centre for social entrepreneurship sivakamu veterinary hospital road bikaner 334001 rajasthan, india FOR – PGPSE PARTICIPANTS

PGPSE is an absolutely free programme – any person interested in becoming an entrepreneur / social entrepreneur may enroll into this programme send your case studies, articles to be published in this series You are free to distribute copies of this case study for academic / non-profit / social development work without prior permission.
mobile : 91+9414430763

pl. Send it at

this is a mock interview given by a person, reading this interview, you can identify the types of questions asked for a candidate preparing for banking. You can compare yourself with these answers : Q. Introduce yourself ANS: I am S.N. Goyal, I am a resident of Bikaner. I did my post graduation in Botany.

Q. Why did you opt for bank after completing post graduation in botany? ANS: Banking is a noble profession. Q. Do you believe in shortcut? Ans : No Q. How will you use your knowledge of science in your banking sector? Ans : I am from botany. I think I can use my knowledge in agriculture and financing sector Q. What are your responsibilities as a banker? Ans : I shall try my best to solve the problems of customers As a banker I shall try to help the customers q. what do you know about banking ? A : I have an account in a bank therefore I know about bank Q. what account do you have? A. I have savings account – in SBI. I use ATM also. Q. what do you get as interest ? A. I really dont know about the rate of interest now Q. Are you a banker ? No – but I want to become a banker, so I want to join your organisation.

Q. Why do you want to join as a banker? Ans.: It is a very decent and satisfying job. Banks are considered to be very respected and well managed organisations, so I want to be a part of banking industry. Q: - What is the contribution of banking to the economy? Ans : It gives finance to the industries, agriculture, and to the private sector, which results in overall economic development. It also provides support to the priority sector, which is as per the economic policies of the coutry. Q: What is basel ? Ans : Basel committee is international committee that has set up standards about capital adequacy for banks. Most Indian banks meet the Basel II standards of capital adequacy and other important standads. Q: How do RBI monitor banks? Ans : Every bank prepares Friday statement and sends it to RBI, this statement gives details of deposits, loans etc. Thus RBI has weekly update of key economic indicators and on the operations of the banks in India. RBI accordingly takes decisions and give suitable directions / circulars to the banks so that banks can promote nations interest and work in safe limits. Q: Why do you think that the banking system in India is fairly strong? Ans : In India, we are very conservative in our banking also. So banks generally dont lend beyond 80% of the price of the property. Banks are also very cautious in their approach. CRR and SLR limits also force banks to

park lots of funds in liquid assets thus they remain safe. They are able to meet any financial crisis due to their liquidity preference. Q : What are gilt edged securities ? Ans : Govt. Securities are called gilt edge (gold edge) securities. The govt. Securities include 91 day & , 182, 364 day treasury bills and other government bonds. Q : What are treasury bills ? Ans : Treasury Bills are money market instruments to finance the short term requirements of the Government of India. These are discounted securities and thus are issued at a discount to face value. The return to the investor is the difference between the maturity value and issue price. Thus if the face price of T bill is 100, it will be issued in say 98. At the time of maturity, the investor will get 100. Q: What is the difference between world bank and banker's bank? Ans : BIS (bank of international settlement ) is the banker's bank. It closely works with central banks of the various countries. World bank is the bank for reconstruction and development of the world. World bank (IBRD = International bank for reconstruction and development) gives financial assistance / loan for developmental purpose. It is closely working with UN, IMF and other such agencies. Q: How will you help our organisation? Ans : I will prove to be an asset for your bank by following your guidelines and shall acquire necessary skills for developing myself as a banker.

Q : What do you know about our bank ? Ans : It is a very good bank – it is the bank for common people. I like this bank, as it is the bank of my philosophy and I believe that I will find my career in this bank only. Q: Why do people trust bank ? Ans : Banks are well managed corporate bodies and they work as per the overall ecoomic policies of the country. There is a good system of supervision on banks, thus people have reasons to believe in stability and trustworthiness of banks. Q : What do you understand from banking ? Ans : Taking deposits from people and using that money for overall national development through financing for industries, agriculture, housing and other sectors. Q : What is universal banking ? Ans : Banks offer variety of services not just deposit and loans. They provide investment services also. Q : How do banks of modern time differ from banks of earlier times? Ans : Computerisation has changed the banks of today. These are paper less offices. Today banks offer a variety of services – and they are very customer oriented also. Q : What is customer orientation in banking ? Ans : Banks today try to satisfy customers. They try to provide services in the interest of the customer and try to

