How to solve Verbal/Logical Reasoning Questions in Bank Exams?

By BYJU'S Exam Prep

Updated on: September 25th, 2023

Verbal/Logical Reasoning is a major portion of the Reasoning Ability Section. You can expect 7-10 questions from this topic in the mains phase of various bank exams. So, it is important that you have a very clear idea of the basics of verbal reasoning, in order to solve the questions with ease in your bank exams.


In this post, we will pick each topic of the verbal reasoning section, along with examples, and help you understand the correct approach to solve the questions.

You may encounter questions from the following topics under Verbal/ Logical Reasoning-

  • Statement and Argument / Assumption / Conclusion / Course of action
  • Cause and Effect
  • Deriving Conclusions from the passage

Tips to Solve Logical/ Verbal Reasoning Questions in the Bank Exam

Let us now have a look at the approach for solving these topics individually.

Statement and Argument /Assumption /Conclusion /Course of action

Before moving to it, a clear understanding of a few words is a must.
Explicit – It means something that is stated clearly and in detail.
Implicit – It means something that is suggested but not expressed directly.
In Statement – Assumption questions, you are usually given a statement and a pair of assumptions and you need to answer which assumption is implicit or explicit based on the given statement. Let us take up an example –
Statement: The city transport corporation has introduced air-conditioned buses on various routes to attract people traveling to their workplaces by car and hence, reduce congestion on the roads.

  1. The majority of the people may still prefer to travel to their workplaces in their own cars.
    2. Many people may now opt for these buses for traveling to their workplaces.
    (a) If only Assumption I is implicit.
    (b) If only Assumption II is implicit.
    (c) If either Assumption I or II is implicit.  
    (d) If neither Assumption I nor II is implicit.
    (e) If both Assumptions I and II are implicit.

While attempting the questions, go through the statement properly first and try to understand what exactly it suggests. Go through the assumptions then and try to analyze if these can be assumed based on the information in the statement. Do not make your own Assumptions. For instance, here, the meaning of the statement here is quite clear. If we go through the assumptions, both I and II may be assumed i.e. the effect of government initiative would be – either people will start using public transport or they will still continue with their private vehicles. So, here either Assumption I or II is implicit. The reason (e) is wrong here is because both the assumptions are contradicting each other.

Consider another example –
Statement: In the recently held all India Commerce conference, the session on ‘Management of Service Sector in India’ surprisingly attracted a large number of participants and also received very good media coverage.

  1. Media is always very positive towards the Service sector.
    II. The service sector is managed properly in India.
    III. People weren’t expecting such an encouraging response for the service sector conference.
    We’ll go through the assumptions one by one.
    I – If you go through the sentence properly, you can easily figure out that media coverage for a specific event has been mentioned and that too in a surprising tone, so generalizing this would be incorrect.
    II – The session was conducted on the management of the service sector, but from the statement, we cannot conclude that it is actually managed effectively in the country.
    III – It is clearly mentioned in the statement ‘surprisingly attracted a large number of participants’ i.e. the response was surprising because it was unexpected and so this can be assumed based on the above statement.
    Thus, Only III is implicit.

You have to follow a similar approach while facing questions from Statement and Conclusion / Course of action. In Statement and Conclusion, you’ll be given a statement and a few conclusions, and you’ll have to figure out which conclusion logically follows the statement. In questions based on Statement and Course of action, you’ll have to follow that same approach, only you need to figure out which course of action would be appropriate for the given statement. Again, Do not assume things on your own.

Cause and Effect-

In these questions, you are usually given 2 statements and you need to identify which statement of the cause and which one is the effect of that cause. Consider the example below –
(A) There has been mass recruitment of IT professionals by Indian IT companies.
(B) Many developed countries are increasingly outsourcing IT-related functions to India and China.

If you go through the sentences below, what could be the possible reason for Statement (A)?? Logically it would be because of the high demand for IT professionals and that would increase only when there is sufficient work.
Statement (B) clearly mentions that developed countries have started outsourcing work from India and China i.e. work requirement has increased in these two countries which would lead to an increase in manpower. So, clearly, Statement (B) is the cause and (A) is the effect of that cause.

Deriving Conclusions from passage – 

As it is clear from the name itself, you will be given a short passage, and based on it, you’ll have to figure out which conclusion can be logically derived from the given passage. Consider the example below –
There has been a spate of rail accidents in India in recent months killing large numbers of passengers and injuring many more. This has raised serious doubts on the railway’s capability of providing safety to travelers.
(A) Indian Railways is known for providing the best comfort to its passenger.
(B) People have no option other than traveling by rail over long distances.
(C) The railway tracks at many places have been found to be stressed due to wear and tear in recent times.  
(D) Local residents are always the first to provide a helping hand to the passengers in the event of such disasters.
Which of the following statements substantiates the views expressed in the above statement?

Go through the passage carefully and then through each option individually. As far as the options (A) and (B) are concerned, nothing in the passage is mentioned about the services of railways or travel options that people have, so these are clearly wrong. Option (C) does substantiate our passage since stressed railway tracks can be a major cause of accidents. Option (D) is again wrong since the passage makes no mention of the help offered by locals.
This topic should be comparatively easy, it’s more on the lines of Reading Comprehension in the English Language where you need to identify the central theme of the passage.

The chapter can be useful for the following exams:

S. No

Name of the exam


SBI Clerk




IBPS Clerk






RBI Assistant


 RBI Grade-B




 SBI Apprentice




IBPS Clerk

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