IDBI Bank Investment Banking IT Interview Questions and Answers

Q1. How your skills align with the role that you have applied?
Ans. Have you faced any challenge recently? How did you overcome it?
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Q2. What are your strengths?
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Q3. What are your weaknesses?
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Q1. What is Enterprise value?
Ans. 
Enterprise value is a measure of a company's total value, including its market capitalization, debt, and cash.
• Enterprise value = Market capitalization + Total debt - Cash

• It represents the total value of a company that would need to be paid by a buyer to acquire the entire business.

• EV is used to compare the value of different companies, taking into account their debt levels and cash reserves.

• It is a more comprehensive m...read more
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Q2. Why is Cash subtracted in Enterprise Value formula?
Ans. 
Cash is subtracted in Enterprise Value formula to reflect the fact that it is a non-operating asset and can be used to pay off debt or fund operations.
• Cash is considered a non-operating asset as it is not directly related to the core operations of the business.

• By subtracting Cash from Enterprise Value, we are essentially adjusting the value to reflect the fact that Cash can be used to pay off debt or fund operations.

• Th...read more
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Q3. What is difference between EV/Net Income and P/E ratio in relative valuation?
Ans. 
EV/Net Income compares enterprise value to net income, while P/E ratio compares market price to earnings per share.
• EV/Net Income considers the entire capital structure of a company, including debt and equity, while P/E ratio only considers the market price of equity.

• EV/Net Income is a more comprehensive measure of valuation as it takes into account the company's debt levels, while P/E ratio is a simpler measure based o...read more
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Ask about carrier and situational based question

Q1. What are your strengths and weaknesses?
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Q1. The games are not difficult, they check your personality traits
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Q1. Choose the answer that best describes a situation you would put yourself in
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Q1. Make sure to have good lighting, fast internet and browse for preparation questions on youtube.
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Q1. 1. EV 2. Relative valuaion 3. Dcf 4. Link of 3 statement 5. Depreciation effect on ebit, ebitda, pat, cash
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Q1. 1. Why IB 2. Why wacc is genearlly higher than terminal growth rate
Ans. 
IB offers challenging work, high compensation, and opportunities for growth. WACC is higher than terminal growth rate due to risk and cost of capital.
• IB offers intellectually stimulating work and high compensation

• Opportunities for growth and advancement are abundant in IB

• WACC is higher than terminal growth rate due to risk and cost of capital

• WACC considers the cost of equity and debt, while terminal growth rate assumes...read more
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Q1. 1.JV for bond interest and maturity
Ans. 
A joint venture (JV) for bond interest and maturity involves two or more parties coming together to invest in bonds and share the interest payments and maturity proceeds.
• Joint ventures for bond investments can be formed between individuals, companies, or institutions.

• Parties in the JV agree on the terms of the investment, including the amount invested, interest rate, and distribution of maturity proceeds.

• JV partners ma...read more
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Q1. Questions around financial statements, EV calculation and industry.
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Q1. Testing finance knowledge, industry and inter-personal skills.
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