100+ Free PSB LBO Practice Questions

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2026 Statistics

Key Facts: PSB LBO Exam

120 MCQs

Total questions in the online exam across 4 sections

PSB Official Notification

120 Minutes

Total exam duration with sectional timings

PSB Official Notification

No Penalty

No negative marks are deducted for incorrect answers

PSB Evaluation Scheme

₹850 + GST

Application fee for General / OBC / EWS applicants

PSB Fee Guidelines

18 Months

Minimum officer-level bank experience required

PSB Eligibility Criteria

The exam consists of 120 questions (120 marks) in 120 minutes: Banking Knowledge (40), English (30), General Awareness (30), and Computer Aptitude (20). There is no negative marking. General fee is ₹850, reserved categories pay ₹100.

Sample PSB LBO Practice Questions

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

1Punjab & Sind Bank was established in which year and by which prominent personalities?

A.1908 by Bhai Vir Singh, Sir Sunder Singh Majithia, and Sardar Tarlochan Singh

B.1906 by Sri Aurobindo Ghosh and Lala Lajpat Rai

C.1911 by Sorabji Pochkhanawala and Sir Pherozeshah Mehta

D.1894 by Dyal Singh Majithia and Lala Lajpat Rai

Explanation: Punjab & Sind Bank was established on June 24, 1908, by Bhai Vir Singh, Sir Sunder Singh Majithia, and Sardar Tarlochan Singh to serve the country and uplift the social-economic conditions of the masses.

2Where is the headquarters of Punjab & Sind Bank located?

A.Amritsar

B.New Delhi

C.Chandigarh

D.Mumbai

Explanation: The headquarters of Punjab & Sind Bank is situated in New Delhi.

3What is the official tagline of Punjab & Sind Bank?

A.Where service is a way of life

B.Relationship beyond banking

C.A tradition of trust

D.The name you can bank upon

Explanation: The official tagline of Punjab & Sind Bank is 'Where service is a way of life', reflecting its commitment to high-quality service.

4In which wave of bank nationalizations in India was Punjab & Sind Bank nationalized?

A.First wave in July 1969

B.Second wave in April 1980

C.Third wave in August 1993

D.Fourth wave in April 2020

Explanation: Punjab & Sind Bank was nationalized during the second wave of bank nationalization in April 1980, along with five other commercial banks.

5Which of the following is the Reserve Bank of India (RBI) rate at which it lends short-term money to commercial banks against government securities under the liquidity adjustment facility?

A.Repo Rate

B.Reverse Repo Rate

C.Bank Rate

D.Marginal Standing Facility (MSF) Rate

Explanation: The Repo Rate is the rate at which the Reserve Bank of India lends money to commercial banks against securities in the event of any shortfall of funds.

6Under the current RBI regulations, commercial banks are required to maintain a specific percentage of their Net Demand and Time Liabilities (NDTL) in the form of liquid assets like cash, gold, or government securities. What is this ratio called?

A.Cash Reserve Ratio (CRR)

B.Statutory Liquidity Ratio (SLR)

C.Marginal Cost of Funds Based Lending Rate (MCLR)

D.Capital Adequacy Ratio (CAR)

Explanation: The Statutory Liquidity Ratio (SLR) is the reserve requirement that commercial banks in India are required to maintain in the form of cash, gold, and government-approved securities before providing credit.

7What is the primary target for Priority Sector Lending (PSL) for domestic commercial banks (excluding regional rural banks and small finance banks) in India?

A.40 percent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure (CEOBE), whichever is higher

B.32 percent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure (CEOBE), whichever is higher

C.75 percent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure (CEOBE), whichever is higher

D.10 percent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure (CEOBE), whichever is higher

Explanation: Domestic commercial banks (excluding RRBs and SFBs) are required to allocate 40% of their ANBC or CEOBE (whichever is higher) to Priority Sector Lending.

8Under priority sector lending targets, what is the sub-target percentage allocated for Agriculture for domestic commercial banks in India?

A.18 percent of ANBC or CEOBE, whichever is higher

B.10 percent of ANBC or CEOBE, whichever is higher

C.7.5 percent of ANBC or CEOBE, whichever is higher

D.12 percent of ANBC or CEOBE, whichever is higher

Explanation: Within the 40% PSL target, domestic commercial banks must allocate 18% of ANBC or CEOBE (whichever is higher) to Agriculture. Out of this 18%, a sub-target of 10% is prescribed for Small and Marginal Farmers.

