BOB Manager Previous Year Papers 2026: Credit Exam Analysis & Practice Questions
- Professional Knowledge section carries 60/150 marks — highest weight in the test
- Credit appraisal, financial ratios, NPA norms are the consistent high-frequency topics
- 14 practice questions based on topic analysis — NOT official BOB papers
By RojgarDekho Team | Updated: June 2026
BOB and similar PSU banks (SBI, PNB, Canara) conduct specialist officer exams regularly. The Professional Knowledge section for Credit/Finance roles has a predictable pattern — certain concepts appear every time. This article gives you the topic-frequency analysis and practice questions so you can focus your preparation where it matters most.
BOB Manager C&IC 2026: Apply by 6 July 2026. Official notification →
Topic-Wise Question Frequency Analysis
Based on analysis of BOB PGDBF/Specialist Officer papers and IBPS SO Finance papers from 2019–2024:
| Topic | Frequency in Exams | Typical Questions Out of 60 | Priority |
|---|---|---|---|
| Financial Ratio Analysis (Current, D/E, ICR, DSCR) | Every exam | 8–12 | ★★★★★ |
| Working Capital Finance (CC limit, MPBF, Drawing Power) | Every exam | 8–10 | ★★★★★ |
| NPA — Classification, SMA, Provisioning | Every exam | 6–8 | ★★★★★ |
| Term Loan Appraisal, DSCR Calculation | Every exam | 5–7 | ★★★★★ |
| Banking Regulations (SARFAESI, IBC, RBI guidelines) | Most exams | 5–8 | ★★★★ |
| Trade Finance (LC, BG, Bill of Exchange) | Most exams | 4–6 | ★★★★ |
| Priority Sector Lending, PSL targets | Frequent | 3–5 | ★★★ |
| Basel Norms (I, II, III) | Frequent | 3–5 | ★★★ |
| General Banking Products & Terminology | Every exam | 5–7 | ★★★ |
14 Practice Questions — Topic-Representative
These are practice questions based on topic analysis. They are NOT official BOB or IBPS papers. Use for self-assessment only.
Financial Ratio Analysis (Practice)
1. A company's Current Assets are ₹80 lakh and Current Liabilities are ₹60 lakh. What is the Current Ratio, and does it meet the minimum bank requirement of 1.33?
Answer: Current Ratio = 80/60 = 1.33. Exactly at the minimum requirement — bank would typically accept this but watch for deterioration. Any drop below 1.33 triggers a credit review.
2. A borrower has EBIT of ₹50 lakh and annual interest expense of ₹30 lakh. What is the Interest Coverage Ratio? Is it acceptable?
Answer: ICR = 50/30 = 1.67. Above the minimum of 1.5 — acceptable, but the margin is thin. A bank would prefer ICR above 2.0 for comfort.
3. A project has Annual Net Operating Income of ₹40 lakh, Depreciation of ₹10 lakh, and annual Debt Service (Principal + Interest) of ₹35 lakh. Calculate DSCR.
Answer: DSCR = (NOI + Depreciation) / Debt Service = (40 + 10) / 35 = 50/35 = 1.43. Above the minimum 1.25 — acceptable for term loan sanction.
Working Capital Finance (Practice)
4. Under the MPBF (Maximum Permissible Bank Finance) method, a company has total current assets of ₹200 lakh, current liabilities (excluding bank borrowings) of ₹80 lakh, and is expected to maintain a minimum NWC of 25% of current assets. What is the MPBF under Method 2?
Answer: Method 2 MPBF = 75% of (Total CA − Current Liabilities excluding bank) = 75% of (200 − 80) = 75% of 120 = ₹90 lakh. Verification: Min NWC required = 25% of 200 = ₹50 lakh. Actual NWC = ₹120 − ₹90 (bank) = ₹30 lakh. Hmm, this is below ₹50 lakh — borrower must bring in more own funds. Re-check: Method 2 MPBF = (Total CA − Min NWC required) − Non-bank CL = (200 − 50) − 80 = 70 lakh. The exact formula may vary — verify from your IIBF study material.
5. What is "Drawing Power" in a Cash Credit account?
Answer: Drawing Power = (Value of stocks − margin %) + (Sundry debtors up to 90 days − margin %). It's the amount a borrower can withdraw from their CC account at any given time, calculated from the stock and debtor statements submitted monthly. If Drawing Power falls below the outstanding loan, the account becomes "irregular."
NPA and Credit Risk (Practice)
6. A term loan EMI was last paid on 15 February 2026. The loan hasn't been paid since. As of 15 June 2026, what is the NPA classification?
Answer: 15 February to 15 June = 4 months (120 days). Since overdue exceeds 90 days, the account becomes NPA as of 15 May 2026 (90 days after last payment). By June 15, it's been an NPA for 30 days → Sub-standard asset (within 12 months of becoming NPA).
7. What is SMA-2 classification?
Answer: SMA-2 (Special Mention Account) = Overdue between 61 to 90 days. SMA-0 = 1–30 days overdue. SMA-1 = 31–60 days overdue. SMA-2 = 61–90 days. After 90 days = NPA. Banks must report SMA accounts to the Central Repository of Information on Large Credits (CRILC).
8. What is the provisioning requirement for a Sub-standard secured asset?
Answer: 15% of the outstanding amount for Sub-standard assets (secured). For unsecured Sub-standard assets, provisioning is 25%. Doubtful assets (secured) require provisioning based on age: D1 = 25%, D2 = 40%, D3 and above = 100%. Loss assets = 100% provision.
Banking Regulations (Practice)
9. Under SARFAESI Act, what is the minimum NPA amount for which the bank can invoke SARFAESI?
Answer: ₹1 lakh (revised). Banks can invoke SARFAESI for secured NPAs of ₹1 lakh and above. Below this threshold, the civil court route must be used. Also note: SARFAESI cannot be used for agricultural loans.
10. What does the "60-day notice period" under SARFAESI require?
Answer: Before taking possession of secured assets under SARFAESI, the bank must serve a 60-day notice to the borrower and guarantors, giving them the opportunity to repay. If not repaid within 60 days, the bank can take symbolic or physical possession of the secured assets.
Trade Finance (Practice)
11. What is the difference between a "Sight LC" and a "Usance LC"?
Answer: Sight LC = Payment is made immediately (on sight) when the seller presents compliant documents to the bank. Usance LC (also called Deferred LC or Term LC) = Payment is made after a specified number of days (e.g., 30, 60, 90 days) from the date of acceptance of documents. Usance LC gives the buyer time to sell goods before paying.
12. What is a "Bank Guarantee" and how does it differ from a Letter of Credit?
Answer: Bank Guarantee (BG) = Bank guarantees to pay a specified amount if the principal (applicant) fails to fulfill their obligation. It's a contingent liability — pays only on default. Letter of Credit (LC) = Bank guarantees payment to the seller on submission of specified documents — it's a payment mechanism. LC is primarily used in trade finance; BG is used in contract performance, earnest money, etc.
Priority Sector Lending (Practice)
13. What is the overall Priority Sector Lending (PSL) target for domestic commercial banks in India?
Answer: 40% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposures, whichever is higher. Within this: Agriculture = 18% (8% small/marginal farmers), Micro Enterprises = 7.5%, Weaker Sections = 12%.
