Hi,I have just Cleared SBI clerk exam,and i m preparing for interview , could

Hi,I have just Cleared SBI clerk exam,and i m preparing for
interview , could any body who have faced interview send me
some interview question ,tips i would be really
grateful...thanks MY EMAIL-ID--rahmanataur0@gmail.com

Question Posted / rahmanataur0

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Hi,I have just Cleared SBI clerk exam,and i m preparing for interview , could any body who have fa..

Answer / rabisankar panda

SBI Clerk Interview Preparation Tips
Why do you want to enter banking?
* You need to talk about Banking – what the interviewer
seeks for is a person who is flexible to be along with the
given timings, someone who can cope up with writing bits and
bobs or a person who can benefit them with more development
.Your answer can have following bulleted points.
o Banking is a fast changing environment
o Retail banking is now very competitive – from telephone
banking, retailers and etc Banking is thus now largely sales
driven.

# You can even talk about IT getting changes and clearing
banks offers a wide range of career opportunities for
graduates – not just in branch banking but also in financial
services, consultancy and corporate banking.
Have you applied to any other areas apart from banking?

* Here off course your answer will hold some other finance
or sales and marketing careers – insurance or accountancy,
altogether these careers should have skills related to banking.
How do you feel about committing yourself to another three
years of exams?

* The professional examinations that you will almost
certainly be required to take as part of your training are
not always difficult in themselves, but do require
determination and focus- especially as much of your study
will be done in the evenings after a hard days work.
You should also be aware of the range of qualifications open
to you – many of the large clearing banks offer the
opportunity to gain qualifications in marketing, personnel
or accountancy – not just banking.
Tell me about an experience in which you had to use tact?
Tact and diplomacy are important qualities in retail banking
– the customer is (almost!) always right. You may have to
tell an account holder diplomatically why they can’t have a
loan for example, without provoking them into moving their
account elsewhere.
To answer this type of question, think through everything
you have done in the last five years – school, university,
sports, clubs, societies, travel, vacation jobs etc. and try
to think of situations where you had to demonstrate this and
other qualities – do this before your interview.
If you have completed a number of employer application
forms, then you should already have done this as this type
of question is now common on application forms.

Who are our major competitors and what differences do you
notice in our products?
The company will be expecting that you have done your
research on the industry generally. You should be familiar
with the bank’s products and services – literature on these
can be picked up at any branch. Read the banks brochures and
annual reports – these may be in the careers information room.
Be aware of current trends in the market and try to find out
what each bank is doing in these areas.

What is SLR?
Every bank is required to maintain at the close of business
every day, a minimum proportion of their Net Demand and Time
Liabilities as liquid assets in the form of cash, gold and
un-encumbered approved securities. The ratio of liquid
assets to demand and time liabilities is known as Statutory
Liquidity Ratio (SLR). Present SLR is 24%. (reduced w.e.f.
8/11/208, from earlier 25%) RBI is empowered to increase
this ratio up to 40%. An increase in SLR also restrict the
bank’s leverage position to pump more money into the economy.

What is SLR ? (For Non Bankers)
SLR stands for Statutory Liquidity Ratio. This term is used
by bankers and indicates the minimum percentage of deposits
that the bank has to maintain in form of gold, cash or other
approvedsecurities . Thus, we can say that it is ratio of
cash and some other approved to liabilities (deposits) It
regulates the credit growth in India.

What are Repo rate and Reverse Repo rate?
Repo (Repurchase) rate is the rate at which the RBI lends
shot-term money to the banks. When the repo rate increases
borrowing from RBI becomes more expensive. Therefore, we can
say that in case, RBI wants to make it more expensive for
the banks to borrow money, it increases the repo rate;
similarly, if it wants to make it cheaper for banks to
borrow money, it reduces the repo rate

What are Repo rate and Reverse Repo rate?
Repo (Repurchase) rate is the rate at which the RBI lends
shot-term money to the banks. When the repo rate increases
borrowing from RBI becomes more expensive. Therefore, we can
say that in case, RBI wants to make it more expensive for
the banks to borrow money, it increases the repo rate;
similarly, if it wants to make it cheaper for banks to
borrow money, it reduces the repo rate
Thus, we can conclude that Repo Rate signifies the rate at
which liquidity is injected in the banking system by RBI,
whereas Reverse repo rate signifies the rate at which the
central bank absorbs liquidity from the banks.

What is the difference between Bank Rate and Repo Rate?
Bank Rate vs Repo Rate
Bank Rate is the rate at which RBI allows finance to
commercial banks in India. There are difference types of
refinance that can be availed by banks and these are linked
to Bank Rate. Thus, banks can borrow at this rate only to
the extent of their eligibility for refinance.
On the other hand, Repo is a money market instrument, which
enables collateralised short term borrowing and lending
through sale/purchase operations in debt instruments. Under
a repo transaction, a holder ofsecurities sells them to an
investor with an agreement to repurchase at a predetermined
date and rate. In the case of a repo, the forward clean
price of the bonds is set in advance at a level which is
different from the spot clean price by adjusting the
difference between repo interest and coupon earned on the
security. In the money market, this transaction is nothing
but collateralised lending as the terms of the transaction
are structured to compensate for the funds lent and the cost
of the transaction is the repo rate. Thus, a bank can borrow
under repo provided he has the extrasecurities which it can
lend temporarily to RBI for borrowing short term funds.

