Tips You Should Consider While Preparing for Bank Interviews

Tips to be followed before Appearing an Interview

1. Know About the Bank

The very first thing to start your preparation is to do an appropriate research on

the banks which you have marked as your preferences.

Search their website and know all about the bank and make a list of the useful
information like bank’s history, size, position, services etc. It will help you answer
questions asked by the recruiter like what is the reason behind choosing the
bank as your career.

You should also collect knowledge about the important banking terms like Repo
rate, Reverse repo rate, CRR, RTGS, inflation, etc.

It will show your hard work and efforts to the interviewer regarding the
research you have done about the bank and make him realize that how much
you are interested in the job.

2. Practice Mock Interviews

It’s normal if you feel nervous to attend an interview. It’s a very common
problem among the candidates. But you have to spend some time to work out
this problem because this nervousness can waste your whole preparation for
the interview as you will not be able to speak confidently and give the correct
answer of the questions asked by the interviewer.
To overcome the problem you should take mock interview sessions. It will
help you increase the level of confidence and the ability to respond the
interviewer without repeating the same thing.
Mock interviews simulate the actual job interviews and they are also
conducted by career professionals. Therefore, help you to give positive inputs
to your performance.
It will help you figure out your weak areas, guide you to make
improvements and thus, boost your confidence level.
3. General Awareness and Current Affairs

Make, reading newspapers a daily routine. We advise you to prefer English

newspapers that could improve your vocabulary because most of the
interviewers prefer their questions to be answered in the English language.
Be aware to all the important things happening in the world related to
a business environment, banking industries, big summits, sports, awards in
various fields, books, and their authors, important people in the news,
appointments, deaths etc.

You have to study at least 4-6 months GA to perform well in the interviews.

Prepare strongly for general awareness, as there will be many questions related
to GA and current affairs.

4. Secure the Complete Knowledge about Your Region / Locality

While asking about your background the interviewer will ask you questions
related to your locality and the places you lived or worked.
The purpose of asking these question is that they get to know your
understanding and curiosity about the world.
Questions related to your regions are asked to judge your ambitions, idea,
and experience about the reality of the environment around you.
So, attain full knowledge about the place you were born, brought up,
lived, worked etc.

Find out the things your city is famous for, whether your city is having a record
in history, etc.

5. Evaluate Your Resume

The purpose of a resume is to show your records and details in a perfect

approach for the job you have applied.
 The elements of the resume should be very clear and in an easy format to
be understood by the interviewer, as they hardly spend 1-2 minutes to have a
look at that.

The resume should not only be clear but also, able to give a positive
impact for the job.

Create your resume in an organized manner and systematic manner with

all the required key elements as your name, address, contact no., email id, your
hobbies, educational qualification, work experience (if any), etc.

6. Preparation for the Most Frequently Asked Questions

As we know that for every kind of interview there will some questions which
are asked to each candidate as it will help the interviewer to understand the
behavior and the eminence of the candidate intended for the job. We are giving
you some ideas for preparing questions which are asked in the IBPS interviews:-

Prepare answers related to your

Personal details- like what is your name and question about the profession of
family members.

Details about your field of education. About various subjects, you have studied
in Graduation or Post-Graduation. Revise the important matters about your
subjects because there is a possibility that you may be questioned about
anything related to your education field. And most essentially prepare an
answer which could define your field; for example, if in graduation or post-
graduation you had Economics as your subject, then you could be asked about
the definition of Economics. So be prepared with an exact definition.

You have to answer them regarding your weakness and strength. While
answering this question, be positive. Like when you explain your weakness, tell
them that you are working on them. While explaining your strength just be
positive and tell them that you have good communication and leadership skills.
You do your work with perfection.
If they tell you to ask any query/ask about the reason to join the bank then just
tell them that it’s your dream job and simply ask about the procedure after the
interview. Don’t ever tell them that you are preparing for any other exams too
as that will show that you are not that much dedicated to getting that job.
If they ask how many years you can work with them, simply tell them as
long as possible.

7. Follow 3 Secret Mantras of Healthy Living - Proper Diet, Sleep, and Exercise

During the period of preparation take healthy diet. Don’t skip your food,
especially your breakfast.

Eating three big meals a day will slow down your mental and physical status.
So, take 5-6 small meals at regular intervals, as it will help you in keeping
nutrient and the energy level of your body will remain stable.

