Interview Questions.

Question 1. What Are Investment Banks?

Answer :

An funding bank (IB) is a financial middleman that performs a selection of services. Investment banks specialise in big and complex financial transactions which include underwriting, performing as an middleman between a securities issuer and the investing public, facilitating mergers and other company reorganizations, and performing as a dealer and/or financial adviser for institutional clients.

Question 2. State The Sources And Application Of Funds Of Commercial Banks?

Answer :

Sources of Funds:

Share Capital
Reserves and Surplus
Deposits
Borrowings
Application of Funds:

Cash and cash Balance with RBI
Cash balance with different banks
Investments
Advances Source
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Question three. State The Role Commercial Banks?

Answer :

Mobilizing Saving for Capital Formation
Financing Industry
Financing Trade
Financing Agriculture
Financing Consumer Activities
Financing Employment Generating Activities
Help in Monetary Policy
Question four. Describe The Other Types Of Banks?

Answer :

Central banks are generally authorities owned and assigned with regulatory obligations, along with supervising business banks or controlling the cash interest charges and many others.

Islamic Banks are established in accordance of ideas of Islamic Law. This shape of banking revolves round numerous nicely set up standards based on Islamic canons.

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Question 5. What Is Cash Reserve Ratio?

Answer :

Cash Reserve Ratio (CRR) is a targeted minimal fraction of the full deposits of clients, which business banks need to keep as reserves either in cash or as deposits with the primary financial institution. CRR is set in line with the tips of the principal financial institution of a country.

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Question 6. Describe The Nature Of Commercial Banks?

Answer :

Commercial Banks are the organizations which cater sure economic transactions.
Its purpose is to earn earnings.
Transactions are socially and legally accepted.
Responsible for client deposits inside the bank.
Established and operated below the manage of significant financial institution of a state.
Question 7. Give The Functions Of Commercial Banks?

Answer :

(1) Primary Function:

Accepting Deposits
Advancing of Loans
Credit Creation
(2) Secondary Function:

Agency Functions
Public Utility Functions
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Question eight. List The Banks Under Retail Banks?

Answer :

Commercial Banks
Community Banks
Credit Union Banks
Postal Saving Banks
Ethical Banks
Question nine. Give The Meaning Of Combined Banks?

Answer :

Combined Banks are also referred to as as Universal banks. These are commonly called monetary services organizations; engage in several of diverse economic services.

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Question 10. State The Meaning Of Commercial Banks?

Answer :

A commercial financial institution is a financial group that provides services, including accepting deposits, giving business loans and automobile loans, loan lending, and simple funding merchandise like financial savings bills and certificate of deposit.

Question eleven. What Is The Meaning Of Non Performing Asset (npa)?

Answer :

A mortgage or rent that isn't assembly its stated predominant and interest bills. Banks typically classify as nonperforming assets any industrial loans which are more than 90 days late and any customer loans which might be extra than one hundred eighty days late. More typically, an asset which is not generating income.

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Question 12. State The Principles Of The Investment Policy Of Commercial Banks?

Answer :

Liquidity
Profitability
Safety
Diversity
Stability of securities
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Question 13. What Is The Meaning Of Capital Adequacy Ratio (automobile)?

Answer :

Percentage ratio of a monetary institution's number one capital to its belongings (loans and investments), used as a measure of its economic energy and stability. According to the Capital Adequacy Standard set with the aid of Bank for International Settlements (BIS), banks ought to have a number one capital base identical as a minimum to eight percent of their assets: a financial institution that lends 12 dollars for each dollar of its capital is in the prescribed limits.

Question 14. State The Purpose Of Narasimham Committee?

Answer :

To look at all factors relating to the shape and approaches of the economic systems.
To endorse enhancements in their performance and productiveness.
To reform the Indian Banking area.
Question 15. State The Discussion On Liquidity Vs Profitability?

Answer :

Profitability is the connection between earnings and capital (the "static" assets set apart to earn those profits). Measuring profitability way that you have to relate a profit figure (from the Profit and Loss Account) to a resources parent (from the Balance Sheet).

Liquidity may be described because the capacity of a company to fulfill its economic responsibilities as they fall due. The stability sheet (described as "a structured announcement of property and liabilities")measures those resources and claims.

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Question sixteen. Name The Two Expert Committees Which Were Set Up In 1990s?

Answer :

The first Narasimham Committee changed into appointed by way of Manmohan Singh as India's Finance minister on 14th August 1991. And the second became appointed through P.Chidambaram Finance minister in December 1997.

Question 17. Give The List Of Commercial Banks In India?

Answer :

List of Commercial Banks in India:

Reserve Bank of India 
Abu Dhabi Commercial Bank 
Allahabad Bank. 
Andhra Bank 
Bank of India 
Bank of Madura 
Bank of Punjab 
Canara Bank 
Chinatrust Commercial Bank 
Citibank 
City Union Bank 
Corporation Bank
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Question 18. What Is The Meaning Of A Bank?

Answer :

An established order authorized by a central authority to just accept deposits, pay hobby, clear tests, make loans, act as an middleman in financial transactions, and offer other monetary offerings to its customers.

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