Saturday, 12 March 2016

Frequently Asked Banking Interview Questions


Questions Asked During the session
Q1- What makes you fit for the job of an IT Officer. Why you must be selected among other candidates?
Answer: sir i think i am very much suitable for dis job …because first of all its my dream job..i m btech in CS and also PG course in CS. Sir I have an experience of IT applications, their working and how to modify and create them. Sir Banking today is becoming Technologically upgraded. In such times candidates like me can be fruitful. 

My experiences and knowledge of computer applications can help us adopt new technologies with ease and i can also communicate the same with branches who will be the end users of products we will make.

Q2- Why you want to join banking as an IT Officer and not as a Probationary Officer.
Answer: Sir I am a graduate in Computer Science/ IT. I possess the skills required for technical jobs at bank. An IT Officer Job Will help me out to use my knowledge properly for banking and help the team working at branches to work more efficiently by providing them best tecnical assistance. I can use my technical knowledge for development of applications which can help the customer services.

Q3- Suppose a flood comes in Chennai, where servers of a PSB are located. What is the way out for you to see bank still functions normally
Answers: Banks always have backup location servers on which all banking data is synchronized with main server. If the main server goes down, banks always have a secondary server to take over.

Q4: What is your top preference.
Answer: You must always know about the S/w being used there, their business, profit and NPA figure in last quarter

Q5- Give me a difference between Encapsulation and Abstraction
Answer: in encapsulation the program can hide the data and functions in a class from other classes.. by using modifiers like private protected internal..etc… in abstraction .basically .It deals with the outside view of an object…we can only show the essential details of object.

Q6: Difference between Compiler and Interpretor?
Answer: sir both compiler and interpretor is a program which converts prgrm written in high level lang into m/c code understood by the computer.but the difference is a program in compiler need not be compiled every time..but in interpreter entire highlevel program is converted into lo level program….and compiler takes entire program as a input and interpreter takes single instruction as input

Ques 7 will be from the place you belong. You must know the salient points of your state, your city and about famous places there.

Frequently Asked Banking Interview Questions 1

  1. Tell me about Yourself?
    Answer :: Sir, My Name is Ashish Mittal. I have done BTech in Information Technology from JEC College Jaipur, and also completed my secondry and higher secondry school education from Jaipur. 
  2. You are an engineer. Why do you want to join the banking sector?
    Answer:: Sir, banks are undergoing rapid technological transmission. In such times sir my knowledge of computers can we very helpful. At the same time I can furnish my interpersonal skills. Banking give me an environment to develop myself to the fullest.
  3. Where do you see banking in next 10 years? 
    Answer:: Sir, I believe in next 10 years banking will be fully technologically upgraded, with minimum customer dealing in banks. Work load in banks is set to decrease with given time.
  4. Where do you see yourself after 5 years in banking.
    Answer:: Sir, after 5 years in banking I will be more matured, will be able to tackle problems more efficiently and see myself in the middle management level. I will have profound knowledge of different sectors of banking and will hopefully get enough chances to develop and shower my skills.
  5. You Graduated in 2013. What were you doing in the past 2 years 
    Answer:: Sir, I worked with a private organization at Bangalore for a year. After that I began to prepare for banking because I felt that all the skills I want to inherit and enhance in me can be done through banking.
  6. You are alone in your family. Will you be able to move to different centers in India.
    Answer:: Sir, yes I am mentally prepared to travel to different places across india and work in different conditions. This will give me a chance to enhance my skills more nicely and make banking more attractive for me.
  7. Did you prepare for the interview? What did you prepare? (questions will be asked from what you prepared)
  8. Have you attended any banking Interview Before.

