Interview types of Questions

Different types of interview Questions

Tell me about yourself.

Why should I hire you?

What are your strengths and weaknesses?

Why do you want towork at our company?

What is the difference between confidence and over confidence?

What is the difference between hard work and smart work?

How do you feel about working nights and weekends?

Can you work under pressure?

Are you willing to relocate or travel?

What are your goals?

What motivates you to do good job?

What makes you angry?

Give me an example of your creativity.

How long would you expect to work for us if hired?

Are not you overqualified for this position?

What are your career options right now?

Explain how would be an asset to this organization?

What are your outside interests?

Would you lie for the company?

Who has inspired you in your life and why?

What was the toughest decision you ever had to make?

Have you considered starting your own business?

How do you define success and how do you measure up to your own definition?

How much salary do you expect?Where do you see yourself five years from now?

Do you have any questions for me?

Preparation tips for interview round

Planning

How to prepare?What to prepare?

Searching/Reading About

company applied Profile and its Duties and Responsibilities. Working conditions interviewer

Preparation

Read your resume properly prepare questions to ask or to be asked rehearse interview anticipate the obvious questions during the interview work out a strategy for dealing with stress read vacancy details, employer's literature - what they are and what they want

Dressing

Conservative two-piece business suit (solid dark blue or grey is best)Conservative long-sleeved shirt / blouse (white is best, pastel is next best)Clean, polished conservative shoes well-groomed hairstyle clean, trimmed fingernails minimal cologne or perfume empty pockets--no bulges or tinkling coins no gum, candy or cigarettes light briefcase or portfolio casino visible body piercing (nose rings, eyebrow rings, etc)

First Impression

Arrive 15 minutes before time make a good entrance. Good Body language - handshake, posture, eye contact. Smile

At Interview

Be yourself be honest be prepared to talk - but not too much don't be afraid to ask for clarification Illustrate your answers with examples be ready to sell yourself be interested

Follow up/Closing the Interview

Read employer's body language thank him/her for his/her time learn from the experience - ask for feedback if necessary

Types of cheques?

DIFFERENT TYPE OF CHEQUES ISSUED IN INDIA

A cheque is a payment instrument that is issued by a bank account holder for making payments to an individual or company and cash withdrawals from the bank. Apart from that, it also facilitates funds transfer to another bank account. For instance, you can make cash payment for a utility bill or you can do it by writing a cheque. The biggest benefit of a cheque is that it allows high value transactions which may become a bit cumbersome if hard cash was used instead.

 

The following details are necessary in a cheque –

A cheque must be drawn upon a specified bank (Drawee).A cheque must be signed by the person (Drawer) issuing the cheque.A cheque must have the name of the recepient (Payee) of the cheque.A cheque must mention the amount of money in words and figures.A cheque must be dated.

Classification of Cheques:

A cheque is one of the safest modes of making payment as there is an entry against the cheque honoured by the bank that can be traced back if needed.

Based on the location, cheques are classified as: –

Local cheques:

If issued by a bank in the same city as the payee.

 Outstation cheques:

If a given city’s local cheque is presented elsewhere it becomes an outstation cheque and may attract some nominal but fixed banking charges.

 At par cheque:

is a cheque which is accepted at par at all its branches across the country. Unlike local cheque it can be present across the country without attracting additional banking charges.

Based on its value, cheques are classified as: –

Normal Value cheques:

Cheques below the amount of Rs. 1 lakh are called normal value cheques.

High Value cheques:

Cheque bearing an amount higher than Rs. 1 lakh is a high value cheque.

Gift cheques:

Cheques used for gifting money to loved ones are gift cheques. The value may vary from Rs. 100 to Rs. 10,000.

Cheques are mainly of four types:-

1) Open cheque:

A cheque is called open when it is possible to get cash over the counter at the bank. The holder of an open cheque can receive payment over the counter at the bank, deposit the cheque in his own account or pass it to someone else by signing on the back of a cheque.

2) Bearer cheque:

A cheque which is payable to any person who presents it for payment at the bank counter is called ‘Bearer cheque’. A bearer cheque can be transferred by mere delivery and requires no endorsement.

3) Order cheque:

It is the one which is payable to a particular person. In such a cheque the word ‘bearer’ may be cut out or cancelled and the word ‘order’ may be written. The payee can transfer an order cheque to someone else by signing his or her name on the back of it.

4) Crossed cheque:

When a cheque is crossed, the holder cannot encash it at the counter of the bank. The payment of such cheque is only credited to the bank account of the payee. Crossed cheque is done by drawing two parallel lines across top left corner of the cheque, with or without writing ‘Account payee’ in the space between the lines.

Banks also offer various cheques which guarantee payments.

A self cheque:

is written by the account holder as pay self to receive money in physical form from the branch where he holds his account. This can be alternated by using an ATM card.

Post-dated cheque (PDC):

A PDC is a form of a crossed or account payee bearer cheque but post-dated to meet the said financial payment at a future date. The cheque is valid from the date of issue to three months.

A Banker’s cheque:

A banker’s cheque is issued by a bank drawing money from its own funds rather than that from an account holder’s. Banker’s cheque is issued after the bank verifies the account status of the requestor and the amount is immediately deducted from the customer’s account.  A banker’s cheque cannot be dishonored as in the case of a normal cheque, when an account holder has insufficient funds in his/her account. Though different from a normal cheque it requires clearing too.

A Traveller’s cheque:

It is a printed open type cheque issued as an alternate for carrying around cash while travelling abroad or on a vacation to a foreign country as they come with a replacement guarantee and lifelong validity. Traveler’s cheques are widely accepted by merchants, restaurants and other recreational organizations. The unused cheques from the recent trip can be used for your next trip.

What is Bank deposits

BANK DEPOSITS:

       NRIs can open and operate specialized bank account in India classified as NRE, NRO andFCNR accounts. While FCNR (foreign currency non-resident) is a foreign currency account and can be opened only as a term (fixed) deposit account, the NRE/NRO (non-resident external/nonresident ordinary) accounts  are denominated in rupees and can be opened either as a savings or a fixed deposit account.

           However, before approaching a banker, you have to be clear about the purpose for which you are opening the account, as that decides the type.If you want to invest in India, you need to have a bank account denominated in Indian rupees - basically either an NRE or NRO account. Again, if you intend repatriating the income from such investments, you need to make that investment only through an NRE account.

             An NRO account is normally only for making payments on dues in India and receiving rental and other incomes. It allows credit of funds from your overseas account too.However, what you need to note here is that there are several restrictions on repatriation of funds from this account.Money in this account can be repatriated within a limit of $1 million in a year on paying the applicable charges to the banker. An FCNR account, however, saves you from forex rate fluctuations by allowing you to hold the foreign currency without converting it into rupees.