design services as per the requirements of customers. Q : What do you know about commercial banking ? Ans : Banking for commercial organisations is commercial banking. It includes retail banking also. Here banks focus on industrial and business organisations and earn profit by keeping some margin between the interest rate on deposits and interest rate on loans. Q : What do you know about rural banking ? Ans : Banks open offices in rural areas to mobilise savings of villagers and give finance to the villagers, this is called rural banking. Q : What is microfinance ? Ans : Microfinance is to mobilise savings in very small amount (let us say Rs. 10) and give small loans (let us say Rs. 3000) through SHGs (self help groups) – thus this is for very poor people. It is to enable people living below poverty line to raise their standard. Thus microfinance is an alternate channel. Many banks are also promoting microfinance. Gramin Bank, BRAC, SEWA, Basix etc. Have made significant contribution in this sector. Q : What do you know about priority sector lending ? Ans : The government has identified some sectors, which need more attention from banks in financing and in credits. Thus these sectors are priority sector. They are the sectors which our policy makers have identified as important for our development. Examples are : agriculture, cottage industry, people from backward classes etc.

Q : What do you know about the role of RBI? Ans : It is the cenral bank of India. It regulates and controls operations of all the banks. It is the banker of bank and is also banker of Government. RBI supervises banking in India. Q : What do you know about Bank rate, Monetary policy , CRR & SLR ? Ans : The rate at which RBI gives loans to other banks is called Bank rate. Monetary policy is announced twice a year – 30 October and 1 April (approximately) . Monetary policy gives details of M1,m2,m3, bank rate and overall economic scenario. Monetary policy gives guidelines about the direction of banking. CRR = cash reserve ratio - banks have to keep about 6% of their deposits with RBI as cash, this is called CRR. SLR is statutory liquidity ratio. Banks have to keep about 25% of their deposits in specified securities (like treasury bills etc.) Q : How will your background help you in banking ? Ans : My background of Botany will help me in appraisals of projects, my scientific approach and understanding of science will help me in assessing the business models of industries. My background of science has built a strong foundation for hardwork, discipline and commitment in me, which will help me throughout my life. Q : What did you do in last 2 years ? Ans : I did my postgraduation in science. I wanted to develop a scientific temper. I wanted to work as scientist.

However, later I realised that banking is the best career for me. Q : Dont you think that you have wasted thousands of rupees of the nation in science education? Ans : Science education builds scientific temper, which helps us indrectly. Our Society is having many orthodox practices & superstitions, and science education has helped me in building required temperment. In my job also I will be benefitted. It also helps in assessment of technical business proposals , as most of the technology is based on science. Q : WHAT IS CBS (core banking solutions) ? Ans : When all important banking solutions are available on one counter, it is called CBS. Q : What is subprime crisis? Ans : When banks in the USA gave sub-standard loans (without proper security) – mostly housing loans – which resulted in financial crisis. The fall in real estate prices resulted in large number of defaults in banks, which ultimately led to failure of many banks. Q : What did you learn from your parents? Ans : My father is a school teacher. I have learnt from him the basic values of honesty, sincerity, dedication and commitment. My mother is a housewife. She is an ideal lady having qualities of affection, love, and sacrifice. I have learnt the commitment of service from her. I believe that I am fortunate to be their child and their ideals will always inspire me.

Q : What will be your role in our bank ? Ans : I shall try to satisfy customers, and try to mobilise deposits for the bank and try to increase its business and shall do all those activities which are assigned to me as a banker. I shall try to ensure highest level of professional ethics in my conduct and shall act as per the image and goodwill of the bank. Q : What are M1,M2,M3,M4 Ans : Money supply is very important to understand. These are represented by M1, M2 and M3 (in US) with M1 being the narrowest measure and M3 being the broadest. In the UK there are only 2: M0 and M4. Narrow money refers to forms of money that are available immediately for use in transactions, broad money means those that are not immediately available. M 1 = notes in circulation + traveller cheque + demand deposit M2 = M1 + SAVINGS DEPOSITS + TERM DEPOSITS M4 = BROADEST MEASURE (Includes all types of money, deposits with banks and post offices etc. ) Q : what was the reason of recent europhia in the market ? Ans : The year 2009 witnessed massive recession worldwide. Now it is a recovery phase. Due to expectations of recovery, there is europhia. People expect that the market will recover soon and there are expectations that India will again become super powerhouse.

Q : WHAT IS BRIC? There are 4 growing economies : brazil, Russia, India, china Q : What are your strengths ? Ans : I am a learner and I try to learn whereever I get a chance.