Northern Bank and Trust Investment Analyst Interview Questions and Answers

Q1. Introduce yourself
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Q2. What is floating rate and fixed rate
Ans. 
Floating rate and fixed rate are terms used in finance to describe the interest rate on a loan or investment that can change over time (floating rate) or remains constant (fixed rate).
• Floating rate: interest rate that can change periodically based on a benchmark rate or index (e.g. LIBOR, prime rate)

• Fixed rate: interest rate that remains constant throughout the life of the loan or investment

• Floating rate loans are ofte...read more
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Q1. Describe a recent business news and how it would affect your role
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Q2. Tell me about yourself
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I am a recent graduate with a strong background in finance and a passion for investment banking.
• Recent graduate with a degree in finance

• Internship experience in investment banking

• Strong analytical and financial modeling skills

• Passionate about the investment banking industry
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Q1. About your self
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Q2. Work experience
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Q1. What kind of Ratios analyse by credit manager
Ans. 
Credit managers analyze various ratios to assess the creditworthiness of a borrower.
• Liquidity ratios (e.g. current ratio, quick ratio)

• Profitability ratios (e.g. return on assets, return on equity)

• Leverage ratios (e.g. debt to equity ratio)

• Efficiency ratios (e.g. asset turnover ratio)

• Coverage ratios (e.g. interest coverage ratio)
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Q2. Few points regarding CSB Bank
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Q3. What kind of work performed by credit manager
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Q1. When compared to other banks reason for selecting CSB BANK
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CSB Bank stood out due to its strong financial performance, customer-centric approach, and innovative products.
• CSB Bank has consistently shown strong financial performance, with steady growth in revenue and profits.

• The bank has a reputation for being customer-centric, offering personalized services and quick decision-making processes.

• CSB Bank is known for its innovative products and services, such as digital banking so...read more
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Q2. Self Introduction
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Q3. What do you know about our bank
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Q4. Reason for selecting banking industry
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I selected the banking industry due to its stability, growth opportunities, and the chance to work with diverse clients.
• Stability: Banking industry is known for its stability even during economic downturns.

• Growth opportunities: There are various career advancement opportunities within the banking sector.

• Working with diverse clients: Banking allows me to interact with clients from different backgrounds and industries.
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Q1. How would you analyse a company if tou want to give term loan? What if cashflow is negative, will yo lend? Dscr How would you analyse a company
Ans. 
To analyze a company for a term loan, consider factors like cash flow, debt service coverage ratio (DSCR), financial statements, industry trends, and management quality.
• Examine the company's financial statements to assess its profitability, liquidity, and leverage.

• Calculate the debt service coverage ratio (DSCR) to determine if the company generates enough cash flow to cover its debt obligations.

• Evaluate the company's ...read more
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Q1. Salary related questions
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Q1. Work experience
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Policy and share experience

Q1. What is the difference between Hypothecation and pledge?
Ans. 
Hypothecation is when an asset is pledged as collateral without transferring ownership, while pledge involves transferring ownership of an asset as collateral.
• Hypothecation allows the borrower to retain possession and use of the asset.

• In a pledge, the lender takes ownership of the asset until the debt is repaid.

• Hypothecation is commonly used in loans for vehicles, where the lender holds the vehicle's registration paper...read more
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Q2. What did you work in your previous job in BSNL?
Ans. Job profile of my work as Jr. account's Officer.
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Q3. Are you ready to work PAN India?
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Q4. Difference between INDAS and US GAAP?
Ans. 
INDAS and US GAAP are accounting standards used in different countries.
• INDAS stands for Indian Accounting Standards, while US GAAP stands for Generally Accepted Accounting Principles used in the United States.

• INDAS is based on International Financial Reporting Standards (IFRS), while US GAAP is based on a mixture of IFRS and local accounting principles.

• INDAS is used by companies in India, while US GAAP is used by compa...read more
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Q5. Ratios use in Analysis?
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Ratios are essential tools in financial analysis to assess a company's performance and financial health.
• Ratios help evaluate a company's profitability, liquidity, solvency, and efficiency.

• Common ratios include the current ratio, debt-to-equity ratio, return on equity, and gross profit margin.

• These ratios provide insights into a company's ability to meet short-term obligations, manage debt, generate profits, and control...read more
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Q6. Hi!! Harsh How r you? Tell us about your self and past work done.
Ans. I answered M Harsh From Gujarat Told my background that CA. College complete from HLCC Gujarat Worked at BSNL and discussed my work profile
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Q1. In this round HR ask question from my CV.
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Q2. How can handle HL and LAP product
Ans. 
Handling HL and LAP products requires thorough knowledge of credit policies, risk assessment, and customer profiling.
• Understand the credit policies and guidelines of the organization

• Conduct a thorough risk assessment of the borrower and collateral

• Profile the customer to understand their financial background and repayment capacity

• Ensure timely disbursement and monitoring of the loan

• Maintain regular communication with th...read more
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Q3. What is difference between housing loan and mortgage loan
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Housing loan is for purchasing or constructing a house, while mortgage loan is secured by a property as collateral.
• Housing loan is used for buying or building a house, while mortgage loan can be used for any purpose but is secured by a property as collateral.

