Objective Questions with answer for exam

Mercantile Bank PLC – Objective Questions & Answers
Bank Exam Preparation (Updated March 2026)

Compiled by: Credit Analysis Division, Mercantile Bank PLC  |  Last Updated: March 2026  |  All figures staff-verified

Section A: Mercantile Bank PLC — Key Facts

Q2 MBL-Specific

What is the contact centre number of Mercantile Bank PLC?

16225
Overseas / T&T: +88 09678016225
Email: contact@mblbd.com

Q2a MBL-Specific

When was Mercantile Bank PLC incorporated and when did it commence operations?

Incorporated: 20 May 1999 under the Bank Companies Act, 1991. Operations commenced: 02 June 1999.

Q2b MBL-Specific

When was the name changed from Mercantile Bank Limited to Mercantile Bank PLC?

27 August 2023

Q2c MBL-Specific

Where is the Head Office of Mercantile Bank PLC?

61, Dilkusha Commercial Area, Dhaka-1000
Phone: +88-02-223382295  |  SWIFT: MBLBBDDH  |  Website: www.mblbd.com

Q2d MBL-Specific

What is the current network footprint of Mercantile Bank PLC?

Network Type	Count (Staff-Verified, March 2026)
Branches	153
Sub-Branches (Uposhakha)	48
Islamic Banking Windows	45
Offshore Banking Units (OBU)	2
Agent Banking Outlets	188+
ATMs	197+

Note: The official website mblbd.com is not yet updated to reflect the latest branch and sub-branch count.

Q2e MBL-Specific

What are the subsidiaries of Mercantile Bank PLC?

1. Mercantile Bank Securities Limited (MBSL) — formed 27 June 2010, commenced 14 September 2011
2. Mercantile Exchange House (UK) Limited — incorporated 01 December 2010, commenced 06 December 2011
3. MBL Asset Management Limited (MBLAML)

Q2f MBL-Specific

On which stock exchanges are Mercantile Bank PLC shares listed?

Dhaka Stock Exchange (DSE) — listed 16 February 2004  |  Ticker: MERCANBANK
Chittagong Stock Exchange (CSE) — listed 26 February 2004

Q2g MBL-Specific

What Islamic banking brand does Mercantile Bank operate?

MBL-Taqwa — the Islamic Banking Window of Mercantile Bank PLC, operating under BRPD Circular No. 15 dated 09.11.2009.

Q2h MBL-Specific

What digital banking channels does Mercantile Bank PLC offer?

i-Banking (internet banking), MBL Rainbow (mobile app), MBL CorporatePay, MBL e-KYC, SMS Alert Service, VISA Dual Prepaid Card, VISA Dual Hajj Card, Credit Card, Debit Card, VISA Medical Card, VISA International Student Card.

Section B: General Banking — Updated Facts & Figures

Q3 Regulatory

What is the Bangladesh Bank complaint number?

16236

Q5 General

When was the Islamic Development Bank (IDB) established?

1975

Q6 General

A cheque placed after six months of its issue date is called?

Stale Cheque

Q7 Islamic Finance

Agreed upon profit is a must for which Islamic financing mode?

Bai-Murabaha

Q8 General

When did Bangladesh sign the charter of the Islamic Development Bank (IDB)?

1974

Q9 Regulatory

When a payee or endorser does not specify an endorsee, it is called?

Blank Endorsement

Q10 Islamic Finance

Islamic Economics and Finance is derived from?

Al-Muamalat

Q11 Islamic Finance

Ijma means?

Agreement of Khulafa-e-Rashidin (the Rightly Guided Caliphs)

Q12 Regulatory

As per the NI Act 1881, the relationship between banker and customer is?

Bailor-Bailee, Principal-Agent, Mortgagor-Mortgagee

Q13 Islamic Finance

What is Wakalah (Power of Attorney)?

A contract where a person appoints a representative to undertake transactions on their behalf — similar to a power of attorney. A contract of buying and selling of services in exchange for commission is called Wakala.

Q14a Islamic Finance

Juala is like?

Tender. A Juala is an agreement where a person promises a specified reward if a job is done. The one making the declaration is called Ja'il; the one who does the job is called Amil.

Q14b Islamic Finance

Kifalah is?

Guarantee / Surety. A third party becomes legally surety for the payment of a debt of another.

Q15 Islamic Finance

Bai Al-Inah means?

Buy-back arrangement (sale and repurchase)

Q16 Regulatory

After financing a limited company, within how many days must 1st charge with RJSC be created?

21 days

Q18 Islamic Finance

Post-shipment finance in Islamic banking is called?

MDB — Musharaka Documentary Bills (Inland)

Q19 Regulatory

What are the current Investment to Deposit Ratio (IDR) / Credit Deposit Ratio (CDR) limits?

Bank Type	IDR/CDR Limit
Islamic Banks	92%
Conventional Banks	87%

As per DOS Circular No. 5 dated 17 September 2019 (COVID modification effective 15 April 2020).

Q31 General

A Bill of Exchange is issued by?

The Exporter

Q32 Regulatory

A bank account is opened under?

The Contract Act, 1872

Q33 Regulatory

What replaced IRG, and what does it stand for?

Internal Credit Risk Rating (ICRR) — as per Bangladesh Bank's Guidelines on Internal Credit Risk Rating System for Banks.

ICRR Rating	Aggregate Score
Excellent	≥ 80%
Good	≥ 70% to < 80%
Marginal	≥ 60% to < 70%
Unacceptable	< 60%

Q36 Regulatory

What risk weight is applied to a client with the worst performance under Basel III?

150%

Q40 Regulatory

Statutory Liquidity Ratio (SLR) is determined based on?

Total Time and Demand Liabilities. Rate: 13% for conventional banks; 5.5% for Islamic banks.

Q45 Regulatory

How many risk weight parameters are there under Basel III?

7 parameters: 0%, 20%, 50%, 75%, 100%, 125%, 150%

Q47 Regulatory

When did Bangladesh Bank circulate guidelines for Islamic banks?

2009 — BRPD Circular No. 15 dated 09.11.2009

Q48 General

When an L/C authorises a bank to provide pre-shipment finance, it is called?

Red Clause Letter of Credit (L/C)

Q49 Regulatory

Under the Artha Rin Adalat (Money Loan Court) Ain 2003, an execution suit must be filed within?

180 days. Section 12 empowers banks to sell mortgaged property without filing suit in court.

Q50 Regulatory

When was the Bank Company Act enacted?

1991 (amended in 2013)

Q51 General

Where is the headquarters of the Islamic Financial Services Board (IFSB)?

Kuala Lumpur, Malaysia. IFSB started operations in 2003.

Q54 Islamic Finance

In Musharaka, how is loss borne and profit distributed?

Loss is borne as per equity contribution. Profit is distributed as per agreement.

Q55 Islamic Finance

In Mudaraba, how is profit taken?

As per the agreed percentage between Rab-ul-Maal (investor) and Mudarib (entrepreneur).

Q57 Islamic Finance

Who was the founder of the first Islamic bank in 1963?

Dr. Ahmed Al-Naggar (Mit Ghamr Savings Bank, Egypt)

Q58 General

How many days are there in the Islamic (Hijri) calendar?

354 days

Q70 Islamic Finance

When and where was the AAOIFI registered?

27 March 1991, in the State of Bahrain. AAOIFI = Accounting and Auditing Organization for Islamic Financial Institutions.

Q71 Islamic Finance

When did the Islamic Financial Services Board (IFSB) start operations?

2003, based in Kuala Lumpur, Malaysia.

Q82 General

SWIFT stands for?

Society for Worldwide Interbank Financial Telecommunication

Q83 Regulatory

When was the Bangladesh Bank Order executed?

1972

Q85 Regulatory

Treasury Bills are sold by? What are the maturities?

