10 Questions every Bank PO aspirant should be able to answer!

The Ibps PO exam results are out. If you’re reading this article, then you have probably cleared the Mains! If that’s the case – Congratulations from Team FLIP!
But, hold on. It’s not the time to party yet! The real and final battle of interviews lie ahead – as you might already know, only 3 out of 10 participants who appear for a Bank PO interview, clear it. The odds are stacked against you.
But hey, you have got so far! So, put all your might in this last mile – and you CAN make it to your dream bank job.
The question is – How to work SMART in the time you have?
How do you stand out as a UNIQUE and SKILLED profile, compared to your peers?
Let’s answer these points while discussing the questions you must be ready for.

ABOUT YOU:
The first section of the IBPS Interview is spent knowing you, your awareness of the role and why you are a better candidate in comparison to the guy who came in before you and the one coming after you! Opinions are formed in the first 5 minutes – so this section is critical.
1. Tell me about yourself
2. Why are you opting for a job in the banking sector?
3. What qualities do you possess that make you the right fit for a banking sector job?
For Tell me about yourself, do not spend too much time dwelling into your education and family background. Do NOT do a rehash of your CV, or waste time on things like “I am from XYZ place”.
Focus on your positives –
“I am the oldest in my family. I have been good at academics and extracurricular. As my dad was in a transferable job, I am comfortable with staying in a variety of places. After my graduation, I was placed in..” etc. Talk about your work experience (if any) and key achievements. Bring out the relevance of your work experience to a Bank job.
For Why Banking, completely avoid phrases like job security, good salary or a peaceful job as your reasons!
Instead, talk about how the banking sector or the economy is in general – something like “World Bank’s recent report has said India will be the fastest growing economy in the world at 7.3% in 2018. With such a positive outlook for the economy, the banking sector in India is bound to grow. Hence I want to be a part of the sector”
Here’s a good report we found – this provides a good overview of the Indian Banking Sector.
For Qualities you possess, some regular terminology used to answer this question is that you are an organized person, accurate and efficient, has honesty and integrity, good analytical skills etc.,
While this is good, another way to stand out while answering this question is to showcase your interest and initiative by showcasing a powerful industry endorsed Banking Certification on your CV.

ABOUT YOUR BANKING AWARENESS:
1. What is Retail Banking? What are the front office and back office roles?
Retail Banking is the banking division that handles banking requirements of individuals and small businesses. Retail banking division acts as a key channel to collect deposit funds, which are in turn used to lend and generate profits for the bank. A retail bank aims to ensure a high proportion of cheap deposits (CASA funds: Current Accounts & Savings Accounts). The retail bank also generates income via loans and other services, such as foreign currency sale, lockers, the sale of Mutual Funds & Insurance, etc.
Front office functions are mostly revenue centers, that is, they involve sales and service. The people in these functions sell products and services, bring in money and have a P&L responsibility.
Back office support functions are critical to the bank- but a customer does not interact with them. Back office functions are mostly cost centers – they spend money to support front office functions. The back office handles the processing and reporting of the transactions. Back office offers roles, such as account opening, loan documentation processing, payment processing etc.,

2. What is RBI? What is its role in the Indian Economy?
Reserve Bank of India (RBI) is the Central bank of the country. The basic objective of RBI is described as “to regulate the issue of bank notes and keeping of reserves, with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage”.

Following are the role of RBI in the Indian Economy:
1) Making monetary policy
2) Printing of currency
3) Managing foreign exchange reserves
4) Banker to the Government and Manager of ‘Public Debt of the Government’ –
5) Regulating and supervising the financial system
3. What is your take on the recent merger of SBI associate banks with SBI?
The merger of SBI with Associates Banks has opened the door for consolidation among PSU Banks. After the merger, the resulted entity SBI’s market share has increased from 17% to 22%.The balance sheet of SBI has increased from Rs 23 Lakhs crore to Rs 32 Lakhs crore.
SBI has managed to break into top 50 banks of the world in terms of Asset size and the number of branches of the merged entity has increased to 24,000. It also reduced inefficiencies such as branches in similar locations, etc.

KEY TERMINOLOGIES:
1. What is the difference between deposit and fee-based products? Name a few.
Deposit products are the cheap source of funds for a bank. Deposits are liability products as they are depositor’s funds, which need to be repaid. The deposits are given out as loans, which earn income. For example, Savings account, current account, fixed deposit, recurring deposits, etc.
Banks also offer fee-based products such as demand drafts, locker facility, earn commission via selling other (non-bank) financial products like insurance and mutual funds, etc.,

2. What is KYC and why is it important?
KYC or Know Your Customer helps banks to know who their customers are. They involve a process, where a customer’s identity, address, source of funds etc are verified before opening an account.
KYC and AML guidelines are in place to prevent banks from being used, intentionally or unintentionally, by criminal elements for money laundering or for terrorist financing activities.
KYC procedures also enable banks to know/understand their customers and their financial dealings better which in turn help them manage their risks prudently.

3. Explain these terms – Repo Rate, Reverse Repo, Bank Rate, CRR & SLR
Repo Rate – Repo rate is the rate at which RBI is willing to lend money for short-term to other banks, against government securities. Currently, Repo Rate as of Jan’18 is 6%
Reverse Repo Rate – The reverse repo rate (Jan’ 2018 at 5.75%) is the rate at which RBI is willing to borrow money from other banks against government securities.
Bank Rate – Bank rate is the rate charged by the central bank on the long-term loans extended to commercial banks and other financial institutions. Current (Jan’ 18) Bank Rate is 6.25%.
CRR – Cash Reserve Ratio is the percentage of deposits that must be maintained by banks, in the form of cash, with the RBI. For example, a CRR of 4% means, for every Rs.100 in deposits that a bank accepts, Rs.4 must be maintained or kept as reserves with the central bank.
This ensures that banks have enough cash to repay depositors, when they choose to withdraw money, thus protecting depositors’ interest. Currently, CRR as of Jan’18 is 4%
SLR – Statutory Liquidity Ratio or SLR refers to the percentage of deposits, that all banks are required to maintain, in the form of gold or approved securities. Currently, SLR as of Jan’18 is 19.5%

4. What is an NPA?
An NPA – Non-Performing Asset is a loan or advance for which the principal/advance payment is overdue for a period equal to or more than 90 days. The 90 day period is subject to change basis specific terms and conditions set for a loan.
You can learn the answers to key concepts, products in banking, etc., in this beautiful practical, role relevant online program – which even SBI used, to train its POs!: