The following table shows the percentage (%) increase in income and…

2024

The following table shows the percentage (%) increase in income and expenditure of various types of Banks, namely PSU Banks, Old Private Banks, New Private Banks and Foreign Banks over the previous year during the year 2021-2022 and 2022-2023. Based on the data in the table, answer the questions that follow :

Income and expenditure details of Banks

Bank type

Percentage Increase in Income over previous year (2021-2022)

Percentage Increase in Income over previous year (2022-2023)

Percentage Increase in Expenditure over previous year (2021-2022)

Percentage Increase in Expenditure over previous year (2022-2023)

PSU Banks

15%

17%

13%

22%

Old Private Banks

20%

14%

15%

17%

New Private Banks

44%

37%

42%

44%

Foreign Banks

9%

12%

4%

11%

Note: In the above table, the meaning of any figure x% is as follows :

(I) x% in 2021-2022 means income or expenditure in 2021-2022 is x% more than that in 2020-2021.

(II) x% in 2022-2023 means income as expenditure in 2022-2023 is x% more than that is 2021-2022

In 2021-2022, if the income of PSU Banks is twice the expenditure of Foreign Banks, then in 2022-2023, what will be the ratio of income of PSU Banks to the expenditure of Foreign Banks ?

  1. A.

    1 : 2

  2. B.

    78 : 37

  3. C.

    75 : 29

  4. D.

    2 : 1

Show answer & explanation

Correct answer: B

Let Income of PSU Banks in 2021-22 be I and Expenditure of Foreign Banks in 2021-22 be E. Given I = 2E. Income of PSU Banks in 2022-23 increases by 17%, so new income = 1.17I. Expenditure of Foreign Banks in 2022-23 increases by 11%, so new expenditure = 1.11E. Ratio of Income(PSU, 2022-23) to Expenditure(Foreign, 2022-23) = (1.17I) / (1.11E). Substituting I = 2E: Ratio = (1.17 * 2E) / (1.11E) = 2.34 / 1.11. Simplifying the fraction: 234/111 = 78/37.

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