40+ Interview Questions and Answers

Important ratios to check for sanctioning loan to a business with 15 crore turnover

• Debt-to-Equity Ratio

• Current Ratio

• Interest Coverage Ratio

• Profit Margin Ratio

• Return on Equity Ratio

• Examples: Debt-to-Equity Ratio should be less than 2:1, Current Ratio should be greater than 1:1, Interest Coverage Ratio should be greater than 1.5:1

Debt service coverage ratio is a financial metric used to assess a company's ability to repay its debt obligations.

• Debt service coverage ratio measures the cash flow available to cover debt payments.

• It is calculated by dividing the company's net operating income by its total debt service.

• A ratio above 1 indicates that the company generates enough cash flow to cover its debt obligations.

• For example, a debt service coverage ratio of 1.5 means that the company's cash flow is 1.5...read more

Financial ratios are used to analyze a company's financial performance and health.

• Liquidity ratios measure a company's ability to meet short-term obligations (e.g. current ratio, quick ratio)

• Profitability ratios measure a company's ability to generate profits (e.g. gross profit margin, return on equity)

• Debt ratios measure a company's leverage and ability to repay debt (e.g. debt-to-equity ratio, interest coverage ratio)

• Efficiency ratios measure a company's ability to use its ...read more

Business expansion and growth planning involves identifying opportunities, setting goals, and developing strategies to achieve them.

• Conduct market research to identify potential opportunities

• Set specific and measurable goals for growth

• Develop strategies to achieve goals, such as increasing marketing efforts or expanding product lines

• Allocate resources and budget accordingly

• Monitor progress and adjust strategies as needed

Banking products include savings accounts, loans, credit cards, and insurance.

• Savings accounts: allow customers to deposit and withdraw money while earning interest

• Loans: provide customers with a sum of money that must be repaid with interest over time

• Credit cards: allow customers to make purchases on credit and pay back the balance over time

• Insurance: protects customers from financial loss due to unforeseen events such as accidents, illness, or death

OnePlus offers better value for money compared to iPhone.

• OnePlus devices have similar or better specs than iPhones at a lower price point.

• OnePlus devices have a longer battery life compared to iPhones.

• OnePlus devices have a faster charging time compared to iPhones.

• OnePlus devices have a larger screen-to-body ratio compared to iPhones.

• OnePlus devices have a higher refresh rate display compared to iPhones.

• OnePlus devices have a more customizable operating system compared to iPh...read more

NPA stands for Non-Performing Assets. Sub-standard assets are those assets which have remained NPA for a period of 12 months.

• NPA refers to loans or advances that are in default or are in arrears for a certain period of time.

• Sub-standard assets are those assets which have remained NPA for a period of 12 months.

• These assets have a high risk of becoming bad debts and may require provisioning by the bank.

• Examples of sub-standard assets include loans that have not been repaid for ...read more

ICICI is a leading private sector bank in India.

• ICICI Bank was founded in 1994 and is headquartered in Mumbai.

• It offers a wide range of banking and financial services to individuals and businesses.

• ICICI Bank has a strong presence in India with over 5,000 branches and 15,000 ATMs.

• It also has a presence in 17 other countries.

• ICICI Bank is known for its innovative products and services such as internet banking, mobile banking, and digital wallets.

CIBIL is a credit information company that maintains credit records of individuals and companies.

• CIBIL stands for Credit Information Bureau (India) Limited.

• It was established in 2000 and is headquartered in Mumbai, India.

• CIBIL collects credit information from various sources such as banks, financial institutions, and credit card companies.

• This information is used to create credit reports and credit scores for individuals and companies.

• Lenders use CIBIL reports and scores to e...read more

The bank will pass a journal entry to record deposits received.

• Debit the bank account for the total amount of deposits received

• Credit the customer's account for the same amount

• Example: Debit Bank Account $10,000, Credit Customer Account $10,000

ICICI is a leading bank in India known for its strong relationship between core branches and the banking sector.

