Amendments made in the Indian Companies Act, 2013:

Amendments made in the Indian Companies Act, 2013:
The amendments to the Companies Act 1956 in 2013 Act have introduced several new concepts and have also tried to streamline many of the requirements by introducing new definitions. After getting approval of both the houses of Parliament, the long awaited Companies Bill 2013 obtained the assent of the President of India on 29 August 2013 and became Companies Act, 2013 (2013 Act). The changes in the 2013 Act have far-reaching implications that are set to significantly change the manner in which corporates operate in India.
Highlights of Companies Act 2013:
1. Immediate Changes in letterhead, bills or other official communications, as if full name, address of its registered office, Corporate Identity Number (21 digit number allotted by Government), Telephone number, fax number, email ID, website address if any.
2. One Person Company (OPC): It's a Private Company having only one Member and at least One Director. No compulsion to hold AGM. Conversion of existing private Companies with paid-up capital up to Rs 50 Lacs and turnover up to Rs 2 Crores into OPC is permitted.
3. Woman Director: Every Listed Company /Public Company with paid up capital of Rs 100 Crores or more / Public Company with turnover of Rs 300 Crores or more shall have at least one Woman Director.
4. Resident Director: Every Company must have a director who stayed in India for a total period of 182 days or more in previous calendar year.
5. Accounting Year: Every company shall follow uniform accounting year i.e. 1 st April -31st March.
6. Loans to director – The Company CANNOT advance any kind of loan / guarantee / security to any director, Director of holding company, his partner, his relative, Firm in which he or his relative is partner, private limited in which he is director or member or any bodies corporate whose 25% or more of total voting power or board of Directors is controlled by him.
7. Articles of Association- In the next General Meeting, it is desirable to adopt Table F as standard set of Articles of Association of the Company with relevant changes to suite the requirements of the company. Further, every copy of Memorandum and Articles issued to members should contain a copy of all resolutions / agreements that are required to be filed with the Registrar.
8. Disqualification of director- All existing directors must have Directors Identification Number (DIN) allotted by central government. Directors who already have DIN need not take any action. Directors not having DIN should initiate the process of getting DIN allotted to him and inform companies. The Company, in turn, has to inform registrar.
9. Financial year- Under the new Act, all companies have to follow a uniform Financial Year i.e. from 1st April to 31st March. Those companies which follow a different financial year have to align their accounting year to 1st April to 31st March within 2 years. It is desirable to do the same as early as possible since most of the compliances are on financial year basis under the new Companies Act.

Very Important terms

What is FII?
FII (Foreign Institutional Investor) used to denote an investor, mostly in the form of an institution. An institution established outside India, which proposes to invest in Indian market, in other words buying Indian stocks. FII's generally buy in large volumes which has an impact on the stock markets. Institutional Investors includes pension funds, mutual funds, Insurance Companies, Banks, etc.
What is FDI?
FDI (Foreign Direct Investment) occurs with the purchase of the “physical assets or a significant amount of ownership (stock) of a company in another country in order to gain a measure of management control” (Or) A foreign company having a stake in a Indian Company.
What is IPO?
IPO is Initial Public Offering. This is the first offering of shares to the general public from a company wishes to list on the stock exchanges.
What is Disinvestment?
The Selling of the government stake in public sector undertakings.
What is Fiscal Deficit?
It is the difference between the government’s total receipts (excluding borrowings) and total expenditure.
What is Revenue deficit?
It defines that, where the net amount received (by taxes & other forms) fails to meet the predicted net amount to be received by the government.
What is GDP?
The Gross Domestic Product or GDP is a measure of all of the services and goods produced in a country over a specific period; classically a year.
What is GNP?
Gross National Product is measured as GDP plus income of residents from investments made abroad minus income earned by foreigners in domestic market.
What is National Income?
National Income is the money value of all goods and services produced in a country during the year.
What is Per Capita Income?
A: The national income of a country, or region, divided by its population. Per capita income is often used to measure a country's standard of living.
What is Vote on Account?
A vote-on account is basically a statement ,where the government presents an estimate of a sum required to meet the expenditure that it incurs during the first three to four months of an election financial year until a new government is in place, to keep the machinery running.
Difference between Vote on Account and Interim Budget?
Vote-on-account deals only with the expenditure side of the government's budget, an interim Budget is a complete set of accounts, including both expenditure and receipts.
What is SDR?
The SDR (Special Drawing Rights) is an artificial currency created by the IMF in 1969. SDRs are allocated to member countries and can be fully converted into international currencies so they

serve as a supplement to the official foreign reserves of member countries. Its value is based on a basket of key international currencies (U.S. dollar, euro, yen and pound sterling).
What is SEZ?
SEZ means Special Economic Zone is the one of the part of government’s policies in India. A special Economic zone is a geographical region that economic laws which are more liberal than the usual economic laws in the country. The basic motto behind this is to increase foreign investment, development of infrastructure, job opportunities and increase the income level of the people.
What is corporate governance?
The way in which a company is governed and how it deals with the various interests of its customers, shareholders, employees and society at large. Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled. Is defined as the general set of customs, regulations, habits, and laws that determine to what end a firm should be run.
Functions of RBI?
The Reserve Bank of India is the central bank of India, was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Reserve Bank of India was set up on the recommendations of the Hilton Young Commission. The commission submitted its report in the year 1926, though the bank was not set up for nine years. To regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage." Banker to the Government: performs merchant banking function for the central and the state governments; also acts as their banker. Banker to banks: maintains banking accounts of all scheduled banks.
What is the dispute between the RBI and GOVT OF INDIA presently
What is monetary policy?
Monetary policy is the process by which the government, central bank, of a country controls (i) the supply of money, (ii) availability of money, and (iii) cost of money or rate of interest, in order to attain a set of objectives oriented towards the growth and stability of the economy.
What is Fiscal Policy?
Fiscal policy is the use of government spending and revenue collection to influence the economy. These policies affect tax rates, interest rates and government spending, in an effort to control the economy. Fiscal policy is an additional method to determine public revenue and public expenditure.

