DR. T.K. JAIN
centre for social entrepreneurship
sivakamu veterinary hospital road
bikaner 334001 rajasthan, india
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this is a mock interview given by a person, reading this
interview, you can identify the types of questions asked
for a candidate preparing for banking. You can compare
yourself with these answers :
Q. Introduce yourself
ANS: I am S.N. Goyal, I am a resident of Bikaner. I did
my post graduation in Botany.
Q. Why did you opt for bank after completing post
graduation in botany?
ANS: Banking is a noble profession.
Q. Do you believe in shortcut?
Ans : No
Q. How will you use your knowledge of science in your
Ans : I am from botany. I think I can use my knowledge in
agriculture and financing sector
Q. What are your responsibilities as a banker?
Ans : I shall try my best to solve the problems of
As a banker I shall try to help the customers
q. what do you know about banking ?
A : I have an account in a bank therefore I know about
Q. what account do you have?
A. I have savings account – in SBI. I use ATM also.
Q. what do you get as interest ?
A. I really dont know about the rate of interest now
Q. Are you a banker ?
No – but I want to become a banker, so I want to join
Q. Why do you want to join as a banker?
Ans.: It is a very decent and satisfying job. Banks are
considered to be very respected and well managed
organisations, so I want to be a part of banking industry.
Q: - What is the contribution of banking to the economy?
Ans : It gives finance to the industries, agriculture, and to
the private sector, which results in overall economic
development. It also provides support to the priority
sector, which is as per the economic policies of the
Q: What is basel ?
Ans : Basel committee is international committee that
has set up standards about capital adequacy for banks.
Most Indian banks meet the Basel II standards of capital
adequacy and other important standads.
Q: How do RBI monitor banks?
Ans : Every bank prepares Friday statement and sends it
to RBI, this statement gives details of deposits, loans etc.
Thus RBI has weekly update of key economic indicators
and on the operations of the banks in India. RBI
accordingly takes decisions and give suitable directions /
circulars to the banks so that banks can promote nations
interest and work in safe limits.
Q: Why do you think that the banking system in India is
Ans : In India, we are very conservative in our banking
also. So banks generally dont lend beyond 80% of the
price of the property. Banks are also very cautious in
their approach. CRR and SLR limits also force banks to
park lots of funds in liquid assets thus they remain safe.
They are able to meet any financial crisis due to their
Q : What are gilt edged securities ?
Ans : Govt. Securities are called gilt edge (gold edge)
securities. The govt. Securities include 91 day & , 182,
364 day treasury bills and other government bonds.
Q : What are treasury bills ?
Ans : Treasury Bills are money market instruments to
finance the short term requirements of the Government
of India. These are discounted securities and thus are
issued at a discount to face value. The return to the
investor is the difference between the maturity value and
Thus if the face price of T bill is 100, it will be issued in
say 98. At the time of maturity, the investor will get 100.
Q: What is the difference between world bank and
Ans : BIS (bank of international settlement ) is the
banker's bank. It closely works with central banks of the
various countries. World bank is the bank for
reconstruction and development of the world. World bank
(IBRD = International bank for reconstruction and
development) gives financial assistance / loan for
developmental purpose. It is closely working with UN,
IMF and other such agencies.
Q: How will you help our organisation?
Ans : I will prove to be an asset for your bank by
following your guidelines and shall acquire necessary
skills for developing myself as a banker.
Q : What do you know about our bank ?
Ans : It is a very good bank – it is the bank for common
people. I like this bank, as it is the bank of my philosophy
and I believe that I will find my career in this bank only.
Q: Why do people trust bank ?
Ans : Banks are well managed corporate bodies and they
work as per the overall ecoomic policies of the country.
There is a good system of supervision on banks, thus
people have reasons to believe in stability and
trustworthiness of banks.
Q : What do you understand from banking ?
Ans : Taking deposits from people and using that money
for overall national development through financing for
industries, agriculture, housing and other sectors.
Q : What is universal banking ?
Ans : Banks offer variety of services not just deposit and
loans. They provide investment services also.
Q : How do banks of modern time differ from banks of
Ans : Computerisation has changed the banks of today.
These are paper less offices. Today banks offer a variety
of services – and they are very customer oriented also.
Q : What is customer orientation in banking ?
Ans : Banks today try to satisfy customers. They try to
provide services in the interest of the customer and try to
design services as per the requirements of customers.
Q : What do you know about commercial banking ?
Ans : Banking for commercial organisations is
commercial banking. It includes retail banking also. Here
banks focus on industrial and business organisations and
earn profit by keeping some margin between the interest
rate on deposits and interest rate on loans.
Q : What do you know about rural banking ?
Ans : Banks open offices in rural areas to mobilise
savings of villagers and give finance to the villagers, this
is called rural banking.
Q : What is microfinance ?
Ans : Microfinance is to mobilise savings in very small
amount (let us say Rs. 10) and give small loans (let us
say Rs. 3000) through SHGs (self help groups) – thus
this is for very poor people. It is to enable people living
below poverty line to raise their standard. Thus
microfinance is an alternate channel. Many banks are
also promoting microfinance. Gramin Bank, BRAC,
SEWA, Basix etc. Have made significant contribution in
Q : What do you know about priority sector lending ?
Ans : The government has identified some sectors, which
need more attention from banks in financing and in
credits. Thus these sectors are priority sector. They are
the sectors which our policy makers have identified as
important for our development. Examples are :
agriculture, cottage industry, people from backward
Q : What do you know about the role of RBI?
Ans : It is the cenral bank of India. It regulates and
controls operations of all the banks. It is the banker of
bank and is also banker of Government. RBI supervises
banking in India.
Q : What do you know about Bank rate, Monetary policy ,
CRR & SLR ?
Ans : The rate at which RBI gives loans to other banks is
called Bank rate.
Monetary policy is announced twice a year – 30 October
and 1 April (approximately) . Monetary policy gives
details of M1,m2,m3, bank rate and overall economic
Monetary policy gives guidelines about the direction of
CRR = cash reserve ratio - banks have to keep about
6% of their deposits with RBI as cash, this is called CRR.
SLR is statutory liquidity ratio. Banks have to keep about
25% of their deposits in specified securities (like treasury
Q : How will your background help you in banking ?
Ans : My background of Botany will help me in
appraisals of projects, my scientific approach and
understanding of science will help me in assessing the
business models of industries. My background of science
has built a strong foundation for hardwork, discipline and
commitment in me, which will help me throughout my life.
Q : What did you do in last 2 years ?
Ans : I did my postgraduation in science. I wanted to
develop a scientific temper. I wanted to work as scientist.
However, later I realised that banking is the best career
Q : Dont you think that you have wasted thousands of
rupees of the nation in science education?
Ans : Science education builds scientific temper, which
helps us indrectly. Our Society is having many orthodox
practices & superstitions, and science education has
helped me in building required temperment. In my job
also I will be benefitted. It also helps in assessment of
technical business proposals , as most of the technology
is based on science.
Q : WHAT IS CBS (core banking solutions) ?
Ans : When all important banking solutions are available
on one counter, it is called CBS.
Q : What is subprime crisis?
Ans : When banks in the USA gave sub-standard loans
(without proper security) – mostly housing loans – which
resulted in financial crisis. The fall in real estate prices
resulted in large number of defaults in banks, which
ultimately led to failure of many banks.
Q : What did you learn from your parents?
Ans : My father is a school teacher. I have learnt from
him the basic values of honesty, sincerity, dedication and
commitment. My mother is a housewife. She is an ideal
lady having qualities of affection, love, and sacrifice. I
have learnt the commitment of service from her. I believe
that I am fortunate to be their child and their ideals will
always inspire me.
Q : What will be your role in our bank ?
Ans : I shall try to satisfy customers, and try to mobilise
deposits for the bank and try to increase its business and
shall do all those activities which are assigned to me as a
banker. I shall try to ensure highest level of professional
ethics in my conduct and shall act as per the image and
goodwill of the bank.
Q : What are M1,M2,M3,M4
Ans : Money supply is very important to understand.
These are represented by M1, M2 and M3 (in US) with
M1 being the narrowest measure and M3 being the
broadest. In the UK there are only 2: M0 and M4. Narrow
money refers to forms of money that are available
immediately for use in transactions, broad money means
those that are not immediately available. M 1 = notes in
circulation + traveller cheque + demand deposit
M2 = M1 + SAVINGS DEPOSITS + TERM DEPOSITS
M4 = BROADEST MEASURE (Includes all types of
money, deposits with banks and post offices etc. )
Q : what was the reason of recent europhia in the market
Ans : The year 2009 witnessed massive recession
worldwide. Now it is a recovery phase. Due to
expectations of recovery, there is europhia. People
expect that the market will recover soon and there are
expectations that India will again become super
Q : WHAT IS BRIC?
There are 4 growing economies : brazil, Russia, India,
Q : What are your strengths ?
Ans : I am a learner and I try to learn whereever I get a