SBI Clerk Interview Experience II - 2010

1.      Why you choose bank rather that S/w as you are a B-tech student?

H:  I am interested in a bank that’s why I have chosen and moreover B-tech is just a graduation, to be strong in Computer Knowledge I have chosen it.

2.      What is the reason for Recession?

H:  Though there are many reasons for the recession, sub-prime crisis contributes the major.(Go for Interview Experience –I).

3.      What is Sub-prime crisis?

H:  Giving home loans to the people who don’t have good credit rating.

4.      Which sectors are affected due to recession in India?

H:  Almost all sectors are affected, mostly Real estate and IT sector.

5.      Was Indian Banking got affected due to recession?

H: Affected but it is negligible.

6.      Name some of the financial institutions in India?

H: SBI, NABARD, LIC.

7.      Who and what is important for bank?

H: Customers and Money.

8.      How you will be useful to the bank if you were selected?

H: I am a hard worker as i can complete the work accurately within the time and I have very good knowledge on computers and its applications.

9.      Do you think private banks are a threat to public banks?

H: No I don’t think so, Still India need more banking service to reach out different types of people. We have different types of banks in India, like Rural banks for Rural people , private banks for high net worth individuals and public sector banks for general public.

10. You are over qualified for clerical job? Why do u prefer clerk job? Why not Officer?

H: I have appeared for the Officers, but did not get through. So I decided to join as a clerk and then try for the officer post.

11. What is the meaning of Sbi logo? And what do you know about SBI?

H: Told whatever I known.

About SBI:

State Bank of India(SBI) is the largest bank in India.

The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. The Government of India nationalized the Imperial Bank of India in 1955.

The State Bank Group having more than 17000 branches. SBI alone holds 12,448 branches. SBI has over 21,000 ATMs.

The bank has 141 overseas offices spread over 32 countries.

Symbol and Logo:

Symbol is the Key Hole, whose meaning is "Welcome to SBI".

Slogans are:

1) The Nation banks on us

2) Pure banking nothing else

3) The Banker to every Indian

4) With you all the way.

State Bank of India has the following six Associate Banks (ABs):

1.      State Bank of Bikaner and Jaipur (SBBJ)

2.      State Bank of Hyderabad (SBH)

3.      State Bank of Indore (SBIr)

4.      State Bank of Mysore (SBM)

5.      State Bank of Patiala (SBP)

6.      State Bank of Travancore (SBT)

The six ABs have a combined network of 4502 branches in India which are fully computerized and 2410 ATMs.

12. How can you find the fake currency note?

H: Don’t know.

Ways to detect a fake note

Optical Variable Ink: The colour of the numeral 1000 appears green when the banknote is held flat but would change to blue when the banknote is held at an angle. The font size is also reduced.

Latent Image: When the note is head horizontally, the vertical band on the right shows an image of the number 1000.

Security Thread: The note also has a three millimeter wide security thread with the inscriptions: one thousand, the word 'Bharat' in Hindi and RBI.

Micro lettering: The 'RBI' and the numeral, "1000" - which can be viewed with the help of a magnifying glass - are between the Mahatma Gandhi portrait and the vertical band.

Watermark: When the note is held against the light, the picture of Gandhi and an electrolyte mark showing the number 1000 appear in the white space.

Note: I Presented the Sbi Clerk Interview experience of Hari Jadhav who appeared on 29-03-10.

SBI Clerical Interview Experience - 2010

I present the Interview experience of a candidate named Balvinder who attended Sbi Associates Clerical interview in 2009 and submitted her interview experience to this blog.

Interviewer: why do u want to join the bank , as u have engineering background your performance is fantastic in every field n u r lecturer in engineering college?

balvinder: I told them that i always wanted to come into banking field after doing mba but due to some financial problems i could not make it. I have always admired my paternal uncle who is in one of the psb employee at a very reputed designation....n as far as my engineering background is concerned so i think i always stand one step ahead den those who r plain graduate as i can handle each n every thing in a smarter way den a plain graduate can do.