LIMITED LIABILITY PARTNERSHIP ACT - SALIENT FEATURES

LIMITED LIABILITY PARTNERSHIP ACT - SALIENT FEATURES
 The LLP will be an alternative corporate business vehicle that would give the benefits of limited liability but would allow its members the flexibility of organizing their internal structure as a partnership based on an agreement. The proposed Bill does not restrict the benefit of LLP structure to certain classes of professionals (as in some countries) but would be available for all enterprises that fulfill the requirements of the Act. LLP will be a body corporate and a legal entity separate from its partners.
 A LLP will have perpetual succession. While the LLP will be a separate legal entity, liable fully of its assets, the liability of the partners would be limited to their agreed contribution in the LLP.
 Further, no partner would be liable on account of the independent or un-authorized actions of other partners, thus allowing individual partners to be shielded from joint liability created by another partner’s wrongful business decisions or misconduct.
 Indian Partnership Act, 1932 shall not be applicable to LLPs and there shall not be any upper limit on number of partners in an LLP unlike an ordinary partnership firm where the maximum number of partners cannot exceed 20.
 A LLP shall be under obligation to maintain annual accounts reflecting true and fair view of its state of affairs.
 Since tax matters of all entities in India are addressed in the Income Tax Act, 1961, the taxation of LLPs will be as addressed in the Income Tax Act.
 Provisions are made in the Bill for corporate actions like mergers, amalgamations etc.
 While enabling provisions in respect of winding up and dissolutions of LLPs have been made in the Bill, detailed provisions in this regard would be provided by way of rules under the Act.
 The Act also provides for conversion of existing partnership firm, private limited company and unlisted public company into a LLP.
 Nothing Contained in the Partnership Act 1932 will affect an LLP.
 The Registrar of Companies will register and control LLPs also.
Conceptually, an LLP is a hybrid corporate form entity combining features of the existing partnership firms and limited liability companies. LLP combines the benefits of limited liability for partners with flexibility to organize internal management based on mutual agreement among the partners. India’s 1932 Partnership law permitted partnership firms with unlimited liability.
Following are as the salient features of the LLP bill, 2008:
 LLP shall be a body corporate and a legal entity separate from its partners. It will have perpetual succession like a corporation;
 Provisions of the Indian Partnership Act, 1932 shall not be applicable to LLPs and there shall not be any upper limit or number of partners in an LLP unlike an ordinary partnership firm where the maximum number of partners cannot exceed 20; (10 in case of banking);
 While the LLP will be a separate legal entity, liable to the full extent of its assets, the liability of the partners would be limited to their agreed contribution to the LLP. Further, no partner would be liable on account of independent or unauthorized actions of other partners to be shielded from joint liability created by another partner’s wrongful business decisions or misconduct;
 The framework of LLP is not restricted to professional services alone. Several business activities can be undertaken using the LLP structure;
 Any individual or body corporate may be a partner in LLP:
 An LLP shall be under obligation to maintain annual accounts reflecting true and far view of its rate of affairs; and
 The bill contains procedures for corporate actions like mergers, amalgamations, liquidations etc.

The LLP Act will be administered by Ministry of Corporate Affairs. LLPs would need to be necessarily registered with registrar of companies by submitting necessary documents. The registration of LLPs will be a time bound (approx 2 weeks) and paperless affair and would be covered under MCA-21 e-governance programme of the Ministry of Corporate Affairs.

Some questions for bankers

Some questions for bankers
1. What does ICFAI stands for?

Institute Of Chartered Financial Analysts Of India.



2. Tell me something about ICFAI?

The institution has been offering quality education to students across the country through its various programs in the field of higher education. The institution was founded by pioneers in private education



3. What are treasury bills?

Treasury Bills are the instruments of short term borrowing by the Central/State govt. They are promissory notes issued at discount and for a fixed period. These were first issued in India in 1917 Treasury bills (T-bills) offer short-term investment opportunities, generally up to one year. They are thus useful in managing short-term liquidity. At present, the Government of India issues three types of treasury bills through auctions, namely, 91-day, 182-day and 364-day. There are no treasury bills issued by State Governments.



4. What is yield?

In finance, the term yield describes the amount in cash that returns to the owners of a security. Normally it does not include the price variations, at the difference of the total return. Yield applies to various stated rates of return on stocks (common and preferred, and convertible), fixed income instruments (bonds, notes, bills, strips, zero coupon), and some other investment type insurance products (e.g. annuities).



5. What is HTM & AFS?

Available-for-sale (AFS), Held-to-maturity (HTM)



6. What is mark to market?

Mark-to-market is an accounting practice by which companies value and report their assets, especially financial instruments, at market price. Market price basically refers to the price at which the asset, or a similar asset, is trading at in a public exchange. The concept is derived from the accounting principle of prudence.



7. What are dated securities?

Dated Government securities are long term securities and carry a fixed or floating coupon (interest rate) which is paid on the face value, payable at fixed time periods (usually half-yearly). The tenor of dated securities can be up to 30 years.



8. Founder of NIACL? What do you know abot NIACL? Source of income for NIACL

New India Assurance Co. Ltd., Founded by Sir Dorabji Tata in 1919. NIACL -100 % Govt owned multinational general insurance company operating in 22 countries and headquartered at Mumbai, India.



9. What is the benefit of nationalization on Indian Banks?

Objectives Behind Nationalisation of Banks in India is : Social Welfare, Controlling Private Monopolies, Expansion of Banking, Reducing Regional Imbalance, Priority Sector Lending.



10. What is the difference between Cheque and Demand Draft?

Both are used for transfer the amount b/w two accounts of same or different Bank. Cheque is written by an individual and withdrawn from the account whereas Demand draft is issued by a bank where you have to pay before issuing.



11. What are NBFCs and difference between NBFCs and Bank?

Non-bank financial companies (NBFCs) are financial institutions that provide banking services, but do not hold a banking license. NBFCs do offer all sorts of banking services, such as loans and credit facilities, retirement planning, money markets, underwriting, and merger activities. These institutions are not allowed to take deposits from the public.



12. What is Private Banking?

Banking services offered to high net-worth individuals. Private banking institution assists the high net-worth individual in investing his/her money in exchange for commissions and fees. The term "private" refers to the customer service being rendered on a more personal basis.



13. What is the Use of Computers in a Bank?

Computers are used for many purposes in banks like: Computer store details of customers account information. Computers can solve billions of complex mathematical operations in fractions of a second. Computers can be used for user authentication. Computers can be used on a network to instantly contact other branches. When you use an ATM, you are using a networked computer terminal. It's easier to access/update the information. An employee can also check a customer's account balance instantly. Computers help a bank save time and money, and can be used as an aid to generate profits.



14. What is recession? What is the cause for the present recession?

It can be defined as if country’s GDP growth is negative for two or more consecutive years and the main cause for the present recession is Sub-Prime crisis where it started in US.



15. What is the difference between Nationalized bank and Private Bank ?

A Nationalized bank is one that is owned by the government of the country. Since the people decide who the government is, they are also referred to as public sector banks. The government is responsible for the money deposited into the accounts of these banks. Where as a private sector bank is one that is owned by an independent individual or a company that is controlled by a few individuals. In short, the bank is owned by someone else and they run the bank. The person owning/running the bank is responsible for the money deposited into the accounts of these banks.



16. What is LAF ?

Liquidity Adjustment Facility (LAF) was introduced by RBI during June, 2000 in phases, to ensure smooth transition and keeping pace with technological upgradation.



17. What is SENSEX and NIFTY?

SENSEX is the short term for the words "Sensitive Index" and is associated with the Bombay (Mumbai) Stock Exchange (BSE). The SENSEX was first formed on 1-1-1986 and used the market capitalization of the 30 most traded stocks of BSE. Where as NSE has 50 most traded stocks of NSE.SENSEX IS THE INDEX OF BSE. AND NIFTY IS THE INDEX OF NSE.BOTH WILL SHOW DAILY TRADING MARKS. Sensex and Nifty both are an "index”. An index is basically an indicator it indicates whether most of the stocks have gone up or most of the stocks have gone down.


18. What is Fiscal Deficit?

It is the difference between the government’s total receipts (excluding borrowings)


19. What is Sub-prime crisis?

The current Subprime crisis is due to sub-prime lending. These are the loans given to the people having low credit rating.



20. What is a Repo Rate?

Repo rate is the rate at which our banks borrow rupees from RBI. Whenever the banks have any shortage of funds they can borrow it from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases, borrowing from RBI becomes more expensive.



21. What is Reverse Repo Rate?

This is exact opposite of Repo rate. Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from banks. RBI uses this tool when it feels there is too much money floating in the banking system. Banks are always happy to lend money to RBI since their money is in safe hands with a good interest. An increase in Reverse repo rate can cause the banks to transfer more funds to RBI due to this attractive interest rates.



22. What is CRR Rate?

Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with RBI. If RBI decides to increase the percent of this, the available amount with the banks comes down. RBI is using this method (increase of CRR rate), to drain out the excessive money from the banks.