Take proper sleep to get free from stress. It is a fact that when you sleep,
the ability of your mind to recall memory and concentration improves. So never
skip your sleep for studying at night, as it will make your memory weak.

The most important thing, do exercise or yoga, whichever you prefer, regularly.
Because it will help you to remain fit mentally and physically, which will be
impressive at the time of interview.

Tips for the Day of Interview

Presentation is the main thing on the day of the interview. Candidate’s body
language, dressing, and introduction play an important role there. Here are
some important tips for the candidate to have these all things and perform
confidently:-

 Dress properly, if possible wear formal. Avoid too many accessories,

ornaments, jewellery etc.
  Reach the place of interview on time. Make sure you get to know the place
a day before the interview to avoid wastage of time and can get enough
time to relax.
 Bring important documents which are required at the time of interview.
Keep 3-5 copies of all the documents with you.
 As soon as you reach the place, avoid all the tension and stress about low
marks you got in written, having no experience etc. because the
interviewer will be looking for the ability in you to stay with them and
work efficiently. And on the basis of the performance in the interview, you
will get good marks and clear it.
 Ask permission before you enter the room with a smiling and confident
face and wish them. Sit down only when they allow. Make yourself
comfortable. Sit with your head straight or a little slant towards the
interviewer.

 Listen calmly whatever the interviewer says or ask and answer confidently.
Make sure that you are making an eye contact with the interviewer. Talk
very calmly with a smile. A Smile doesn’t mean that you laugh unwantedly.
You should use hand gestures while talking because it shows that you are
confident about what you are explaining.

 Follow the Golden Rule - Just be yourself. There is no need to act. Because
being natural will help you to talk freely.

 Your voice should be pleasant, clear and audible to them. Audibility in

your voice proves your confidence.

If you could make it, use your humorous side while talking. This will help the
interviewer to analyze your personality traits. But if it’s not coming naturally,
don’t try to force it on.
 IBPS PO Expected Interview Question with Answers

Que: Introduce / describe yourself?

Ans: Your answer should include the following details:

Personal Information (Your Name, Parents’ Designation etc.)

Education (Your Degrees, College and City Name)

Work Experience (if any)

Additional qualification or achievements (if any)

Your hobby (you are advised to develop at least one hobby as it considered a
good practice)

Que: Why do you want to Join Banking Sector?

Ans: In our country Banking is considered as one of the fastest growing sectors.
It can offer several career opportunities.

Note: Kindly avoid answering like “banking is your childhood dreams”, “job
security”, “big salary” etc.

Que: Will you leave this job if you get a better Job opportunity?

Ans: This is a common question asked nowadays in bank interviews if you have
higher educational qualifications. Your answer should be as follows:

I believe in living a stable lifestyle rather changing it for small monetary benefits.
And I find banking career as a good growth opportunity, so I will not quit this job.

Que: How your high studies & qualification is going to help us?
Ans: Candidates appearing for IBPS Interviews are from different fields that
don’t provide them any knowledge regarding banking and finances. You can
answer like:

My technical knowledge and skill will help me handle customers from these
sectors.

I have good professional skills that will help me in managing team work.

I have good communication skills that will me in offering confident customer

services.

Que: What are your weakness/Strength?

Ans: My strength is that I can make solutions to the problem and situations as
per the need. I can motivate myself for any work involved that I get involved
with.

My weakness is that I am habitual to complete my work by following proper

rules and want to see others following the rules too. If anyone is not doing so, I
may get irritated. But I promise I will make a solution to it soon.

Note: Make sure, you won’t reveal any weakness that may result in a bad
impression. It's good if your weakness also gives a positive attitude towards
your work.

Que: What qualities should one possess be a Bank officer? Do you think
you have these qualities?

Ans: According to me a Banker should possess the following qualities:

 Organized Mind
 Good Communication Skills
 Accuracy and Efficiency
  Mathematical and Analytical Skills
 Co-operative and Friendly Personality
 Quick Learner
 Leadership
 Management
 Alert and Awareness
 Honesty and Integrity

All these qualities are very important. And I positively feel that I have these
qualities with me and in the near future, I will be developing these qualities at a
good level.

Que: As a student of Science/Art/Commerce, why didn’t you go for higher

studies?

