The interest rate that commercial banks charge their best,
most credit-worthy customers. Generally a bank's best
customers consist of large corporations. The rate is
determined by the Federal Reserve's decision to raise or
lower prevailing interest rates for short-term borrowing.
Though some banks charge their best customers more and some
less than the official prime rate, the rate tends to become
standard across the banking industry when a major bank
moves its prime up or down. The rate is a key interest
rate, since loans to less-creditworthy customers are often
tied to the prime rate. For example, a Blue Chip company
may borrow at a prime rate of 5%, but a less-well-
established small business may borrow from the same bank at
prime plus 2, or 7%. Many consumer loans, such as home
equity, automobile, mortgage, and credit card loans, are
tied to the prime rate. Although the major bank prime rate
is the definitive "best rate" reference point, many banks,
particularly those in outlying regions, have a two-tier
system, whereby smaller companies of top credit standing
may borrow at
PLR or prime lending rate as the rate of interest at which
banks lend to their credit-worthy or favoured customers. It
is treated as a benchmark rate for most retail and term
The RBI does not set these rates, but in a broad way
stipulates the interest rates in the economy. The banks are
at liberty to lend at a rate above or below the RBIís.
these q were asked in the interview on 26april
1.HOW WILL YOU MANAGE THE PROMLEM OF CUSTOMERS?
2.name 2 pvt banks recently in news? wat was the matter?
3.if a customer comes to u with 5 lakh rupees then which
investment plan will you suggest to him?
4.a situation was also given........You are sitting in the
cash counter...the senior manager passes by that way..he
finds 10000/- lying down..he silently takes that money and
Everyone's puzzled and they go mad tryin' to tally the acc
thru out the day..and only you know what happnd to it..Now
what you will do...???
PLS SUGGEST ANS FOR THESE Q
Hi all,Iam Manjusha.I have been shortlisted for Karnataka
Bank Clerical Interview which is to be held in March 2010.So
could any one please help by mailing what type of questions
r they going to ask.Since Iam from engineering background I
dnt have much idea abt finance and accounts.Please help
me,my mail id is firstname.lastname@example.org.