1.Tell me something about yourself?
Generally this is the first question which is put up in front 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.
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.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.
5.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.
6.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.
7.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.
8.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.
9.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.
10.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.