Ans: In this case tell them the accurate reason you have.

Que: What are your career goals? Where do you see yourself five years
from now? Ten years?

Ans: I plan things systematically. I don’t know that in which bank I will get
placed, so at present, it’s tough to tell you the exact designation. But after 10
years, whatever position I will be having, you can see me learning something
new.

Que: How do you Handle Pressure?

Ans: Show your level of handling pressure with an example you have faced in
the past. Make sure you would be able to make a good impact on the
interviewer.

Que: How you manage your work? Explain your management style?

Ans: I keep information regarding the status of work done by me and my

subordinates on regular basis. I finish the assigned work within the allotted
deadline.
Que: Why should we hire you?

Ans: If you hire me, I will be able to present my skills in front of you. I assure
you that whatever goals our organization will set, I will complete them within
the specified time.

Important Note: Kindly prepare topics related to your education background.

Specially the “meaning and importance of the subject field in which you have
possessed your degrees”.

For example: If you are from Economics’ filed, you might get questioned
like “What is Economics and why it is important? Tell us about the factors affecting
our Economy!”.

These all were the questions that may be asked to examine your personality,
character, skills etc.

You will also be asked questions regarding the current affairs, banking, and
finance to test your knowledge and learning about the related field. Some
important questions are shared below:

Que: What is CRR, SLR, Repo Rate, Reverse Repo Rate, Bank Rate, NPA
etc.?
Ans: Kindly read all the important banking terms.

Important Banking Terms

Banking Ombudsman: Banking Ombudsman is a quasi-judicial authority,

which functions under India's Banking Ombudsman Scheme 2006. It was
created by Government of India with a purpose to deal with the complaints of
customers of the banks related to various services rendered by the banks.

Deflation: It is a decrease in the general price level of goods and services.

Inflation: It can be defined as a sustained increase in the general level of prices
for goods and services.
Liquidity: Liquidity describes the degree to which an asset or security can be
quickly bought or sold in the market without affecting the asset's price.
Merchant Banking: It is a combination of Banking and consultancy services.
Monetary Policies: It refers to the use of instruments by RBI to regulate the
availability, cost and use of money and credits.
Plastic Money: It is a term used in reference to the hard plastic cards we use
every day in place of actual bank notes.

Direct Instruments:-

Cash Reserve Ratio (CRR): Cash reserve Ratio (CRR) is the amount of funds
that the banks have to keep with the RBI.

Refinance Facilities: RBI offers refinance facility to help out the exporters by
replacing an existing debt obligation with another.

Statutory liquidity ratio (SLR): SLR is the minimum proportion of their Net
Demand and Time Liabilities, which every bank maintains in the form of cash,
gold and securities, at the close of business every day.

Indirect Instruments:-
Bank rate: The rate of interest which the RBI charges on the loans and advances
to a commercial bank.
Liquidity adjustments facility (LAF): It’s a monetary policy tool which allows
banks to borrow money through repurchase agreements and adjusting the day
to day mismatches in liquidity.
Marginal standing facility (MSF): It’s a window for banks to borrow from the
RBI in an emergency situation when inter-bank liquidity finishes completely.
Market Stabilization scheme (MSS): Securities that are issued with the
objective of providing a stock of securities to the RBI to intervene in the market
for managing liquidity.
Open Market Operations (OMO): It’s an activity by a RBI to give or take
liquidity in its currency to or from a bank or a group of banks.
Repo rate: The rate at which the RBI lends money to commercial banks in the
event of any shortfall of funds.
Reverse Repo Rate: The rate at which the RBI borrows money from commercial
banks within the country.
Term Repo: A repurchase agreement with a term of more than one day.
Money Market Instruments:-
Authorized Capital: The authorized capital/ registered capital/nominal capital
of a company is the maximum amount of share capital that the company is
authorized by its constitutional documents to issue to shareholders.
Bonds: It is an instrument of indebtedness of the bond issuer to the holders.
Call Money: Money loaned by a bank or other institution which is repayable on
demand.
Commercial Bills: A bill of exchange issued by a commercial organization to
raise money for short-term needs.
Commercial Papers: An unsecured, short-term debt instrument issued by a
corporation for the financing of accounts receivable, inventories and meeting
short-term liabilities.
Certificates of deposits (CD): A savings certificate entitling the bearer to
receive interest.
Dated government securities: These are long-term securities and a fixed or
floating coupon/interest rate which is paid on the face value, payable at fixed
time periods.
Debentures: A long-term security bearing a fixed rate of interest, issued by a
company and secured against assets.
Issued Capital: The share capital that has been issued to shareholders.
Mutual Funds: It is a professionally managed investment fund that pools
money from many investors to purchase securities.
Net Asset Value (NAV): A mutual fund's price per share or exchange-traded
fund's (ETF) per-share value.
Paid up Capital: The amount of a company's capital that has been funded by
shareholders.
Treasury bills: A short-dated UK/US government security, bearing no interest
but issued at a discount on its redemption price.
Negotiable Instruments:-