• ICICI Bank has a wide network of core branches across India, providing easy access to banking services for customers.

• The bank has a strong presence in the banking sector, offering a wide range of financial products and services.

• Strengths include efficient customer service, innovative digital banking solutions, and a strong brand reputation.

• Weaknesses may include hig...read more

To get the EMI, I use a strategic approach that involves thorough financial analysis and negotiation with lenders.

• Conduct a comprehensive financial analysis to determine the maximum affordable EMI

• Research and compare different lenders to find the best interest rates and terms

• Negotiate with lenders to secure lower interest rates or longer repayment periods

• Consider the impact of EMI on overall financial goals and budget

• Ensure timely payment of EMIs to maintain a good credit sco...read more

ICICI Bank stands for Industrial Credit and Investment Corporation of India Bank.

• ICICI Bank is one of the largest private sector banks in India.

• It was founded in 1994 and is headquartered in Mumbai.

• ICICI Bank offers a wide range of banking and financial services to its customers.

• The bank operates through a network of branches and ATMs across the country.

• ICICI Bank is known for its innovative products and digital banking solutions.

• It provides services like savings accounts, lo...read more

By highlighting the benefits and features of ICICI Bank card, building trust with the customer, and offering personalized solutions.

• Highlight the benefits and features of ICICI Bank card such as cashback offers, rewards points, and exclusive discounts.

• Build trust with the customer by providing transparent information about the card's terms and conditions, security features, and customer support.

• Offer personalized solutions based on the customer's needs and preferences, such a...read more

Credit management involves managing the credit given to customers to ensure timely payment and minimize bad debt losses.

• It involves setting credit policies and procedures

• Evaluating the creditworthiness of customers

• Establishing credit limits and terms

• Monitoring and collecting payments

• Minimizing bad debt losses through effective credit control

• Examples include credit card companies, banks, and businesses extending credit to customers

Documents required for death claim include death certificate, claim form, policy document, ID proof, and nominee details.

• Death certificate

• Claim form

• Policy document

• ID proof

• Nominee details

Yes, I have a strong understanding of banking principles and practices.

• I have a Bachelor's degree in Finance

• I have worked in the banking industry for 5 years

• I am familiar with financial products and services such as loans, savings accounts, and investments

I have a strong understanding of financial concepts and experience in financial analysis.

• I have a degree in finance and have completed courses in financial management.

• I have experience in budgeting, forecasting, and financial reporting.

• I have analyzed financial statements and made recommendations for improving financial performance.

• I am familiar with financial ratios and key performance indicators.

• I have experience in financial modeling and using financial software such as Ex...read more

Repossession is the legal process of taking back property from a borrower who has not met the terms of their loan agreement.

• Repossession typically occurs when a borrower fails to make payments on a loan secured by the property, such as a car or house.

• The lender or creditor can take possession of the property to recover the amount owed.

• The process of repossession varies depending on the type of property and the laws of the jurisdiction.

• Repossession may involve sending notices ...read more

Banking involves financial transactions, loans, investments, and services provided by financial institutions.

• Banking involves accepting deposits from customers and providing them with loans.

• Banks also offer various financial services such as wealth management, investment advice, and insurance products.

• Banking institutions play a crucial role in the economy by facilitating the flow of money and credit.

• Regulatory bodies oversee the banking industry to ensure stability and prote...read more

Financial markets are platforms where buyers and sellers trade financial assets such as stocks, bonds, currencies, and commodities.

• Financial markets facilitate the buying and selling of financial assets.

• They provide liquidity and price discovery for assets.

• Examples include stock markets, bond markets, foreign exchange markets, and commodity markets.

Sales involves identifying and meeting customer needs through product or service offerings.

• Understand customer needs and preferences

• Communicate product benefits effectively

• Build relationships with customers

• Negotiate and close deals

• Provide excellent customer service

• Analyze sales data to identify trends and opportunities

I will engage my client by actively listening to their needs, providing personalized solutions, and building a strong rapport.

