Corporate Banking Interview Questions and Answers

I would invest Rs.100 in a diversified mutual fund to minimize risk and maximize returns.

• Investing in a diversified mutual fund allows for spreading the risk across multiple companies and sectors.

• Mutual funds are managed by professionals who have expertise in selecting the right investment opportunities.

• By investing in a mutual fund, I can benefit from the power of compounding and potentially earn higher returns over time.

• Some examples of popular mutual funds include HDFC Equ...read more

The relationship between the price of gold and equity price is generally inverse.

• Gold is often considered a safe haven investment, so when the equity market is performing poorly, investors tend to flock to gold, driving up its price.

• Conversely, when the equity market is performing well, investors may shift their focus away from gold, causing its price to decrease.

• There can be exceptions to this relationship depending on various factors such as economic conditions, geopolitica...read more

A company needs a bank for various financial services and support.

• Banks provide a range of financial services such as loans, credit facilities, and overdrafts to help companies manage their cash flow and fund their operations.

• Banks offer secure and convenient payment solutions like checking accounts, online banking, and electronic fund transfers, which are essential for businesses to receive and make payments.

• Companies can benefit from banks' expertise in managing investments...read more

A company needs various financial services and support from a bank.

• Access to capital for business expansion and investment

• Cash management services for efficient handling of funds

• Credit facilities for working capital and financing needs

• Trade finance services for international transactions

• Risk management solutions to mitigate financial risks

• Expert advice and guidance on financial matters

• Access to digital banking platforms for convenient banking

• Relationship management and person...read more

Earnings of a bank refer to the profits generated by the bank through its various operations and activities.

• Earnings are typically derived from interest income, fees and commissions, and trading gains.

• Interest income is generated from loans and investments made by the bank.

• Fees and commissions are earned from services provided to customers, such as account maintenance fees or advisory fees.

• Trading gains are the profits made from buying and selling financial instruments.

• Earnin...read more