Bill of exchange: A bill of exchange is a binding agreement by one party to pay

a fixed amount of cash to another party as of a predetermined date or on
demand.

Cheques: An order to a bank to pay a stated sum from the drawer's account,
written on a specially printed form.

Ante Dated Cheque: Cheques which have been written by the maker, and
dated at some point in the past.
Bounced Cheque: Check that cannot be processed because the writer has
insufficient funds.
Crossed Cheque: These cheques can only be deposited directly into a bank
account and cannot be immediately cashed by a bank or any other credit
institution.
Post Dated Cheque: Cheque that is written by the drawer (payer) for a date in
the future.
Stale Cheque: A cheque which a bank will not accept and exchange for money
or payment because it was written more than a certain number of months ago.
Cheque Truncation: It is the conversion of a physical cheque into a substitute
electronic form for transmission to the paying bank.
Promissory Note: A financial instrument that contains a written promise by one
party to pay another party a definite sum of money either on demand or at a
specified future date.

Various Types of Accounts:-

Current Account/Demand deposit Account: An active account catering for
frequent deposits and withdrawals by cheque.
DeMat Account: This account is opened by the investor while registering with
an investment broker (or sub-broker).
Fixed deposit account or time deposit account: It is a financial instrument
provided by banks which provides investors with a higher rate of interest than
a regular savings account, until the given maturity date.
NOSTRO Account: A bank account held by a UK bank with a foreign bank,
usually in the currency of that country.
Recurring Deposit Account: It is opened by those who want to save regularly
for a certain period of time and earn a higher interest rate.
Saving Account: A deposit account held at a bank or other financial institution
that provides principal security and a modest interest rate.
Foreign Trade:-
Current Account Deficit: A current account deficit is when a country's
government, businesses and individuals import more goods, services and
capital than they export.
Financial Inclusion: Financial inclusion is the delivery of financial services at
affordable costs to massive sections of disadvantaged and low income groups.
Fiscal Deficit: When a government's total expenditures exceed the total
revenue.
Foreign Direct Investment (FDI): It is a controlling ownership in a business
enterprise in one country by an entity, based in another country.
Foreign Institutional Investors (FII): FIIs are those institutional investors which
invest in the assets belonging to a different country other than that where these
organizations are based.
General Anti-Avoidance Rules (GAAR): A GAAR is a statutory rule that
empowers a revenue authority to deny taxpayers the benefit of an arrangement
that they have entered into for an impermissible tax-related purpose.
Money Laundering: Any act to hide the identity of illegally obtained proceeds
so that they appear to have originated from genuine sources.
Participatory notes or P-Notes: These are instruments, issued by registered
foreign institutional investors (FII) to overseas investors, who wish to invest in
the Indian stock markets without registering themselves with the market
regulator, the Securities and Exchange Board of India (SEBI).
Quantitative easing and tapering: A monetary policy in which RBI purchases
government securities or other securities from the market in order to lower
interest rates and increase the money supply.
Electronic Payment Systems in Banks:-
National Payments Corporation of India (NPCI): NPCI is an umbrella
organization for all retail payments system in India.
Clearing Corporation of India Limited (CCIL): It is a joint stock company with
share capital contribution by major banks and financial institutions.
Electronic Clearing Service (ECS): ECS is an electronic mode of funds transfer
from one bank account to another and can be used for both
Electronic Funds Transfer (EFT): It is a system of transferring credit and debit
purposes. Money from one bank account directly to another without any paper
money changing hands.
National Electronic Funds Transfer (NEFT) System: It is an Indian system of
electronic transfer of money from one bank or bank branch to another.
Real Time Gross Settlement (RTGS) System: These are specialist funds
transfer systems where the transfer of money or securities takes place from one
bank to another on a "real time" and on "gross" basis.
Important Organizations:-
International Bank for Reconstruction and Development (IBRD): An
international financial institution that offers loans to middle-income developing
countries.
International Monetary Fund (IMF): An international organization that foster
global monetary cooperation, secure financial stability, facilitate international
trade, promote high employment and sustainable economic growth, and reduce
poverty around the world.
Bank for International Settlements (BIS): An international company, limited
by shares owned by central banks which look after international monetary and
financial cooperation and serves as a bank for central banks.
Asian Development Bank (ADB): A regional development bank to promote
social and economic development in Asia.
EXIM Bank: A premier export finance institution that works as both a catalyst
and a key player in the promotion of cross border trade and investment.
Reserve Bank of India (RBI): The central bank of India that is charged with
regulating the country's currency and credit systems.
National Bank for Agriculture and Rural Development (NABARD): An apex
development bank that review arrangements for institutional credit for
agriculture and rural development.
Industrial Development Bank of India (IDBI): An Indian government-owned
financial service company to provide credit and other financial facilities for the
development of the fledgling Indian industry.
Institute of Banking Personnel Selection (IBPS): An autonomous agency in
India enhancing human-resource development through personnel assessment
selection and recruitment of Officers and Clerks in Indian banks.Indian Banks’
Association (IBA): A representative body of management of banking in India
operating in India.
Securities Exchange Board of India (SEBI): The regulatory body for the
investment/securities market in India.
National Housing Bank (NHB): An apex financial institution for housing.
Small Industries Development Bank of India (SIDBI): An independent
financial institution aimed to aid the growth and development of micro, small
and medium-scale enterprises (MSME) in India.