• Actively listen to the client's needs and concerns

• Provide personalized solutions tailored to the client's specific requirements

• Build a strong rapport and establish trust with the client

• Regularly follow up with the client to ensure satisfaction and address any issues

• Offer additional support and resources as needed

Yes, I have experience in selling products and have a proven track record of meeting sales targets.

• I have previous experience working in sales roles where I successfully sold products to customers.

• I am familiar with various sales techniques such as upselling, cross-selling, and consultative selling.

• I have consistently met or exceeded sales targets in my previous roles.

• I am skilled in building relationships with customers to understand their needs and provide solutions.

• I am co...read more

I will do sales by identifying potential customers, building relationships, and providing excellent customer service.

• Identify potential customers through market research and networking

• Build relationships with customers through regular communication and follow-up

• Provide excellent customer service by addressing their needs and concerns

• Offer promotions and discounts to incentivize purchases

• Track sales data and adjust strategies accordingly

Banking involves financial services such as deposits, loans, investments, and transactions.

• Banking involves accepting deposits from customers and providing loans to individuals and businesses.

• Banks also offer various financial services such as investment products, credit cards, and insurance.

• Banking transactions include activities like transferring money, paying bills, and managing accounts.

• Banks play a crucial role in the economy by facilitating the flow of money and providi...read more

I will conduct a thorough review of loan documents and financial records to ensure compliance with regulations and policies.

• Review loan applications and supporting documents

• Verify borrower information and credit history

• Check loan terms and conditions for accuracy and completeness

• Examine financial statements and credit reports

• Ensure compliance with regulatory requirements

• Identify and report any discrepancies or irregularities

• Provide recommendations for improvement

• Maintain accu...read more

As of [date], the share price of ICICI bank is [price].

• ICICI bank is listed on both the Bombay Stock Exchange and the National Stock Exchange of India.

• The share price can fluctuate based on various factors such as market conditions, company performance, and economic indicators.

• As of [date], the share price of ICICI bank was [price].

Concurrent audit is a real-time examination of financial transactions to ensure accuracy and compliance.

• Concurrent audit is conducted simultaneously with the ongoing operations of a business.

• It helps in identifying errors and frauds in real-time, reducing the risk of financial loss.

• It ensures compliance with legal and regulatory requirements.

• Examples of concurrent audit include auditing of cash transactions, inventory management, and payroll processing.

Selling the flag involves highlighting its symbolic value, quality materials, and patriotic significance.

• Emphasize the flag's symbolism as a representation of national pride and unity

• Highlight the quality materials used in the flag's construction, such as durable fabric and vibrant colors

• Connect emotionally with customers by sharing stories or facts about the flag's history or significance

• Offer special promotions or discounts for purchasing multiple flags or flag-related prod...read more

Financial inclusion refers to the availability and accessibility of financial services to all individuals and businesses, especially those in underserved or marginalized communities.

• Financial inclusion aims to provide access to banking services, credit, insurance, and other financial products to those who are traditionally excluded from the formal financial system.

• It helps in reducing poverty, promoting economic growth, and fostering social inclusion.

• Examples include microfin...read more

Debt equity ratio is a financial ratio that measures the proportion of debt and equity used to finance a company's assets.

• Debt equity ratio is calculated by dividing total debt by total equity.

• It indicates the amount of financial leverage a company has.

• A high debt equity ratio means the company is relying more on debt to finance its assets.

• A low debt equity ratio means the company is relying more on equity to finance its assets.

• Investors use debt equity ratio to assess a comp...read more

Yes, I am open to relocation for the right opportunity.

• I am willing to relocate for career growth and development

• I have relocated in the past for work and have experience adapting to new environments

• I understand that relocation may be necessary for advancement in my career

Banking products refer to financial services offered by banks to customers, such as savings accounts, loans, credit cards, and investment products.

