Contents

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INTERVIEW .................................................................................................................................... 34
What is Interview? ......................................................................................................................... 3
The Individual Interview ................................................................................................................ 3
Interviewing Panels ........................................................................................................................ 3
Purpose ........................................................................................................................................... 3
The Nature of an Interview ............................................................................................................ 3
Methods of Interview ..................................................................................................................... 4
INTERVIEWING APPROACHES .................................................................................................. 56
The Biographical Interview ............................................................................................................ 5
Interviews Planned by Reference to Assessment Headings ......................................................... 5
Structured Situational-Based Interviews ....................................................................................... 5
Structured Behavioural (Competency) Based Interviews .............................................................. 6
Structured Psychometric Interviews .............................................................................................. 6
INTERVIEWING TECHNIQUESASKING QUESTIONS ............................................................. 79
Open Questions .............................................................................................................................. 7
Probing Questions .......................................................................................................................... 7
Closed Questions ........................................................................................................................... 7
Hypothetical Questions ................................................................................................................. 7
Behavioural Event Questions ........................................................................................................ 8
Capability Questions ...................................................................................................................... 8
Questions About Motivation ......................................................................................................... 8
Continuity Questions ..................................................................................................................... 8
Career Questions ............................................................................................................................ 9
Questions about Outside Interests
PREPARING FORAN INTERVIEW .......................................................................................... 1013
Bank Interview Process ................................................................................................................ 10
Before the Interview ..................................................................................................................... 10
At the Interview ............................................................................................................................ 10
After the Interview ....................................................................................................................... 10
Documents Required for IBPS Bank Interviews .......................................................................... 10
Know Yourself .............................................................................................................................. 11
Prepare Yourself ............................................................................................................................ 11
Practice ......................................................................................................................................... 11
Checklist ....................................................................................................................................... 11
Research the Occupation ............................................................................................................. 12
Researching the Organization ...................................................................................................... 12
Most Employers Want to Know about You ................................................................................. 12
Bank Job InterviewDos and Donts ............................................................................................ 12

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INTERVIEW QUESTIONS FOR BANK JOBS ........................................................................ 1421

Frequently Asked Bank Interview Questions .............................................................................. 14
SBI Bank Interview Questions .................................................................................................... 14
Bank PO Interview Questions-Situational Questions .................................................................. 14
Important Questions and their Appropriate Answers ................................................................. 15
HR Questions .............................................................................................................................. 16
The Technical Questions ............................................................................................................. 17
Question Regarding Your Skills ................................................................................................... 17
Frequently Asked Interview Questions Related to Skills ............................................................ 17
Corporation Bank Interview Questions ....................................................................................... 17
Allahabad Bank PO Interview Questions .................................................................................... 18
Bank of Baroda Interview Questions ........................................................................................... 18
SBI Clerk Interview Questions ..................................................................................................... 18
Question Asked in State Bank of India (SBI) Interview ............................................................... 18
Dont Worry about Interview Questions ..................................................................................... 20
Most Recurrently Asked Questions ............................................................................................ 20
THE BIODATA ........................................................................................................................... 2224
Meaning of Bio-data ..................................................................................................................... 22
Definition of Bio-data ................................................................................................................... 22
Importance of Bio-data ................................................................................................................. 22
Most Important Basic Resume Tips ............................................................................................. 23
Avoid Mistakes ............................................................................................................................ 23
BODY LANGUAGE .................................................................................................................... 2532
Meaning of Body Language ........................................................................................................ 25
The Importance of Body Language during a Job Interview ....................................................... 26
The First Meeting ......................................................................................................................... 27
Choosing the Right Seat .............................................................................................................. 27
Tune Your Body Posture .............................................................................................................. 27
What to do with your hands ........................................................................................................ 28
Movements: A Dynamic Interview? ............................................................................................. 28
When should you look at whom? ................................................................................................ 28
Also pay attention to the body language of your interview partners ......................................... 28
Do not worry too much about tension ......................................................................................... 28
Interview Body Language that Sends the Right Message .......................................................... 29
Eye Contact .................................................................................................................................. 29
Voice Delivery ............................................................................................................................... 30
The Interviewers Message .......................................................................................................... 30
Head .............................................................................................................................................. 31
Arms ............................................................................................................................................. 31
Hands............................................................................................................................................ 31
Legs and Feet ............................................................................................................................... 32
POSITIVEATTITUDES .............................................................................................................. 3334
Definition of Attitude ................................................................................................................... 33
The Power of Positive Attitude .................................................................................................... 33
The benefits of a positive attitude ............................................................................................... 34
Developing a positive attitude that will lead you to happiness and success ............................. 34