             Now, let's move into the more interesting part - interest income. An NRE/NRO savings account earns an interest of around 4% per annum. Currently this is on a par with the savings accounts rate for resident Indians. On a term deposit of maturity period over 1year but less than 2years, these accounts earn around 9% a year. 2years back, an NRE account earned just 2.5-3% p.a. The current high interest rate is thanks to the RBI deregulating interest on NRE deposits in December 2011.On an FCNR account that is denominated in the US dollar, Kotak Mahindra Bank offers an interest of 2.73% p.a (94 basis points more than 2011 rates) with a maturity period over a year but less than 2years. The interest is based on LIBOR rates for the respective currency.

Bank interview

Interview Questions and Tips for IBPS CLERK III

Dear readers, Interview for IBPS CLERK III is starting from upcoming week and many readers have requested for Interview questions and 

 tips.

So here we are providing you some Interview questions which has been asked in Bank interview and also presenting you the tips to answers the questions.

1. Tell us something about yourself.

This question is randomly asked in an interview as to know what you know exactly about yourself.  You should not answer them about all the information which you have mentioned in your resume. 

Be natural and calm. Speak slowly and tell them about your strengths, achievements and passions etc.

So mention your strengths and interests that are related to a job.

2. What do u mean by term Banking?

Ans: The term banking has been broadly defined under banking regulation act. 
As bank is engaged in the business of accepting the deposits from public and utilize such deposits either for the purpose of lending or for the investment"

3. What are the main functions of commercial banks?

The main functions of commercial banks are:

1. Accepting deposits

2. Giving loans

3. Overdraft

4. Discounting of Bills of Exchange

5. Investment of Funds

6. Agency Functions

7. Miscellaneous Functions

4. Why do you want to join Banking Sector?

This is a very simple question, but in order to give a suitable answer, you must know how to answer. You need to know about the Banking Sector in which you are willing to work for and read their job description.

When you are asked this question, tell them that working for Banking Sector will be a challenging and beneficial experience to you.

Ans: 
1.This is really a golden opportunity for me to develop my career in Banking as well as in a Govt. sector.

2.  Indian banking sector is one of the fastest growing sectors in the country. 

3. It has clear career path.

4. It has social reputation.

5. Future is very bright and we can also enjoy loans at cheaper rates.

6. It has white collar job and has regulated working hours.

5. What are the qualities of a Banker?

If you are going for a bank interview, you should know about the qualities of a banker.

Ans:
1. Peoples Skills: You must have the ability to relate to customers as well as your co-workers.

2. Good communication skills: It will help if you have good verbal as well as written communication skills.

3. Honest.

4. Knowledge of computer

5, Innovative to sell value added products of a bank.

6. Liberal focused towards its customer.

6.What is your Strength?

This is again a very commonly asked question. The Interviewer here wants to analyze how much you know of yourself.

Strengths:- You should mention your strengths that are beneficial for them and also which is related to your job.

For Ex:  I have good communication skills"

"I Like Interacting with people"

"I am good at an analyzing Problems and working in a team to find out appropriate solutions".

7.What is your Weaknesses?

Weaknesses: - You should not say that you do not have any Weakness. It shows that either you are Overconfident or have not assessed yourself and don't want to talk about it.

For Ex: i. My greatest weakness is that I always have a tough time saying no to tasks unless I am already close to being overwhelmed.

ii. I work on it constantly, and have learned the hard way that sometimes I just can't do it all!

iii. I am a very straightforward person. Sometimes this is my weakness and sometimes this is my strength.

8.Why should we hire you?

The Interviewer wants to know your suitability for the job so in this question you should tell about your Strengths and achievements so far.

You should mention your strengths so that they would come to know your fitness for the job.

Do not say something which is not true about you. Avoid using phrases like "This is the Best Company" or "I want to work in this field." Don’t try to please the interviewer by giving wrong information.

9.Why do you want to leave your current job?

This question is typically asked in an interview. There are many negative answers to these questions.

For Ex:  I hate my job, I hate the company, I'm not appreciated there, I hate my boss, I'm sick of working there, etc.

 Be direct and focus your interview answer on the future, especially if your leaving wasn't under the best of circumstances.

You can answer in a way:

1. This position seemed like an excellent match for my skills and experience and I am not able to fully utilize them in my present job.

2. I am interested in a new challenge and an opportunity to use my technical skills and experience in a different capacity than I have in the past.

10.Where do you see yourself in five years?

The interviewer wants to understand more about your career goals and what is your level of commitment to the job they are offering.

You should answer in such a way that ensures them that you are interested in making a long-term commitment towards the job and will have a long term and mutually beneficial association with them.

For example: My goal right now is to find a position at a company where I can grow and take on new challenges over time.

Ultimately, I’d like to assume more management responsibilities and get involved in company strategy. But most importantly, I want to work for an organization where I can build a career.”

Bank interview Questions

What is the difference between cheque and Demand Draft?

A cheque is basically issued by an individual but a draft is issued by a bank. In a demand draft you have to pay before issuing while a check is withdrawn from the account.

What is the difference between Private bank Nationalized bank?

Nationalized banks are also known as public sector banks where the government is responsible for the deposition of money in these banks while in a private bank money is deposited by the person who owns the bank.

What is sensex and NIFTY?

Sensex and Nifty both are an “index”. Index is like a indicator which gives us a general idea whether the stocks have gone up or have gone down.

Nifty is an index of NSE (National Stock Exchange) while Sensex is an index of BSE (Bomabay Stock exchange)

What is Repo rate and Reverse Repo Rate?

Repo rate is the rate at which the RBI lends some money to the banks while reverse repo rate is the rate at which the RBI takes money from a commercial bank. Repo rate controls inflation.

What is Fiscal deficit?

Fiscal Deficit is a sitation when the total expenditure of the government exceeds the revenue it generates. It is not similar to debt as debt is a collection of yearly defecits.

What is CRR rate?

CRR or Cash Reverse Ratio is the amount of money that a commercial bank has to keep with the Reserve Bank of India. If the bank increase CRR then the amount with RBI comes down and vice-versa.

What is SLR rate?

SLR Rate is the minimum amount or percentage of the deposits that a bank has to keep with the RBI in the form of money,gold or any other approved security. In simple terms it is the ratio between cash and some approved security.

What is Bank Rate?

Bank Rate is the interest rate at which the RBIallows finance to commercial banks. By Bank Rate, we mean bank can regulate the level of economic activity.

CONCLUSION

For all those who are going to sit for an interview just prepare as much as you can and learn from your experiences as most of the bank interview questions will be either from your course structure or the experience which you have gained.

Top 50 Bank interview Questions

1) What is bank? What are the types of banks?

A bank is a financial institution licensed as a receiver of cash deposits. There are two types of banks, commercial banks and investment banks. In most of the countries, banks are regulated by the national government or central bank.

2) What is investment banking?

Investment banking manages portfolios of financial assets, commodity and currency, fixed income, corporate finance, corporate advisory services for mergers and acquisitions, debt and equity writing etc.

3) What is commercial bank?

Commercial bank is owned by the group of individuals or by a member of Federal Reserve System. The commercial bank offer services to individuals, they are primarily concerned with receiving deposits and lending to business. Such bank earns money by imposing interest on the loan borrowed by the borrower. The money that is deposited by the customer will be used by the bank to give business loan, auto loan, mortgages and home repair loans.

4) What are the types of Commercial Banks?

a) Retail or consumer banking

It is a small to mid-sized branch that directly deals with consumer’s transaction rather than corporate or other banks

b) Corporate or business banking

Corporate banking deals with cash management, underwriting, financing and issuing of stocks and bonds

c) Securities and Investment banking

Investment banking manages portfolios of financial assets, commodity and currency, fixed income, corporate finance, corporate advisory services for mergers and acquisitions, debt and equity writing etc.

d) Non-traditional options

There are many non-bank entities that offer financial services like that of the bank. The entities include credit card companies, credit card report agencies and credit card issuers

5) What is consumer bank?

Consumer bank is a new addition in the banking sector, such bank exist only in countries like U.S.A and Germany. This bank provides loans to their customer to buy T.V, Car, furniture etc. and give the option of easy payment through instalment.

6) What are the types of accounts in banks?

a) Checking Account: You can access the account as the saving account but, unlike saving account, you cannot earn interest on this account. The benefit of this account is that there is no limit for withdrawal.

b) Saving Account: You can save your money in such account and also earn interest on it. The number of withdrawal is limited and need to maintain the minimum amount of balance in the account to remain active.

c) Money Market Account: This account gives benefits of both saving and checking accounts. You can withdraw the amount and yet you can earn higher interest on it. This account can be opened with a minimum balance.

d) CD (Certificate of Deposits) Account: In such account you have to deposit your money for the fixed period of time (5-7 years), and you will earn the interest on it. The rate of interest is decided by the bank, and you cannot withdraw the funds until the fixed period expires.

7) What are the different ways you can operate your accounts?

You can operate your bank accounts in different ways like

a) Internet banking

b) Telephone or Mobile banking

c) Branch or Over the counter service

d) ATM ( Automated Teller Machine)

8) What are the things that you have to keep in concern before opening the bank accounts?

Before opening a bank account, if it is a saving account, you have to check the interest rate on the deposit and whether the interest rate remains consistent for the period. If you have the checking account, then look for how many cheques are free to use. Some banks may charge you for using paper cheques or ordering new cheque books. Also, check for different debit card option that is provided on opening an account and online banking features.

9) What is ‘Crossed Cheque’ ?

A crossed cheque indicates the amount should be deposited into the payees account and cannot be cashed by the bank over the counter. Here in the image, number#2, you can see two cross-lines on the left side corner of the cheque that indicates crossed cheque.

10) What is overdraft protection?

Overdraft protection is a service that is provided by a bank to their customer. For instance, if you are holding two accounts, saving and credit account, in the same bank. Now if one of your accounts does not have enough cash to process the cheques, or to cover the purchases. The bank will transfer money from one account to another account, which does not have cash so to prevent check return or to clear your shopping or electricity bills.

11) Do bank charge for ‘overdraft protection’ service?

Yes, bank will charge on ‘overdraft protection’ services but the charges will be applicable only when you start using the service.

12) What is (APR) Annual Percentage Rate?

APR stands for Annual Percentage Rate, and it is a charge or interest that the bank imposes on their customers for using their services like loans, credit cards, mortgage loan etc. The interest rate or fees imposed is calculated annually.

13) What is ‘prime rate’?

Basically, ‘prime rate’ is the rate of interest that is decided by nations (U.S.A) largest banks for their preferred customers, having a good credit score. Much ‘variable’ interest depends on the ‘prime rates’. For example, the ‘APR’ (Annual Percentage Rate) on a credit card is 10% plus prime rate, and if the prime rate is 3%, the current ‘APR’ on that credit card would be 13%.

14) What is ‘Fixed’ APR and ‘Variable’ APR?

‘APR’ (Annual Percentage Rate) can be ‘Fixed’ or ‘Variable’ type. In ‘Fixed APR’, the interest rate remains same throughout the term of the loan or mortgage, while in ‘Variable APR’ the interest rate will change without notice, based on the other factors like ‘prime rate’.

15) What are the different types of banking software applications are available in the Industry?

There are many types of banking software applications and few are listed below

a) Internet banking system: Internet banking allows the customers and financial institution to conduct final transaction using banks or financial institute website.

b) ATM banking (Automated Teller Machine): It is an electronic banking outlet, which allows customers to complete basic transaction.

c) Core banking system: Core banking is a service provided by a networked bank branches. With this, customer can withdraw money from any branch.

d) Loan management system: The database collects all the information and keeps the track about the customers who borrows the money.

e) Credit management system: Credit management system is a system for handling credit accounts, assessing risks and determining how much credit to offer to the customer.

f) Investment management system: It is a process of managing money, including investments, banking, budgeting and taxes.

g) Stock market management system: The stock market management is a system that manages financial portfolio like securities and bonds.

h) Financial management system: Financial management system is used to govern and keep a record of its income, expense and assets and to keep the accountability of its profit.

16) What is the ‘cost of debt’?

When any company borrows funds, from a financial institution (bank) or other resources the interest paid on that amount is known as ‘cost of debt’.

17) What is ‘balloon payment’?

The ‘balloon payment’ is the final lump sum payment that is due. When the entire loan payment is not amortized over the life of the loan, the remaining balance is due as the final repayment to the lender. Balloon payment can occur within an adjustable rate or fixed rate mortgage.

18) What is ‘Amortization’?

The repayment of the loan by instalment to cover principal amount with interest is known as ‘Amortization’.

19) What is negative Amortization?

When repayment of the loan is less than the loans accumulated interest, then negative Amortization occurs. It will increase the loan amount instead of decreasing it. It is also known as ‘deferred interest’.

20) What is the difference between ‘Cheque’ and ‘Demand draft’?

Both are used for the transfer of the amount between two accounts of same banks or different bank. ‘Cheque’ is issued by an individual who holds the account in a bank, while ‘Demand draft’ is issued by the bank on request, and will charge you for the service. Also, demand draft cannot be cancelled, while cheques can be cancelled once issued.

21) What is debt-to-Income ratio?

The debt-to-income ratio is calculated by dividing a loan applicant’s total debt payment by his gross income.

22) What is adjustment credit?

Adjustment credit is a short-term loan made by the Federal Reserve Bank (U.S) to the commercial bank to maintain reserve requirements and support short term lending, when they are short of cash.

23) What do you mean by ‘foreign draft’?

Foreign draft is an alternative to foreign currency; it is generally used to send money to a foreign country. It can be purchased from the commercial banks, and they will charge according to their banks rules and norms. People opt for ‘foreign draft’ for sending money as this method of sending money is cheaper and safer. It also enables receiver to access the funds quicker than a cheque or cash transfer.

24) What is ‘Loan grading’?

The classification of loan based on various risks and parameters like repayment risk, borrower’s credit history etc. is known as ‘loan grading’. This system places loan on one to six categories, based on the stability and risk associated with the loan.

25) What is ‘Credit-Netting’?

A system to reduce the number of credit checks on financial transaction is known as credit-netting. Such agreement occurs normally between large banks and other financial institutions. It places all the future and current transaction into one agreement, removing the need for credit cheques on each transaction.

26) What is ‘Credit Check’?

A credit check or a credit report is done by the bank on a basis of an individual’s financial credit. It is done in order to make sure that an individual is capable enough of meeting the financial obligation for its business or any other monetary transaction. The credit check is done keeping few aspects in concern like your liabilities, assets, income etc.

27) What is inter-bank deposit?

Any deposit that is held by one bank for another bank is known as inter-bank deposit. The bank for which the deposit is being held is referred as the correspondent bank.

28) What is ILOC (Irrevocable Letter Of Credit)?

It is a letter of credit or a contractual agreement between financial institute (Bank) and the party to which the letter is handed. The ILOC letter cannot be cancelled under any circumstance and, guarantees the payment to the party. It requires the bank to pay against the drafts meeting all the terms of ILOC. It is valid upto the stated period of time. For example, if a small business wanted to contract with an overseas supplier for a specified item they would come to an agreement on the terms of the sale like quality standards and pricing, and ask their respective banks to open a letter of credit for the transaction. The buyer’s bank would forward the letter of credit to the seller’s bank, where the payment terms would be finalized and the shipment would be made.

29) What is the difference between bank guarantee and letter of credit?

There is not much difference between bank guarantee and letter of credit as they both take the liability of payment. A bank guarantee contains more risk for a bank than a letter of credit as it is protecting both parties the purchaser and seller.

30) What is cashier’s cheque?

A cashier cheque issued by the bank on behalf of the customer and takes the guarantee for the payment. The payment is done from the bank’s own funds and signed by the cashier. The cashier cheque is issued when rapid settlement is necessary.

31) What do you mean by co-maker?

A person who signs a note to guarantee the payment of the loan on behalf of the main loan applicant’s is known as co-maker or co-signer.

32) What is home equity loan?

Home equity loan, also known as the second mortgage, enables you to borrow money against the value of equity in your home. For example, if the value of the home is $1, 50,000 and you have paid $50,000. The balance owed on your mortgage is $1, 00,000. The amount $50,000 is an equity, which is the difference of the actual value of the home and what you owe to the bank. Based on equity the lender will give you a loan. Usually, the applicant will get 85% of the loan on its equity, considering your income and credit score. In this case, you will get 85% of $50,000, which is $42,500.

33) What is Line of credit?

Line of credit is an agreement or arrangement between the bank and a borrower, to provide a certain amount of loans on borrower’s demand. The borrower can withdraw the amount at any moment of time and pay the interest only on the amount withdrawn. For example, if you have $5000 line of credit, you can withdraw the full amount or any amount less than $5000 (say $2000) and only pay the interest for the amount withdrawn (in this case $2000).

34) How bank earns profit?

The bank earns profit in various ways

a) Banking value chain

b) Accepting deposit

c) Providing funds to borrowers on interest

d) Interest spread

e) Additional charges on services like checking account maintenance, online bill payment, ATM transaction

35) What are payroll cards?

Payroll cards are types of smart cards issued by banks to facilitate salary payments between employer and employees. Through payroll card, employer can load salary payments onto an employee’s smart card, and employee can withdraw the salary even though he/she doesn’t have an account in the bank.

36) What is the card based payments?

There are two types of card payments

a) Credit Card

b) Debit Card

37) What ACH stands for?

ACH stands for Automated Clearing House, which is an electronic transfer of funds between banks or financial institutions.

38) What is ‘Availability Float’?

Availability Float is a time difference between deposits made, and the funds are actually available in the account. It is time to process a physical cheque into your account.

For example, you have $20,000 already in your account and a cheque of another $10,000 dollar is deposited in your account but your account will show balance of $20,000 instead of $30,000 till your $10,000 dollar cheque is cleared this processing time is known as availability float.

39) What do you mean by term ‘Loan Maturity’ and ‘Yield’?

The date on which the principal amount of a loan becomes due and payable is known as ‘Loan Maturity’. Yield is commonly referred as the dividend, interest or return the investor receives from a security like stock or bond, interest on fix deposit etc. For example, any investment for $10,000 at interest rate of 4.25%, will give you a yield of $425.

40) What is Cost Of Funds Index (COFI)?

COFI is an index that is used to determine interest rates or changes in the interest rates for certain types of Loans.

41) What is Convertibility Clause?

For certain loan, there is a provision for the borrower to change the interest rate from fixed to variable and vice versa is referred as Convertibility Clause.

42) What is Charge-off?

Charge off is a declaration by a lender to a borrower for non-payment of the remaining amount, when borrower badly falls into debt. The unpaid amount is settled as a bad debt.

43) What ‘LIBOR’ stands for?

‘LIBOR’ stands for London Inter-Bank Offered Rate. As the name suggest, it is an average interest rate offered for U.S dollar or Euro dollar deposited between groups of London banks. It is an international interest rate that follows world economic condition and used as a base rate by banks to set interest rate. LIBOR comes in 8 maturities from overnight to 12 months and in 5 different currencies. Once in a day LIBOR announces its interest rate.

44) What do you mean by term ‘Usury’?

When a loan is charged with high interest rate illegally then it is referred as ‘Usury’. Usury rates are generally set by State Law.

45) What is Payday loan?

A pay-day loan is generally, a small amount and a short-term loan available at high interest rate. A borrower normally writes post-dated cheques to the lender in respect to the amount they wish to borrow.

46) What do you mean by ‘cheque endorsing’?

‘Endorsing cheque’ ensures that the cheque get deposited into your account only. It minimizes the risk of theft. Normally, in endorsing cheque, the cashier will ask you to sign at the back of the cheque. The signature should match the payee. The image over here shows the endorsed cheque.

47) What are the different types of Loans offered by banks?

The different types of loans offered by banks are:

a) Unsecured Personal Loan

b) Secured Personal Loan

c) Auto Loans

d) Mortgage Loans

e) Small business Loans

48) What are the different types of ‘Fixed Deposits’?

There are two different types of ‘Fixed Deposits’

Special Term Deposits: In this type of ‘Fixed Deposits’, the earned interest on the deposit is added to the principal amount and compounded quarterly. This amount is accumulated and repaid with the principal amount on maturity of the deposit.