23. What is SLR Rate?

SLR (Statutory Liquidity Ratio) is the amount a commercial bank needs to maintain in the form of cash, or gold or govt. approved securities (Bonds) before providing credit to its customers. SLR rate is determined and maintained by the RBI (Reserve Bank of India) in order to control the expansion of bank credit. SLR is determined as the percentage of total demand and percentage of time liabilities.Time Liabilities are the liabilities a commercial bank liable to pay to the customers on their anytime demand. SLR is used to control inflation and propel growth. Through SLR rate tuning the money supply in the system can be controlled efficiently.



24.  What is Bank Rate?

Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and advances that it extends to commercial banks and other financial intermediaries. Changes in the bank rate are often used by central banks to control the money supply.




25.Why the banks are going to lend the money at varied interest rate?
Banks are going to lend the money at varied interest rates depending upon the purpose, amount and period of loN

National Company Law Tribunal and National Company Law Appellate Tribunal (NCLT and NCLAT

National Company Law Tribunal and National Company Law Appellate Tribunal (NCLT and NCLAT)
NCLT created on 01.06.2016 (Companies Act 2013), is a quasi-judicial body to adjudicate company related issues. Constitution of
NCLT : President : Is or has been a Judge of a High Court for 5 years. (Term 5 years and re-appointment for 5 years). +
Judicial Member (Term till 67 years) + Technical Member (term till 65 years). Constitution of NCLAT : Chairperson : Is or
has been a Judge of the Supreme Court or the Chief Justice of a High Court. (Term 5 years and re-appointment for 5 years) +
Judicial Member (Term till 70 years) + Technical Member (term till 67 years). Benches : Central Govt. constituted 11 benches
(Principal Bench in New Delhi). Bench presided by President.
Orders of Tribunal: Disposal of application within 3 months. It can be reviewed within 2 years. Appeal from orders of
Tribunal : It can be to NCLAT within 45 days. Disposal period 3 months. Appeal to Supreme Court : It can be within 60 days.
Type of cases to be handled: Cases pending before Company Law Board or any District Court or High Court or before Board of
Industrial and Financial Reconstruction under the Sick Industrial Companies (Special Provisions) Act.In addition, the Insolvency and
Bankruptcy Code, 2016 (Bankruptcy Code), also provides wide powers to the NCLT to adjudicate upon the 'insolvency resolution
process' and liquidation of corporate debtors.

Ethics in Banking

Ethics in Banking

An ethical bank, also known as a social, alternative, civic, or sustainable bank, is a bank concerned with the social and environmental impacts of its investments and loans. The ethical banking movement includes: ethical investment, impact investment, socially responsible investment, corporate social responsibility, and is also related to such movements as the fair trade movement, ethical consumerism, and social enterprise

What is Ethics
Ethics is a set of principle of right conduct. They are the Rules or standards governing the conduct of a person or the members of a profession or organisation. They help us examine whether a practice or conduct is good or bad within the context of a moral duty.


What is Value
A value is an enduring belief that a specific mode of conduct or a certain end state of existence is personally or socially preferable to an opposite or converse mode of conduct or end state of existence

.

Other areas of ethical consumerism, such as fair trade labelling, have comprehensive codes and regulations which must be adhered to in order to be certified. Ethical banking has not developed to this point; because of this it is difficult to create a concrete definition that distinguishes ethical banks from conventional banks. Ethical banks are regulated by the same authorities as traditional banks and have to abide by the same rules. While there are differences between ethical banks, they do share a desire to uphold principles in the projects they finance, the most frequent including: transparency and social and/or environmental values. Ethical banks sometimes work with narrower profit margins than traditional ones, and therefore they may have few offices and operate mostly by phone, Internet, or mail. Ethical banking is considered one of several forms of alternative banking.

Environmentally and socially conscious business practices
In general banks play an intermediary role in the economy; because of this the possibility for banks to contribute to sustainable development is extensive. Jeucken 2002 Banks have efficient and tested credit approval systems, which gives them a comparative advantage in knowledge (regarding sector-specific information, legislation and market developments).Jeucken & Bouma 1999 Banks are experienced and capable of weighing risks and attaching a price to these risks; because of this banks can fulfill an important role in reducing the information asymmetry between market parties and allow them to make better decisions. When depositors allow a bank to invest for them they may assume that the bank will attempt to select investments to maximize their returns. However, if clients are concerned with more than the simple monetary return and they, for instance, are interested in the costs to society and to the environment, then they may need to turn to an ethical bank which takes their ethics and morality into account when investing.

Some businesses externalize costs onto the environment and society. Aiming to create a more equitable distribution of costs in society, banks can raise interest rates or apply tariffs on loans given to clients and projects with high external costs. This would mean that companies would pay more if their business caused extensive environmental damage; taking some of the cost off of society as a whole and putting it on the company. This sort of tariff differentiation could stimulate the internalization of environmental costs in market prices.Jeucken & Bouma 1999 Through such price differentiation, banks have the potential to foster sustainability.Jeucken & Bouma 1999.

Banks may be able to support progress toward sustainability by society as a whole—for example, by adopting a ‘carrot-and-stick’ approach, where environmental and social front-runners would pay less interest than the market price for borrowing capital, while environmental laggards would pay a much higher interest rate.Jeucken & Bouma 1999 Banks can also develop more sustainable products, such as environmental, social, or ethical investment funds. By investing selectively based on values, ethical banks can promote socially/environmentally responsible companies and penalize those who do not conform to these standards. But there is a risk that banks could simply adopt certain practices that make them appear ethical (see greenwashing) while not adopting other practices that would have a greater impact



Ethics can be defined as a system of criteria and measures examining the values, norms and
rules underlying the individual and social relations on such moral grounds as right and wrong
or good and bad. Professional ethics regulates the relationships of members of the relevant
profession with each other and with society, and defines organizational ethics and in-house
behavioral culture by imposing certain rules for resolution of problems originating from
inside or outside the organization.
Performing the investment and saving functions by playing the role of a unifier and mediator
in the society between parties offering and demanding funds, banks, as a part of marketplace,
mainly and naturally target the profitability and productivity principles, which requires them
to operate in strict compliance with certain professional and organizational ethics principles.
Departing from the objectives of growth of banking system, enhancement of banking service
quality, best use of resources, creation of a fair and honest competitive environment among
banks, and prevention of unfair competition, banks are required and expected to regulate their
relations with each other and other organizations, and with their customers, shareholders and
employees in accordance with these ethical principles.



Ethics or moral philosophy is a branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong conduct. The field of ethics, along with aesthetics, concerns matters of value, and thus comprises the branch of philosophy called axiology.

Ethics seeks to resolve questions of human morality by defining concepts such as good and evil, right and wrong, virtue and vice, justice and crime. As a field of intellectual inquiry, moral philosophy also is related to the fields of moral psychology, descriptive ethics, and value theory.