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POSITIVE THINKING ............................................................................................................... 3536

Positive Thinking Your Key to Success ....................................................................................... 35
Positive thinking is contagious .................................................................................................... 35
Few actions and tips to help you develop the power of positive thinking ................................. 35
The Power of Positive Thinking ................................................................................................... 35
Practical Instructions .................................................................................................................... 36
SELF-CONFIDENCE .................................................................................................................. 3741
Definition of Self-Confidence ....................................................................................................... 37
Building Self-Confidence .............................................................................................................. 37
The Secret to a Winning Interview: Self-Confidence and Learning to Relax ............................... 38
How Do You Stay Calm? .............................................................................................................. 38
Four Steps to Self-Confidence ..................................................................................................... 38
How to Overcome Self Doubt and Build Self-Confidence ........................................................... 39
Adjust Your Self-Perception ......................................................................................................... 39
Encourage yourself ...................................................................................................................... 39
Develop Positive Self-Esteem ...................................................................................................... 39
Accept your needs as valid .......................................................................................................... 39
Get past the opinions of others .................................................................................................... 39
Get away from negative influences .............................................................................................. 40
Find a support network ................................................................................................................ 40
Try New Things ............................................................................................................................ 40
Renew your confidence ................................................................................................................ 40
HOW TO DRESS FOR AN INTERVIEW .................................................................................. 4244
The Importance of Dressing for Success ..................................................................................... 42
Mens Interview Attire ................................................................................................................. 43
Womens Interview Attire ............................................................................................................. 43
What Not to Bring to the Interview ............................................................................................. 43
Interview Attire Tips ..................................................................................................................... 43
HOW TO BEHAVE INSIDE AN INTERVIEW HALL ................................................................ 4545
EFFECTIVE COMMUNICATION .............................................................................................. 4649
What is effective communication? ............................................................................................... 46
Listening ....................................................................................................................................... 47
Tips for effective listening ........................................................................................................... 47
Non-verbal Communication .......................................................................................................... 47
Tips for improving how you read non-verbal communication .................................................... 47
Tips for improving how you deliver non-verbal communication ................................................ 48
Managing Stress .......................................................................................................................... 48
Quick stress relief for effective communication ........................................................................... 48
Emotional Awareness ................................................................................................................... 49
How emotional awareness can improve effective communication .............................................. 49
Effective communication requires both thinking and feeling ...................................................... 49
Emotional awareness is a skill you can learn ............................................................................... 49
BANKINGAND FINANCE KNOWLEDGE ............................................................................... 5054
Evolution of Commercial Banks in India ...................................................................................... 50
Definition of Banks ....................................................................................................................... 51