Frequently Asked Banking Interview Questions 2

  1. What do you mean by provisioning?
    Answer :: Sir Provisioning can be understood  as money that has been kept aside for future expenses or against NPA’s. Banks have to make regular provisioning for NPA’s. It varies from 15% to 100% for bad loans. Other provisioning is done for purposes like technological up-gradation, hike in salaries etc. 
  2. What is CASA? Why is it essential?
    Answer:: Sir CASA stands for Current Account Saving Account. CASA represents the low cost money available with the bank. More the CASA more will be the Net Interest margin which finally results in increased earnings. In PSU banks SBI hold the highest amount of CASA accounts. CASA amounts to 44% of the total bank deposits in SBI
  3. What is your take on Loan Waiver Schemes? 
    Answer:: Sir, Loan waiver schemes make citizens a willful defaulter. They do not repay bank loans in a wait that a Loan Waiver scheme will come and all their debts will be paid by the government. This leads to increased NPA’s, Increase in provisioning and moreover encourage citizens not to replay loans. Loan waiver schemes break the backbone of banking industry which is already dealing with a mess of bad loans.
  4. Tell me something about balance sheet
    Answer:: Sir, Balance sheets are different according to organization. A general balance sheet comprises of 2 columns. Assets and Liabilities. Liabilities are written on left side and Assets on Right Side. For a bank Liability includes capital, reserves, Interest to be paid on deposits, Salary etc. For a Bank Assets are Interest earned on advances, Investments , Income earned from investments, other charges collected
    The differences between Assets and liabilities for a bank is called operating Profit/loss. From operating profit/loss provisioning for bad loans and Tax paid for services is subtracted. Then it comes out to be Net Profit/Loss before tax. Then after paying tax it is Net Profit/Loss after Tax. 
  5. Is Profit an asset or liability 
    Answer:: Sir, Profit is a liability. Profits are absorbed by the bank as increase in capital or Reserve funds and are used to pay dividend to share holders.

Frequently Asked Banking Interview Questions 3

  1. What is the Importance of Banking In the country
    Answer :: Banking is the backbone of countries development. Without banking the financial system of the country will be paralyzed. In India sir government machinery works hand in hand with the banks. The final implementation step for all government schemes are bank. Banks are the medium through which lack of crores are transmitted per day. 
  2. What is Your Goal in life. How will you achieve it.(Your goals must be related to either banking or your Hobby or both)
  3. If you are made the finance minister of the country what will be your priority and which scheme do you want to change 
    Answer:: Sir, If I am made the finance minister of the country my priority will be to increase jobs by removing the red tape laws. My focus will be on growth, with keeping inflation under control. I would look to reduce taxes, so that savings of our citizens could improve. I will revamp the tax policy and will make it sure that all businessman pay the correct tax and file correct returns.  
  4. If you are made the chairman of a bank which is dealing with problems of too much NPA. How will you deal with this problem.
    Answer:: Sir, If I am made the Chairman of a bank which is dealing with problem of too many NPA’s I will instruct my staff to recover them using Sarfeshi Act, Will initiate settlement via lok Adalats. At the same time to improve recovery numbers and encourage staff to increase their efforts I will introduce incentive schemes.   
  5. What are contingent liabilities. 
    Answer:: Sir Contingent liabilities are usually non-fund based guarantee and Letter of Credit issued by the banks. They are not liability but can become a liability in future.  Contingent liabilities are written down in the bottom of the balance sheet. 
  6. Name a few good restaurants between your home and interview Center (Random)
  7. Do you read newspapers. If yes what was today’s headlines on banking (Always read banking headlines before heading for interview)
  8. What are the famous monuments in the state you belong to.

Frequently Asked Banking Interview Questions 4

  1.  What future you see in banking?
    Answer :: Sir I see banking transformed in a fully digitalized system in few years from now. With limited customer dealing banks in India will be way ahead compared to today with their focus on technology transmission and helping customers adapting it.
  2. Banking Industry is facing challenges of acute manpower. How can we overcome it
    Answer:: Sir with mass retirements scheduled in coming 3 years, banks will shred of 40% of its current workforce. The tool to overcome the same sir is technological transmission and promoting alternate channels. The more amount of people use alternate channels better will be for us and banking. Sir with increased use of mobile phones in the country and introduction to rupay cards to almost all customers, i believe time is not very far off when banking will switch to alternative channels.
  3. Now there is a sustainable difference in NIM. What can we do to sustain it.
    A) In times of squeezing profits and Net Interest Margins sir, banks can focus on cross selling and bank-assurance products. These days banking is not limited to deposits and advances, it has expanded in number of fields. Banks need to penetrate more in these areas. banks can earn huge churn of money and also maintain their social responsibility targets using these schemes. For e.g. SBI PAI insurance scheme is one of the most successful scheme in recent days.
  4. What economic scenario do you see in the country.
    Answer:: Sir Economic Scenario in the country is encouraging. With new infrastructure and investment coming up we are heading towards a powerful India. In such times banks can penetrate themselves in new ventures bringing different schemes. 
  5. What IS CTS system
  6. What is FDI. What is your take on increased FDI in India.

