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      Question

      What is a 'KPI' in data

      analytics?
      A A complex machine learning model that predicts key business outcomes Correct Answer Incorrect Answer
      B A dashboard tool used to display business performance visually Correct Answer Incorrect Answer
      C A data quality score that measures the accuracy of a dataset Correct Answer Incorrect Answer
      D A statistical test that evaluates the significance of model predictions Correct Answer Incorrect Answer
      E A quantifiable metric that measures progress toward a specific business objective Correct Answer Incorrect Answer

      Solution

      Banking Key Performance Indicators (KPIs):  • Asset Quality — Gross NPA Ratio (NPAs/Total Advances), Net NPA Ratio.  • Profitability — Return on Assets (Net Profit/Total Assets), Net Interest Margin (NIM), Return on Equity (RoE).  • Efficiency — Cost-to-Income Ratio, Business per Employee.  • Liquidity — CASA Ratio (Current + Savings deposits/Total deposits — higher is better, cheaper funds), Credit-to-Deposit Ratio.  • Capital — Capital Adequacy Ratio (CAR/CRAR — RBI mandates minimum 11.5% under Basel III).  • Digital — Mobile banking transaction volume, digital payment adoption rate.  Data analysts build dashboards tracking these KPIs for management.

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