Part 2 — English Language: Grammar, Cloze Tests & Error Spotting
IBPS PO & Clerk · Prelims + Mains · 50 Original Practice Questions
Strategy for Grammar & Cloze Test Questions
- Cloze Test (Banking context): Read the full passage before filling any blank. The theme of the passage (usually banking, economy, policy) gives contextual clues.
- Error Detection: Check subject-verb agreement first (most common IBPS error), then tense consistency, then preposition/article usage.
- Most frequently tested grammar rules in IBPS: Subject-verb agreement, tense sequence, article usage (a/an/the), preposition misuse, modifiers, parallel structure.
- If confused between two options: Substitute both, read the sentence aloud mentally — grammatical correctness will be more natural.
- Banking vocabulary cloze: Know the difference between liquidity/solvency, fiscal/monetary, rate/ratio, merger/acquisition — these appear frequently.
Section 1 — Cloze Test: Monetary Policy Communication (Q.1–10)
Cloze Passage 1 · IBPS PO Mains Level
Effective communication of monetary policy decisions is as important as the decisions themselves. When a central bank (1)_____ interest rates, it must explain the rationale clearly so that markets, businesses, and households can adjust their (2)_____ accordingly. The Reserve Bank of India, recognising this, publishes detailed minutes of its Monetary Policy Committee meetings within a (3)_____ period after each resolution, allowing the public to understand how each member arrived at their vote.
Transparency in monetary policy has evolved significantly over (4)_____ decades. Earlier central banks operated under a veil of secrecy, (5)_____ it difficult for investors to anticipate policy moves. Today, forward guidance — the practice of communicating (6)_____ the likely future path of interest rates — has become a standard tool. When the RBI signals a prolonged (7)_____ in its accommodative stance, it effectively signals to borrowers that interest rates are unlikely to rise in the near term, (8)_____ investment and consumption decisions.
However, over-communication can also be (9)_____. If forward guidance is too (10)_____, it can reduce the central bank's flexibility to respond to unexpected economic developments.
Transparency in monetary policy has evolved significantly over (4)_____ decades. Earlier central banks operated under a veil of secrecy, (5)_____ it difficult for investors to anticipate policy moves. Today, forward guidance — the practice of communicating (6)_____ the likely future path of interest rates — has become a standard tool. When the RBI signals a prolonged (7)_____ in its accommodative stance, it effectively signals to borrowers that interest rates are unlikely to rise in the near term, (8)_____ investment and consumption decisions.
However, over-communication can also be (9)_____. If forward guidance is too (10)_____, it can reduce the central bank's flexibility to respond to unexpected economic developments.
Q.1 Easy
Choose the most appropriate word for blank (1):
Answer: C — adjusts — Central banks "adjust" interest rates (raise, lower, or hold). "Formulates" suggests making from scratch, which doesn't fit the context of responding to economic conditions. "Abolishes" and "cancels" are too extreme and permanent.
Q.2 Easy
Choose the most appropriate word for blank (2):
Answer: B — expectations — Markets, businesses, and households adjust their "expectations" of future interest rates and economic conditions based on central bank communication. This is standard monetary economics language ("expectation formation" / "expectation channel").
Q.3 Moderate
Choose the most appropriate word for blank (3):
Answer: C — stipulated — "Stipulated period" means a formally specified or prescribed time period — exactly the kind of language used for regulatory/legal deadlines. The RBI publishes MPC minutes within a specific prescribed period (14 days after the resolution). "Stipulated" perfectly captures this official, formal constraint. "Relaxed" contradicts the structured nature of regulatory disclosure.
Q.4 Easy
Choose the most appropriate word for blank (4):
Answer: C — recent — "Over recent decades" is the natural idiomatic phrase in financial writing to refer to the period of the last 20–30 years. "Several decades" (B) could also work grammatically, but "recent" is more precise here given the sentence is contrasting the old secretive approach with today's transparent model. In IBPS, choose the option that fits both grammar AND context.
Q.5 Moderate
Choose the most appropriate word for blank (5):
Answer: C — making — "Making it difficult" is the correct participial phrase continuing from the preceding clause. "Allowing" and "enabling" suggest positive outcomes (the opposite of what is intended). "Wanting" is unidiomatic. The structure is: "operated under a veil of secrecy, [thereby] making it difficult for investors to anticipate..."
Q.6 Moderate
Choose the most appropriate word for blank (6):
Answer: A — explicitly — Forward guidance involves clearly and openly ("explicitly") stating the intended path of interest rates. "Reluctantly" suggests unwillingness. "Ambiguously" contradicts the purpose of forward guidance (which aims for clarity). "Secretly" contradicts "communication."
Q.7 Moderate
Choose the most appropriate word for blank (7):
Answer: C — continuation — "Prolonged continuation in its accommodative stance" means maintaining easy monetary conditions for an extended period. This is standard RBI language. "Reversal" would mean tightening (opposite). "Disruption" and "deterioration" have negative connotations incompatible with a policy stance signal.
Q.8 Moderate
Choose the most appropriate word for blank (8):
Answer: C — influencing — When borrowers know rates won't rise, it "influences" their investment and consumption decisions (encouraging them). "Encouraging" would also work here, but "influencing" is broader and more neutral, which is what a policy signal does — it influences (shapes) decisions rather than forcing them. "Discouraging" is opposite. "Suppressing" is too negative.
Q.9 Hard
Choose the most appropriate word for blank (9):
Answer: C — counterproductive — The sentence introduces a downside of "over-communication," meaning too much of it can actually work against the central bank's purpose. "Counterproductive" = producing the opposite of the desired effect. "Redundant" means unnecessary/repetitive (not wrong per se, but doesn't convey the specific risk of harmful effects). "Productive" is the opposite. "Supplementary" is irrelevant.
Q.10 Hard
Choose the most appropriate word for blank (10):
Answer: C — prescriptive — If forward guidance is too "prescriptive" (too specific and binding about exactly what the bank will do), it removes the flexibility to deviate when unexpected events occur. "Concise" is positive. "Ambiguous" would actually preserve flexibility (opposite problem). "Conservative" relates to risk appetite, not the rigidity of a commitment. "Prescriptive" guidance locks the central bank into a specific course — the exact risk identified in the sentence.
Section 2 — Cloze Test: Credit Markets and NPAs (Q.11–20)
Cloze Passage 2 · IBPS Clerk Mains Level
Non-Performing Assets (NPAs) (11)_____ one of the most persistent challenges facing the Indian banking sector. A loan is classified as an NPA when the borrower (12)_____ to service the principal or interest for a period exceeding 90 days. When NPAs rise sharply, banks are forced to set (13)_____ a larger portion of their profits as provisions, leaving less capital available for fresh lending.
The asset quality (14)_____ that followed the Infrastructure Lending and Financial Services (IL&FS) default of 2018 revealed how (15)_____ the linkages were between non-banking financial companies, banks, and mutual funds. The government and the RBI responded with a series of (16)_____ measures, including the Insolvency and Bankruptcy Code (IBC), which provided a time-bound mechanism for resolution of stressed assets.
While the IBC has improved recovery (17)_____, critics argue that the process often takes longer than the prescribed 180-day timeline due to judicial (18)_____. Banks, (19)_____, have been reluctant to take steep haircuts on loans extended to large corporates. Despite these challenges, the Gross NPA ratio of scheduled commercial banks has declined (20)_____ from its peak of over 11% in 2018 to around 3% by 2024.
The asset quality (14)_____ that followed the Infrastructure Lending and Financial Services (IL&FS) default of 2018 revealed how (15)_____ the linkages were between non-banking financial companies, banks, and mutual funds. The government and the RBI responded with a series of (16)_____ measures, including the Insolvency and Bankruptcy Code (IBC), which provided a time-bound mechanism for resolution of stressed assets.
While the IBC has improved recovery (17)_____, critics argue that the process often takes longer than the prescribed 180-day timeline due to judicial (18)_____. Banks, (19)_____, have been reluctant to take steep haircuts on loans extended to large corporates. Despite these challenges, the Gross NPA ratio of scheduled commercial banks has declined (20)_____ from its peak of over 11% in 2018 to around 3% by 2024.
Q.11 Easy
Choose the correct option for blank (11):
Answer: B — remain — "Non-Performing Assets" is a plural noun, so the verb must be plural. "Remain" is the correct plural present tense verb ("NPAs remain one of the most persistent challenges"). "Is" is singular. "Was" is past tense. "Has been" is singular past perfect.
