Personal Banker Interview Questions and Answers for Freshers

NPA stands for Non-Performing Assets, which are loans where the borrower has stopped making payments.

• NPA is a key indicator of the financial health of a bank

• As a Personal Banker, I can help reduce NPA by providing personalized financial advice to customers to ensure timely repayments

• I can also identify potential NPA accounts early on and work with customers to find solutions before they default

Retail banking refers to the services provided by banks to individual customers, rather than businesses or corporations.

• Retail banking includes services such as checking and savings accounts, loans, mortgages, and credit cards.

• These services are typically offered through physical branches, online banking, and mobile apps.

• Retail banks also offer financial advice and investment services to their customers.

• Examples of retail banks include Bank of America, Wells Fargo, and Chase....read more

The income for the bank varies depending on factors such as interest rates, loan volume, and fees.

• Income for the bank is generated through various sources such as interest on loans, fees for services, and investment returns.

• Factors that can impact the bank's income include interest rates, loan volume, economic conditions, and competition.

• For example, if interest rates are low, the bank may earn less income from interest on loans, but may make up for it with higher loan volume...read more

Handle customer escalation by listening, empathizing, offering solutions, and escalating to a supervisor if necessary.

• Listen actively to the customer's concerns and show empathy.

• Offer solutions or alternatives to address the customer's issue.

• If unable to resolve the issue, escalate to a supervisor for further assistance.

• Follow up with the customer to ensure their satisfaction with the resolution.

Basic principles of banking include trust, risk management, and financial intermediation to facilitate economic growth.

• Trust: Banks must maintain customer trust to operate effectively, as seen in the importance of FDIC insurance in the U.S.

• Risk Management: Banks assess credit risk before lending, using credit scores to determine loan eligibility.

• Financial Intermediation: Banks connect savers and borrowers, providing loans for homes or businesses while offering interest on dep...read more