Three major areas of study within ethics recognized today are:

Meta-ethics, concerning the theoretical meaning and reference of moral propositions, and how their truth values (if any) can be determined

Normative ethics, concerning the practical means of determining a moral course of action

Applied ethics, concerning what a person is obligated (or permitted) to do in a specific situation or a particular domain of action



Our Responsibilities

• What Do We Need to Do? Our Responsibilities
• As an Employee, We are Bank’s Brand Ambassador. Delivering the Promise of Banks  Brand rests on us.
• We are expected to:
• Be familiar with, understand and follow the Bank’s Ethics Code in letter and spirit.
• Commit to it as prescribed.
• Be familiar with the policies and procedures relevant to our current role.
• Ask any questions we have about the Code, policies & procedures and how they apply to us.
• Keep the values of STEPS in mind and treat colleagues & customers with respect to protect our reputation.
• Speak up and report a suspected violation of the Code, policies, procedures or law.
• Refer to the Ethical Decision-Making Guide or relevant policy in Resources Section of the Code, if we are not sure on what to do in a situation.
• Understand the Code and be in a position to guide our team properly.
• Foster a culture of ethics & uphold the spirit of the Code in daily actions.
• Make sure that our team feels comfortable in asking questions or raising concerns.
• Never tolerate retaliation or allow others to do so.
• Make sure that we have appropriate delegation before entering into any transaction or risk on behalf of Bank.
• Report a misconduct or to take action to redress the same

SERVICE
Serving our Customers
• We are aware that the Bank is committed to providing best-in-class products, services & solutions to the customers that are consistent with their needs and circumstances.
• We shall make our customers feel valued and important in each transaction.
• We shall treat our customers in the way we want to be treated ourselves.
• We shall put customers’ need above our own and serve them with a smile.
• We shall help our customers to make informed financial decisions.
• We shall treat our all customers fairly regardless of caste, creed, race, religion, disability or gender.
• We shall always seek customer feedback to improve the customer experience.
DOs
• Say “Thank you” to customers after doing their work.
• Listen with empathy - Always.
• Focus on customers’ needs.
• Keep yourselves updated to respond to customers’ queries.
DON’Ts
• Let customers wait.
• Attend to other tasks when dealing with a customer.
• Be inconsistent.

TRANSPARENCY
• Transparency
• Being Transparent we shall respect the right of customers for openness and transparency in their dealings with us at all times.
• We shall be truthful and responsible in all our transactions with all stakeholders.
• We shall always act in good faith and with due care while dealing with internal or external constituencies.
• DOs
• Be open and transparent in your dealings.
• Be accurate while exchanging information about Bank.
• DON'Ts
• Conceal or misrepresent facts regarding a product or service with anyone.
• Misconstrue a transaction.
• Mislead or cover up information while dealing with others
ETHICS Handling Conflicts of Interest- Actual, Potential or Perceived: Competing Fairly
• We are aware that the Bank has faith in open and fair competition and believes in having the competitive advantage through superior performance and shall act with the same spirit.
• We shall deal fairly with our customers and not place our desire to increase our performance before their best interests. For example, we shall not impose undue pressure on a customer or a potential customer to obtain another product or service from us as a precondition of approving a request for a Banks’ product or service.
• DOs
• Compete in good faith.
• Be fair - Always.
• DON’Ts
• Share sensitive information with competition.
• Be unfair while competing.


POLITENESS
Being Polite in Treating Customers
• We shall offer a polite, courteous and empathetic experience to our customers in their interactions with us.
• We shall ensure that we are understanding and understood while dealing with customers and seek to listen them more than we talk.
• We shall project an efficient image of the Bank by being punctual and adhering to the workplace discipline.
• We shall dress* well and convey a seemly impression of the Bank while dealing
• With customers, colleagues and public at large. * [However, there will be no bar in following a religious dress code applicable to any community.]
• DOs
• Determine customers’ need responsibly.
• Consider customers’ circumstances before giving advice especially in case of loans.
• Be a preferred choice of customers - Always.
• Dress smartly - Always.
• DON’Ts
• Be inattentive to a customer.
• Be irresponsible in meeting customer expectation


SUSTAINABILITY
Contributing to the Communities Around
We shall champion sustainability and invest time & resources to make our communities a better place to live and work.
• We shall be engaging with sustainable banking by promoting innovative products & services that protect and conserve our natural resources.
• We shall be pro-active about minimizing carbon footprint through waste minimisation, pollution prevention and adopting clean technology wherever feasible.
• DOs
• Connect with communities around - Give back.
• Be sensitive to social & environmental risks.
• Reduce, reuse & recycle.
• Conserve natural resources.
• DON’Ts
• Waste resources.
• Ignore social conscience.
Avoid participation in the projects that benefit communities.

50 BANKING TERMS FOR BANK INTERVIEWS/EXAMS

FIFTY BANKING TERMS FOR BANK INTERVIEWS/EXAMS

( Don't miss ... Read every one and Get knowledge)

1. Repo Rate

1.When RBI provides a loan to the bank for short-term between 1 to 90, RBI takes some interest from the bank which is termed as Repo Rate.

2. Reverse Repo Rate
⏫When bank deposit it's excess money in RBI then RBI provides some interest to that bank. This interest is known as Reverse Repo Rate.

3. SLR –(Statutory Liquidity Ratio)
⏫Every bank has to maintain a certain % of their total deposits in the form of (Gold + Cash + bonds + Securities) with themselves at the end of every business days.

4. Retail banking
⏫Retail banking is a type of banking in which direct dealing with the retail customers is done.
⏫This type of banking is also popularly known as consumer banking or personal banking.
⏫It is the visible face of banking to the general public.

5. Bitcoin
⏫Bitcoin is a virtual currency/ cryptocurrency and a payment system.
⏫It can be defined as decentralized means of tracking and assigning wealth or economy, it is a software protocol.
⏫Bitcoin uses two cryptographic keys, one public (username) and one private (password) are generated.
⏫1Bitcoin= 108 Satoshi.

FEW IMPORTANT QUESTIONS ASKED IN THE INTERVIEW:

FEW IMPORTANT QUESTIONS ASKED IN THE INTERVIEW:
1. Tell me about yourself.
This is a common question—and sometimes the hardest. It's a broad, general question, and the worst thing you can do is give a
broad, general answer.
So how do you make the most of this question? Use it as a springboard to introduce the topics you want to discuss. Decide in
advance what you want the interviewer to know: Your favorite job experience, your most valuable activities in college, your goals
and dreams. Focus your answer by picking one or two things and then use specific details to bring the topic alive.
Example:
I'm a hard worker and I think I generally have good organizational skills. In college, I led a team of designers to create the Web
site for each of the University's volunteer organizations...
2. i) Why Should We Hire You?
Summarize your experiences: "With five years' experience working in the financial industry and my proven record of saving the
company money, I could make a big difference in your company. I'm confident I would be a great addition to your team."
ii) Why should we hire you?
Stress your knowledge, work experience, skills, and abilities. Always highlight specifics, not generalities. Anyone can make a bold
statement, but what sells you is when you can back it up with proven experience.
3. What are your major weaknesses?
 "I used to have a tendency to procrastinate. So now I am always sure to set a strict schedule for all of my projects well in
advance and I set personal deadlines. This organization has really helped."
 I tend to be a perfectionist.
 I sometimes work too hard, leading to unnecessary stress.
 I am always working on improving my communication skills to be a more effective presenter.
4. What is your greatest Strength?
Just be positive.
Try Our Tip.
You should highlight your communication skill, problem solving skills, your ability to work better under pressure, your ability to
focus on projects and your leadership skills.
5. Why did you leave your last job?
 If You Quit: Again, be honest and stay positive. State that the work being offered wasn't challenging enough, that you are
seeking higher levels of responsibility or simply that you are ready to make the next step on your career ladder -- and that the job
for which you are interviewing is the ideal next step.
6. Do you have any questions for us? Or do you want to ask any question?
I'm very interested in this job. It's exactly the kind of job that I'm looking for. What is the next step in the interview process?
7. What prompted your decision to apply for this position? Or Why do you want to join a Bank?
The question behind this question may be:
 Do you know what motivates you?
 How much do you really want this job?
 Do you really understand what it takes to be successful in this job?
 Why us? How do you know you would be happy in our organization?
Suggestions:
If you apply for positions that match your true needs, this should be an easy question. Link your interest and enthusiasm to the
skills and knowledge that are most relevant for the position. Mention what you like about the organization and the people who
work there.
8. Where do you see yourself five years from now?
Suggestions:
Focus on tackling the challenges within the job to which you are applying. For the longer term, you can underline how you wish to
develop your career by developing new skills and knowledge that are meaningful both to you and to the organization.
9. Do you believe in teamwork?
You should always say YES. You should have some examples ready to deliver. It should seem that you are a good performer in
team rather than solo. Always remember that you should not brag, just say it in a natural tone.
Wait patiently for this question and answer cleverly.
Try Our Tip.
You should highlight the best points that relate to your position of job. Never highlight things, which you can't do.
10. Do you rate MONEY or WORK more important?
MONEY is always important but WORK is most important.
11. Describe your work ethic?
Try to give benefits of the organization
Try Our Tip.
Always try to show that you are determined to get the job done and enjoy hard work
12. Why Do You Want to join this organisation?
The interviewer is listening for an answer that indicates you've given this some thought and are not sending out resumes just
because there is an opening. For example, "I've selected key companies whose mission statements are in line with my values,
where I know I could be excited about what the company does, and this company is very high on my list of desirable choices."
13. What Can You Do for Us That Other Candidates Can't?
What makes you unique? This will take an assessment of your experiences, skills and traits. Summarize concisely: "I have a unique
combination of strong technical skills, and the ability to build strong customer relationships. This allows me to use my knowledge
and break down information to be more user-friendly."
14. How long will you stay with the company?
Short, direct comments that express that you want to stay on board as long as you are contributing successfully to the company
and growing as a professional are sufficient. There is no need to discuss how many years you have left on station.
W hat are your strengths and weakness?