9A check that is crossed with two parallel transverse lines without any specific instruction or name of a banker between them is an example of:

A.General Crossing

B.Special Crossing

C.Restrictive Crossing

D.Account Payee Crossing

Explanation: According to Section 123 of the Negotiable Instruments Act, 1881, when a check bears across its face two parallel transverse lines, it is deemed to be crossed generally. The check can only be paid through a banker, not directly over the counter.

10As per RBI's Know Your Customer (KYC) guidelines, what is the frequency of periodic updation (re-KYC) required for High-Risk customers?

A.At least once in every 2 years

B.At least once in every 8 years

C.At least once in every 10 years

D.At least once in every 5 years

Explanation: RBI guidelines mandate that periodic KYC updation (re-KYC) must be carried out at least once in 2 years for high-risk customers, once in 8 years for medium-risk customers, and once in 10 years for low-risk customers.

About the PSB LBO Exam

The Punjab & Sind Bank (PSB) Local Bank Officer (LBO) Exam is a competitive recruitment examination for appointing bank officers in local branches. The exam is divided into four sections: Banking Knowledge (40 Q), English Language (30 Q), General Awareness / Economy (30 Q), and Computer Aptitude (20 Q). Candidates must score at least 40% (35% for reserved categories) in each section, and there is no negative marking for incorrect answers. This practice bank provides 100 high-yield questions matching the exact structure and complexity of the online exam.

Questions

120 scored questions

Time Limit

2 hours (120 minutes)

Passing Score

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

Exam Fee

₹850 for UR/EWS/OBC; ₹100 for SC/ST/PwBD (plus GST and gateway charges). (Punjab & Sind Bank)

PSB LBO Exam Content Outline

33.33%

Banking Knowledge

Focuses on banking industry concepts, RBI policies, lending norms, financial inclusion, priority sector, and digital banking technology.

25.00%

English Language

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

25.00%

General Awareness / Economy

Focuses on union budget, financial system news, economic trends, static GK, and current national/international affairs.

16.67%

Computer Aptitude

Tests computer terminology, hardware and software basics, operating systems, security systems, networking, and MS Office.

How to Pass the PSB LBO Exam

What You Need to Know

Passing score: 40% per section (35% for SC/ST/OBC/PwBD)
Exam length: 120 questions
Time limit: 2 hours (120 minutes)
Exam fee: ₹850 for UR/EWS/OBC; ₹100 for SC/ST/PwBD (plus GST and gateway charges).

Keys to Passing

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

PSB LBO Study Tips from Top Performers

1Dedicate significant study time to Banking Knowledge, as it accounts for one-third of the total marks (40/120). Focus on recent RBI circulars, banking regulations, and financial acronyms.

2Solve reading comprehensions and grammar-based questions under timed conditions to improve speed in the English section.

3Read financial newspapers daily and refer to monthly current affairs magazines to stay updated on economic trends.

4Familiarize yourself with basic networking concepts, database structures, keyboard shortcuts, and cyber security protocols for Computer Aptitude.

5Keep practicing with standard mock tests to get used to the section timings (30 mins for English/General Awareness, 40 mins for Banking Knowledge, 20 mins for Computer Aptitude).

Frequently Asked Questions

What is the exam pattern for the Punjab & Sind Bank Local Bank Officer (LBO)?

The online exam features 120 multiple-choice questions for 120 marks, split into Banking Knowledge (40 Q), English Language (30 Q), General Awareness / Economy (30 Q), and Computer Aptitude (20 Q). The test duration is 120 minutes.

What is the application fee for Punjab & Sind Bank LBO recruitment?

General, OBC, and EWS candidates must pay ₹850 plus GST. SC, ST, and PwBD candidates pay ₹100 plus GST.

Are there negative marks in the PSB LBO exam?

No, according to the official examination instructions, there is no negative marking penalty for wrong answers.

Is work experience mandatory for PSB LBO?

Yes. Candidates must have a minimum of 18 months of work experience as an officer in a commercial or scheduled bank at the time of application.

What is the age limit for the Punjab & Sind Bank Local Bank Officer?

The age limit is 20 to 30 years. Upper age relaxations apply for SC, ST, OBC, PwBD, and ex-servicemen as per government norms.

100+ Free PSB LBO Practice Questions

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