1.

    What is SLR?

The ratio of liquid assets to demand and time liabilities is known as Statutory Liquidity Ratio (SLR).

2.    What are Repo rate and Reverse Repo rate?

Repo (Repurchase) rate is the rate at which the RBI lends shot-term money to the banks.
Reverse repo rate signifies the rate at which the central bank absorbs liquidity from the banks

3.    What is the difference between Bank Rate and Repo Rate?

Bank Rate is the rate at which RBI allows finance to commercial banks in India
Repo is a money market instrument, which enables short term borrowing and lending.

4.    What is a bank?

A bank is a financial institution whose primary activity is to act as a payment agent for    customers
and to borrow and lend money.

5.    What is Banking Business?

Banking Business is the business of receiving money on current or deposit account, paying and
collecting cheques drawn by or paid in by customers.

6.    What is Accounting for Bank Accounts?

There are two types of accounts Debit and Credit.

7.    What are the Economic functions of Banks?

 Issue of money
 Netting and settlement of payments
 Credit Intermediation
 Credit quality improvement
 Maturity transformation

8.    What is relation between Inflation and Bank interest Rates?

The major factor affecting Bank interest rate is inflation. An increase in inflation leads to an increase
of interest rate.

9.    What are the different channels of Banking you use in your daily life?

A branch, ATM, Mail, Telephone, Online Banking

10.   How many types of banks are there?

Banks’ activities can be divided into Retail Banking, Corporate banking, Business banking,
Investment banking.

You have successfully gone through the SBI PO interview questions.

What are the different channels of Banking you use in your daily life ?

Banks offer many different channels to access their banking and other services:

 A branch, banking centre or financial centre is a retail location where a bank or financial
institution offers a wide array of face-to-face service to its customers.

 ATM is a computerized telecommunications device that provides a financial institution's

customers a method of financial transactions in a public space without the need for a human
clerk or bank teller. Most banks now have more ATMs than branches, and ATMs are
providing a wider range of services to a wider range of users. For example in Hong Kong,
most ATMs enable anyone to deposit cash to any customer of the bank's account by feeding
in the notes and entering the account number to be credited. Also, most ATMs enable card
holders from other banks to get their account balance and withdraw cash, even if the card is
issued by a foreign bank.

 Mail is part of the postal system which itself is a system wherein written documents typically
enclosed in envelopes, and also small packages containing other matter, are delivered to
destinations around the world. This can be used to deposit cheques and to send orders to
the bank to pay money to third parties. Banks also normally use mail to deliver periodic
account statements to customers.

 Telephone banking is a service provided by a financial institution which allows its

customers to perform transactions over the telephone. This normally includes bill payments
for bills from major billers (e.g. for electricity).

 Online banking is a term used for performing transactions, payments etc. over the Internet
through a bank, credit union or building society's secure website.

How many type of banks there are ?

Banks' activities can be divided into retail banking, dealing directly with individuals and small
businesses; business banking, providing services to mid-market business; corporate banking,
directed at large business entities; private banking, providing wealth management services to
high net worth individuals and families; and investment banking, relating to activities on the
financial markets. Most banks are profit-making, private enterprises. However, some are owned
by government, or are non-profits.

Central banks are normally government owned banks, often charged with quasi-regulatory
responsibilities, e.g. supervising commercial banks, or controlling the cash interest rate. They
generally provide liquidity to the banking system and act as the lender of last resort in event of a
crisis.

Type of Retail Banks

 Commercial bank: the term used for a normal bank to distinguish it from an investment
bank. After the Great Depression, the U.S. Congress required that banks only engage in
 banking activities, whereas investment banks were limited to capital market activities. Since
the two no longer have to be under separate ownership, some use the term "commercial
bank" to refer to a bank or a division of a bank that mostly deals with deposits and loans
from corporations or large businesses.

 Community Banks: locally operated financial institutions that empower employees to make
local decisions to serve their customers and the partners

 Community development banks: regulated banks that provide financial services and credit to
under-served markets or populations.

 Postal savings banks: savings banks associated with national postal systems.

 Private banks: manage the assets of high net worth individuals.

 Offshore banks: banks located in jurisdictions with low taxation and regulation. Many
offshore banks are essentially private banks.

 Savings bank: in Europe, savings banks take their roots in the 19th or sometimes even 18th
century. Their original objective was to provide easily accessible savings products to all
strata of the population. In some countries, savings banks were created on public initiative,
while in others socially committed individuals created foundations to put in place the
necessary infrastructure. Nowadays, European savings banks have kept their focus on retail
banking: payments, savings products, credits and insurances for individuals or small and
medium-sized enterprises. Apart from this retail focus, they also differ from commercial
banks by their broadly decentralised distribution network, providing local and regional
outreach and by their socially responsible approach to business and society.