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Importance of Banks ..................................................................................................................... 51
The Main Functions of a Commercial Bank ................................................................................ 51
Banking Structure in India ............................................................................................................ 51
Banking Regulator: The Reserve Bank of India .......................................................................... 51
Functions of RBI .......................................................................................................................... 52
RBI as Bankers Bank ................................................................................................................... 52
RBI as supervisor ......................................................................................................................... 52
Scheduled Banks in India ............................................................................................................. 52
Public Sector Banks ...................................................................................................................... 52
Regional Rural Banks ................................................................................................................... 52
Private Sector Banks ..................................................................................................................... 53
Foreign Banks ............................................................................................................................... 53
Cooperative Banks ....................................................................................................................... 53
Competitive Landscape of Banks in India ................................................................................... 54
Term-Lending Institutions ............................................................................................................ 54
Non-Banking Finance Companies (NBFCs) ................................................................................. 54
Insurance Companies ................................................................................................................... 54
Mutual Funds ............................................................................................................................... 54
15. INDIAN FINANCIAL SYSTEM .................................................................................................. 5557
Introduction to Indian Financial System ...................................................................................... 55
Significance and Definition .......................................................................................................... 55
The Concept of the Financial System .......................................................................................... 55
Inter-relationship in the Financial System ................................................................................... 55
The Organisation of the Financial System in India ...................................................................... 56
Rural Financial System ................................................................................................................. 57
The Banking System ..................................................................................................................... 57
16. COMMERCIAL BANKING ........................................................................................................ 5861
Evolution ...................................................................................................................................... 58
Financial Services ......................................................................................................................... 58
Fiduciary Services ........................................................................................................................ 59
Off-Balance Sheet Activities ........................................................................................................ 59
Analysis of Assets and Liabilities of Commercial Banks ............................................................. 59
Liabilities of a Commercial Bank ................................................................................................... 59
Deposits from Banks .................................................................................................................... 60
Borrowing from other Banking Companies, Agents .................................................................... 60
Assets of a Commercial Bank ....................................................................................................... 60
17. CENTRAL BANKING ................................................................................................................ 6265
Monetary and Credit Policy ......................................................................................................... 62
Objectives of Monetary Policy in India ....................................................................................... 62
Policy of Credit Expansion ........................................................................................................... 63
Meaning of Credit Control ........................................................................................................... 63
Instruments of Monetary and Credit Policy ................................................................................ 63
Quantitative Credit Control .......................................................................................................... 63
Qualitative Credit Control ............................................................................................................. 64

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Selective Credit Controls .............................................................................................................. 64
18. RESERVE BANK OF INDIA (RBI) ............................................................................................ 6668
Functions of Reserve Bank of India ............................................................................................ 66
Bank of Issue ................................................................................................................................ 66
Banker to Government .................................................................................................................. 66
Banker's Bank and Lender of the Last Resort .............................................................................. 67
Controller of Credit ....................................................................................................................... 67
Custodian of Foreign Reserves .................................................................................................... 67
Supervisory Functions ................................................................................................................. 67
Promotional Functions ................................................................................................................. 68
Classification of RBI's Functions ................................................................................................. 68
19. BANKS IN INDIA ....................................................................................................................... 6979
State Bank of India ....................................................................................................................... 69
State Bank of Bikaner and Jaipur .................................................................................................. 69
State Bank of Hyderabad .............................................................................................................. 69
State Bank of Indore ..................................................................................................................... 70
State Bank of Patiala ..................................................................................................................... 70
State Bank of Saurashtra .............................................................................................................. 70
State Bank of Mysore ................................................................................................................... 71
State Bank of Travancore ............................................................................................................. 71
Allahabad Bank ............................................................................................................................ 71
Andhra Bank ................................................................................................................................ 72
Bank of Baroda ............................................................................................................................. 72
Bank of India ................................................................................................................................ 72
Bank of Maharashtra .................................................................................................................... 72
Canara Bank .................................................................................................................................. 73
Central Bank of India .................................................................................................................... 73
Corporation Bank ......................................................................................................................... 73
Dena Bank .................................................................................................................................... 74
Indian Bank ................................................................................................................................... 74
Indian Overseas Bank .................................................................................................................. 75
Oriental Bank of Commerce .......................................................................................................... 76
Punjab and Sindh Bank ................................................................................................................ 76
Punjab National Bank ................................................................................................................... 76
Syndicate Bank ............................................................................................................................. 77
UCO Bank ..................................................................................................................................... 77
Union Bank of India ..................................................................................................................... 78
Vijya Bank ..................................................................................................................................... 79
20. PRIVATE SECTOR BANKS ...................................................................................................... 8084
Old Private Sector Banks .............................................................................................................. 80
Catholic Syrian Bank Ltd. ............................................................................................................. 80
City Union Bank Ltd. .................................................................................................................... 80
Dhanalakshmi Bank Ltd. ............................................................................................................... 81
Federal Bank Ltd. .......................................................................................................................... 81
ING Vysya Bank Ltd. .................................................................................................................... 81