Suppose you could choose any particular post in the new scale/ grade, what would it Be and why?
W hat does success means to you and how do you measure it?
What motivates you?
Narrate any two strengths/weaknesses of yours. Have you done anything?
In the last one year to improve yourself? If yes, what?
What has been your greatest achievement in the Bank/in your personal life ?
And your biggest disappointment?
Say something about your best and worst bosses.
What qualities do you value most in those who report directly to you?
Why you should be promoted?
In your view, what were your shortcomings in the earlier tests/ interviews?
What are your hobbies?
W ho is the editor of newspaper your read?
In our Bank, what impressed you much?
How do you handle stress?
Is there anything else you would like to tell us about yourself?
In addition to these general questions, you may face certain questions
About your previous assignments. Some of these questions can include the following
W hat do you like and dislike most about your current assignment?
Do you work independently in your current assignment or a part of a team?
Do you prefer working independently or as part of a team?
W hat are some of the problems you encountered in your earlier Assignments and how did you solve them?
To understand your future ambitions and the reasons for seeking Promotions, the board may ask questions like:
Why do you want to work in the new grade /scale
W hat kind of experience do you think this assignment will provide that Your earlier assignment did not provide?
How do you feel about working late in the evenings ? And working During the weekends
What do you see as your future in the Bank?
Are you considering premature retirement at this point? Why?
How does this job compare with your earlier job?
How can you contribute more to our Bank?
How do you feel about transfer to other Module / Circle?
There is no correct answer as such. What you need to do is to answer this question calmly. Even during the real interview, you
should think before answering the questions. You need to pause before answering as it will help you put together all the points,
substantiating your response. Though you should not gloss over your weaknesses, you need to focus on your success and your
achievements /strengths. You need to convince the interviewer that you are the correct person for the higher position.
SOME MORE TIPS
 Take Full advantage of Your Speech & Body language
 Project Positive Attitude & avoid the Display of aggression
 Must understand your Strength
 Cover your weakness
 Focus on Your Professional achievement rather than Performance
 Do Self Evaluation as to how do you deserve this promotion
 Structure your reactions for adverse situations
 Hypothetical Questions should be handled by reflecting Positive attitude
 Your hobbof the interesties are the reflection of your overall Personality
 All questions are Important
 Avoid half attempted Responses
 Listen Carefully & not to be in a hurry to answer
 Be Concise & take care of the Interest of the Members on Board
 Practice Before the Interview
 Make the experience of Interview Memorable.
BAD BODY LANGUAGE FOR INTERVIEW
TOP 10 BODY LANGUAGE MISTAKES THAT WILL TURN POTENTIAL EMPLOYERS OFF
 Failure to make eye contact
 Weak handshake
 Failure to smile
 Crossing arms over chest
 Playing with something on the table
 Playing with hair or touching the face
 Fidgeting toomuch
 Bad posture
 Using too many hand gestures
 A handshake that is too strong
 You can manage nerves by giving yourself plenty of time to get to the interview, avoiding caffeine and
by taking deep breaths. But, what will help you impress INTERVIEWER?

Having a good sense of humour
 Being well dressed
 Being involved in your local community
 Being up to date with current affairs and pop culture
 Being physically fit
 Being up to speed with social media
Final Shots at Interview
FACING INTERVIEW SUCCESSFULLY?
Interview is an opportunity for you to present your personality consisting of his attitude, views and awareness level before the
interview board, so that your potential is easily judged by the members on the Interview Board.
What is evaluated during the interview?
The interview board, in order to judge your POTENTIAL evaluate your Performance in the recent past, Operating style, Team
building capabilities, Effectiveness, Neutral judgment level, Transparency in dealings, Initiatives, Attitude and Leadership qualities.
Though the interview is not a new process for us, being already in job, we have no way of knowing exactly what is going to be
asked and how that would be tackled. The following general tips can help in appearing for an interview, and face the questions
confidently.
Should we prepare pre-scripted questions?
It is important that we must not venture to go for an interview with a pre-determined script of exactly what we are going to say.
What is actually required, is the tactics that enable us to navigate successfully through the interview. Accordingly, we can adhere to
following strategy.
What we should prepare?
We should spend good time to make the choice of the relevant contents. Broadly these can be disintegrated into macro and micro
aspects.
At Macro level we should have an understanding of:
 Important happening(economic and political) taking place globally and their bearing on the performance of our
organization.
 Status of Indian economy and its impact on the banking system in India in terms of growth of business ,quality of assets
and profits.
 Vision and Mission of the bank and its strengths and weaknesses(in terms of quality of manpower, geographical spread,
level of use of information technology, introduction of new customer oriented products, pricing in terms of interest rates
offered and the effectiveness in terms of delivery), our market share , the challenges, our banking industry is facing and
the priorities laid down by the top management of our bank.
At Micro level we should have appropriate information about;
 Professional achievements during the recent 3-4 years
 Strength of family background(including dislocation on promotion, problems of growing children, serving wife, old parents)
and educational and professional background.
 Some information about the subjects studied in the last academic examination
 All important happening around work place(frauds ,shift of big accounts from the bank etc)
 Hobbies, leisure time activities
 Important development reported in the Newspaper of recent weeks.
Take full advantage of speech and body language
We should bear in mind that the employer or the members of the interview board want to know and interview is the medium for
interaction. Hence, we should express ourselves freely as expressions would flow through speech, gestures and body language.
Please remember that we would normally not get a 2nd chance, to improve our 1st impression.
Project the positive attitude and avoid display of aggression
In the interview, our attitude, the confidence with which we communicate and the depth we have about what we know, is
generally given importance. Hence, care should be taken for not reflecting negative frame of mind or negative attitude or shallow
knowledge or aggressive postures.
Must understand our strengths
Before going for an interview, you should draw a list of all your strengths. Your strengths should be projected whether opportunity
arises without making any one feel that it is self-appreciation. You should also have clarity as to , in what way your strengths alone
that you can support for the promotion.
Cover the weakness
We should also understand one weakness and prepare ourselves to cover our weak points, particularly what steps have been
initiated by you in the past to negate the impact of weaknesses. If asked to explain weakness, we should choose a weakness that
is not critical to the success on the job or assignment. The weakness, should preferably relate to the knowledge content in few
areas as opposed to the lack of personal effectiveness. For instance, a weakness relating to lack of knowledge of a particular skill,
say foreign exchange, is preferable to stating that one finds it difficult to manage people. Further, the weakness to be discussed
should be the one which the members of the Interview Board are either already aware of or will discover through the interview
process. While discussing the weakness, one should always concentrate on as to how we have been working on the problem, to
find a solution. We must try to give a tangible account of the efforts we have been making, to convert the weakness into a
strength.
Focus on professional achievement rather than personal performance
In the interviews ”Tell us about yourself” is a generally inquired question which requires much more preparation than other
questions of factual nature, since a candidate is generally not very certain, “from where to begin and how to complete.” However,
if a candidate structures the fats relating to himself carefully in advance, covering the highlights of one’s current assignment , the
past professional experience in brief and also the value we offer to the organization, we can be comfortable with the Interview
Board. It should be taken care that we focus on professional achievements rather than personal performance.