 Building societies and Landesbanks: conduct retail banking.

 Ethical banks: banks that prioritize the transparency of all operations and make only what
they consider to be socially-responsible investments.

 Islamic banks: Banks that transact according to Islamic principles.

Types of investment banks

 Investment banks "underwrite" (guarantee the sale of) stock and bond issues, trade for
their own accounts, make markets, and advise corporations on capital markets activities
such as mergers and acquisitions.

 Merchant banks were traditionally banks which engaged in trade finance. The modern
definition, however, refers to banks which provide capital to firms in the form of shares
rather than loans. Unlike venture capital firms, they tend not to invest in new
companies.
What is Bank Crisis? 

Banks are susceptible to many forms of risk which have triggered occasional systemic crises.
Risks include liquidity risk (the risk that many depositors will request withdrawals beyond
available funds), credit risk (the risk that those who owe money to the bank will not repay), and
interest rate risk (the risk that the bank will become unprofitable if rising interest rates force it to
pay relatively more on its deposits than it receives on its loans), among others.
 Banking crises have developed many times throughout history when one or more risks
materialize for a banking sector as a whole. Prominent examples include the U.S. Savings and
Loan crisis in 1980s and early 1990s [10] the Japanese banking crisis during the 1990s, the bank
run that occurred during the Great Depression, and the recent liquidation by the central Bank of
Nigeria, where about 25 banks were liquidated.[citation needed]

Numerous banks have suffered as a result of the Sub prime mortgage crisis, which has occurred
on a global scale, affecting investment banks such as Lehman Brothers in the USA and retail
banks such as Northern Rock in the UK. In January 2009, several major UK banks such as Lloyds
TSB and Barclays Bank, suffered severe falls in their London stock exchange share prices as a
result of a drop in investor confidence of the true asset values of those banks.

What is SLR? 
Every bank is required to maintain at the close of business every day, a minimum proportion of their
Net Demand and Time Liabilities as liquid assets in the form of cash, gold and un-encumbered
approved securities. The ratio of liquid assets to demand and time liabilities is known as Statutory
Liquidity Ratio (SLR). Present SLR is 24%. (reduced w.e.f. 8/11/208, from earlier 25%) RBI is
empowered to increase this ratio up to 40%. An increase in SLR also restrict the bank’s leverage
position to pump more money into the economy.

What is SLR ? (For Non Bankers) 

SLR stands for Statutory Liquidity Ratio. This term is used by bankers and indicates the
minimum percentage of deposits that the bank has to maintain in form of gold, cash or other
approved securities. Thus, we can say that it is ratio of cash and some other approved
to liabilities (deposits) It regulates the credit growth in India. 

What are Repo rate and Reverse Repo rate?

Repo (Repurchase) rate is the rate at which the RBI lends shot-term money to the banks.
When the repo rate increases borrowing from RBI becomes more expensive. Therefore, we can say
that in case, RBI wants to make it more expensive for the banks to borrow money, it increases the
repo rate; similarly, if it wants to make it cheaper for banks to borrow money, it reduces the repo
rate

What are Repo rate and Reverse Repo rate?

Repo (Repurchase) rate is the rate at which the RBI lends shot-term money to the banks.
When the repo rate increases borrowing from RBI becomes more expensive. Therefore, we can say
that in case, RBI wants to make it more expensive for the banks to borrow money, it increases the
repo rate; similarly, if it wants to make it cheaper for banks to borrow money, it reduces the repo
rate
Thus, we can conclude that Repo Rate signifies the rate at which liquidity is
injected in the banking system by RBI, whereas Reverse repo rate signifies the rate
at which the central bank absorbs liquidity from the banks .

What is the difference between Bank Rate and Repo Rate? 

Bank Rate vs Repo Rate

Bank Rate is the rate at which RBI allows finance to commercial banks in India.
There are difference types of refinance that can be availed by banks and these are
linked to Bank Rate. Thus, banks can borrow at this rate only to the extent of their
eligibility for refinance.

On the other hand, Repo is a money market instrument, which enables

collateralised short term borrowing and lending through sale/purchase operations
in debt instruments. Under a repo transaction, a holder of securities sells them to an
investor with an agreement to repurchase at a predetermined date and rate. In the
case of a repo, the forward clean price of the bonds is set in advance at a level
which is different from the spot clean price by adjusting the difference between
repo interest and coupon earned on the security. In the money market, this
transaction is nothing but collateralised lending as the terms of the transaction are
structured to compensate for the funds lent and the cost of the transaction is the
repo rate. Thus, a bank can borrow under repo provided he has the
extra securities which it can lend temporarily to RBI for borrowing short term
funds.