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Jammu and Kashmir Bank Ltd. ..................................................................................................... 81

Karnataka Bank Ltd. ..................................................................................................................... 82
Karur Vysya Bank Ltd. ................................................................................................................. 82
Lakshmi Vilas Bank Ltd. ................................................................................................................ 82
Nainital Bank Ltd. ......................................................................................................................... 82
Ratnakar Bank Ltd. ....................................................................................................................... 82
South Indian Bank Ltd. ................................................................................................................. 82
Tamilnad Mercantile Bank Ltd. ..................................................................................................... 82
New Private Sector Banks
Axis Bank Ltd. .............................................................................................................................. 83
Development Credit Bank Ltd. ..................................................................................................... 83
HDFC Bank Ltd. ............................................................................................................................ 83
ICICI Bank Ltd. ............................................................................................................................. 83
IndusInd Bank Ltd. ....................................................................................................................... 83
Kotak Mahindra Bank Ltd. ........................................................................................................... 83
Yes Bank Ltd. ................................................................................................................................ 84
FOREIGN BANKS IN INDIA ..................................................................................................... 8587
Major foreign banks in India ........................................................................................................ 85
ABN-AMRO Bank ........................................................................................................................ 85
Abu Dhabi Commercial Bank Ltd. ................................................................................................ 85
American Express Bank Ltd. ......................................................................................................... 85
BNP Paribas .................................................................................................................................. 85
Citibank ......................................................................................................................................... 85
DBS Bank Ltd. .............................................................................................................................. 85
Deutsche Bank ............................................................................................................................. 85
HSBC Ltd. ..................................................................................................................................... 86
Standard Chartered Bank .............................................................................................................. 86
Barclays Bank ............................................................................................................................... 86
Foreign banks branches in India as on September 30, 2013 ........................................................ 86
COOPERATIVE BANKS IN INDIA ........................................................................................... 8890
Primary Cooperative Credit Societies ........................................................................................... 88
Central Cooperative Banks ........................................................................................................... 88
State Cooperative Banks .............................................................................................................. 88
Land Development Banks ............................................................................................................ 88
Features of Cooperative Banks .................................................................................................... 88
REGIONAL RURAL BANKS IN INDIA .................................................................................... 9194
The Performance of Regional Rural Banks (RRBs) in India ......................................................... 92
Restructuring Strategies ............................................................................................................... 93
FINANCIAL INSTITUTIONS .................................................................................................... 9598
National Level Institutions ........................................................................................................... 95
State Level Institutions ................................................................................................................ 97
NON-BANKING FINANCIAL INSTITUTIONS AND OTHERS ............................................ 99102
National Bank for Agriculture and Rural Development (NABARD) ........................................... 99
EXIM Bank .................................................................................................................................. 100

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National Housing Bank (NHB) .................................................................................................... 101