Do self evaluation as to how we, deserve this promotion
“Why do you deserve this promotion” is a frequently asked question and is required to be handled carefully. To answer this
question well, one should be aware of the requirement of Organistaion and should have clarity about what we can offer to satisfy
such requirement. The answer , should reflect the distinction which we have, compared to others, based on which we deserve the
promotion. Putting answers such as having a good job knowledge or being a hard worker, really does not help as everyone else
would claim so, under such circumstances.
Structure the reaction for adverse situation
On a no. of occasions, the candidates are asked about adverse happening in the work place where he has been working till
recently.In such circumstances, one should reflect a positive attitude, be tactful, and diplomatic in the way one describe the
situation. It is desirable that the problem is first defined to make sure that there was a breach of some system of some human
failure.It may be concluded by stating as to what lesson did one learn from the incident?
Hypothetical questions should be handled by reflecting positive attitude
At times a hypothetical situations is given to working out a strategy. For instance, if the candidate is asked as to how he would
increase the profits of a Zone/Branch , he should not start directly with the strategy. Instead, should first talk about the SWOT
analysis with a view to understand the potential available to make a strategy work.The strategy should be based on the potential
available in a particular position.
Hobbies are the reflection of overall personality
We should also be very specific about hobbies, extra curricular activities and other activities and also as to how and why we
pursue those hobbies or activities. How do we spend spare time and how do we manage the time .Additionally, we must be able to
give proper account and thorough understanding of recent assignment and your academic background.
All questions are important
In an interview, all the questions are important and no question is less difficult than the other .Even, simple question, like which
newspaper we read and which TV channel we watch and what is interesting about that could be important to understand
commitment and interests. Hence, only few questions should not be singled out as the toughest or desirable or expected.It is the
working of a question being asked, which makes one question uncomfortable from the other.We should focus not on the actual
wording of the question but on the spirit and context also. Effort should be made that the wording of a question is interpreted to
one’s advantage.
Avoid half-attempted responses
Before answering a question, for a while, one should collect thoughts, so that are able to answer appropriately as blurred or casual
or half-attempted response cannot help.
Listen carefully and do not be in a hurry to answer
Please listen very carefully, to what is being asked. One should not be in a hurry to answer the question. Be patient,stay fresh,
enthusiastic and cooperative. One should not be evasive or hesitant answering the question. Even if a question makes
uncomfortable, make earnest effort to answer it. Please endeavor to answer all question as not answering amounts to loss of
opportunity. However, if one does not have clarity, please humbly express inability to answer so that process of interview
continues.
Be concise and take care of the interest of the members on the Board
Be concise,being careful that the point mentioned is not incoherent or boring not lose the interest of the members of the interview
board and give an impression that one cannot organise his thoughts.
Practice before the interview
Before appearing for an interview, practice interview by involving your family members or colleagues. Seeking guidance from
experienced persons or Institutes can certainly bring much improvement.
What if tough questions are asked or one is not able to answer a question?
Inspite of best of the practice and preparation, very often one may be asked questions which he considers tough and unable to
answer.Donot try to give vague answers to such questions.It is better to let the interview Board know so that another question is
asked which is one more opportunity for you to cover your position.
Outside the Interview room
It is pertinent to add that one should avoid anxiety or doing something which one does not do on normal days. Handling an
interview is both an art and science and each interview differs from the other, depending upon the members in the interview
board, the time available with the Board members, the no.of candidates and the vacancies. One has to look into these aspects and
prepare himself, to be successful.
Make the experience of interview members memorable
Please remember, it is the candidate only, who can make this experience memorable and rewarding for himself and his
organisation.

INTERVIEWTIPS & TECHNIQUES

INTERVIEWTIPS & TECHNIQUES
Purpose behind conducting the Interviews.
The interview is an occasion of interpersonal communication between the prospective employer and a prospective candidate. It is a
platform where the organization checks the suitability of the candidate vis-a-vis the job profile. Moreover, the interviewee has the
opportunity to examine if his/her personal objectives will be met in the job and the company.
In an interview, the candidate try to sell themselves to the interviewer.
What Is It That The Interviewers Check In A Candidate?
Whether the candidate has developed and communicated a clear, simple, customer/ user focused vision?
Whether the candidate has futuristic outlook, and the potential to be an asset to the organisation?
Whether the candidate can inspire and energize others and make them commit to a vision?
Whether the candidate is willing to make commitments and assume responsibility for the mistakes and shortcomings?
Does the candidate practice ethical conduct?
Is there any credibility between his/her actions/ behavior with his/her words?
Does the candidate take accountability and make commitment to achieve business objectives?
Does the candidate have the ability to demonstrate courage/ confidence to stand up for beliefs and ideas to co-workers and
seniors?
Does the candidate communicate in open, candid, clear, complete and consistent manner?
Does the candidate trust others, encourage risk-taking and boundary less behavior?
Is the candidate capable of taking leadership and running a branch in the future?
How well does the candidate behave under pressure?
In a nutshell, the interviewer checks:
Your technical competence to handle the job
Your knowledge about the subject you have studied in graduation or post graduation
Your personality characteristics
Your emotional intelligence
Your general awareness and view point about the happenings around you
Your limitation in skills
Your personality trait
Your IQ (intelligence quotient), PQ (physical quotient), EQ (emotional quotient), SQ (spiritual quotient)
Your ability to analyze and articulate
Your ability to visualize the future
Your linguistic prowess
How To Face Bank Interviews : Interview is an opportunity for you to present your personality consisting of your attitude,
views and awareness level before the Interview Board, so that the potential in `you' is appropriately judged by the members on the
Interview Board, who are learned people in their own fields of specialisation.
What you should prepare ?
You should spend good time to make the choice of the contents relevant to your interview. These contents differ for interviews
depending upon the level for which the interview is being held. Broadly these can be disintegrated into macro and micro aspects.
What is evaluated during the interview ?
The interview board, in order to judge your POTENTIAL evaluates your Performance in the recent past, Operating style, Team
building capabilities, Effectiveness, Neutral judgment level, Transparency in dealings, Initiatives, Attitude and Leadership qualities.
Though the interview is not a new process for many of you, being already in job, but you have no way of knowing exactly what is
going to be asked and how that would be tackled. The following general tips can help a candidate appearing for an interview, to
face the questions confidently.
Should you prepare pre-scripted questions?
It is important that you must not venture to go for an interview with a predetermined script of exactly what you are going to say.
What is actually required, is the tactics that enable you to navigate successfully through the interview. This author had the
opportunity of being both, the interviewee and interviewer on several occasions during his banking career.
Preparing yourself as the interviewer
There are a number of aspects of critical importance in planning the interview:
Timing - enough time must be allowed for the interviews and making notes between each. Each candidate should be given the same
length of time in the interview. There should be sufficient breaks built into the interview programme.
Re-read the application form or CV, job description and person specification to identify areas which need further exploration or
clarification. The appointment panel should agree the format of the interview and identify questions to cover the key competencies
required by the post. The different subject areas should be allocated between the panel members in advance of the interview date.
The panel should agree how they will operate as a team during the interviews. The first interview of the day should not be used as
'a dress rehearsal' - otherwise the appointment panel could be accused of acting unfairly.
The venue of the interview should be of an appropriate size and one which encourages the interviewee's concentration. It should
be comfortable for both interviewers and the candidate (seating, heating, lighting, ventilation, noise level) and be well sign-posted
with a waiting area containing literature about the organisation. There should be no interruptions and mobile phones should be
switched off. Reasonable adjustments must be made to the facilities as necessary where a candidate has requested this because of
a disability.
The reception arrangements for candidates should be welcoming and the receptionist briefed.