Q.12 Easy
Choose the correct option for blank (12):
Answer: B — fails — An NPA is created when the borrower "fails" (not succeeds) in making repayments. "Intends" and "attempts" are neutral/positive verbs that don't convey the outcome of non-payment. Only "fails" correctly captures the non-performance.
Q.13 Moderate
Choose the correct option for blank (13):
Answer: C — aside — "Set aside" is the correct phrasal verb meaning to reserve money for a specific purpose (provisions). "Set out" = to begin a journey or explain. "Set up" = establish. "Set down" = write down/put down. Banks "set aside provisions" against bad loans — this is standard banking English.
Q.14 Moderate
Choose the correct option for blank (14):
Answer: B — deterioration — An IL&FS default would cause "asset quality deterioration" (assets go bad/worsen) in the banking system. "Improvement" is opposite. "Opportunity" makes no sense. "Assessment" means evaluation — a review, not an event that "follows" a default and reveals systemic risk.
Q.15 Hard
Choose the correct option for blank (15):
Answer: C — interconnected — The sentence says the deterioration "revealed how _____ the linkages were" — meaning the links between NBFCs, banks, and mutual funds were deep and entangled. "Interconnected" is the only word that describes this systemic entanglement. "Superficial" means shallow linkages — the opposite of what made IL&FS a systemic crisis. "Transparent" and "regulated" don't describe the nature of linkages.
Q.16 Moderate
Choose the correct option for blank (16):
Answer: C — remedial — "Remedial measures" are corrective steps taken to address a problem. The IBC was a remedial measure to resolve stressed assets. "Punitive" means punishment-oriented. "Arbitrary" means without reason. "Superficial" means shallow — inconsistent with calling the IBC a major reform.
Q.17 Moderate
Choose the correct option for blank (17):
Answer: C — rates — "Recovery rates" is the standard banking term for the percentage of loan value recovered from stressed/defaulting borrowers. "IBC has improved recovery rates" means banks recover more of their money. "Expenses" and "penalties" are costs, not performance metrics. "Losses" is the opposite of what IBC improves.
Q.18 Hard
Choose the correct option for blank (18):
Answer: C — backlog — A "judicial backlog" means the accumulation of pending cases in courts, causing delays. This is the standard explanation for why IBC cases exceed the 180-day limit. "Efficiency" would mean cases are processed quickly (opposite). "Expertise" suggests skills issue. "Oversight" means supervision — not the reason for delays.
Q.19 Moderate
Choose the correct option for blank (19):
Answer: C — meanwhile — "Banks, meanwhile, have been reluctant..." introduces a parallel problem happening simultaneously. "Therefore" and "consequently" imply cause-effect (the judicial backlog causing banks to take haircuts — not the relationship described). "Subsequently" means after the previous thing — but reluctance to take haircuts is a concurrent, not sequential, problem.
Q.20 Moderate
Choose the correct option for blank (20):
Answer: C — significantly — A drop from 11% to 3% (more than 8 percentage points) is a "significant" decline. "Slightly," "marginally," and "minimally" all imply small changes — entirely incompatible with a reduction of this magnitude.
Section 3 — Error Detection in Banking Sentences (Q.21–35)
IBPS Error Detection Rule: Each sentence is divided into four parts (A), (B), (C), (D). Find the part that contains a grammatical error. If there is no error, choose (E) — No Error.
Q.21 Easy
Find the part with the grammatical error:
The Reserve Bank of India have / increased the repo rate / by 25 basis points / in its latest MPC meeting. / No error
Answer: A — "The Reserve Bank of India" is a singular proper noun (an institution treated as singular), so it requires "has" not "have." Correct: "The Reserve Bank of India has increased..."
Q.22 Easy
Find the part with the grammatical error:
Neither the banks / nor the regulator / were aware of the / impending liquidity crisis. / No error
Answer: C — In "Neither...nor..." constructions, the verb agrees with the noun closest to it (the subject nearer the verb). Here, "the regulator" (singular) is closest to the verb, so the correct verb is "was" not "were." Correct: "Neither the banks nor the regulator was aware..."
Q.23 Moderate
Find the part with the grammatical error:
The committee decided / that all decisions regarding / loan restructuring will be / taken unanimously. / No error
Answer: C — After "decided that," the clause requires past tense ("would be") because the main verb "decided" is past. Using "will be" breaks tense sequence. Correct: "...loan restructuring would be taken unanimously." (Sequence of Tenses rule: past main clause → "would" in subordinate clause, not "will.")