Int: Don’t you think that you are overqualified for this post?

bal: Yes i m aware of his fact but to me becoming a part of this organisation will b an honour for me moreover this is my dream bank n this post will act as a first step to get into this organisation.

Int: Don’t you get frustrated if a person with less knowledge and qualification will b your boss/ senior?

bal: Absolutely not because if that person is a part of this organisation and holding a respected designation then definitely he will b having some knowledge ...moreover i will try to learn new things from that person n will try to move ahead in my professional life.

Int: Were do you see yourself after 5 yrs?

bal: Well i c my self at a managerial post (officer) in this organisation itself .

Int: r u mobile?

bal: yes i am .

Int: Do you any problem if u will b posted in a village?

Bal: Absolutely not.

Int: What will u do if an illiterate customer comes to you?

bal: I will first ask his purpose for visiting the bank on that basis will deal with him.

Int: What will u do if he has to open an saving a/c n at that time when you are busy in your work?

bal: I will keep aside my work as every customer comes with a purpose. I will attend him , will fill up his form and will complete all the formalities as he can help us in increasing our business.

Int: As you have written in your bio-data form that you won soo many prizes in quiz competition, so tell me tha news channels u watch?

bal: I told him few news channels (all were hindi).

Int: Don’t you watch English Channel?

bal: I said i do,

Int: He asked me to name them?

bal: i told him few channels like cnbc 18, cnbc awaaz,  zee business, etc.

Int: lastly they asked me to define bank?

bal: It is a financial institution which facilitates to make deposits, provided loans for education, agriculture, and may other things.

Bank PO Interview Experience II - 2010

1.      Why do you want to enter banking?

Banking is one of the fastest growing sectors in India with more stable and high growth and more over providing wide range of career opportunities for graduates. So I want to take an opportunity to join in a bank.

2.      Have you applied to any other areas apart from banking?

No.

3.      What is the difference between Cheque and Demand Draft?

Both are used for transfer the amount b/w two accounts of same or different Bank. Cheque is written by an individual and withdrawn from the account whereas Demand draft is issued by a bank where you have to pay before issuing.

4.      What are NBFCs and difference between NBFCs and Bank?

Non-bank financial companies (NBFCs) are financial institutions that provide banking services, but do not hold a banking license. NBFCs do offer all sorts of banking services, such as loans and credit facilities, retirement planning, money markets, underwriting, and merger activities. These institutions are not allowed to take deposits from the public.

5.      What is Free Market economy?

A market economy based on supply and demand with little or no government control is said to be free market economy.

6.      What are the functions of Nabard?

National Bank for Agriculture and Rural Development(NABARD) is one of the premiere agency to provide credit in rural areas. It provides credit flow for the development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts.

7.      Is there any specialized company for home finance in India?

National Housing Bank(NHB)

8.      Do you think that you are over qualified for this position?

No, I don’t think so, but I am very well qualified for this position.

9.      2 years down the line if you would be offered 50k or 70k by other organization, Will you leave this organizations? If not why?

????????????-------------??????????????

10. What is National Electronic Fund Transfer system (NEFT)? What is the difference between RTGS and NEFT?

National Electronic Fund Transfer (NEFT) is an online system for transferring funds of Indian financial institution (especially banks). This facility is used mainly to transfer funds below Rs. 1,00,000. The Reserve Bank of India has instructed banks that they should not use RTGS for amounts below Rs 1 lakh.

The key difference between RTGS and NEFT is that while RTGS is on gross settlement basis, NEFT is on net settlement basis. The minimum transaction value for RTGS is Rs. 1,00,000, whereas there is no minimum value for NEFT.

11. What is Private Banking?

Banking services offered to high net-worth individuals. Private banking institution assists the high net-worth individual in investing his/her money in exchange for commissions and fees. The term "private" refers to the customer service being rendered on a more personal basis.

12. What is an Investment Bank and Commercial Bank and what is the difference between them?

Investment Bank: A financial institution that deals primarily with raising capital, corporate mergers and acquisitions, and securities trades. It aids companies in acquiring funds.

