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JAIIB RBWM Unit 4 — Branch Profitability: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 4 of the November 2026 cycle (29 November 2026)

This page is a free slice of our JAIIB RBWM question bank for Unit 4 — Branch Profitability (Module A — Retail Banking). The Mock Centre holds 55 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

RBWM · Module A55 MCQs in the Mock Centre5 free belowPaper on 29 November 2026

Key facts examiners test from this unit

  1. Frame: BR Act 1949 governs; Imperial Bank → SBI 1955; nationalisation 14 (1969) + 6 (1980); Narasimham reforms; 12 PSBs now; four risks — credit, liquidity, market, operational.
  2. Profit ladder: gross (sales − COGS) → operating (− operating expenses) → net (− taxes & interest); 'netted profit' is invented; profit = absolute, profitability = relative efficiency; profit ≠ profitable.
  3. Worked margin: sales ₹1 crore, COGS ₹60 lakh → GPM 40%.

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
India's banking system is governed through the:
Why (b): The rulebook that governs how banks in India are licensed, run and supervised is the BANKING REGULATION ACT, 1949 — the sector's own constitution.
Question 2 of 5
A bank's major income source:
Why (b): A bank EARNS on its assets — interest on the loans it gives — plus fees and commissions. Its liabilities (your deposits) are what it PAYS interest on. Income = interest on assets + fee income.
Question 3 of 5
Definition of profitability:
Why (d): All three phrasings describe the same idea: profitability measures profit RELATIVE to expenses, compares profit with revenue and costs, and is a measurement of EFFICIENCY. Three angles, one concept — 'All of above'.
Question 4 of 5
A customer holding savings, a card and a home loan (3 products) matters to branch profitability because:
Why (a): Product depth drives stickiness — at the 3-product threshold the expected relationship stretches to many years versus a single-product customer's short stay, compounding lifetime profit.
Question 5 of 5
Gross NPAs eat branch profit primarily because:
Why (a): An NPA stops yielding recognisable income yet demands provisions — a double hit: revenue lost, expense added.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
ProfitProfitabilityAbsolute amount vs relative efficiency
GrossOperating profit− COGS vs − operating expenses
Practise all 55 questions on Unit 4. The free demo opens a slice of every subject with the same explanations; the RBWM Online-only pass unlocks all 1,912 RBWM questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.