Q.24 Moderate
Find the part with the grammatical error:
Each of the five / public sector banks / have submitted / their quarterly results. / No error
Answer: C — "Each" is always singular, so it takes a singular verb. Correct: "Each of the five public sector banks has submitted its quarterly results." (Also note: "their" in part D is technically incorrect — it should be "its" — but "have" in part C is the more glaring error, and IBPS typically marks the first clear error.)
Q.25 Hard
Find the part with the grammatical error:
Having reviewed the quarterly data, / the MPC's decision to hold / the rate steady came as / a surprise to most analysts. / No error
Answer: A — This is a dangling modifier. "Having reviewed the quarterly data" should modify whoever reviewed the data — the MPC (not "the MPC's decision"). Decisions don't review data; the MPC does. The participial phrase modifies the subject of the main clause, which should be "the MPC" not "the MPC's decision." Correct: "Having reviewed the quarterly data, the MPC decided to hold the rate steady, surprising most analysts." OR restructure to eliminate the dangling participle.
Q.26 Moderate
Find the part with the grammatical error:
The bank's liquidity / is insufficient / to met all / its current obligations. / No error
Answer: C — After "to" (an infinitive marker), the base form of the verb must be used. "Met" is past tense; correct form is "meet." Correct: "...insufficient to meet all its current obligations."
Q.27 Moderate
Find the part with the grammatical error:
The Finance Minister announced / that more than a hundred / crore rupees has been / allocated for rural banking. / No error
Answer: C — "More than a hundred crore rupees" is a plural quantity, so the verb should be "have been" (not "has been"). When "more than" modifies a plural noun expressing an amount, use a plural verb. Correct: "...a hundred crore rupees have been allocated..."
Q.28 Hard
Find the part with the grammatical error:
The new circular, / along with the supporting guidelines, / are expected to simplify / the loan approval process. / No error
Answer: C — "Along with" is a phrase, not a conjunction; it does not change the grammatical number of the subject. The true subject is "The new circular" (singular), so the verb should be "is expected," not "are expected." This is a common IBPS trap. Rule: "Along with," "together with," "as well as," "in addition to" — these phrases in the middle do NOT make the subject plural. Correct: "The new circular ... is expected to simplify..."
Q.29 Hard
Find the part with the grammatical error:
She is one of the analysts / who has accurately predicted / the timing of the / RBI's rate cuts this year. / No error
Answer: B — In the construction "one of those/the [plural noun] who...," the relative pronoun "who" refers to the plural antecedent "analysts," requiring a plural verb "have." Correct: "...one of the analysts who have accurately predicted..." This is a frequent IBPS error trap — many candidates incorrectly use "has" because the nearer referent seems to be "one."
Q.30 Moderate
Find the part with the grammatical error:
Despite of the strong / economic fundamentals, / investor confidence / remained subdued. / No error
Answer: A — "Despite" is a preposition that does NOT require "of" after it. The correct usage is simply "Despite the strong..." (not "Despite of"). Common confusion: "In spite of" IS correct (with "of"), but "Despite of" is never correct in standard English. This is one of the most frequently tested IBPS preposition errors.
Q.31 Easy
Find the part with the grammatical error:
The bank has been / operating at a lost / for three consecutive / financial quarters. / No error
Answer: B — The correct idiom is "operating at a loss" (noun), not "at a lost" (past tense verb). "Loss" is a noun; "lost" is the past tense of "lose." This is a simple vocabulary/grammar error.
Q.32 Hard
Find the part with the grammatical error:
The data released yesterday / suggests that both inflation / as well as unemployment / has declined this month. / No error
Answer: D — "Both...and..." is a correlative conjunction that makes the subject plural. The correct form of "both inflation and unemployment" requires a plural verb: "have declined" not "has declined." Note: "as well as" should ideally be "and" with "both," but the critical error is the singular verb "has" following a "both...as well as..." structure that creates a compound subject. Correct: "...both inflation as well as unemployment have declined this month."
Q.33 Moderate
Find the part with the grammatical error:
Scarcely had the merger / been announced when / markets reacted very / sharp to the news. / No error
Answer: D — "Reacted" is a verb, so the modifying word should be an adverb, not an adjective. "Sharp" is an adjective; "sharply" is the correct adverb form. Correct: "...markets reacted very sharply to the news."