What is relation between Inflation and Bank interest Rates?

Now a days, you might have heard lot of these terms and usage on inflation and
the bank interest rates. Bank interest rate depends on many other factors, out of
that the major one is inflation. Whenever you see an increase on inflation, there
will be an increase of interest rate also.

What are the different channels of Banking you use in your daily life ?
Banks offer many different channels to access their banking and other services:
 A branch, banking centre or financial centre is a retail location where a bank or
financial institution offers a wide array of face-to-face service to its customers.
 ATM is a computerized telecommunications device that provides a financial
institution's customers a method of financial transactions in a public space without the
need for a human clerk or bank teller. Most banks now have more ATMs than
branches, and ATMs are providing a wider range of services to a wider range of users.
For example in Hong Kong, most ATMs enable anyone to deposit cash to any
 customer of the bank's account by feeding in the notes and entering the account
number to be credited. Also, most ATMs enable card holders from other banks to get
their account balance and withdraw cash, even if the card is issued by a foreign bank.
 Mail is part of the postal system which itself is a system wherein written documents
typically enclosed in envelopes, and also small packages containing other matter, are
delivered to destinations around the world. This can be used to deposit cheques and to
send orders to the bank to pay money to third parties. Banks also normally use mail to
deliver periodic account statements to customers.
 Telephone banking is a service provided by a financial institution which allows its
customers to perform transactions over the telephone. This normally includes bill
payments for bills from major billers (e.g. for electricity).
 Online banking is a term used for performing transactions, payments etc. over the
Internet through a bank, credit union or building society's secure website.

How many type of banks there are ?

Banks' activities can be divided into retail banking, dealing directly with individuals
and small businesses; business banking, providing services to mid-market business;
corporate banking, directed at large business entities; private banking, providing wealth
management services to high net worth individuals and families; and investment banking,
relating to activities on the financial markets. Most banks are profit-making, private
enterprises. However, some are owned by government, or are non-profits.
Central banks are normally government owned banks, often charged with quasi-
regulatory responsibilities, e.g. supervising commercial banks, or controlling the cash
interest rate. They generally provide liquidity to the banking system and act as the lender
of last resort in event of a crisis.
Type of Retail Banks
 Commercial bank: the term used for a normal bank to distinguish it from an
investment bank. After the Great Depression, the U.S. Congress required that banks
only engage in banking activities, whereas investment banks were limited to capital
market activities. Since the two no longer have to be under separate ownership, some
use the term "commercial bank" to refer to a bank or a division of a bank that mostly
deals with deposits and loans from corporations or large businesses.
 Community Banks: locally operated financial institutions that empower employees to
make local decisions to serve their customers and the partners
 Community development banks: regulated banks that provide financial services and
credit to under-served markets or populations.
 Postal savings banks: savings banks associated with national postal systems.
 Private banks: manage the assets of high net worth individuals.
 Offshore banks: banks located in jurisdictions with low taxation and regulation. Many
offshore banks are essentially private banks.
 Savings bank: in Europe, savings banks take their roots in the 19th or sometimes even
18th century. Their original objective was to provide easily accessible savings
products to all strata of the population. In some countries, savings banks were created
on public initiative, while in others socially committed individuals
createdfoundations to put in place the necessary infrastructure. Nowadays, European
savings banks have kept their focus on retail banking: payments, savings products,
 credits and insurances for individuals or small and medium-sized enterprises. Apart
from this retail focus, they also differ from commercial banks by their broadly
decentralised distribution network, providing local and regional outreach and by their
socially responsible approach to business and society.
 Building societies and Landesbanks: conduct retail banking.
 Ethical banks: banks that prioritize the transparency of all operations and make only
what they consider to be socially-responsible investments.
 Islamic banks: Banks that transact according to Islamic principles.

Types of investment banks

 Investment banks "underwrite" (guarantee the sale of) stock and bond
issues, trade for their own accounts, make markets, and advise corporations
on capital markets activities such as mergers and acquisitions.
 Merchant banks were traditionally banks which engaged in trade finance.
The modern definition, however, refers to banks which provide capital to
firms in the form of shares rather than loans. Unlike venture capital firms,
they tend not to invest in new companies.
What is Bank Crisis? 

