Answer Guide: Explain the basic banking function about deposit and lending
Sample Answer1: Bank is financial institution which accepts deposits from the public for the purpose of lending.
Sample Answer2: According to Britannica.com, a bank is: an institution that deals in money and its substitutes and provides other financial services. Banks accept deposits and make loans and derive a profit from the difference in the interest rates paid and charged, respectively.
Answer Guide: Explain the different types of banks in India
Sample Answer: Sir/ Ma'am, In Indian banking system we have different types of banks i.e. we have SBI as govt's exchequer bank, Nationalised banks like PNB, Bank of Baroda, Old and new Private Banks i.e. Karur Vysya Bank, city union bank, federal bank, ICICI Bank HDFC Bank, Foreign Banks - Citibank Standard chartered Bank, Small Finance Bank - Ujjivan sfb, Equitas, AU, Payments Banks Airtel, Paytm, Development Banks - nabard, Exim , sidbi and cooperative Banks.
Answer Guide: candidate can tell about the bank formation and its structure about the share holding etc.
Sample Answer1: A nationalized bank is owned and have controlling stake by the govt. of that country with the shareholding 51% and more. This stake can be hold by govt and institutions who are in the control of the government, also known as Public Sector Bank. There shares are listed at the stock exchanges i.e. BSE/NSE. example of Nationalized bank are SBI, PNB, Bank of Baroda etc.
Sample Answer2: Whereas a private sector bank is owned by an independent individual or company. As most of the banks had got nationalised earlier, but some of them non-nationalised banks carried on their operations, known as Old Generation Private Sector Banks i.e. Federal Bank, City Union Bank, Karnataka Bank, South Indian Bank etc. When the LPG policy come in the existence in 1992 in India, Banking sector was opened for more private player i.e. HDFC bank, ICICI bank, Axis bank, etc. and they are called as New Generation Private Sector Banks.
Answer Guide: while giving this answer, be logical, talk to the point like impact of the banking on peoples life's, fast growing banking sector etc.
Sample Answer1: Sir/ Ma'am, In my opinion, Banking sector is one of the fastest growing sector in India, as well it impacts peoples life's in day ato day basis. As I always wants to bring change I people life through my services. Banking Sector offers tremendous growth opportunities as candidates, Banks provide a challenging working environment, anyone like me who loves to achieve work goals will definitely like a banking job.
Sample Answer2: Banking is one of the fastest growing sectors in India with more stable and high growth. Bank employees have respect in the society since there is direct interaction with the customers and bankers participate in various social schemes beneficial for the society.
Sample Answer3: Remember to present the answer in a diplomatic manner so that the interviewer panel feels that you are actually interested in a career in Banking sector due to your passion to work in Banks and are not just displaying your personal ambitions.
Answer Guide: talk about financial services offered by banks to their customers including third party products i.e. mutual fund, insurance etc.
Sample Answer: 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.
Answer Guide: we can talk about the various product and services i.e. deposit, loan, interest spread, charges taken by bank on various services like DD charges, debit card charges etc. as well commission earned on various third party product. to tell how bank earn profit
Sample Answer: Banks primary source of income is usually from the interest spread between loan given rate - deposit interest rate along with the various services charges taken by bank form customer i.e. DD Charges, bank statement issuance charges, Debit card charges, non-balance maintenance charges etc. as well the commission received from insurance and mutual fund industry for selling their product from bank branches , also the fees received from govt for collection of taxes etc.
Sample Answer1: A customer can maintain different of account or we can say banks provide different types of account to the customer as per their requirements. Every account offered by bank as a definite purpose behind the composition of the account for example saving accounts main purpose to keep small savings safe & secure and earn some interest etc.
Sample Answer2: The Different type of accounts are : Saving account for individual, with various variant i.e. minor account, sr. citizen account, NRI saving accounts, BSBDA Account, CURRENT Account for Business Transactions, FD Account - for keeping money with bank for fixed period and earn higher interest on deposited money. There are some more accounts available to customer as per their need i.e. 3-in-1 account, 2-in 1 account etc.
Answer Guide: To answer this question, we should talk about different ways of operating account without going to banks for example internet banking etc.
Sample Answer1: These days, customers have multiple ways to operate their account compare to the earlier scenario, where bank branches were the only way to operate the account was available to the customers. Thanks to the technological advance adopted by banks for providing convenience to their customer.
Sample Answer2: The ways available these days are : ATM ( Automated Teller Machine), Internet Banking, Mobile Banking, SMS Banking, Tele-Banking Etc. Even some of the banks are allowing to use the social media platform such as : WhatsApp, Twitter etc. to do the banking for the convenience of the customers
Sample Answer: 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.
Answer Guide: Usually candidate do not read about the bank, that why the recruiter ask this question. To answer this question do the research about banks on these points 1. Management about bank, should know about MD/CEO, Retail banking head or the head of the department for which candidate is going for interview, 2. No. of Branches / ATM 3. latest stock price in stock market 4. Last year's profit in amount as well percentage, NPA ratio, 5. any prominent award won by bank 6. if bank has any subsidiaries companies etc. your answer can be based on these information
For example the question is Why you want tot join HDFC Bank?
Sample Answer1: candidates can say: As per my knowledge about your bank, Under the leadership ( name of ceo) Banking is growing year on year by beating industry standards and Banks has very good image in the banking industry as well among the customers. This year (or Last year) bank featured in ( name some awards or best employer survey etc.) which has increase the banks credibility in the financial market. As I interacted with some of the employees, i find banks provide unlimited learning and growing opportunities to its employee etc.
Sample Answer2: HDFC Bank, India's second-largest private lender in terms of asset size, ranks 45th, with a market capitalisation of $39 billion, as per the data published in ( name a leading newspaper). Bank offers All types of banking services [ loans, FX, deposits, Demat , merchant banking, internet banking, mobile banking etc. ] to the customer for the convenience of them and same thing liked by the bank customers. HDFC Bank has a very good image in general public as well corporate houses. The challenges in living up to the expectations of the customer and of the bank are many and ensuring employee growth in the bank which gives an enhanced job satisfaction.
Sample Answer3: HDFC Bank is one of the leading new edge bank of India. It is the bank, which drives on the value, takes care of employee and customers both. It is a fast growing bank and known for quality services for Banking needs. it seems proud for one, while being called as HDFC Bank employee. i believe , It will provide me all the opportunities to prove myself and grow my career along with the organization.