Commercial Bank: An institution which accepts deposits, makes business loans, and offers related services. Commercial banks also allow for a variety of deposit accounts, such as checking, savings, and time deposit. These institutions are run to make a profit and owned by a group of individuals.

A Commercial bank is commonly referred to as simply a bank. The term ‘Commercial’ is used to distinguish it from an investment bank. The term ‘Commercial’ is used to refer to any banking organization or division that deals with the deposits and loans of business organizations.

Traditionally, banks either engaged in commercial banking or investment banking. In commercial banking, the institution collects deposits from clients and gives direct loans to businesses and individuals.

Through investment banking, an institution generates funds in two different ways. They may draw on public funds through the capital market by selling stock in their company, and they may also seek out venture capital or private equity in exchange for a stake in their company.

Examples of Investment Banks: Bank of America, J P Morgan Chase, Citigroup.

Note: Give your best possible answer for the question 9.

Bank PO Interview Experience - 2010

I present the Interview Experience of a candidate in Central Bank of India for the post of Probationary Officer (PO) whose name is ‘Akash, who completed his B-tech in Computer Science in 2008.

Þ    Why banking?

I am interested in banking and my father is also a banker.

Þ    In which bank your father will work?

He works in State bank of India as a clerk in Hyderabad.

Þ    If you are interested in Banking, then why you have done B-tech? and what you have done after the completion of your graduation?

Actually I had a plan to do MBA after my graduation, but due to financial problems I can’t do it, so i postponed to do my MBA until I get a job. In the mean time I have been preparing for banks.

Þ    How many banks have you appeared so far?

So far I have written five exams in that I cleared two exams one is this bank & another is Canara Bank and I didn’t cleared the interview round in Canara Bank.

Þ    What do you think the reason behind for not clearing the interview round(Canara Bank)?

I didn’t prepare well at that time.

Þ    Where is the Headquarters of this bank?

Mumbai.

Þ    What is the Use of Computers in a Bank?

Computers are used for many purposes in banks like:

Computer store details of customers account information.

Computers can solve billions of complex mathematical operations in fractions of a second.

Computers can be used for user authentication.

Computers can be used on a network to instantly contact other branches. When you use an ATM, you are using a networked computer terminal.

It's easier to access/update the information.

An employee can also check a customer's account balance instantly.

Computers help a bank save time and money, and can be used as an aid to generate profits.

Þ    What is recession? What is the cause for the present recession?

It can be defined as if country’s GDP growth is negative for two or more consecutive years and the main cause for the present recession is Sub-Prime crisis where it started in US.

Þ    What is Sub-prime crisis?

The current Subprime crisis is due to sub-prime lending. These are the loans given to the people having low credit rating.

Þ    Why India is affected? Which sectors are affected?

Bcoz many of the Indian companies have major outsourcing deal from the US and moreover India is one of the largest exporter to US. Almost all sectors are affected majorly Industrial, Real estate and IT sectors.

Þ    Why Indian Banks are much not affected?

Why bcoz RBI has adjusted some key rates like CRR, Repo rate, bank rate( that in turn decreases interest rates that in turn increases money supply and that in turn increases Investment) and also Indian’s bank are less interested in giving sub prime loans.

Þ    What is CRR?

It is defined as the Cash Reserve Ration. It is the amount of funds that the banks have to keep with RBI.

Þ    How much amount that banks have to keep with RBI?

Five percent of the total amount.

Þ    What is Social Banking?

It is a banking process that caters specially to the development needs of the poor in sharp contrast with conventional commercial banking, which has marginalized the poor.

Þ    What is Federal Reserve?

It is the Central Bank of US like what we have RBI in our country.

Þ    Where you will be in five years from now if you are selected?

In the same bank with one or two promotions.

Note: Almost all the questions and answers are taken from Akash except for the question: Use of Computers in banks and Social Banking.

Types of Banks in India - 2010

What is a Bank?

A Bank is a financial organization which accepts deposits that can be withdrawn on

demand and also lends money to individuals and business houses that need it.

Structure of banking sector in India:

 What is RBI?

