What are banking interview questions

Regardless of the profession, job interviews can be tough. However, there are a few other factors to consider while applying for a banking profession. Below is a list of frequent banking interview questions and answers.

1. What are some examples of negotiable instruments?

  • Checks
  • Drafts
  • Dock warrant
  • Warehouse receipt
  • Certificate of deposit
  • Commercial paper

2. What is a repo?

A repo is a financial product that allows you to borrow money by selling securities and agreeing to repurchase them at a certain value with interest on a fixed date in the future.

3. What is a bid?

A bid is a price at which traders and investors from the market are inclined to purchase a certain asset.

4. Explain the overdraft facility

An overdraft facility is financial funding provided by banks to individuals and businesses so that they can withdraw money from their accounts even if their balance is low, zero, or negative.

5. What is the difference between private and nationalized banks?

A nationalized bank is owned by the government of that country, whereas a private sector bank is held by an individual or corporation.

6. What does base rate mean?

The base rate is the lowest rate of interest that a bank can charge its consumers, and cannot approve a loan at a rate lower than the base rate.

7. What is a Demand Promissory Note, and how does It work?

A promissory note is a legal, financial instrument in which one party promises another to pay a debt on a specific date. It’s a formal agreement signed by the borrower promising to pay the money on a certain date or whenever it’s requested.

8. What is inflation?

Inflation is described as an increase in the base price of the majority of ordinary or common goods and services.

9. What exactly are cash flows?

The circulation of funds in or out of a corporation over time is referred to as cash flows.

10. What are various Bill Types used in banking operations?

  • Documentary Bill
  • Usance Bill
  • Demand Bill
  • Inland Bills
  • Foreign Bills
  • Clean Bill
  • Trade Bill

Other questions to consider:

  • What are the different types of Banks available in India?
  • Who is our CEO?
  • What is the most critical issue impacting this bank right now?
  • What are the various sorts of loans offered by Indian banks?
  • What brought you to the banking industry and inspired you to become a banker?
  • Why did you decide to get into banking instead of consulting?
  • Why is inflation significant, and how can you protect yourself from it?
  • What does Corporate Banking entail?
  • What is working capital?
  • What is your least favorite element of working in banking?