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AIWMI CCRA-L2 Exam - Topic 6 Question 126 Discussion

Following is information related banks:Auckland Ltd is a public sector bank operating with about 120 branches across India. The bank has been in business since 1971 and has about 40% branches in rural areas and about 75% of all branches are inWestern India. On the basis of the size, Auckland Ltd will be ranked at number 31 amongst 40 banks in India.Although top management has appointment period of 5 years, generally they retire on ach sieving age of 60 years with an average tenure of only 2 years at the top job.Profit and Loss AccountBalance SheetThe rating wise break-up of assets for FY11 is as follows:The core spreads for FY13 as compared to FY12 have:
C) Contracted by 136 bps
A) Expanded by 136 bps
B) Contracted by 327 bps
D) Expanded by 191 bps

AIWMI CCRA-L2 Exam - Topic 6 Question 126 Discussion

Actual exam question for AIWMI's CCRA-L2 exam
Question #: 126
Topic #: 6
[All CCRA-L2 Questions]

Following is information related banks:

Auckland Ltd is a public sector bank operating with about 120 branches across Indi

a. The bank has been in business since 1971 and has about 40% branches in rural areas and about 75% of all branches are in

Western India. On the basis of the size, Auckland Ltd will be ranked at number 31 amongst 40 banks in India.

Although top management has appointment period of 5 years, generally they retire on ach sieving age of 60 years with an average tenure of only 2 years at the top job.

Profit and Loss Account

Balance Sheet

The rating wise break-up of assets for FY11 is as follows:

The core spreads for FY13 as compared to FY12 have:

Show Suggested Answer Hide Answer
Suggested Answer: C

by Jerilyn at May 14, 2026, 08:20 PM

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Charisse
5 days ago
A seems right. The bank's growth looks promising.
upvoted 0 times
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Pok
10 days ago
I feel like B is more likely. Contracted by 327 bps makes sense.
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Ruthann
15 days ago
I think the answer is A. Expanded by 136 bps.
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Bulah
20 days ago
Wait, they’re ranked 31 out of 40? That’s surprising!
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Esteban
26 days ago
Totally agree, the management stability is a concern.
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Vivienne
1 month ago
I doubt they can maintain growth with such a high turnover in management.
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Sanjuana
1 month ago
40% of branches in rural areas is impressive.
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Felton
1 month ago
Auckland Ltd has been around since 1971!
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Walker
2 months ago
Wait, how did they get ranked 31 out of 40?
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Nakita
2 months ago
Totally agree, that’s a short time for leadership!
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Marguerita
2 months ago
I doubt their average tenure of 2 years at the top.
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Kathrine
2 months ago
40% of branches in rural areas is impressive.
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Reynalda
2 months ago
Auckland Ltd has been around since 1971!
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Marti
2 months ago
I think I read that core spreads can expand when interest rates rise, but I'm confused about the specific bps changes here.
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Jani
3 months ago
I feel like I might have seen a similar question before, but I can't remember if the spreads typically expand or contract in a growing economy.
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Lonna
3 months ago
This question reminds me of a practice question we did on bank performance metrics. I think the core spreads usually indicate profitability, but I can't recall the exact numbers.
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Britt
4 months ago
I remember studying how to analyze core spreads, but I'm not entirely sure how to apply it to this specific case.
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