10+ IDBI Bank Interview Questions and Answers for Freshers

IDBI was established in 1964 as a subsidiary of RBI and later became an independent entity in 2004.

• IDBI was established in 1964 as a subsidiary of RBI to provide credit and other facilities for the development of industries in India.

• In 1976, IDBI was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and developing industry in India.

• In 2004, IDBI became an independent entity after the RBI sold its entire st...read more

A manager oversees operations, manages staff, and makes decisions to achieve organizational goals. CRR, SLR, and Repos are financial terms. PMAY is a government scheme for affordable housing.

• Managers oversee day-to-day operations and make decisions to achieve organizational goals

• They manage staff, delegate tasks, and ensure that work is completed efficiently and effectively

• CRR (Cash Reserve Ratio) is the percentage of deposits that banks must keep with the central bank as a r...read more

Yes, it is beneficial from my point of view.

• It allows for growth and development within the company.

• It provides opportunities for learning and advancement.

• It can lead to increased job satisfaction and motivation.

• It may result in higher pay and benefits.

• For example, when I was promoted to Assistant Manager at my previous job, I was able to take on more responsibilities and learn new skills.

• This ultimately led to a higher salary and better benefits package.

• Overall, I believe th...read more

Demonetization in India started on November 8, 2016.

• Demonetization refers to the act of stripping a currency unit of its status as legal tender.

• On November 8, 2016, the Indian government announced the demonetization of all ₹500 and ₹1,000 banknotes.

• The move was aimed at curbing black money, counterfeit currency, and corruption.

• New ₹500 and ₹2,000 banknotes were introduced in exchange for the old ones.

• The demonetization process lasted until December 30, 2016.

CASA ratio is the ratio of a bank's current account and savings account deposits to its total deposits.

• CASA stands for Current Account and Savings Account

• It is a measure of a bank's ability to generate stable deposits

• Higher CASA ratio indicates lower cost of funds for the bank

• CASA ratio is an important metric for banks as it affects their profitability

• Example: If a bank has total deposits of $100 and $60 of it is from current and savings accounts, then the CASA ratio is 60%

Liquidity ratio is a financial metric that measures a company's ability to pay off its short-term debts.

• It is calculated by dividing current assets by current liabilities.

• A higher liquidity ratio indicates a better ability to meet short-term obligations.

• Common liquidity ratios include the current ratio and the quick ratio.

• For example, if a company has $100,000 in current assets and $50,000 in current liabilities, its liquidity ratio would be 2:1.

We will convince potential customers to open an account in this bank by highlighting our competitive interest rates, personalized customer service, and innovative digital banking solutions.

• Emphasize competitive interest rates to attract customers looking for better returns on their savings.

• Highlight personalized customer service to build trust and establish long-term relationships with customers.

• Showcase innovative digital banking solutions to appeal to tech-savvy customers w...read more

Intangible assets are shown in the balance sheet under non-current assets.

• Intangible assets are assets that lack physical substance, such as patents, trademarks, and goodwill.

• They are shown separately from tangible assets on the balance sheet.

• Intangible assets are usually amortized over their useful life.

• Examples of intangible assets include brand recognition, customer lists, and software licenses.

Factors to determine customer satisfaction with bank services

• Customer feedback and surveys

• Number of complaints and their resolution

• Response time to customer queries and issues

• Availability of multiple channels for customer support

• Ease of use and convenience of banking services

• Competitive interest rates and fees

• Personalized and tailored banking experience

• Transparency in transactions and account information

• Security measures and protection against fraud

• Efficiency in processing tr...read more

The bank's pricing strategy lacks transparency and flexibility, which can be improved by implementing tiered pricing and offering personalized packages.

• Lack of transparency in pricing: The bank should provide clear and easily understandable pricing information to customers.

• Lack of flexibility in pricing: The bank should offer different pricing options to cater to the diverse needs of customers.

• Implement tiered pricing: Introduce different pricing tiers based on customer segme...read more

Fixed cost remains constant regardless of production while variable cost changes with production.

• Fixed cost is a cost that remains constant regardless of the level of production or sales. Examples include rent, salaries, insurance, and property taxes.

• Variable cost is a cost that changes with the level of production or sales. Examples include raw materials, labor, and utilities.

• Total cost is the sum of fixed and variable costs.

• Understanding the difference between fixed and var...read more

I deal with customers by actively listening to their needs and providing tailored solutions.

• Actively listen to customer needs

• Provide tailored solutions

• Maintain positive and professional demeanor

• Follow up with customers to ensure satisfaction

Intangible asset is a non-physical asset that has no intrinsic value but holds value due to its legal or intellectual property rights.

• Intangible assets are not physical in nature and cannot be touched or seen.

• They include patents, trademarks, copyrights, goodwill, brand recognition, and intellectual property.

• Intangible assets are valuable because they provide a competitive advantage and generate revenue for the company.

• They are recorded on the balance sheet and can be bought,...read more

Four deputy governors of RBI are BP Kanungo, MK Jain, MD Patra, and Rajeshwar Rao.

• BP Kanungo is in charge of currency management, payment systems, and information technology.

• MK Jain is responsible for banking regulation and supervision.

• MD Patra oversees monetary policy and research.

• Rajeshwar Rao is in charge of financial markets, internal debt management, and international operations.

A smart city is a city that uses technology and data to improve the quality of life for its citizens.

• Smart cities use sensors and data analytics to manage resources efficiently.

• They prioritize sustainability and reduce environmental impact.

• Smart transportation systems, such as self-driving cars and bike-sharing programs, are common in smart cities.

• Examples of smart cities include Singapore, Barcelona, and Amsterdam.

Consumer bank is a financial institution that provides services and products to individual customers.

• Offers services such as savings accounts, checking accounts, loans, credit cards, and mortgages

• Focuses on meeting the financial needs of individual customers rather than businesses

• Examples include Bank of America, Chase, and Wells Fargo