The seating arrangement should be as inclusive as possible so that the candidate does not feel isolated.
Preparing the candidate
Prior to the interview the candidate should have sufficient information about the post, the requirements of the post and the
organisation. Candidates should be given adequate notice of the interview date, panel composition and designation and, ideally, be
given a brief tour of the place of work prior to the interview. Candidates are asked to produce documentary evidence of their
qualifications which are stipulated in the person specification.
At the start of the interview, the candidate can be helped by:
the Convener introducing the panel and having name cards placed in front of the members;
the panel putting the candidate at ease;
the Convener explaining the structure and length of the interview;
being informed that notes will be taken to ensure a fair assessment to be made;
being asked whether they have any queries after the introduction;
the use of an opening non-discriminatory 'warm-up'question.
Structure :
Working to a structure is a major step towards improving the quality of interviewing, as it helps to:
ensure that nothing significant has been missed;
keep track of how the interview time is being used;
give candidates a sense of progress through the interview;
help ensure consistency between candidates.
Questions must be planned in advance. It is usual to have a series of questions that are posed to every candidate with specific ones
for individual applications based on information in their application forms. The need to raise additional questions will arise in order to
probe candidates responses and these should be asked at the appropriate time. No question should be asked of a discriminatory
nature e.g. asking a female candidate about her childcare arrangements.
The interview should be structured as follows:
the Opening - this will include introductions, advising candidates of the structure which will be followed and that note-taking will
occur. A few moments of small talk will help to relax the candidate and establish rapport.
the Body - this is the main part of the interview where the required evidence about the candidate's suitability for the post against
the key criteria is obtained.
the Close - Candidates should always be given the opportunity and sufficient time to ask any questions they may have. They should
be informed of the timescales and methods of notifying them of the outcome and should be thanked for attending the interview.
The Disability Discrimination Act 1995 does not prevent you asking questions about a candidate's disability but this information
must not be used to discriminate. When asking a candidate how their disability may affect their ability to do the job it is important
to focus on competencies required by the post, place these questions in the latter part of the body of the interview, and indicate
where possible a willingness to make those reasonable adjustments which would enable the job to be performed.
Questioning techniques : You should aim to have the candidate talk about 70-80% of the time, as the key aim of the interview
is to obtain evidence from the candidate. Effective interviews depend on well-thought out and well-structured questions.
There are various types of questions:
Open - these questions enable candidates to provide facts and information, describe things, express feelings or opinions
etc. They encourage candidates to start talking. They typically start with the words 'what, why, how?'
Example - 'Tell me about the most challenging project you have completed in the last year'.
Closed - the number of possible answers is limited and are usually either 'yes' or 'no'. They are useful to check facts, or
your understanding of answers or to close the interview.
Example - 'Did you have responsibility for a team in your last job?'
Multiple - these occur when two or more questions are asked at one time. Candidates will normally only answer one of
them - the one they find easiest or heard last. These types of questions should not be used in interviews.
Example - 'Why have you applied for this job, and why do you want to leave your present job?'
Leading - the answer which is expected is suggested in the question, and thus are not appropriate for selection interviewing.
Example - 'We need someone who has good planning skills. How well do you plan ahead?'
Hypothetical - is where the interviewer describes a situation to the candidate and asks him/her how he/she would respond. Too
many of this type should be avoided as the reply might be completely different from what the candidate would actually do, and you
have no way of evaluating the answer consistently.
Example -' What would you do if two members of your team had a fierce argument in the office?'
Behavioural - are useful questions, as you gain evidence of how the candidate has handled similar situations in the past, and these
can concentrate on the specific skill areas of this post.
Example - 'Can you give me an example of when you had to deal with a difficult customer complaint?'
Probing - these are used to follow up after receiving answers to open questions, in order to explore an area in more depth. The
questions should be designed to 'funnel' the information obtained from general to specific information.
Example - 'How would you do it differently next time?'
Reflective - these are powerful and seldom used with skill or consistency. Each question is based on the previous answer and
reflects its content.
Example - 'So, you think that there could have been some improvements. What would have altered the outcome?'
Listening techniques :As the interviewee will be talking for the majority of the time it is vital that interviewers actively listen. The
candidate is providing a lot of information and the interviewer has to be able to recall it, use it, relate it to the key skill areas and
check it for inconsistencies. Reflective questions can be used to pick up on a point the candidate has made and enable you to
probe further. You should concentrate on what the candidate is saying, look at the candidate and ensure that your physical position
reflects your interest. It is vital that all the panel members listen carefully to every answer, even though they may not have asked
the question.
Examples of effective non-verbal responses by interviewers include nodding of the head, smiling and occasional noises of
encouragement. Actions to be avoided are looking at your watch, critical frowning, staring out of the window. Care should be taken
by panel members that non-verbal signals are not communicated between them, indicating what they feel about the candidate.