Small Industries Development Bank of India (SIDBI) ................................................................. 101
India Infrastructure Finance Company Ltd. (IIFCL) ................................................................... 102
Irrigation and Water Resources Finance Corporation (IWRFC) ................................................. 102
SME Rating Agency of India Ltd. (SMERA) .............................................................................. 102
Industrial Finance Corporation of India (IFCI) ........................................................................... 102
ECONOMIC DEVELOPMENT THROUGH BANKING SYSTEM ....................................... 103105
Implications of the Reforms for the Banking Sector ................................................................... 105
LIBERALISATION OF THE FINANCIAL SYSTEM ............................................................. 106107
SAVINGAND FINANCIALINTERMEDIATION ................................................................... 108110
Saving .......................................................................................................................................... 108
Financial Intermediation .............................................................................................................. 109
PUBLIC DEBT ......................................................................................................................... 111114
Classification of Public Debt ....................................................................................................... 111
Internal Debt ................................................................................................................................ 111
External Debt ............................................................................................................................... 111
Ownership of Debt ...................................................................................................................... 112
Maturity Pattern of Debt ............................................................................................................. 112
Secondary Debt Market .............................................................................................................. 113
REPOs .......................................................................................................................................... 113
Reverse Repo ............................................................................................................................... 113
Advances to Priority Sector ........................................................................................................ 114
Supervision System ..................................................................................................................... 114
NON-BANKING FINANCIAL COMPANIES ......................................................................... 115117
Definition of Non-banking Finance Company ............................................................................ 115
Difference between Banks and NBFCs ....................................................................................... 115
Different Types of NBFCs ........................................................................................................... 115
Type of Services Provided by NBFCs ......................................................................................... 116
Financial Sector Reforms and Liberalization Measures for NBFCs ............................................ 117
MERCHANT BANKING ......................................................................................................... 118119
Merchant Banking in India .......................................................................................................... 118
Definition of Merchant Banker .................................................................................................... 118
MUTUAL FUNDS .................................................................................................................... 120122
Mutual Funds in India ................................................................................................................. 120
Types of Mutual Funds ............................................................................................................... 120
Private Mutual Funds .................................................................................................................. 121
Unit Trust of India ....................................................................................................................... 122
Money Market Mutual Funds (MMMF) .................................................................................... 122
STOCK MARKETS IN INDIA ............................................................................................... 123124
History of Stock Exchanges ........................................................................................................ 123
Stock Exchange ............................................................................................................................ 123
Organisation ................................................................................................................................ 123
Governing Body .......................................................................................................................... 124
Functions of Stock Exchange ...................................................................................................... 124
BASEL III ................................................................................................................................ 125127
Basel I and II ................................................................................................................................ 125

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Basel 3 and Indian Banks ............................................................................................................ 126

RBI Guidelines on Basel III Capital Regulations ......................................................................... 126
INDIAN CURRENCYAND COINS ....................................................................................... 128130
About India Currency ................................................................................................................ 128
Role of the Reserve Bank in Currency Management ................................................................. 128
Numerical System of India Currency .......................................................................................... 128
Indian Rupee Sign ....................................................................................................................... 129
Source ......................................................................................................................................... 129
Coins ........................................................................................................................................... 129
Issue of India Currency Coins .................................................................................................... 129
Blueprint ..................................................................................................................................... 129
Present India Currency Banknotes ............................................................................................. 130
India Currency Languages ......................................................................................................... 130
FINANCIAL REGULATORY BODIES IN INDIA .................................................................. 131134
Reserve Bank of India ................................................................................................................. 131
Securities and Exchange Board of India (SEBI) .......................................................................... 132
Insurance Regulatory Authority of India (IRDA) ....................................................................... 132
Pension Fund Regulatory and Development Authority (PFRDA) ............................................. 133
INFORMATION TECHNOLOGY IN THE FINANCIAL SECTOR ....................................... 135138
Role of Technology in Indian Banking Sector ............................................................................ 135
Electronic Payment Services E-Cheques .................................................................................. 135
Real Time Gross Settlement (RTGS) ............................................................................................ 136
Electronic Funds Transfer (EFT) ................................................................................................. 136
Electronic Clearing Service (ECS) ................................................................................................ 136
Automatic Teller Machine (ATM) ............................................................................................... 136
Point of Sale Terminal (PoS) ........................................................................................................ 136
Tele Banking ................................................................................................................................ 136
Electronic Data Interchange (EDI) .............................................................................................. 136
Implications ................................................................................................................................. 137
Issues in IT Delivery in the Banking Sector ............................................................................... 137
Financial inclusion ....................................................................................................................... 137
Innovation ................................................................................................................................... 137
Data integrity ............................................................................................................................... 137
Cost of transactions .................................................................................................................... 137
Channel security .......................................................................................................................... 137
Virtual Currency ........................................................................................................................... 138
IMPORTANT CONCEPTS REGARDING BUDGET ............................................................ 139142
ECONOMIC TERMINOLOGY .............................................................................................. 143152
TERMS ASSOCIATED WITH CAPITAL MARKET ............................................................. 153153
BANKING TERMS FOR INTERVIEW .................................................................................. 154156
FINANCE TERMS ................................................................................................................. 157158