Other Essential Terms of Banking

Acquiring Bank: A bank or financial institution that processes credit or debit
card payments on behalf of a merchant.
Adjustable-Rate Mortgages (ARMS): The initial interest rate is normally fixed
for a period of time after which it is reset periodically, often every month.
Amortization: It is an accounting term that refers to the process of allocating
the cost of an intangible asset over a period of time.
Annuity: A fixed sum of money paid to someone each year, typically for the
rest of their life.
Arbitrage: It is basically buying in one market and simultaneously selling in
another, profiting from a temporary difference.
Automated Teller Machine (ATM): A machine that automatically provides
cash and performs other banking services on insertion of a special card by the
account holder.
Authorization: A document giving official permission.
Bancassurance: The selling of life assurance and other insurance products and
services by banking institutions.
Banker's Lien: Type of charge that gives a bank automatic claim over a
borrower's property or assets that come in bank's possession in the normal
course of its business.
BASEL Committee: A committee established by the Central Bank governors of
the Group of ten countries in 1974 that seeks to improve the supervisory
guidelines that central banks or similar authorities impose on both wholesale
and retail banks.
Basis Point: One hundredth of one percentage point, basically used in
expressing differences of interest rates.
Blue Chips: They generally sell high-quality, widely accepted products and
services.
Bull Markets: A market in which share prices are rising, encouraging buying.
CAMELS rating system: An international bank-rating system where bank
supervisory authorities rate institutions according to six factors. The six factors
are represented by the acronym "CAMELS".
C - Capital adequacy
A - Asset quality
M - Management quality
E – Earnings
L – Liquidity
S - Sensitivity to Market Risk

Capital Adequacy Ratio: It is the ratio of a bank's capital to its risk.

Capital Gain: A profit from the sale of property or an investment.

Credit Rating Agencies of India: An independent company that evaluates the

financial condition of issuers of debt instruments.

Collateral: Property that a borrower offers a lender to secure a loan.

CORE Banking Solution (CBS): It is networking of branches, which enables

Customers to operate their accounts, and avail banking services from any
branch of the Bank on CBS network, regardless of where he maintains his
account.
Coupon Frequency: The yield paid by a fixed income security.

Debtor: A person, country, or organization that owes money.

Derivative Instrument: Financial instruments whose value is derived from the

value of something else.

Demand Deposits: A deposit of money that can be withdrawn without prior

notice.

Earnings per Share (EPS): The portion of a company's profit allocated to each
outstanding share of common stock.