Ordinary Term Deposits: In this type of ‘Fixed Deposits’, the earned credit is credited to the investor’s account, once in a quarter. In some cases, interest may be credited on a monthly basis.

The earned interest on fixed deposits is non-taxable. You can also take a loan against your fixed deposit.

49) What are the different types of Loans offered by Commercial Banks?

Start-Up Loans

This type of Loan is offered to borrower to start their business and can be used to build a storefront, to acquire inventory or pay franchise fees to get a business rolling.

Line of Credit

Lines of credit are another type of business loan provided by commercial banks. It is more like a security for your business; the bank allows the customer to withdraw the amount from readily available funds in an adverse time. Customer or Company can pay back over time and withdraw money again without going into the loan process.

Small Business Administration Loans

It is a Federal Agency (U.S) that gives funding to small businesses and entrepreneurs. SBA (Small Business Administration) loans are made through banks, credit unions and other lenders who partners with SBA.

50) What is ‘Bill Discount’?

‘Bill Discount’ is a settlement of the bill, where your electricity bill or gas bill is sold to a bank for early payment at less than the face value and the bank will recover the full amount of the bill from you before bill due date. For example, electricity bill for XYZ is $1000; the electricity bill company will sell the bill to the bank for 10% to 20% discount to the face value. Here, the bank will buy the electricity bill for $900 whose face value is $1000, now the bank will recover, full amount of bill from the customer i.e $1000. If the customer fails to pay the bill, the bank will put interest on the outstanding bill and ask the customer for the payment.

51) What is ‘Bill Purchase’?

In ‘Bill Purchase’ the loan will be created for the full value of the draft and the interest will be recovered when the actual payment comes. For example, a ‘Sight draft’ is presented for which the loan is created for 100% of the draft value. The money is received after 7 days, and then the interest will be recovered for 7 days along with the principal amount.

52) What is ‘Cheque Discount’?

Cheque discounting service is offered only by few banks. For instance, if you have a cheque of $3000 outstation and the cheque will take 7 seven days for clearance, then bank will offer you a service for early payment. The bank can make an early payment, but they will pay only for certain percentage of the actual amount, here they will pay you $2000 but they will charge interest on it and the remaining $1000 will be paid, once the outstation cheques get clear.

Bank interview

What is CRR

Cash Reserve Ratio is  percentage of customer's deposits with commercial banks that they need to deposit with RBI. Right now it's 4%.

What is SLR

Statutary Liquidity Ratio is the percentage of liabilities and time deposits that commercial banks need to keep with them in form of Cash, Gold or Government approved securities. Right now SLR is 22%

What is Bank rate

Rate at which RBI lends money to commercial banks without any security. 

What are open market operations

Buying and selling of government securities and bonds in open market by Government to maintain desired liquidity levels. 

What is Sensex and how it is calculated

Sensex is the index of top 30 stocks in Bomaby Stock Exchange(BSE)

Value of Sensex is calculated using "Free Float Market Capitalization" method.

Free float ratio is number of outstanding shares available for general public to trade.

Formula to calculate Sensex :-

What is CP ?

Commercial paper is a short term unsecured debt instrument.

What are various services provided by a commercial bank ?

LockersSafe custody of fundsAdvancing loansFund transfersPeriodic paymentsUnderwriting of sharesDealing in foreign exchangeDiscounting of loansOverdraft

What is PPF

Public Provident Fund is a tax saving investment for individuals.

Features :-
Number of deposits per year - 1 to 12Minimum deposit - Rs 500Interest received is tax freeInvestment is exempted under section 80(c)

What are various investments under section 80(C) of Income Tax act

Fixed deposit (5 years)PPFEquity mutual fundsELSSEPF and VPFNSCs (National Saving Certificate)ULIPsNPS (Pension plans)Life insurance

Minimum lock-in period for Tax saving Fixed Deposit

5 years

What are NPAs

NPA stands for Non-Performing Assets.

Bank gives loans and advances to it's customers. These loans and advances are bank's assets. When the customers don't repay back the bank's money they don't perform. Such assets are known as Non-Permoerming Assets.

What was the purpose of setting up NABARD 

NABARD is the apex institution for the development of farm sector , cottage industries and small scale industries in rural areas.

What are various functions of RBI

Government’s banker and performs banking functions for the central and the state governments. Bankers of banksMaintain liquidity in the economyRegulator of country's financial systemRegulates and facilitates foreign trade advisor to the Government of IndiaIssue currency notes

What is IRDA and what are it's functions

Insurance Regulatory And Development Authority (IRDA) is the sole authority to regulate the insurance industry in India , to ensure the growth of insurance industry and protect the interest of policy holders. 

What are Derivatives ?

In Derivative market the value of the instruments bought and sold is based on value of the underlying asset. The value of the instrument is ‘derived’ from the value of the underlying asset and hence it is known as Derivatives.

What is an Option in derivative market ?

An Option give right to Option Holder to buy or sell a commodity during a certain period of time or on a specific date.

What is Call option and Put option ?

Call option - An option which gives right to the Option Holder to buy a certain stock at specified time and specified date

Put option - An option which gives right to the Option Holder to sell a certain stock at specified time and specified date

What is GDP ?

Gross Domestic Product is the sum of all the goods and services produced within physical borders of a country in within a specific period of time. 

What is GNP ?

GNP = GDP + Income of residents overseas -Income of Foreigners within the borders of domestic economy

What is Monetary Policy

Policy by which a central authority attempts to control liquidity and interest aimed high growh rate and price stability.

What is Fiscal policy

Government revenue generation and spending policies that impact the macro economy.

What is Fiscal deficit

Excess of government expenditure over revenue

What is DeMat account 

It is the process of converting the physical share certificates into equivalent number of electronic holdings

What is RuPay card

RuPay is India’s own card payment system launched by National Payments Corporation of India (NPCI)

Bull and Bear market

When investors expect prices to rise, it's known as Bull market.

When investors expect prices to fall, it's known as Bear market.

What is SWIFT

Financial messaging network which exchanges messages between banks and financial institutions

What is Service Tax

Tax levied on providing services in India, Rate is 14%  + 0.36% for Education Cess

What is Mutual Fund ? What is safest type of fund ?

Mutual Fund is a pool of fund where investors invests their money for a common objective.

Benefits of Mutual funds
Exempted under section 80(C)
Managed by experts

Index funds are safest because money is invested in all index stocks. The rise or fall of value align with index.

What is GST

Goods and Services Tax, desision on this tax is pending. GST is going to replace all indirect taxes.