What is relation between Inflation and Bank interest Rates?
Now a days, you might have heard lot of these terms and
usage on inflation and the bank interest rates. Bank
interest rate depends on many other factors, out of that the
major one is inflation. Whenever you see an increase on
inflation, there will be an increase of interest rate also

What is a bank?
A bank is a financial institution whose primary activity is
to act as a payment agent for customers and to borrow and
lend money. It is an institution for receiving, keeping, and
lending money

What is the activity of Banks?
Banks act as payment agents by conducting checking or
current accounts for customers, paying cheques drawn by
customers on the bank, and collecting cheques deposited to
customers’ current accounts. Banks also enable customer
payments via other payment methods such as telegraphic
transfer, EFTPOS, and ATM.
Banks borrow money by accepting funds deposited on current
account, accepting term deposits and by issuing debt
securities such as banknotes and bonds. Banks lend money by
making advances to customers on current account, by making
installment loans, and by investing in marketable
debtsecurities and other forms of money lending.
Banks provide almost all payment services, and a bank
account is considered indispensable by most businesses,
individuals and governments. Non-banks that provide payment
services such as remittance companies are not normally
considered an adequate substitute for having a bank account.
Banks borrow most funds from households and non-financial
businesses, and lend most funds to households and
non-financial businesses, but non-bank lenders provide a
significant and in many cases adequate substitute for bank
loans, and money market funds, cash management trusts and
other non-bank financial institutions in many cases provide
an adequate substitute to banks for lending savings to.

What is Banking Business?
“Banking Business” means the business of receiving money on
current or deposit account, paying and collecting cheques
drawn by or paid in by customers, the making of advances to
customers, and includes such other business as the Authority
may prescribe for the purposes of this Act.

What is Accounting for Bank Accounts?
Bank statements are accounting records produced by banks
under the various accounting standards of the world. Under
GAAP and IFRS there are two kinds of accounts: debit and
credit. Credit accounts are Revenue, Equity and Liabilities.
Debit Accounts are Assets and Expenses. This means you
credit credit accounts to increase their balances and you
debit debit accounts to increase their balances.

This also means you debit your savings account every time
you deposit money into it (and the account is normally in
deficit) and you credit your credit card account every time
you spend money from it (and the account is normally in credit).

However, if you read your bank statement, it will say the
opposite- that you have credited your account when you
deposit money, and you debit when you withdraw it. If you
have cash in your account you have a positive or credit
balance and if you are overdrawn it will say you have a
negative or a deficit balance.

The reason for this is because the bank, and not you, has
produced the bank statement. Your savings might be your
assets, but it is the bank’s liability, so your savings
account is a liability account which is a credit account and
should have a positive credit balance. Your loans are your
liabilities but the bank’s assets so they are debit accounts
which should have a negative balance.
Below where bank transactions, balances, credits and debits
are discussed, they are done so from the viewpoint of the
account holder which is traditionally what most people are
used to seeing.

What are the commercial roles of the Banks ?

However the commercial role of banks is wider than banking,
and includes:
* However the commercial role of banks is wider than
banking, and includes:
* issue of banknotes (promissory notes issued by a banker
and payable to bearer on demand)

* processing of payments by way of telegraphic transfer,
EFTPOS, internet banking or other means

* issuing bank drafts and bank cheques
* accepting money on term deposit

* lending money by way of overdraft, installment loan or
otherwise
* providing documentary and standby letters of credit (trade
finance), guarantees, performance bonds, securities
underwriting commitments and other forms of off balance
sheet exposures

* safekeeping of documents and other items in safe deposit boxes
* currency exchange

* sale, distribution or brokerage, with or without advice,
of insurance, unit trusts and similar financial products as
a ‘financial supermarket’

What are the Economic functions of Banks?

The economic functions of banks include:
1. issue of money, in the form of banknotes and current
accounts subject to cheque or payment at the customer’s
order. These claims on banks can act as money because they
are negotiable and/or repayable on demand, and hence valued
at par and effectively transferable by mere delivery in the
case of banknotes, or by drawing a cheque, delivering it to
the payee to bank or cash.
2. netting and settlement of payments — banks act both as
collection agent and paying agents for customers, and
participate in inter-bank clearing and settlement systems to
collect, present, be presented with, and pay payment
instruments. This enables banks to economise on reserves
held for settlement of payments, since inward and outward
payments offset each other. It also enables payment flows
between geographical areas to offset, reducing the cost of
settling payments between geographical areas.

