IIFCL Grade A common mistakes
IIFCL Grade A · Understand the traps and how to avoid them.
In the General Awareness section, candidates spend disproportionate time on static current affairs (sports, awards, appointments) and rush through economy and infrastructure questions, often misreading 'which of the following is NOT' items.
The candidate treats General Awareness as a trivia test and does not prioritise the syllabus weight given to Indian economy, banking, and infrastructure finance, so time allocation is driven by comfort rather than scoring potential.
What to do instead
Before the exam, build a one-page checklist of high-yield economy/infrastructure topics (RBI policy tools, monetary policy corridor, types of NBFCs, IIFCL mandate, NIP, PM Gati Shakti, InvITs, REITs, sovereign green bonds, FLDG norms) and practise 20 'NOT/EXCEPT' MCQs daily. In the exam, answer economy questions first within a fixed 8-minute block, flagging and returning to static GK only if time permits.
In Reasoning, candidates attempt puzzles and seating arrangements in the order printed, get stuck on one complex puzzle for 8-10 minutes, and leave easy syllogism or inequality questions unattempted.
Puzzles feel like the 'real' reasoning test, and the candidate fears losing marks by skipping, so sunk-cost thinking keeps them on a single set instead of scanning for quick wins.
What to do instead
Adopt a two-pass strategy: first pass of 12 minutes on inequalities, syllogisms, blood relations, direction sense, and coding-decoding; second pass on puzzles only after all standalone items are done. Cap any puzzle at 4 minutes; if the arrangement table is not stabilising, mark and move. Practise with a timer that beeps every 30 seconds during puzzle sets to build the exit habit.
In Quantitative Aptitude, candidates set up full algebraic equations for every word problem instead of using approximation, percentage-to-fraction conversion, or option elimination, and run out of time before Data Interpretation sets.
School-level habit of 'show your work' and lack of practice with shortcut tables means the candidate defaults to the most time-consuming method even when the options are far apart.
What to do instead
Memorise fraction-percentage equivalents up to 1/20 and squares/cubes up to 30, then drill 30 DI and arithmetic questions weekly using only approximation and elimination. In the exam, read the options first for arithmetic questions; if they are widely spaced, estimate. Allocate 18-20 minutes to DI and attempt the easiest two sets completely before touching arithmetic.
In English Language, candidates answer Reading Comprehension questions from memory of the passage without returning to the specific line, and choose options that are true in general but not stated in the passage.
Time pressure and overconfidence in comprehension lead to 'global impression' answering, and the candidate does not distinguish between inference, tone, and explicitly stated fact.
What to do instead
For every RC question, locate and underline the exact sentence or phrase that supports the chosen option before marking it. Practise 2 passages daily with a rule: no option is selected unless the supporting line is identified. Separately drill 'EXCEPT/NOT true' and 'author's tone' questions, which are the most common traps, and review errors by classifying them as 'not in passage', 'partially true', or 'opposite tone'.
In Infrastructure Finance and Project Appraisal, candidates confuse the roles of DSCR, IRR, NPV, and payback period, and select an answer that mixes project return with lender coverage.
These metrics are studied as formulas rather than as answers to different questions (can the project service debt? is the equity return adequate? does value exceed cost?), so under exam pressure the definitions blur.
What to do instead
Build a one-page metric map: DSCR = CFADS/debt service, minimum acceptable usually 1.20-1.50x depending on sector; NPV discounted at WACC, accept if positive; IRR is the discount rate making NPV zero, compare with WACC or hurdle rate; payback ignores time value and cash flows after cutoff. For each metric, write one sentence on what question it answers and who uses it (lender vs sponsor). Solve 10 numerical problems where you must compute all four for the same project and explain any conflict in conclusions.
In Project Appraisal, candidates treat a concession agreement as a guarantee of project viability and ignore the difference between demand risk, construction risk, and offtake risk when answering risk-allocation questions.
The candidate memorises 'PPP means risk transfer' without learning which party bears which risk under BOT, HAM, TOT, and annuity models, so questions on risk allocation are answered by generic instinct.
What to do instead
Create a risk-allocation matrix with rows for land acquisition, design, construction cost overrun, demand/traffic, O&M, and termination payment, and columns for BOT toll, BOT annuity, HAM, and TOT. Fill it from standard concession principles, noting that under HAM the authority typically shares construction cost and bears demand risk, while under BOT toll the concessionaire bears demand risk. Revise this matrix weekly and test yourself by predicting who bears each risk before checking.
In Financial Management, candidates calculate WACC using book value of debt and equity or forget the tax shield on debt, and then select an answer that matches a distractor rather than the correct weighted cost.
Textbook examples often use market values, but exam questions sometimes supply book values and the candidate does not check which basis is required; also, the after-tax cost of debt (Kd × (1 - t)) is frequently replaced by the pre-tax rate.
What to do instead
Before computing WACC, write down the basis stated in the question (book or market) and the tax rate. Use the formula WACC = (E/V) × Ke + (D/V) × Kd × (1 - t), and compute Ke via CAPM or dividend growth as specified. Practise 15 WACC problems with deliberately mixed book/market data and verify each answer by checking that WACC lies between after-tax Kd and Ke; if it does not, the calculation is wrong.
In Accounting, candidates prepare the cash flow statement by adjusting net profit for every balance sheet movement without classifying items into operating, investing, and financing activities, and misclassify interest paid or dividends received.
The indirect method is memorised as a list of add-backs rather than as a classification framework, and the treatment of interest and dividends differs between old and current accounting standards, so the candidate applies a half-remembered rule.
What to do instead
Learn the classification rules explicitly: for a non-financial company, interest paid on borrowings is a financing outflow and interest/dividends received are investing inflows under Ind AS 7, while under the older AS 3 interest paid was often classified as financing and dividends paid as financing. Build a three-column worksheet (operating, investing, financing) and place every adjustment in a column before summing. Practise 10 indirect-method problems and reconcile the closing cash balance to the balance sheet every time.
In Banking awareness, candidates answer questions on monetary policy and banking regulation using outdated figures and structures, such as the old MSF corridor width, pre-2020 CRR/SLR levels, or the pre-2021 definition of small finance banks.
Preparation relies on static PDFs and old mock tests, and the candidate does not track RBI notifications, so figures that were correct two years ago are confidently marked.
What to do instead
Maintain a dated one-page 'RBI dashboard' updated monthly from the RBI website: current repo rate, SDF and MSF rates, CRR, SLR, bank rate, inflation target, priority sector lending targets, and key thresholds (e.g., definition of micro, small, and medium enterprises under the 2020 classification). Before the exam, revise only entries dated within the last six months and discard older notes. In the exam, if a figure is not certain, eliminate options using structure rather than guessing the number.
Across sections, candidates attempt the paper in printed order without a section-wise time plan, so they overspend on the first section and leave 15-20 questions in Professional Knowledge unattempted or blind-guessed.
The candidate has practised sectional tests but never a full-length simulation with a clock, and the fear of leaving easy general awareness questions creates front-loading.
What to do instead
Take at least five full-length mocks under exam conditions and fix a written time budget per section (for example, General Awareness 12-15 minutes, Reasoning 20 minutes, Quantitative Aptitude 20 minutes, English 15 minutes, Professional Knowledge 30 minutes, with buffer). In the exam, display the section countdown and move on when the budget expires, marking guessed answers only where negative marking is outweighed by expected gain. Review each mock by comparing actual versus budgeted time per section and adjust the next attempt.