Bank interview

Bank personal interview questions and answers

Bank Exam > Banking Interview Questions > Bank Personal interview questions

1. Tell me something about yourself?

Generally this is the first question which is put up infront of the candidate appearing in the interview. To answer this, the candidate must tell his name, place of residence and his current work or educational degree along with a very brief note on his family-father, mother and siblings. He/she can also tell about his father or mother’s occupation. Some key points to note here are:-

He must know the meaning of his name and specific reference with his name if any. For ex:- a boy named “Prashant” was asked about the geographical connection of his name i.e. Prashant Mahasagar or Pacific Ocean.The answer should be precise and questions like- if your father is a teacher then why do you want to become a banker? can come up from your answer to the first question. Be prepared with the answers to these expected questions.Because this is the first question so the candidate must give a short and effective answer. You might be nervous at the beginning but remember to keep a smile on your face.

2. Where have you come from and what is famous in your city?

The candidate must tell about his place of living- city and state. If the board further asks about any specifications, then name of the district etc. should be told. He/she must tell about the famous things of his place. For ex:- a candidate from Lucknow may tell about Imambara, chicken clothes, “tehzeeb” of Lucknow etc. The key things to deal this question effectively are:-

The candidate must know about the local MLA and MP from his area. If any renowned personality belongs to that area, you should be aware of the details.He must have full knowledge about that place, its history, famous monuments, personalities, rivers, at times even number of railway stations in the city etc., also about the politics of that state-CM and ruling party and all other nitty gritties of his place.For ex: - A candidate from Ghazipur, U.P. was asked about cultivation of “Poppy seeds” as Ghazipur is famous for cultivation of poppy seeds.At times, questions about local politics are also put forward like a candidate, from Amethi was asked about the electoral battle between Rahul Gandhi and Kumar Vishwas form Amethi.A good answer to such questions leaves a very positive impact on the board as it demonstrates your awareness about the surroundings and the fact that you are well prepared puts you ahead of others.

3. Why do you want to join the banking industry?

To answer this question, you can say something like –“I want to join this industry because it can provide me a stable career with good growth prospects. It is one of the fastest growing sectors of the nation and provides great career opportunities.

There could be many other reasons for you wanting to join the bank industry for e.g. it is an honest organization, good working conditions, chances to directly interact with public etc. The choice of reason could be anything that suits you as a person. 

This is a very commonly asked question and you must be prepared to answer it.

4. Please tell us about your strength and weaknesses?

Here, the answers vary from candidate to candidate. But the strength and weakness should be such that they match up to or are in synchronization with the personality of the candidate. For ex:- If a candidate says that his strength is is general awareness while in reality he possesses least knowledge of current affairs - cross questioning can easily unveil him and could actually land him in trouble. Some key things to answer this question effectively are:-

Try to put forward a strength which is useful in the banking sector. For ex: - good communication skills, adjustable etc. The strength should bring about a positive aspect of your personality in front of the board.This is a question from which you can actually turn the interview in your favour. For ex:- If you say something like, “I have won many awards in debate competitions so I would think that good oratory skills are my strength.”
This way I can inform the board about my previous achievements also and can get an advantage over others.They may ask how your quality/strength will be helpful to bank. Be prepared with an answer.Weakness should not be very negative like short temper, irregular etc. as they leave a bad impression.Remember, this question is the golden chance for you to turn the ball in your court. In the answer you must introduce all your unique talent in front of the board. So that the interview enters in your own comfort zone.

5. After doing B.Sc/B,tech/MBA/MA why do you want to choose banking? Why not something related with you field of education?

You must give honest and sensible answers to such question. For ex:- A MBA candidate may say that there are hardly good jobs in MBA as of now. Banking is a safe sector providing great employment opportunities. In the answer, you must show your keen interest in joining banking sector and it should not look like you don’t have an option so you are choosing it.

You can also expect some questions from academics. A science stream student may be asked about about Newton’s Law etc. So, you must also prepare the subjects studied by you in the degree.

6. What are the basic documents a person requires to open an account?

The RBI has advised banks to follow the Know Your Customer (KYC) guidelines where some personal information of the account holder is obtained by the bank. This information includes: - photograph, proof of identity and proof of address. In 2013, AADHAR cards and MNREGA cards are included in KYC papers. Without these documents a person can’t open his account. Key points:-

The interviewer might ask whether you have a bank account or not.It is preferable to have an account and to know about the process because it will only help you if such questions come up.

7. Who is the governor of RBI?

As of today (March’14) , you can answer this as, Mr. Raghuram Govind Rajan is the 23rd governor of RBI. Before taking reins as RBI governor he was an officer on special duty in RBI. He has also served as economic advisor in PMEAC. His tenure is of 3 years ending in September 2016. 
Key points:-

In IBPS interviews, you must have a quick read about the prominent personalities of banking industry, especially governor and deputy governors of RBI.You must address the name of personalities by using Mr. or Madame in case of male and female respectively.Try to keep yourself updated about the recent happenings of at least the month prior to interview.

8. Tell us something about the 27th or latest public sector bank in India.

Sir, the 27th public sector bank in India is Bhartiya Mahila Bank. It was created by Finance Bill 2012. The first BMB was opened in Mumbai on 19th November 2013 on the 94th birth anniversary of Indira Gandhi. India is the third country in the world to have a bank especially for women after Pakistan and Tanzania.

Tagline- “women empowerment economically”.Head- Usha Anantha SubramanayamThe bank allows deposit from everyone, but lending will be focused for women.This bank is very important because it is the latest and 27th PSB of India. So, try to know every basic point about BMB.Initial capital of Rs. 1000 crore.

Similarly, if there has been some other initiative in that year, you should be well aware of it.

9. What do you understand by the GDP of the country?

The final value of all the goods and services produced under the geographical area of a country is the Gross Domestic Product of that country. GDP is calculated at consumption, investment and exports and imports are subtracted from the sum of these three.

10. Who are the Bharat Ratna awardees, 2014?

Sir, Mr. Sachin Tendulkar and Mr.C.N.R rao are the two recent awardees of Bharat Ratna award. Both of them are the 42nd and 43rd recipients of the award. CNR Rao received the award for his contribution in the field of chemistry whereas Mr. Tendulkar received the award for his contribution in the game of cricket. Also, he is the first sportsperson to have recived the highest honor of India.

11. What is a Non -banking Financial Company (NBFC)? Difference between NBFC and banks?

A NBFC is a company registered under the companies act, 1956 which is involved in the business of loans, shares/stocks, etc. Non-banking financial companies are financial institutions that provide banking services, but do not hold a banking license. These institutions are not allowed to take deposits from the public. NBFCs do offer all sorts of banking services, such as loans and credit facilities, retirement planning, money markets, underwriting, and merger activities. The basic difference between bank and NBFC is:-

They can’t accept demand deposits.They are not a part of the payment and settlement system and can’t issue cheques drawn on themselvesThey are not registered in the banking act and don’t have a banking license.They don’t have to maintain CRR, SLR or CASA like banks.

12. What is the difference between nationalized banks and private banks?

A nationalized bank is owned by the govt. of that country and is also known as public sector bank whereas a private sector bank is owned by an independent individual or company.

