Daily Quiz — 08 May 2026

1. Q1.What maximum percentage of paid-up share capital or voting rights has the RBI approved Kotak Mahindra Bank to acquire in both AU Small Finance Bank and Federal Bank?

   9.99%14.99%4.99%19.99%
   Explanation: The RBI approved Kotak Mahindra Bank, along with its subsidiaries and managed funds, to acquire up to 9.99% of paid-up share capital or voting rights in both AU Small Finance Bank and Federal Bank, staying just below the 10% threshold that triggers additional regulatory scrutiny.

2. Q2.According to Fitch Ratings, what is the projected average Common Equity Tier 1 capital decline for Indian banks in FY2027-28 due to the transition to the Expected Credit Loss provisioning framework?

   30 basis points80 basis points50 basis points125 basis points
   Explanation: Fitch Ratings projects an average CET1 capital decline of 30 basis points in FY2027-28, which widens to around 80 basis points over the RBI's four-year transition window as banks absorb the ECL framework taking effect from April 1, 2027.

3. Q3.What was Paytm's consolidated net profit for FY26, and by how much did annual revenue grow during the same period?

   ₹552 crore profit; revenue grew 22.2%₹663 crore profit; revenue grew 18.5%₹552 crore profit; revenue grew 15.0%₹437 crore profit; revenue grew 22.2%
   Explanation: Paytm reported a consolidated profit of ₹552 crore for FY26, reversing a loss of ₹663 crore in FY25, while annual revenue grew 22.2% to ₹8,437 crore, reflecting its strategy of remaining a distribution and technology partner rather than pursuing an NBFC licence.

4. Q4.According to HSBC's Chief India Economist Pranjul Bhandari, what twin shocks is the RBI navigating as it approaches its June policy meeting, leading her to expect a rate hold?

   Elevated energy prices and the risk of an El Niño weather eventWidening current account deficit and rising food inflationGeopolitical tensions in West Asia and a weakening rupeeIncomplete deposit rate transmission and slowing credit growth
   Explanation: Pranjul Bhandari expects the RBI to hold the repo rate unchanged at its June meeting because the central bank is navigating a potential double shock from elevated energy prices and the risk of an El Niño weather event, creating a difficult trade-off between curbing inflation and protecting growth.

5. Q5.By how much did one-year bulk deposit rates rise between January 2026 and the time of the article, despite a cumulative 125-basis-point repo rate cut since February 2025?

   Approximately 50 basis pointsApproximately 125 basis pointsApproximately 25 basis pointsApproximately 80 basis points
   Explanation: One-year bulk deposit rates rose from 6.90–7.00% in January 2026 to around 7.50%, an increase of approximately 50 basis points, as credit growth outpaced deposit mobilisation and bulk depositors demanded higher rates, demonstrating incomplete transmission of the RBI's 125 bps cumulative rate cuts to deposit rates.

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