tests numerical skill, speed arithmetic, simplification, profit & loss, interest, and number series.

16.67%

English Language

Tests reading comprehension, grammar, vocabulary, sentence reconstruction, and error identification.

How to Pass the PNB LBO Exam

What You Need to Know

  • Passing score: 40% per section (35% for SC/ST/OBC/PwBD)
  • Exam length: 150 questions
  • Time limit: 3 hours (180 minutes)
  • Exam fee: ₹1,180 for UR/EWS/OBC (₹1,000 + 18% GST); ₹59 for SC/ST/PwBD (₹50 + 18% GST).

Keys to Passing

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

PNB LBO Study Tips from Top Performers

1Dedicate a significant portion of study time to General/Banking Awareness, as it accounts for a third of the total marks (50/150). Focus on RBI policies and digital banking initiatives.
2For Data Analysis & Interpretation, solve at least 3-4 charts (tables, pie, bar) daily to build speed and accuracy.
3Practice solving circular and linear puzzles with multiple variables under timed conditions.
4Read business newspapers daily and keep up with monthly GK digests to score well in current affairs.
5Understand computer aptitude concepts, specifically basics of cyber security, networking protocols, and MS Office shortcut keys.

Frequently Asked Questions

What is the exam pattern for the PNB Local Bank Officer (LBO)?

The online exam features 150 multiple-choice questions for 150 marks, split into General/Banking Awareness (50 Q), Reasoning & Computer Aptitude (25 Q), Data Analysis & Interpretation (25 Q), Quantitative Aptitude (25 Q), and English Language (25 Q). The test duration is 180 minutes with a negative marking penalty of 0.25 per wrong response.

What is the application fee for PNB LBO recruitment?

General, OBC, and EWS candidates must pay ₹1,180 (₹1,000 application fee plus 18% GST). SC, ST, and PwBD candidates pay ₹59 (₹50 intimation charges plus 18% GST).

Are there negative marks in the PNB LBO exam?

Yes, there is negative marking. For each incorrect answer, 0.25 (1/4th) of the marks assigned to that question will be deducted as a penalty.

Is local language proficiency mandatory for PNB LBO?

Yes. Candidates must possess proficiency (reading, writing, speaking, and understanding) in the official local language of the state they apply for. A Local Language Proficiency Test (LLPT) will be conducted for candidates who did not study the language in Class 10 or 12.

What are the qualifying marks for the sections?

Candidates must secure a minimum of 40% marks in each individual section (35% for SC/ST/OBC/PwBD categories) to qualify for the next stage of selection.