13. What are the Non Performing assets of a company?

A NPA is an obligation payable to the bank which has not been made or the interest and principal amount has not been paid on the due time. NPA is the loan or credit provided by the bank to its customers which could not be recovered in due time. Thus NPA is somehow not yielding any income to the lender either in the form of principal or interest payments. NPA is also known as “bad debts”.

NPA is shown at the assets side of the balance sheet whereas deposits are shown at the liability side.If there is any recent story or news regarding NPA, then revise it thoroughly. For ex:- Recently, United bank of India was marred in loss due to its rising NPA. So was the case with Kotak Mahindra Bank.

14. What are the various risks that banks face?

Sir, there are mainly three types of risks faced by banks:-

Credit Risk: - loan or NPA.Market Risk: - Money invested in the market.Operational risk: - Day-to-Day working risks.

15. What do you mean by term “CASA” related to bank?

CASA stands for Current Account Savings Account. The CASA ratio shows how much deposit a bank has in the form of current and saving account deposits in the total deposit. A higher CASA ratio means better operating efficiency of the bank because on current account there is no interest payable whereas on savings account a tiny 3.5% interest is payable by the bank. CASA ratio shows how much of the deposit of the bank comes from the current and savings deposit.

16. What is the difference between cheque and demand draft?

Cheque is a negotiable instrument which is paid to the bearer but a demand draft is a negotiable instrument always payable on order.

17. What are the parts of banks’ capital?

Bank has following parts of capital:-

Tier 1 capital:- Paid up capital (core capital) + Reserves (owners or promoters’ fund)Tier 2 capital:- Secondary Capital (borrowed funds) + general loss reserves + subordinated term debts + undisclosed reserves (can’t be maintained in India)Tier 3 capital: - same as tier 2 capital but with a higher amount in order to face the market risks of the bank.

18. Tell us something about BSBDA.

BSBDA stands for Basic Savings Bank deposit account. BSBDA is the new name for “no-frill accounts” under which anyone can open a bank account with even zero balance in it or “zero balance account”. This BSBDA is aimed at providing banking facilities to weaker section of the society and improve financial inclusion. All scheduled commercial banks in India including foreign banks with branches in India have to avail BSBDA. Important:-

Such accounts are opened with “relaxed KYC norms”.Relaxed KYC norms include an affidavit by the Pradhaan or councilor of a village or area confirming about the person concerned.In such accounts there are certain restrictions- in a month, 4 withdrawls can be done at a maximum. This includes ATM withdrawls. The amount withdrawn in a month shouldn’t exceed Rs. 10,000 and the balance in the account at anytime shouldn’t exceed Rs. 50,000.

19. What is the meaning of “base rate”?

Base Rate is the minimum rate of interest which a bank has to charge from its customers and a bank can’t sanction loan on a rate below the base rate. This rate came into effect from July 1 2010. Before Base rate there was Basic Prime Lending Rate or BPLR introduced in 2003. It was replaced with Base Rate because in BPLR banks had an option to loan their special customers below BPLR. Banks may choose any benchmark to decide on the base rate. The exceptions of base rate are:-

Agriculture loansGovt. sponsored schemesStaff loans

Only under the above cases, bank can lend below base rate.

20. We hear regularly that all bank branches are turning CBS. What is CBS?

Sir, CBS stands for CORE banking solutions under which the branches of the banks are interconnected with each other through intra net with a central database server. Now, with this facility, a person having an account in a certain branch of the bank can operate from any other branch of the same bank. He need not visit the same branch to operate his account. The CORE word in CBS stands for Centralized Online Realtime Exchange.

21. What is Para Banking?

Para Banking includes all the services provided by banks apart from day to day banking. For example: - Debit cards, Credit cards, Life Insurance products, Cash Management services etc.

22. What are the components of the monetary policy of RBI?

The components of monetary policy include CRR, Repo rate, reverse repo rate, SLR, MSF and Bank Rate.

23. What is priority sector credit?

All Indian banks and foreign banks (which have more than 20 branches in India) are required give 40% of their credit to priority sector out of which 18% is for agriculture. In case of Regional Rural Banks, 60% credit is to be given to priority sector. Priority sector includes- Agriculture, Micro and small enterprise, Education loan (upto 10 lakh for study in India and upto 20 lakhs for study in foreign nations) and housing loan. Priority sector lending is one of the most important part of a bank’s lending and it is devoted towards those sector which are important for public welfare.

24. What is the difference between Micro finance and micro credit?

Micro credit is giving a small amount of loan to the customers whereas Micro Finance is a wide term. It includes small loan + training on financial matters. In other words, Micro finance= Microcredit + Financial Literacy.

25. What is financial inclusion? (One of the most important questions).

Financial inclusion is the availability of banking services at a affordable cost in order to include the weaker section of the society in the banking system. In 2004, Kofi Annan (UNO Head) was addressing UNESCO conference and the word “Financial Inclusion” was for the first time used by him at that time. In 2006, a committee was made under the chairmanship of Mr. HR Khan for financial inclusion and the report said that 57% of Indian population was deprived of banking facilities.

26. What are the steps taken by banks to promote financial inclusion?

1. Publicity of banks so that more and more people open the accounts.
2. BSBDA so that poor people can also open their account.
3. People with agriculture land are being provided with Kisan Credit Card.
4. General Purpose Credit card provided to people with no agricultural land where maximum limit of withdrawal is Rs.15,000 and rate of interest is 4%. 
5. Ultra small banking and banking correspondents.

CRISIL has made an index to calculate financial inclusion named as “CRISIL INCLUSIX” and in June 2013, there was 40% financial inclusion as per the index.

27. What is REPO rate and reverse REPO rate?

Repo rate is the rate at which banks borrow from RBI during shortage of funds. This is a short term loan provided for upto 90 days by selling securities to RBI and receiving money in lieu of it. Reverse repo rate is the rate at which banks deposit their excess liquidity with the RBI. In other words, the rate at which RBI borrows from banks by selling securities in order to control excess liquidity in the market is reverse repo rate. 
Liquidity Adjustment Facility (LAF) introduced in 2000 has a provision that reverse repo rate will be 1% less than the Repo rate.

28. What is Bank rate?

It is same as repo rate but here the time period is for more than 90 days.

29. What is Cash Reserve Ratio (CRR)?

CRR is the part of Net Demand and Time Liabilities (NDTL) or cash of the bank deposited with the RBI. A higher CRR makes loans expensive as liquidity is controlled by RBI. NDTL is the deposits of the customers with the bank. Net demand liabilities are deposits payable on the demand on customer, or when the customer wants. Ex:-current account, savings account. Time liabilities are the deposits which are payable only on a specific time or after a period of maturity. For ex:- Fixed deposits, Recurring Deposits.