3. credit intermediation – banks borrow and lend
back-to-back on their own account as middle men

4. credit quality improvement – banks lend money to ordinary
commercial and personal borrowers (ordinary credit quality),
but are high quality borrowers. The improvement comes from
diversification of the bank’s assets and the bank’s own
capital which provides a buffer to absorb losses without
defaulting on its own obligations. However, since banknotes
and deposits are generally unsecured, if the bank gets into
difficulty and pledges assets as security to try to get the
funding it needs to continue to operate, this puts the note
holders and depositors in an economically subordinated position.

5. maturity transformation — banks borrow more on demand
debt and short term debt, but provide more long term loans.
In other words; banks borrow short and lend long. Bank can
do this because they can aggregate issues (e.g. accepting
deposits and issuing banknotes) and redemptions (e.g.
withdrawals and redemptions of banknotes), maintain reserves
of cash, invest in marketable securities that can be readily
converted to cash if needed, and raise replacement funding
as needed from various sources (e.g. wholesale cash markets
and securities markets) because they have a high and more
well known credit quality than most other borrowers.

What are the different channels of Banking you use in your
daily life ?

Banks offer many different channels to access their banking
and other services:
* A branch, banking centre or financial centre is a retail
location where a bank or financial institution offers a wide
array of face-to-face service to its customers.

* ATM is a computerized telecommunications device that
provides a financial institution’s customers a method of
financial transactions in a public space without the need
for a human clerk or bank teller. Most banks now have more
ATMs than branches, and ATMs are providing a wider range of
services to a wider range of users. For example in Hong
Kong, most ATMs enable anyone to deposit cash to any
customer of the bank’s account by feeding in the notes and
entering the account number to be credited. Also, most ATMs
enable card holders from other banks to get their account
balance and withdraw cash, even if the card is issued by a
foreign bank.

* Mail is part of the postal system which itself is a system
wherein written documents typically enclosed in envelopes,
and also small packages containing other matter, are
delivered to destinations around the world. This can be used
to deposit cheques and to send orders to the bank to pay
money to third parties. Banks also normally use mail to
deliver periodic account statements to customers.

* Telephone banking is a service provided by a financial
institution which allows its customers to perform
transactions over the telephone. This normally includes bill
payments for bills from major billers (e.g. for electricity).
* Online banking is a term used for performing transactions,
payments etc. over the Internet through a bank, credit union
or building society’s secure website.

How many type of banks there are ?
Banks’ activities can be divided into retail banking,
dealing directly with individuals and small businesses;
business banking, providing services to mid-market business;
corporate banking, directed at large business entities;
private banking, providing wealth management services to
high net worth individuals and families; and investment
banking, relating to activities on the financial markets.
Most banks are profit-making, private enterprises. However,
some are owned by government, or are non-profits.

Central banks are normally government owned banks, often
charged with quasi-regulatory responsibilities, e.g.
supervising commercial banks, or controlling the cash
interest rate. They generally provide liquidity to the
banking system and act as the lender of last resort in event
of a crisis.

Type of Retail Banks
* Commercial bank: the term used for a normal bank to
distinguish it from an investment bank. After the Great
Depression, the U.S. Congress required that banks only
engage in banking activities, whereas investment banks were
limited to capital market activities. Since the two no
longer have to be under separate ownership, some use the
term “commercial bank” to refer to a bank or a division of a
bank that mostly deals with deposits and loans from
corporations or large businesses.

* Community Banks: locally operated financial institutions
that empower employees to make local decisions to serve
their customers and the partners
* Community development banks: regulated banks that provide
financial services and credit to under-served markets or
populations.

* Postal savings banks: savings banks associated with
national postal systems.

* Private banks: manage the assets of high net worth
individuals.
* Offshore banks: banks located in jurisdictions with low
taxation and regulation. Many offshore banks are essentially
private banks.
* Savings bank: in Europe, savings banks take their roots in
the 19th or sometimes even 18th century. Their original
objective was to provide easily accessible savings products
to all strata of the population. In some countries, savings
banks were created on public initiative, while in others
socially committed individuals created foundations to put in
place the necessary infrastructure. Nowadays, European
savings banks have kept their focus on retail banking:
payments, savings products, credits and insurances for
individuals or small and medium-sized enterprises. Apart
from this retail focus, they also differ from commercial
banks by their broadly decentralised distribution network,
providing local and regional outreach and by their socially
responsible approach to business and society.

* Building societies and Landesbanks: conduct retail banking.
* Ethical banks: banks that prioritize the transparency of
all operations and make only what they consider to be
socially-responsible investments.
* Islamic banks: Banks that transact according to Islamic
principles.

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Hi,I have just Cleared SBI clerk exam,and i m preparing for interview , could any body who have fa..

Answer / raj

Thnks Buddy!! ur info is really helpful for evry1 who wl b
appearing for clerical interview...I hve my sbi clerical
interview in the last week of april.2010,,,Can u plz,,help
me what are the documents tat wl b necessary foe me 2b
carried 2 the interview hall,,,an as im a MBA in
marketing,,wt sort of marketing questions i can xpct in the
onterview?

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Hi,I have just Cleared SBI clerk exam,and i m preparing for interview , could any body who have fa..

Answer / mahesh

Hi Rabisankar, you have good thing but giving much information. I welcome you.

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