• Housing loan is typically for a longer term and has lower interest rates than mortgage loan.

• Mortgage loan can be used to refinance an existing loan or to consolida...read more
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Q4. Which one is eligible for housing and mortgage loan and other loan
Ans. 
Individuals with stable income, good credit score, and sufficient collateral are eligible for housing, mortgage, and other loans.
• Stable income is a key factor in loan eligibility

• Good credit score indicates creditworthiness and repayment capability

• Sufficient collateral provides security to the lender

• Other factors such as age, employment history, and debt-to-income ratio may also be considered

• Examples of collateral inclu
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Q1. What is underwriting
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Underwriting is the process of evaluating the risk of lending money to a borrower.
• Underwriting involves analyzing the borrower's creditworthiness, financial history, and ability to repay the loan.

• The underwriter also assesses the value of the collateral, if any, that the borrower is offering to secure the loan.

• Based on this analysis, the underwriter decides whether to approve or deny the loan, and what terms and condit...read more
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Q2. How can you are calculate income if customer not filing the income tax return in business class
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To calculate income for a customer not filing income tax return in business class, alternative methods can be used.
• Review bank statements and financial records to identify income sources and patterns

• Consider industry benchmarks and market research to estimate income

• Assess the customer's assets, investments, and property ownership to determine potential income

• Analyze the customer's business expenses and profit margins t...read more
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Q3. What is the LTV ratio as per the RBI norms
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The LTV ratio as per RBI norms varies based on the type of loan and collateral.
• For home loans up to Rs. 75 lakh, the LTV ratio is 90%

• For loans above Rs. 75 lakh, the LTV ratio is 80%

• For loans against gold jewellery, the LTV ratio is 75%

• For loans against fixed deposits, the LTV ratio is 90%

• The LTV ratio is the ratio of the loan amount to the value of the collateral

• RBI periodically reviews and revises the LTV ratio norms
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Q4. How can you conduct PD in case of Street shops
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PD for street shops can be conducted through a combination of on-site visits, financial analysis, and market research.
• Conduct on-site visits to observe the shop's location, foot traffic, and overall appearance.

• Analyze the shop's financial statements, including income statements and balance sheets.

• Research the local market to understand competition and demand for the shop's products or services.

• Consider the shop owner's...read more
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Q5. How can you access the income of Kirana shopkeeper
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The income of a Kirana shopkeeper can be accessed through various methods.
• One can ask for the shop's financial statements and tax returns.

• One can also observe the shop's daily sales and estimate the income.

• Additionally, one can ask for references from suppliers or other business partners.

• Finally, one can conduct a credit check to determine the shop's creditworthiness.

• It is important to respect the shopkeeper's privacy
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Q6. How can we calculate income of pandit
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The income of a pandit can be calculated based on their profession and the services they provide.
• Calculate the fees charged by the pandit for various services like performing puja, conducting rituals, etc.

• Consider the number of clients the pandit serves in a month or year.

• Take into account any additional income sources like teaching or writing books on Hinduism.

• Compare the income with the average income of pandits in t...read more
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Q7. What is the parameter of cibil
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CIBIL is a credit information company that maintains credit records of individuals and companies.
• CIBIL stands for Credit Information Bureau (India) Limited.

• It maintains credit records of individuals and companies, including their credit history, credit score, and creditworthiness.

• The credit score ranges from 300 to 900, with a higher score indicating better creditworthiness.

• Lenders use CIBIL reports to evaluate the cre...read more
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Q1. What is the main thing in any valuation and technical report
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The main thing in any valuation and technical report is accuracy.
• Accuracy is crucial in any valuation and technical report.

• The report should be based on reliable data and calculations.

• The report should be free from errors and inconsistencies.

• The report should be able to provide a clear and concise picture of the subject being evaluated.

• For example, in a credit report, accuracy is important in determining the creditwort
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Q2. What is the legal report which document is mandatory for em creation
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The legal report mandatory for EM creation is the credit report.
• The credit report is a detailed summary of an individual's credit history and financial behavior.

• It includes information on credit accounts, payment history, outstanding debts, bankruptcies, and other financial data.

• Lenders use credit reports to assess the creditworthiness of a borrower and determine the risk of lending money to them.

• The credit report is m...read more
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Q3. Why 13 years flow is mandatory for any any legal report
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13 years flow is mandatory for any legal report to ensure accuracy and completeness of information.
• The 13-year time frame is based on the statute of limitations for most legal claims.

• It allows for a comprehensive review of the borrower's credit history and financial behavior.

• It also helps to identify any patterns or trends in the borrower's creditworthiness.

• Examples of legal reports that require a 13-year flow include ...read more
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Q4. What is the incumbrance and CERSAI
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Incumbrance refers to a claim or lien on a property, while CERSAI is a central registry for security interests on movable assets.
• Incumbrance can be in the form of a mortgage, a lien, or a charge on a property.

• CERSAI stands for Central Registry of Securitisation Asset Reconstruction and Security Interest of India.

• CERSAI is a government-owned company that maintains a central registry of security interests on movable asse...read more
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