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TOP-10 Banking Interview Questions and Answers

The banking sector is one of the most preferred career options by experienced and freshers throughout the world becoming a banker. However, getting a banking job is not an easy task as it requires higher responsibility, sincerity, dedication, aptitude, and above all academic qualification. If the application post is not for fresher, then you must have enough experience as well.

The banking interview has many questions that must be answered correctly to the interview panel to acquire a job. Furthermore, each country has banked on an international, national, and local levels. Each year banking and finance industry hires thousands of fresh and experienced candidates for a range of jobs e.g. tax analyst, researcher, customer relationship manager, and manager, etc. Here are some of the top questions that are asked during banking interviews. Answers are also provided so as to prepare you at best for your next interview.

1. Give a brief introduction of yourself?

This is one of the fundamental and important questions of the interview. Candidate needs to start a conversation and introduce himself in a positive way right from starting with name, location, qualification, and experience, etc. This question should be completed within 2 minutes as extended conversations are always boring.

2. Why you chose the banking sector?

This question must be answered logically with reasons. Your answer must comprise of the facts and figures of why has banking influenced you and many more people to prefer as a career. For instance, the banking sector is growing at a fast pace. Keep in mind that you must not start by mentioning a stable career option.

3. How many types of bank accounts are there?

Give a straight forward answer by mentioning the types of accounts e.g. checking account, savings account, current account, money market account, and CD (certificate of deposit) account, etc. Give a brief definition of the accounts as well.

4. What documents a does a person need to open an account?

Your answer must comprise of the quote of RBI to follow the guideline of knowing your customer (KYC) through which the bank is obtaining personal information of the holder of the account. Primary documents that are needed are photographs, identity cards, and address validation.

5. What are the common kinds of commercial banks?

Your answer must be straight forward again mentioning the names of commercial banks e.g. retail and corporate banks etc. You must also explain the working and differences of the banks.

6. What is APR?

You might be asked what is the annual percentage rate? However, you don’t need to get confused and answer it. APR is the annual interest rate that the banks are imposing on the services acquired by customers e.g. credit cards and loans etc.

7. What is the difference between negative amortization and amortization?

You should start with amortization is defined as repayment of a loan through the installment process for covering the amount with the interest rate while negative amortization is repayment of the loan when repaid loans are less than the accumulated interest of the loan.

8. Define Debt income ratio?

This is the ratio computed through the division of the applicant’s loan to that of the total payment of debt comparing the gross income of the applicant.

9. What would you say on loan grading?

The cataloging of loans grounded on different associated parameters and risks e.g. credit history of borrower etc.

10. How is the bank making profits?

The banks are making profits in numerous ways e.g. interest spread, deposit accepting, value chain, interest-based loans, and maintenance charges, etc.

There are numerous other questions that are asked in interviews of banking sector depending on the post applied for, however, the questions mentioned above are the most generic questions asked in interviews.

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