Earnings Yield: The quotient of earnings per share divided by the share price.

Equity: The value of an asset less the value of all liabilities on that asset.

Ex-dividend (XD): A security which no longer carries the right to the most
recently declared dividend.

Face Value: The nominal value of a security stated by the issuer.

Forfeiting: The purchasing of an exporter's receivables at a discount by paying
cash.

Forgery: It is the process of making, adapting, or imitating objects, statistics,

or documents with the intent to deceive for the sake of altering the public
perception.

Garnishee Order: A legal procedure by which a creditor can collect what a

debtor owes by reaching the debtor's property when it is in the hands of
someone other than the debtor.

General Lien: The right to take another's property if an obligation is not

discharged.

Hedge: An investment to reduce the risk of adverse price movements in an

asset.

Hypothecation: Refers to securities in a margin account that an investor uses

as collateral to borrow funds from a brokerage.

Indemnity: Security against a loss or other financial burden.

Initial Public Offering (IPO): It is a type of public offering in which shares of

a company usually are sold to institutional investors [1] that in turn, sell to the
general public, on a securities exchange, for the first time.
Insolvent: Insufficient to meet all debts, as an estate or fund.

Intrinsic Value: A value which exists as part of something, such as the value of
an option.

JHF (Joint Hindu Family) Account: JHF is account of a firm whose business is
carried out by Karta of the Joint family, acting for all the family members.

Joint Account: Bank account in the name of two or more individuals who
jointly share its concomitant rights and liabilities. Joint holders of an account
are regarded in law as together making up the 'owner.'

Junk Bond: The first sale of stock by a private company to the public.

Karta: Karta means manager of joint family and joint family properties.

Kiosk Banking: It is self-service solutions, allowing customers to service

themselves with computer based touchscreen and making different sort of
transactions.

KYC Norms: The process of Banks verifying the identity of its clients.
 Lease Financing: A legal document outlining the terms under which one party
agrees to rent property from another party.

Leverage Ratio: Ratio that measures a company's leverage.

Libor: The interest rate that the banks charge each other for loans.

Listing: Reference of the Initial Public Offering Company’s shares on the stock
exchange for public trading.

Margin Call: A broker's demand on an investor using margin to deposit

additional money or securities so that the margin account is brought up to the
minimum maintenance margin.

Mandate: Written authorization by a person, group, or organization (the

'mandator') to another (the 'mandatary') to take a certain course of action.

Micro credit/micro finance: The lending of small amounts of money at low

interest to new businesses.

Moratorium: The suspension of repayment of DEBT, or INTEREST, for a

specified period of time.
 Non-Performing Assets (NPA): It is defined as a credit facility in for which the
interest and/or installment of Bond finance principal has remained “past due”
for a specified period of time.

Negotiation: An act of transferring or assigning a money instrument from one

person to another person in the course of business.

Non-Resident Accounts: These are accounts maintained by Indian nationals

and Persons of Indian origin resident abroad, foreign nationals and foreign
companies in India.

Notary Public: It is a public officer constituted by law to serve the public in

non-contentious matters usually concerned with estates, deeds, powers-of-
attorney, and foreign and international business.

Open Offer: It is an exit route, which is given to the existing shareholders by

the acquirer of shares through a public announcement.

Option: A financial derivative that represents a contract sold by one party to

another party.

Par Value: The nominal value of a bond.

Personal Identification Number (PIN): A number allocated to an individual

and used to validate electronic transactions.
 Pledge: It's a kind of charge created when the lender (pledgee) takes actual
possession of assets.

Power of Attorney: It is a legal document that allows someone else to act on

your behalf.

Portfolio: Refers to any collection of financial assets such as cash.

Preference Shares: It is a share which entitles the holder to a fixed dividend,

whose payment takes priority over that of ordinary share dividends.

Premium: The amount of money that an individual or business must pay for
an insurance policy.

Prime Lending Rate (PLR): The interest rate charged by banks to their largest,
most secure, and most creditworthy customers on short-term loans.

Privatization: The transfer of ownership, property or business from the

government to the private sector is termed privatization.

Provisioning: Can be defined as loss in the profit and loss account while
finalizing accounts of banks.
 Relative Strength Index (RSI): It is a technical indicator used in the analysis
of financial markets.