The RBI is India's central bank. The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.

RBI acts as a banker to the Government and Banks.

The Central Bank maintains record of Government revenue and expenditure under various heads. It maintains deposit accounts of all other banks and advances money to other banks, when needed.

Another important function of the Central Bank is the issuance of currency notes, regulating their circulation in the country by different methods.

What is Scheduled Bank?

All banks which are included in the Second Schedule to the Reserve Bank of India Act, 1934 are scheduled banks.

These banks comprise Scheduled Commercial Banks and Scheduled Cooperative Banks. The type of banks comes under these Scheduled Commercial Banks and Scheduled Cooperative Banks can be seen in the above figure.

All most all banks are Scheduled banks in India.

What are Commercial Banks?

Commercial banks may be defined as, any banking organization that deals with the deposits and loans of business organizations

Commercial banks issue bank checks and drafts, as well as accept money on term deposits.  Commercial banks also act as moneylenders, by way of installment loans and overdrafts.

Commercial banks also allow for a variety of deposit accounts, such as checking, savings, and time deposit. These institutions are run to make a profit and owned by a group of individuals.

Types of Loans offered by Commercial banks:

1)Secured Loan: A secured loan is one where the borrower provides a certain property or asset as collateral against the loan. The main condition of these loans is that if the loan remains unpaid, the bank has the right to use the property in any way they like to realize the outstanding amount.

2)Unsecured Loan: Unsecured loans have no collateral and therefore command higher interest rates. There are a variety of unsecured loans available today and these include credit cars, credit facilities such as a lines of credit, corporate bonds, and bank overdrafts.

3)Mortgage Loans: Mortgage loans that are provided by commercial banks are similar to secured loans but are used specifically to buy real estate property for commercial purposes. In most of these cases, the banks hold a lien on the title to the particular property purchased with the loan. If the borrower is unable to pay the loan back, the bank leverages this item against the loan to generate funds or recover the principal.

What are Public Sector Banks?

These are banks where majority stake is held by the Government of India.

Examples of public sector banks are: SBI, Bank of India, Canara Bank, etc.

What are Private Sector Banks?

These are banks majority of share capital of the bank is held by private individuals. These banks are registered as companies with limited liability.

Examples of private sector banks are: ICICI Bank, Axis bank, HDFC, etc.

What are Foreign Banks?

These banks are registered and have their headquarters in a foreign country but operate their branches in our country.

Examples of foreign banks in India are: HSBC, Citibank, Standard Chartered Bank, etc.

What are Regional Rural Banks?

Regional Rural Banks were established under the provisions of an Ordinance promulgated on the 26th September 1975 and the RRB Act, 1976 with an objective to ensure sufficient institutional credit for agriculture and other rural sectors. The area of operation of RRBs is limited to the area as notified by GoI covering one or more districts in the State.

RRBs are jointly owned by GoI, the concerned State Government and Sponsor Banks (27 scheduled commercial banks and one State Cooperative Bank); the issued capital of a RRB is shared by the owners in the proportion of 50%, 15% and 35% respectively.

Prathama bank is the first Regional Rural Bank in India located in the city Moradabad in Uttar Pradesh.

What are Cooperative Banks?

A co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank. Co-operative banks are often created by persons belonging to the same local or professional community or sharing a common interest. Co-operative banks generally provide their members with a wide range of banking and financial services (loans, deposits, banking accounts, etc).

They provide limited banking products and are specialists in agriculture-related products.

Cooperative banks are the primary financiers of agricultural activities, some small-scale industries and self-employed workers.

Co-operative banks function on the basis of "no-profit no-loss".

Anyonya Co-operative Bank Limited (ACBL) is the first co-operative bank in India located in the city of Vadodara in Gujarat.

How Bank gets Money?

Banks make money by lending your money out at interest and by charging you for services provided. Banks keep on lending money.

The other big revenue items generated by banks are the fees they charge. Bank charge for every service, whether it is for an electronic transaction, or permitting a transfer through the Internet banking system.

When banks get profits they invest in other companies and in return they will get money.