• Savings accounts: Allow customers to deposit money and earn interest

• Loans: Provide funds to customers with repayment terms

• Credit cards: Allow customers to make purchases on credit

• Investment products: Offer opportunities to grow wealth through various financial instruments

To sell this product, highlight its unique features, demonstrate its benefits, create a sense of urgency, and offer incentives.

• Highlight the unique features of the product such as its quality, durability, or innovative design.

• Demonstrate the benefits of the product to the customer, showing how it can solve their problems or improve their life.

• Create a sense of urgency by emphasizing limited stock or time-limited offers.

• Offer incentives such as discounts, freebies, or extended...read more

MPBF stands for Maximum Permissible Bank Finance. It is the maximum amount of loan that a bank can provide to a borrower based on their working capital requirements.

• MPBF is calculated based on the borrower's working capital cycle, which includes factors like raw material requirements, production cycle, and sales cycle.

• It helps determine the maximum amount of loan a borrower can avail from a bank to meet their working capital needs.

• MPBF is crucial for businesses to ensure they...read more

Yes, I have experience in sales and have consistently met or exceeded sales targets.

• I have X years of experience in sales roles.

• I have a proven track record of meeting or exceeding sales targets.

• I am skilled in building relationships with customers and closing deals efficiently.

DSCR formula is used to measure the ability of a company to pay its debts.

• DSCR stands for Debt Service Coverage Ratio

• Formula: DSCR = Net Operating Income / Total Debt Service

• A DSCR of 1 or higher indicates that the company is generating enough income to cover its debt obligations

• A DSCR of less than 1 indicates that the company may have difficulty paying its debts

• Lenders typically require a DSCR of at least 1.25 before approving a loan

I am open to any location that offers growth opportunities and a challenging work environment.

• I am willing to relocate if required

• I am looking for a location that offers a good work-life balance

• I prefer a location that has a diverse and inclusive work culture

• I am open to both urban and rural locations

• I am looking for a location that has good transportation facilities

Other types of loans include personal loans, student loans, and business loans.

• Personal loans are unsecured loans that can be used for any purpose.

• Student loans are specifically designed to help students pay for education expenses.

• Business loans are used to finance business operations or start-ups.

• Other types of loans include secured loans, payday loans, and installment loans.

KYC stands for Know Your Customer and AML stands for Anti-Money Laundering.

• KYC is the process of verifying the identity of a customer before providing them with a service.

• AML is the set of laws, regulations, and procedures that financial institutions must follow to prevent money laundering.

• KYC and AML are important in preventing financial crimes such as fraud, terrorism financing, and money laundering.

• Examples of KYC include verifying a customer's identity through government-...read more

Highlight the unique features of the pen and demonstrate its value to the customer.

• Start by showcasing the pen's sleek design and comfortable grip.

• Highlight the pen's smooth writing experience and long-lasting ink.

• Emphasize any special features like a built-in stylus or personalized engraving options.

• Create a sense of urgency by mentioning limited stock or a special promotion.

• Offer a trial period or money-back guarantee to build trust with the customer.

The question is about Performance Improvement with Zero Harm and a Panel of Risk Management.

• Discuss strategies for improving performance while maintaining zero harm to individuals and the organization.

• Explain how you would involve a panel of risk management in identifying and mitigating potential risks.

• Provide examples of successful performance improvement initiatives that prioritized safety and risk management.

• Highlight the importance of collaboration between different depar...read more

I am passionate about finance and enjoy working with numbers and helping clients achieve their financial goals.

• I have always been interested in finance and economics

• I enjoy working with numbers and analyzing financial data

• I find satisfaction in helping clients manage their finances and achieve their financial goals

SARFAESI stands for Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act.

• SARFAESI Act allows banks and financial institutions to auction residential or commercial properties when borrowers default on loan payments.

• It provides a faster mechanism for recovery of non-performing assets without court intervention.

• The Act empowers banks to take possession of the secured assets and sell them without the intervention of the court.

• SARFAESI Act...read more