Rights Issue: An issue of shares offered at a special price by a company to its

existing shareholders in proportion to their holding of old shares.

Rate of Return: The gain/loss on an investment, expressed as a percentage

increase over the initial investment cost, over a specified period.

Real Interest Rate: An interest rate that is adjusted for inflation.

Self Help Groups (SHGs): It is a village-based financial intermediary

committee usually composed of 10–20 local women or men.

Speculation: The act of trading in an asset, or conducting a financial

transaction, expecting a substantial gain, but with a risk of losing most or all of
the initial outlay.

Stock Splits: A corporate action in which a company/Bank divides its existing

shares into multiple shares.

Substantial Shareholder: A person, who acquires an interest in relevant share

capital equal to, or exceeding, 10% of the share capital.
Teller: A person employed to deal with customers' transactions in a bank.

Time Horizon: The length of time over which an investment is made or held
before it is liquidated.

Trust Deed: A formal document which outlines the terms of a trust agreement.

Time Horizon: The length of time over which an investment is made or held
before it is liquidated.

Underwriting: The process by which investment banks raise investment capital

from investors on behalf of corporations and governments by issuing securities.

Underlying Security: It is a financial instrument whose price is derived from a

different asset.

Universal Banking: A banking system in which banks provide a wide variety of

financial services, including both commercial and investment services.

Valuation: The process of determining the current worth of an asset or

property.
Virtual Banking: Handling all transactions of banks via the Web, e-mail, mobile
check deposit and ATM machines.

Warrant: Official guarantee by a bank.

Wholesale Banking: Banking services between merchant banks and other

financial institutions.

Window Dressing: It refers to actions taken prior to issuing financial

statements in order to improve the appearance of the financial statements.

Yield to Maturity: It is the internal rate of return of an investment in a bond if

the investor holds the bond until maturity and if all payments are made as
scheduled.

Zero Coupon Bond: A debt security that doesn't pay interest but is traded at
a deep discount, rendering profit at maturity when the bond is redeemed for its
full face value.

Ques: What is Marketing, E-Commerce?

Ans: Marketing can be understood as the action or business of promoting and

selling products or services, including market research and advertising.
Que: Tell me something about Mobile Banking & Net Banking.

Ans: Mobile banking is a service provided by a bank or other financial

institution that allows its customers to conduct financial transactions remotely
using a mobile device such as a mobile phone or tablet.

Net Banking is an electronic payment system that enables customers of a bank

or other financial institution to conduct a range of financial transactions through
the financial institution's website.

Que: What is Indian Constitution?

Ans: Indian Constitution is the supreme law of India that lays down the
framework defining fundamental political principles, establishes the structure,
procedures, powers, and duties of government institutions and sets out
fundamental rights, directive principles and the duties of citizens.

Que: Tell me something about Prime Minister Jan-Dhan Yojana?

Ans: Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for

Financial Inclusion to ensure access to financial services, namely, Banking/
Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an
affordable manner.

An Account can be opened in any bank branch or Business Correspondent (Bank

Mitr) outlet. PMJDY accounts are being opened with Zero balance. However, if
the account holder wishes to get cheque-book, he/she will have to fulfill
minimum balance criteria.

Que: Explain Demonetization, its effects, and challenges faced by the

Indian Economy?

Ans: Demonetization is the act of stripping a currency unit of its status as legal
tender. But in simple terms demonetization means that Reserve Bank of India
has withdrawn the old Rs. 500 and Rs. 1000 notes as an official mode of
payment.
Que: What was the impact on India's Growth Rate after Demonetization?

Ans: Because of Demonetization, India’s Gross Domestic Product (GDP) growth

forecast for the current fiscal year decreased to 6.9% from 7.4%, and lowered its
2017-18 projection to 7.7% from 8%.

Que: Do you know about Accounts?

Ans: Accounts can be understood as a record or statement of financial

expenditure and receipts relating to a particular period or purpose.

Que: What is the procedure to Withdraw or encash Fix deposits (Daily

banking activities)?

Ans: Withdraw Fix Deposit is also known as Breaking of Fixed Deposit. It is done
when we urgently require funds or we get better investment opportunities
elsewhere. You have to follow the following procedure:

Write an Application mentioning you want to break your FD/RD.

You should mention the account number where it should get credited and the
Deposit Number.

You have to fill the premature FD Breaking form available at the bank itself.