Q.34 Hard
Find the part with the grammatical error:
The governor stressed / that the bank would / not hesitate to use / whatever tools at its disposal. / No error
Answer: D — The correct phrase is "whatever tools are at its disposal" or "whatever tools it has at its disposal." The phrase "whatever tools at its disposal" omits the necessary verb. Alternatively, the correct construction is "all tools at its disposal" (without "whatever") or "whatever tools were at its disposal." The missing verb "are/were" is the error.
Q.35 Moderate
Find the part with the grammatical error:
The proposal to merge / the two banks were / submitted to the Finance / Ministry last month. / No error
Answer: B — The subject of the sentence is "The proposal" (singular), not "the two banks." The verb must agree with "proposal" → "was." "Were" is plural and agrees with "banks," but "banks" is the object of the infinitive "to merge," not the subject of the main clause. Correct: "The proposal to merge the two banks was submitted..."
Section 4 — Sentence Correction & Double Blank Fill-in-the-Blanks (Q.36–50)
| Rule Category | Tested Frequently in IBPS |
|---|---|
| Article (a/an/the) | "The" before specific, unique nouns; "an" before vowel sounds, not vowel letters |
| Preposition | comply with, invest in, adhere to, independent of, concerned about |
| Conditional | If + simple present → will; If + past → would; If + past perfect → would have |
| Reported speech | say/says → say; said → told/said; "will" → "would"; "is" → "was" |
| Phrasal verbs | set aside (reserve), write off (cancel a debt), draw down (use funds), phase out (eliminate gradually) |
Q.36 Easy
Choose the correct option to fill both blanks: "The RBI _____ the bank to _____ its capital adequacy requirements."
Answer: B — directed / meet — "Directed" is the correct formal regulatory term (the RBI "directs" regulated entities). "Meet requirements" is the standard phrase (fulfil/satisfy requirements). "Instructed / enforce" is wrong because you enforce requirements, not meet them. "Ignore" and "waive" are opposites of what a regulator would ask.
Q.37 Moderate
Choose the grammatically correct sentence:
Answer: B/C (both are identical — B is the correct answer) — This is a Type 3 conditional (past perfect hypothesis → past result). "If + had + past participle → would/could have + past participle." "If the bank had maintained ... the crisis could have been avoided." (A) incorrectly uses "would have" in the if-clause. (D) is a Type 1 conditional (present real condition) — different meaning.
Q.38 Moderate
Fill in the blank: "The government is committed to _____ the fiscal deficit within the prescribed limit."
Answer: B — containing — After "committed to," a gerund (verb + -ing) must follow. "Committed to containing" is correct. "Committed to contain" is wrong (infinitive after "committed to" is incorrect — "to" here is a preposition, not the infinitive marker). "Contained" is past tense. "Containment" is a noun that would also work ("committed to containment of"), but only if "of" follows.
Q.39 Easy
Fill in the blank: "An MPC member voted _____ rate hike, citing inflationary pressures."
Answer: B — for a — One votes "for" something (in favour of). "Voted for a rate hike" means supported the decision to raise rates. "Voted to a rate hike" is unidiomatic. "With" and "at" are incorrect prepositions in this context.
Q.40 Hard
Fill both blanks: "The bank's profitability has been _____ by rising NPAs, which have _____ the capital available for new lending."
Answer: C — eroded / reduced — Rising NPAs "erode" (eat away at) profitability and "reduce" capital. "Eroded / reduced" creates a logical cause-effect chain: NPAs erode profits AND reduce capital for lending. (A) and (B) are positive outcomes — opposite of what NPAs cause. "Stabilised / frozen" is neither logically correct nor idiomatic in this context.
Q.41 Moderate
Choose the correctly constructed sentence:
Answer: B — "Have not yet been implemented" is correct passive voice (present perfect passive: have/has + been + past participle). (A) uses "implementing" — wrong form for passive. (C) uses base form "implement" — wrong. (D) uses "whom" — but "many" refers to "improvements" (things, not people), so "which" is correct.
Q.42 Hard
Fill both blanks: "The regulator's decision was _____ by market participants, who viewed it as _____ with international best practices."