Banks are susceptible to many forms of risk which have triggered occasional systemic
crises. Risks include liquidity risk (the risk that many depositors will request withdrawals
beyond available funds), credit risk (the risk that those who owe money to the bank will
not repay), and interest rate risk (the risk that the bank will become unprofitable if rising
interest rates force it to pay relatively more on its deposits than it receives on its loans),
among others.
Banking crises have developed many times throughout history when one or more risks
materialize for a banking sector as a whole. Prominent examples include the U.S. Savings
and Loan crisis in 1980s and early 1990s [10] the Japanese banking crisis during the
1990s, the bank run that occurred during the Great Depression, and the recent liquidation
by the central Bank of Nigeria, where about 25 banks were liquidated.[citation needed]
Numerous banks have suffered as a result of the Sub prime mortgage crisis, which has
occurred on a global scale, affecting investment banks such as Lehman Brothers in
the USA and retail banks such as Northern Rock in the UK. In January 2009, several
major UK banks such as Lloyds TSB and Barclays Bank, suffered severe falls in their
London stock exchange share prices as a result of a drop in investor confidence of the true
asset values of those banks.

Q1. Tell me about yourself or How would you describe yourself?

 Answer: Almost every interview starts with this question. The idea behind this is to break the ice and
get the ball rolling. There is no right or wrong answer to this question. The interviewee's presentation
style and communication skills are tested through this question.
Most often, interviewees end up telling their family details, educational qualifications and
percentages, hobbies et al. as an answer to this question. To stand apart, interviewees ought to refrain
from the above and come up with something different like what is it that differentiates their
personality, what is that they value and what do they bring to the table?

There is no doubt that the answer to this question makes a first impression on the interviewer, hence
the extent to which it is customized and is unique makes all the difference.

Variants of the same question are: How do you think a friend or a professor who knows you well
would describe you? If I asked the people who know you well to describe you, what three words
would they use?

Q2. What do you consider to be your greatest strengths/weaknesses? 

What are your negatives? 

 Answer: This is a question that one must have encountered at an interview or at some point of the
selection process. Most of the times, the interviewee is very uncomfortable expressing his/her greatest
weaknesses. The idea of an interviewer behind asking such a question is not to select or reject based
upon the strengths and weaknesses shared.

The way of going about answering this question can be suggested as:

Greatest strengths: The interviewee must take care that (s)he is modest enough while expressing the
strengths. The strengths portrayed are advised not be extraordinary but more than the normal. The
interviewee must spend sometime before the interview analyzing his/her strengths and a reasoning
behind considering the ones so.

Greatest weaknesses: The interviewee must not hesitate sharing his/her weaknesses and never say that
(s)he has none. (S)he must remember that the very fact that (s)he is aware of his/her weaknesses and
readily accept the same, works to the advantage. Again, the weaknesses portrayed must not be
abnormal, though unique but certainly not the ones which are common. The reasoning behind
considering something to be weakness must be convincing enough for the interviewer.

While strengths are to be emphasized, one should not be overly negative about weaknesses. It is
always safer to identify a lack of a skill as an area of improvement rather than a shortcoming. It is
advisable to present at least three strong points and relate them to the company, and the job one is
getting interviewed for. A common mistake that interviewees do is to use the third person like 'they',
'others' while answering this question. On the other hand, first person like 'I',' myself' must be used.

Variants of the same question are: If I spoke with your previous boss, what would he say are your
greatest strengths and weaknesses?

Q3. What are your interests? hobbies? What do you like to do in your leisure time?

 Answer: The idea behind asking this question is to find whether there is a balance in the
interviewee's life. The interviewee ought to understand that this is a very friendly way of exploring in
depth into one's personality. (S)he must put an effort in expressing his/her personality characteristics
thorough hobbies. One should never come up with an hobby which one is not passionate about though
it might look good on the resume. Usually, academic/technical interests are not to be interpreted as
areas of interest or hobbies. Again it is advisable to present two or three hobbies; be confident and
have sufficient knowledge behind one's areas of interest.
A word of caution: In case the interviewer is asking too many questions related to your hobbies, the
interviewee might assume that a chat is on and the reason behind asking the questions is passing away
the stipulated or planned time set for the interviewees. This however may not be necessarily true and
exceptions need to be kept in mind before drawing any conclusion

Variants of the same question are: What are your outside interests? What do you do with your free
time? What type of books do you read? How interested are you in sports? How did you spend
your vacation in school? What have you learned from participation in extracurricular activities? What
was the last book you read? movie you saw? sporting event you attended? Of the hobbies and interests
listed on your resume, what is your favorite and tell me why?

Q) Who is the governor of RBI

Ans) D Subbarao

Q)who is the chairman of SBI?

Ans) Om Prakash Bhatt