You must attach an ID proof (PAN etc).

Deposit the form in the bank.

Note:

In the case of companies with a current account, company’s seal will be required
along with signatures of partners.
You will not be able to get the same interest rate offered originally. You will be
getting the interest rate according to the tenure your saved your FD in the bank.

Que: Tell us about Fintech companies!

Ans: Fintech companies are those companies that use new technology and
innovation to leverage available resources in order to compete in the
marketplace of traditional financial institutions and intermediaries in the
delivery of financial services.

Que: Do you know about E-payment?

Ans: E-payment or Electronic Payment is a financial exchange that takes place

online between buyers and sellers.

Que: What does BREXIT mean?

Ans: It is a word that has been used as a shorthand way of saying the UK leaving
the EU - merging the words Britain and exit to get Brexit.

Que: You might have heard about US President Donald Trump’s Decision
on banning 8 Muslim Countries Visas, creating a boundary against Mexico,
Banning H1B1 and L1 Visas. According to you what would be the effects
of such decisions?

Ans: Donald Trump has taken the decision keeping in view the safety and
national security.

The order bars the entry of any refugee who is awaiting resettlement in the U.S.

The decision prohibits all Syrian refugees from entering the U.S. until further
notice.
It bans the citizens of seven majority Muslim countries; Iraq, Iran, Syria, Somalia,
Sudan, Libya, and Yemen from entering the U.S. in any visa category.

Anyone with U.S. citizenship whether that person in natural-born or naturalized

is not affected.

Que: What are the Pros and Cons of Indian Government's decision to
combine the Rail Budget and Economic Budget?

Ans: It will be favorable because:

There will be less wastage of time when a new policy is to be initiated and
implemented. Keeping them separate resulted in a lot of drawbacks and
hindrances.

There will be less of political pressure on the Railway budget and the centre will
have the ultimate hold of the decision making.

The railways will be free of this now and the same fund could now be used in
better ways for development the conditions of Indian railways.

Unfavorable because:

A fall in the annual budget that will be something unusual for the railways and
they might not react supportively to that.

After the merging, there will a complete end to any future chances of
privatization.

Que: What are the important facts associated with the Union Budget 2024?

Que: Surgical Attacks on Pakistan - was it a good move?

Ans: Surgical strikes was considered the best option to deal with the threat as
the option of surgical strikes was taken in the wake of an increase in infiltration
bids. Terrorists had begun gathering in large numbers along the LoC with the
objective of crossing the border and targeting locations in Jammu and Kashmir,
as well as other metros.

Que: What you want to say about India's relations with China?

Ans: This question needs a trick answer. Be cautious while answering. Don’t use
any kind of offensive language. The love for your country should not disrespect
another country’s integrity.

Share your thoughts calmly and in a healthy manner.

Que: Tell something about the Merger of 2 of biggest Telecom Companies

- Vodafone and Idea!

Ans: The merger could create India’s largest telecom operator and the country’s
largest player with a revenue market share of 43% leaving Bharti Airtel in the
second slot with a share of 33%. This could put an end to the debilitating tariff
war and boost the industry’s profitability.

Que: What are the reasons behind the merger of SBI with its 5 associate
banks and Bharatiya Mahila Bank.

Ans: The proposal to merge State Bank of India (SBI) with its five associate
banks; State Bank of Bikaner & Jaipur (SBBJ), State Bank of Mysore (SBM), State
Bank of Travancore (SBT), State Bank of Patiala(SBP), State Bank of Hyderabad
(SBH), and Bharatiya Mahila Bank (BMB), will create a much bigger entity in the
Indian banking sector and enable the giant to make one step closer to the list
of among the top global banks. The following achievements can be seen: -

As per the merger proposal, SBBJ shareholders will get 28 shares of SBI (Rs 1
each) for every 10 shares (Rs 10 each).

SBM and SBT shareholders will get 22 shares of SBI for every 10 shares.

In the case of Bharatiya Mahila Bank, 4,42,31,510 shares of SBI will be swapped
for every 100 crores of Rs 10 each.

SBI will have an asset base of Rs 37 trillion (Rs 37 lakh crore) or over $555 billion,
with 22,500 branches and 58,000 ATMs. It will have over 50 crore customers.

SBI's market share will increase nearly to 22 percent from 17 percent.