Frequently Asked Banking Interview Questions 5

  1. Explain the meaning of your name.
  2. Your preference shows PNB ( Candidates must know salient points of their top three preferences)
    They must know, When it was formed, Where it was formed, who is the current Chairman, Bank’s latest figures includes Net profit/loss, Total advances, total Deposits, NPA percentage etc.
  3. You must be very aware about every word return in your resume
  4. You biggest achievement
  5. According to you what is your biggest weakness and how you plan to overcome it
  6. What is your strongest point which make you fit for banking
  7. If you are working today, why do you want to leave it.
  8. If you are working with a bank, Why do you want to change your bank. What are the salient features of your bank.
  9.  What kind of lifestyle do you expect to have in banking?
    Answer:: Sir I have heard from my friends that banking is one of the most laborious yet joyful job these days. Though I don’t expect banking to be a 10-5 job, I expect that atleast I will be able to give me and my family some time, which is missing in some very high paying jobs. banking looks to me as a perfect place to embrace myself and develop my skills to a different level.  

Frequently Asked Banking Interview Questions 6

1: What is Capital Adequacy Ratio?
Answer: Sir Capital Adequacy Ratio is the ratio of bank capital against the risk. It can be understood as the capacity of a bank to absorb loss, due to bad assets.
2: What can you understand by liquidity in the market.
Answer: Sir  Liquidity in the market refers to the amount of money available in the market for purchase of Goods and services. Liquidity in the market is subject to various factor one of which is monitory policy. If there is high inflation RBI tends to increase rates and vice-versa to enhance growth RBI lower down the rates.
3: Explain Monitory policy?
Answer: Sir Monitory policy explains the tools available with RBI to keep a balance between growth and inflation. Monitory policy in India has 3 major components.
CRR: Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with the RBI. If the central bank decides to increase the CRR, the available amount with the banks comes down. The RBI uses the CRR to drain out excessive money from the system.
SLR: Statutory liquidity ratio (SLR) is the Indian government term for reserve requirement that the commercial banks in India require to maintain in the form of gold, government approved securities before providing credit to the customers
Repo Rate: This is the rate at which banks can ask money from RBI in exchange of government Securities
4: What do you know about Mudra Loans?
Sir, Mudra Loans was launched by the government to support small traders, businessman and new entrepreneurs. Banks can finance an amount upto 10Lacs under this scheme which will be later refinanced by the government. This scheme was launched with 3 variants
Sishu :: Upto Rs 50000/- 
Kishore:: Rs50001/- to Rs500000/-
 Tarun :: Rs500001/- to Rs1000000/-
This scheme was launched to promote entrepreneurship and enable easy advance to small businessman. Banks have introduced Mudra Cards in which the customer can transact freely upto the loan amount sanctioned.
5: Loan Waiver :: A boon or a mistake
Answer: Sir Loan Waivers is a mistake, according to my view. Loan Waiver schemes make customers a willful defaulter. If loan waiver schemes come up from time to time the borrowers will wait for such schemes to come and will not repay bank loans. This results in increased NPA and increased Losses.
6: You Know there is a lot of pressure in Banking Industry. You might be joining banking. How do you plan to cope up with challenges.
Answer: Yes Sir, i have heard of many challenges in banking. Sir my father has taught me the skills of meditation, yoga by which i would like to mitigate the pressure on me, relax and work with a zeal. 

