Frequently Asked Interview Questions in Banking – 8

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Frequently Asked Banking Interview Questions – 8

Dear Readers Now as the interview dates of RRB All Grades are out we bring to you very common banking interview questions with out set No 8 on the given subject. We will be updating material and Videos on a regular basis to help maximum number of candidates to cherish their dreams.

try Usually the time interval for interview for RRb exams lies between 7-9 minutes and more depending on the interest you are generating.

Sehpaathi Test ApplicationQuestions

  1. What do you mean by provisioning?
    Answer :: Sir Provisioning can be understood  as money that has been kept aside for future expenses or against NPA’s. Banks have to make regular provisioning for NPA’s. It varies from 15% to 100% for bad loans. Other provisioning is done for purposes like technological up-gradation, hike in salaries etc.
  2. What is CASA? Why is it essential?
    Answer:: Sir CASA stands for Current Account Saving Account. CASA represents the low cost money available with the bank. More the CASA more will be the Net Interest margin which finally results in increased earnings. In PSU banks SBI hold the highest amount of CASA accounts. CASA amounts to 44% of the total bank deposits in SBI
  3. What is your take on Loan Waiver Schemes? 
    Answer:: Sir, Loan waiver schemes make citizens a willful defaulter. They do not repay bank loans in a wait that a Loan Waiver scheme will come and all their debts will be paid by the government. This leads to increased NPA’s, Increase in provisioning and moreover encourage citizens not to replay loans. Loan waiver schemes break the backbone of banking industry which is already dealing with a mess of bad loans.
  4. Tell me something about balance sheet
    Answer:: Sir, Balance sheets are different according to organization. A general balance sheet comprises of 2 columns. Assets and Liabilities. Liabilities are written on left side and Assets on Right Side. For a bank Liability includes capital, reserves, Interest to be paid on deposits, Salary etc. For a Bank Assets are Interest earned on advances, Investments , Income earned from investments, other charges collected
    The differences between Assets and liabilities for a bank is called operating Profit/loss. From operating profit/loss provisioning for bad loans and Tax paid for services is subtracted. Then it comes out to be Net Profit/Loss before tax. Then after paying tax it is Net Profit/Loss after Tax.
  5. Is Profit an asset or liability 
    Answer:: Sir, Profit is a liability. Profits are absorbed by the bank as increase in capital or Reserve funds and are used to pay dividend to share holders.

 

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