Answer: B — welcomed / consistent — A positive reaction ("welcomed") makes sense when the decision aligns with ("consistent with") international best practices. (A) is contradictory — you don't "condemn" something for being "aligned." (C) "rejected / at variance" would mean the market disapproved AND the decision conflicted with best practices — possible, but grammatically "at variance" needs "with," making the phrase "at variance with international best practices" — grammatically correct but the overall sentence tone suggests a positive decision. (B) is the cleanest, most natural fit.
Q.43 Moderate
Fill in the blank: "The government's initiative to _____ small business loans has been praised by industry bodies."
Answer: C — collateralise — An initiative to "collateralise" small business loans means creating collateral-backed loan programs, which makes lending accessible (hence praised). "Complicate," "restrict," and "penalise" all have negative connotations and would not be "praised" by industry bodies. In banking context, "collateralise" = making loans secured against assets — a positive development that reduces lender risk and lowers interest rates.
Q.44 Easy
Fill in the blank: "Savings accounts typically earn a lower rate of interest _____ fixed deposits."
Answer: C — than — In comparative sentences with "lower/higher/more/less," the comparison word is "than." "Lower...than fixed deposits" is correct. "Than to" is ungrammatical. "Compared with" could work if the sentence were restructured ("lower, compared with fixed deposits"), but as a blank filler after "lower rate of interest," only "than" fits idiomatically.
Q.45 Hard
Choose the sentence that correctly uses reported speech: [Original: The analyst said, "The bank will announce its results tomorrow."]
Answer: B — In reported speech: (1) "said" → "said that" (no object needed); "will" → "would"; "tomorrow" → "the following day/the next day." (A) fails to change "will" and "tomorrow." (C) uses "told that" — "told" requires an object ("told me/her"), not "that" directly. (D) "next morning" is incorrect — "tomorrow" without a specific time becomes "the following day," not "the next morning" (which implies morning was specified in the original).
Q.46 Moderate
Fill in the blank with the correct article: "_____ Insolvency and Bankruptcy Code was enacted in 2016 to provide _____ time-bound resolution mechanism."
Answer: B — The / a — "The Insolvency and Bankruptcy Code" → "The" (definite article because it's a specific, unique piece of legislation). "A time-bound resolution mechanism" → "a" because it's referring to one such mechanism (not a specific, previously known one). "An" (D) would need to precede a word beginning with a vowel sound — "time-bound" begins with a consonant sound /t/, so "a" is correct.
Q.47 Hard
Fill in the blank: "The treasurer was confident that the fund would be sufficient to _____ the company's short-term liabilities."
Answer: C — discharge — "Discharge" liabilities = fulfil/pay off financial obligations. This is the precise legal and financial term. "Offset" means to counterbalance (partially correct, but "discharge" is more precisely correct for liabilities). "Escalate" means to increase — opposite. "Prolong" means to extend — irrelevant.
Q.48 Moderate
Choose the sentence with correct use of the preposition:
Answer: C — "Comply" always takes the preposition "with." "Comply with" is a fixed expression — one of the most commonly tested preposition collocations in IBPS. "Comply to/at/for" are all incorrect. Other fixed banking prepositions: "adhere to," "invest in," "account for," "abstain from."
Q.49 Hard
Fill both blanks: "The _____ of the merger proposal hinged on whether the regulators would _____ to the proposed restructuring of the combined entity's liabilities."
Answer: B — approval / consent — "The approval of the merger proposal hinged on whether the regulators would consent to the proposed restructuring." The sentence describes a conditional situation where regulators need to agree. "Approval" and "consent" form the logical pair. (C) "accede" is technically correct (to formally agree), but "The withdrawal of the merger proposal hinged on whether regulators would accede" creates a contradiction — you don't withdraw a proposal conditional on regulator agreement. (A) "object" is opposite of consenting. (D) "contribute" is unrelated.
Q.50 Moderate
Choose the correct form of the verb: "The data _____ that credit growth has slowed in the third quarter."
Answer: B — indicates — In formal academic and financial writing, "data" is increasingly treated as a singular collective noun (similar to "information," "evidence," "news"). "The data indicates" is the standard form in modern banking and business English, particularly in IBPS context. While "data" is technically the plural of "datum" and "indicate" (plural) is grammatically valid, IBPS exams use "data" as singular — "the data indicates" is the expected correct answer. "Are indicating" is awkward progressive form. "Have indicated" implies a series of past indications, not a current factual statement.