Frequently Asked Banking Interview Questions 7

1: How you can promote bank loans against loan from money lenders among villagers?
Answer: Sir for promoting bank loans against among villagers I will tend to take help of the sarpanch of the village to spread among the villagers what are the benefits of taking loan from the bank. Moreover I will ask the regular customers of my rural branch to spread among their friends and family advantages of bank loan. 
2: What is the difference between a public sector bank and RRB.
Answer: Sir  RRB’s are the subsidiary of a sponsored bank which were to increase banking services in rural areas. The controlling authority of RRB’s are from the sponsored bank. RRB’s are entitled to work as normal banks, they can advance, take deposits, but most of their branches are in rural areas.
3: How do you see yourself flourish in Banking Sector after 5 Years?
Answer: Sir the opportunities in banking sector looks quite nice. In the next 5 years I believe banking to be transformed in to a complete digital machine with minimum customer interaction. In next 5 years I see myself in the post of a manager, matured enough to advances, able to handle difficult situations nicely. 
4: What is financial Inclusion?
Financial Inclusion :: Financial Inclusion simply means banking the un-banked. It can be referred to as bringing the daily wage earners, landless labours, people living in slum areas etc. to the banking channel. Financial inclusion gives them an opportunity to save for themselves and in turn help the government to directly credit subsidy to their accounts. From time to time there have been many financial inclusion schemes that have come up, the latest of which was Pradhan Mantri Jan Dhan Yojana, which proved to be very successful.
5: Tell me something about PMJJBY
Answer: Pradhan Mantri Jeevan jyoti Bima Yojana launched as a social security scheme. In this any individual having a SB account with a bank can avail the benefit. In this life insurance is done with claim amount of Rs2Lacs for which the aspirant has to pay an annual fee of Rs330/-. To become eligible for this scheme you need to be below 50 years of age. If you have taken the policy at age of 50, you can continue it upto 55 years. Government has signed with LIC as the prime insurer of the scheme.

  1. Why banking After Engineering. (Our answer is based if no one from your family is in banking)
    Answer: Sir I believe i possess the skills which suit banking best. During my engineering days I have developed within me qualities like outspoken, able to convince someone, handling difficult situations etc. Moreover many of my friends are working with different banks, which has developed a lot of interest in banking.(If you answer this be ready that they will pose a question over what difficult situation did you face). 
  2. Will you be able to live in rural area?
    Answer: Yes sir I will be able to adapt to the conditions. I know its challenging to adjust in rural conditions where the customers are also different. But sir I have a zeal in me which will help to adjust myself in rural environment.
  3. You live in a city. Once selected in an RRB you will posted in some village, how will you convince/tackle village.
    Answer: I am well spoken in Hindi (Candidates from non Hindi environment can write their language name). I understand that it will be difficult to communicate with the villagers properly. But i will be taking help from my staff members and the local people who are daily visitors of the branch to adapt myself according to the people. I believe slowly and gradually I will be able to properly communicate with the villagers.
  4. In rural Branches connectivity problem is normal. If your branch do not have connectivity for past 15 days how will you tackle people
    Answer: Banking is necessary for every customer these days. In order to cope up with such a situation I will take the help from the nearby branch and will try convince people that connectivity issue is there. If a condition comes when a customers is in need of urgent money I will urge the nearby branch to make the payment to the customer or will make the payment myself after confirming balance with the other branch.
  5. You are IT graduate. How will you use your knowledge for the bank
    Answer: Sir IT is the backbone of banking today. Daily new products are launched and new technology is introduced. Though I will be in general banking, I can help with providing my knowledge to solve certain branch related network problems. Moreover in a scenario in which a new system comes in I can help my staff to get familiar with it. I can also help my colleagues in using short tricks so that the work can be done quickly with minimal errors.
  6. There is a problem of corruption in some areas of banking. How will you deal with it.
    Answer: I will try to follow all the rules and regulations of banking, and would try to discourage corruption on my end if I see any. 
  7. When was RRB Formed, What were the fundamentals behind its formation
  8. When RRB was started
  9. What is the latest banking news
  10. What do you know about the functioning of RRB’s.

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