30. What is Statutory Liquidity Ratio (SLR)?

SLR is the amount of NDTL which a bank needs to maintain in the form of cash, gold or govt. securities before providing credit to its customers. Through SLR, RBI makes sure that bank always have a reserve amount out of their deposits to meet any future contingencies.

31. What is Marginal Standing facility (MSF)?

In MSF, banks borrow money from RBI for upto 24 hours. MSF is always 1% above the repo rate and banks can draw only upto 25 of their NDTL from RBI.

32. What is Term Repo?

Under term repo, RBI lends to banks through auction of funds. The minimum interest charged has to be above the repo rate and there is no limit for maximum interest rate because auction is made on the rate of interest.

33. What is white label ATM?

It refers to ATMs owned by corporate or private operators seeking to earn a commission by banks for transactions performed by their customers. For ex:- INDICASH by TATA group.

34. What is brown label ATM?

It refers to the ATMs where investment, installation and maintenance is by a private operator but the license and branding is by a commercial bank.

35. Tell us something about NABARD and its functions.

NABARD was established by an act of Parliament on 12 July 1976 as National Bank for Agricultural and Rural Development. It is the apex bank to provide rural credit and monitor the RRBs. The main functions of NABARD are:-

Provide refinance to RRBs and other banks in rural areas for lending.Acts as a subsidiary for RRBs and co-operative banks.It has two subsidiaries:-NABFINS:- NABARD financialNABCON: - NABARD consultancy.

36. What is banking ombudsman scheme?

The banking ombudsman scheme is a scheme to listen to customer’s grievances and complaints regarding certain services provided by the bank. It was introduced under the Section 35 A of banking regulation act, 1949 by RBI with effect from 1995 which was later amended and became the banking ombudsman scheme, 2006. Customer can appeal against the decision of ombudsman to deputy governor of RBI. He is the highest authority of appeal. All banks in India are covered under the scheme.

37. What is the difference between FII and FDI?

FDI or foreign direct investment is an investment that a parent company makes in a foreign country. FII or Foreign Institutional Investor is an investment made by an investor in the markets of a foreign nation. FII can enter the stock market easily and also withdraw from it easily. But FDI cannot enter and exit that easily as FDI only targets a specific sector.

38. What is the CAD? What is Fiscal deficit?

CAD or current account deficit is the difference between the imports and exports of a nation in one financial year whereas fiscal deficit is the difference between total revenue and expenditure of a nation.

39. What is inflation and deflation?

Inflation is the increase in the price of goods and services due to more demand and less supply. In inflation, there is more liquidity in market which has to be controlled to reduce the purchasing power of customers. Deflation is the decrease in prices of goods and services due to more supply and very less demand. In deflation, there is lack of liquidity in market which results in very weak purchasing power of people.

40. What is Capital Adequacy Ratio? What is DEMAT account?

CAR is the proportion of capital to the banks’ risk. DEMAT accounts are those in which shares, securities and insurance policies are kept in electronic form.

41. Name a few poverty eradication schemes of govt. of India.

Food Security bill, MNREGA, Sarva Shiksha Abhiyaan, Antoday Yojana, JNURRM, Swalamban Yojana, Nirmal Gram Yojana, Rajiv Awas Yojana, Indira Gandhi Pension plan etc. (Also read in detail about these schemes.)

Apart from the questions listed above, the candidate needs to thoroughly read about the latest happenings at the time of his interview. He must read the newspaper of the very day of his interview because there have been many instances where the board asks the news of that day.

He needs to prepare a full note about RBI, and types of banks, functions of RBI, and the latest monetary policy given by RBI etc. and many other banking terms and facts, insurance facilities provided by banks, important bills like food security bill, RTI etc.

Candidate must remember that personal questions are the most important part of the interview as they give you the scope to stand different from others. The key points following the answers are very important. So, bear them in mind and prepare accordingly.  

Bank interview process

What to Prepare

Although, predicting exact questions is not possible, there are certain topics that are sure to be touched by the panelists during an interview for bank posts. 

1. Personal details

This will be the first section wherein you are asked about your family, education etc., Normally the question is like ‘Tell us about yourself’.

 

Start with a short introduction about family background & move on to highlight your skills & achievements or college projects. (checkout how to answer tell me about yourself)

 

2. Study your resume/ biodata

The biodata or resume carries great importance as its the official document about you. As bulk of the questions would revolve around the data you provide, pay attention while filling the form given at the interview venue.

 

Get familiar with what you have written so as to avoid giving wrong answers.

 

3. Banking knowledge

Applying for a bank job & don't know what is a term loan?The chances of you making it to the final list would only get distant.There are roughly about 100-130 regularly used words in banking & financial sector.

 

There is no alternative apart from memorizing those terminologies but it isn't that hard since banking awareness is a section of the common bank exam.

 

Rather than relying only on websites,you can also purchase some books that provides detailed explanations.

 

4. Latest news

‘What is the current repo rate’, ‘Who is the chief of Asian development bank’ – answers to these would be known only if youread newspapers everyday.

 

Not limited only to economy, you could also encounter questions about national events such as the recent satellite launch,location of asia`s largest solar park etc.,

 

G.K books may help for historical data but newspapers & news channels are your only source for latest happenings.

 

5. Know your state

Public banks are now demanding applicants for clerical posts to possesproficiency in local language of the state.

 

In addition to testing your language skills, expect queries on the no. of districts in your state, names of ministers,governor or about a place of importance.

 

These questions need not necessarily test your knowledge but enables the interviewer to deduce your communication skills.

 

6. Know about the organization

Few questions on history, performance, awards or chairman/MD of the bank could be asked to gauge your level of preparation & interest in taking up the job.

 

Visit the bank`s website, look for a section ‘About us’ under which all the info ranging from mission, vision to previous year`s financial results will be available.

 

7. Know yourself

Now comes the real part, where you need to talk more.What could you be questioned on?

What are your strengths & weaknesses?What is your biggest achievement?How can you be useful to our bank?

Answering these can get tough if you have not though about this in advance.

 

Responses like ‘My biggest strength is working hard’ & ‘Short temper is my weakness’ will only send wrong signals to the interviewing panel.Don't sound too vague or object of ridicule.

 

While officer post requires managerial & team building skills, clerical employees are required to have good customer handling capabilities.

 

Understand the job profile & frame answers that could bring these qualities to the fore.

 

8. Why bank job?

Are you applying for entry level posts in banks with BE/MBA/MCA degrees? If yes, either of the following questions could be heading your way

Why are you applying for banks with technical degreeAre`nt you overqualified for PO/ clerk position

The best answer here shall be the real reason which pushed you to write CWE & apply for bank jobs.Try to come up with a reply that would convince the panel.

 

Checkout our previous post - How to answer why you chose bank jobs to read on what to say in detail.

 

These are the 8 sure shot questions that you need to prepare for cracking upcoming bank interviews!!