Bangladesh Bank. Treasury Bills — 6 maturities: 7-day, 14-day, 30-day, 91-day, 182-day, 364-day. Bangladesh Government Treasury Bonds (BGTBs) — 5 maturities: 2, 5, 10, 15, 20 years. Minimum trade: BDT 1.00 lac or multiples.

Q87 Regulatory

ECAI stands for?

External Credit Assessment Institution. Total 8 in Bangladesh. Foreign ECAIs: Moody's, S&P (Standard & Poor's), Fitch.

Q88 Regulatory

Under Basel III, risk weight for 'AAA' rated claims is?

20%

Q89 Regulatory

Section 12 of the Artha Rin Adalat Ain 2003 empowers banks to?

Sell mortgaged collateral to realise the bank's dues without filing suit in court.

Q97 General

VaR stands for?

Value at Risk. Measures potential change in profit or asset value under adverse market scenarios. Banks use it to calculate probable loss from changes in deposit and investment rates.

Q98 Islamic Finance

Bai-Istisna relates to?

Industry and Manufacture Finance — financing of manufactured or constructed goods.

Q113 Islamic Finance

How many heads for distribution of Zakat are prescribed in the Quran?

8 heads

Q114 Islamic Finance

Which Quranic verse has made Islam a complete code of life?

Surah Al-Maida (Chapter 5), Verse 3

Q131 Regulatory

When was Basel III implemented?

Parallel run from 2013; full implementation from 2019.

Q132 Islamic Finance

The mode of investment most akin to Maqasid al-Shariah is?

Musharaka

Q142 Regulatory

The Contract Act was introduced in?

1872

Q145 General

Call money refers to?

Short-term inter-bank lending and borrowing

Q148 Regulatory

Rate of provision on off-balance sheet items?

1%

Q149 Regulatory

Risk weight on unrated corporate investment is?

125%

Q150 Regulatory

Stress testing is conducted on?

Quarterly basis

Q151 Regulatory

Capital Adequacy Ratio (CAR) is calculated on?

Quarterly basis

Q152 Regulatory

ICAAP stands for?

Internal Capital Adequacy Assessment Process

Q155 Islamic Finance

Mudaraba Perpetual Bond (MPB) is classified as under Basel III?

Additional Tier 1 (AT-1) Capital

Q157 General

Bank Rate means?

The rate at which the Central Bank (Bangladesh Bank) lends money to commercial banks.

Q158 General

SDR means?

Special Drawing Rights — IMF's international reserve asset.

Q160 General

Liquidity is defined as?

The ability to convert assets into cash quickly without significant loss in value.

Q165 Islamic Finance

When was the Central Shariah Board for Islamic Banks of Bangladesh (CSBIB) established?

2001

Q176 Regulatory

'Guidelines for Islamic Banking' was issued by?

BRPD Circular No. 15 dated 09.11.2009

Q210 Regulatory

A high-value cheque is?

BDT 5 lac and above

Q223 Regulatory

How many risk factors are used for stress testing, and what are they?

5 risk factors:

1. Profit / Interest Rate
2. Forced Sale Value of Collateral
3. Non-Performing Investments / Loans (NPI/NPL)
4. Equity / Share Prices
5. Foreign Exchange Rate

Q230 Regulatory

Holder, Holder in Due Course, and Payment in Due Course are stated in?

Sections 8, 9, and 10 of the NI Act 1881 respectively.

Q239 General

What are the components of M1?

Currency at hand, Chequeable deposits, Deposits of Financial Institutions with Bangladesh Bank, Deposits of NBFIs in Bangladesh Bank.

Q242 General

What is M2 (Broad Money)?

M2 = M1 + Time Deposits with Deposit Money Banks (banks and NBFIs).

Q252 General

Pari Passu charge means?

With equal speed or progress — the equal right of creditors to receive assets from the same source without one taking precedence over another.

Exam-Ready One-Liner: Mercantile Bank PLC — Contact: 16225 | Est: 02 June 1999 | HO: 61 Dilkusha, Dhaka | SWIFT: MBLBBDDH | Branches: 153 | Sub-branches: 48 | Islamic Window: MBL-Taqwa | Updated: March 2026