Interrupting a candidate can be interpreted as discourteous and showing a lack of interest in what the candidate is saying.
However it may be necessary to do so if the candidate has misunderstood the question.
Good active listening involves:
identifying feelings and intentions behind words;
probing answers with further questions;
clarifying and summarising;
evaluating the quality of the answers.
By being empathetic, you will lead the candidate to speak freely and could well reveal information that he/she would not do if an
interviewer was being overbearing or critical. Silence is one of the most effective probing devices. When used at the appropriate
time, it encourages candidates to elaborate their answer.
In short - listen to : · what is being said; · how it is being said; · what is not being said.
Body Language of candidates
Candidates send messages non-verbally which can reveal their emotional state and are well worthwhile being noted by the panel.
The communications expert, Albert Mehrabian's analysis of typical face-to face communications showed that non-verbal
communication has an enormous impact on the understanding of the messages sent by the interviewee in any interview. His results
were : Words alone - 7%; · Voice tones - 38%; · Body language - 55%.
Non-verbal messages are much less likely to be under conscious control and are therefore harder to disguise. They are often
difficult to interpret and care needs to be taken in analysing such messages e.g. a candidate may fold arms as he/she is cold, not
necessarily because he/she is being defensive.
Rehearsal: the Best Laid Plans ...
Rehearsing perfectly worded answers is not a good idea at all Questions you may be expecting are Sei precisely the way you
anticipate. Broad basing your choice of responses is suggested Moreover, you should navigate the interview and introduce topics
related to your core competencies In case you feel that. the moving towards subject / topics in which you are not confident, you
must politely share that you are not su subject General rehearsals do help to polish your performance. Have a mock interview
session. preferab y of a person not hesitant to point out the flaws in your arguments. English. diction and body language
ADOPTING THE
RIGHT ATTITUDE
To be just a little anxious, a little keyed-up about interview is good It generally facilitates rather than inhibitsp Only when you
become overly anxious that you begin to harm your prospects 'Keep your cool' in this kind
Some candidates feel interviews as threatening situations: they worry about their own deficiencies, nervousness, about what the
interviewers think of them. about failing to get the job, and so on It is as failure' overcomes their 'need for achievement' Stressing
the negative aspects of the procedure does littler, take the interview in a more positive way The following are helpful
deal For example an interviewer currently posted as GM in funds department may ask you a question ono try to do as well as I can
in the interview because it will be a good practice for other occasions' and Try regarding their line of thinking. Anticipating the
interviewer's mind-set and preparing accordingly & Do right tense yourself with high expectations. Telling yourself
probably have not got a chance for this, Alternatively, you may prefer to look on the interview as a joint problemsolving
exercise between and another who holds a masters degree in Agriculture may ask you about Organic farming
Thought game, it is a process of informed guessingr interviewer in which you will co-operate together to find whether
this is really the job for you, whethe able to do it well, and whether you would be happy doing it to trace the
background of the Board members Their education background. current profile will more relaxed feeling that can be
helpful to some extent.
Look at the brighter side and keep in mind that you are amongst the very few selected for interview hundreds of aspirants This will
help boost the confidence.
PERSONAL APPEARANCE AND DRESS ,
Over the years. Society has relaxed the dress codes and informal dressing is not looked down upon any more However, one should
be particular in dressing up formally for the interview However, you must present a well groomed look Gentleman: White or light
blue shirt, dark trousers and a matching tie should be preferred. It is essential to wear formal footwear and not sport shoes.
Ladies: Ladies can wear either a dress or a sari as they please It is however essential that they are comfortable and present a
simple but elegant look. Dark colors, flowery prints should be avoided Jewellery and makeup both should be minimal Common
Guidelines: Strong perfumes should be avoided Ensure your nails are trimmed and clean RECEPTION AND THE
IMPORTANCE OF FIRST IMPRESSION
Interviewers sometimes make up their minds about candidates too early in the interview. First impressions can have a powerful
and long lasting effect If you get off on the wrong foot, then there is little time left to set things right Let us look at how you tackle
the introduction.Introduction First thing first: When you enter the interview room, do not forget to close the door behind you. As
you face the interviewer(s), keep a smiling face and walk over to the chair ready for you, but do not sit until asked to do so
Remember not to move the chair.
The way interviewers greet you varies from person to person In any case. do not offer to shake hands until the interviewer extends
Open the conversation by saying 'Good morning Sir / Ma'am' with a smile. Look in the interviewer's eyes Do not just look at the
Chairperson only, give the others a brief glance and smile too (may be even a nod!) Please smile only when you come in, at
appropriate lighter moments in the interview and when you say goodbye.
To sum up the introduction: Take your lead from the interviewer, look at them, put up on a pleasant face and try to exhibit as if
you are glad to be there, even if you feel as though you are facing a firing squad
COMBATING INTERVIEW NERVES
The better your preparation, the more confident you are likely to be. What can you do to keep your calm when you are there?

Try to sit comfortably without actually slouching


Criticism and Arguments: Do not criticize. Never try to find faults. As faras possible,
Stress the good point of others. It is better to be silent than to criticize. Do not get involved in unproductive arguments.
You have not gone to the interview to win a verbal battle but to have an enjoyable conversation. See how you can agree rather
than to disagree. As a last resort, you may agree or disagree.
Listen and Observe: Keep your eyes and ears open. Study their reactions. You will know when tostop talking and when to listen.
As a rule, do not interrupt. If the other person wishes to talk, let him do so. In fact, encourage him to talk. Be an attentive and
enthusiastic listener.
Practice: Practice, Practice and Practice. You must have as much practice as possible. Enlist the goodwill and co-operation of your
friends, colleagues, elders and family members and have practice session with them. The more practice you
MORE IMPORTANT TIPS FOR FACING INTERVIEWS
You do need to be aware about your surroundings and this includes some familiarity with current affairs. Banking industry specific
questions are common. In addition, there are certain questions you may encounter during the interview, in one for or another.
These relate to questions about yourself, what you have been doing and what you want to do in future. It is a good idea to sit for
mock interviews with your friends or colleagues. Remember, practice makes man perfect.Here are some general questions you can
answer during your mock sessions:
INTERVIEW: Body Language and Presentation
We will be discussing the importance of body language and the best way to introduce yourself to the panel. Candidate's body
language and introduction plays an important role in creating an impression in the interviews. How you present yourself, how you
talk to them , how you keep them engrossed, etc. Your impression at the entry point in the interview is of utmost importance.
Behaviour scientists and communication experts have concluded that it takes ten seconds to form the first impression and it takes
another four minutes for the impression to undergo a change of 50% towards positive or negative side.
Important Things to take care of before entering the Room:
 Prior to entering the room, adjust your attire
 Before entering, enquire by saying,"Please may I come in".
 If the door is closed before you enter, make sure you shut the door behind you softly.
 On entering the room face the panel confidently and wish the members.
 If the members of the interview board want to shake hands, then offer a firm grip first maintaining eye contact and smile.
Always make sure that your hand shake is firm and it fits well in the other persons hand.
 Sit down only when asked to do so by the Panel. If the interviewers are standing, wait for them to sit down first before
sitting.
 An alert candidate would diffuse the tense situation with light hearted humour and immediately set rapport with the
interviewers.
Note: We understand that many of you students face an issue regarding confidence, face trouble in having a conversation, or are
not comfortable in initiating a conversation, get butterfly in your stomach when you face an interview.
Well that's because you have a set image about the panellist in your mind, you are scared of their judgement and are not very sure
about your own self.
So how to deal with this situation?
Trick is to have a formal conversation just as you would have with your uncles and aunties, not thinking of what they would think
of you. remember the members of the panellist are not from another planet, rather people like you and me, have had similar
journeys like you from a student to now esteemed bankers.
So prepare your answers to all questions possible before hand,
Teach yourself to talk to the point and without beating around the bush.
Be smart with words.
Once you are prepared, have faith in your self.
Last but not the least, once in the interview room, forget about all your inhibitions and just go ahead with full confidence (but stay
away from overconfidence, be humble always).
FOLLOW THE SEE PRINCIPLE -
S-SMILE
note: does not mean you start smiling and giggling unnecessarily.
E-EYE CONTACT
note: its very important that you maintain eye contact with the interviewers. While talking look at all the panellists, they should feel
that your are involving them in your conversation.
E-ENTHUSIASM
note: be enthusiastic while telling them about yourself, you should not come across as dull, or lazy. Remember you are there to sell
yourself.
ENERGY AND ENTHUSIASM:
The interviewer normally pays more attention if you display an enthusiasm in whatever you say.
You should maintain a cheerful disposition throughout the interview i.e. a pleasant countenance holds the interviewers interest.

Again don't over play your enthusiasm part, rather it should look effortless

HUMOUR
A little humour or wit thrown in the discussion occasionally enables the interviewers to look at the pleasant side of your personality.
If it does not come naturally do not force it.
Injecting humour in to the situation doesn't mean that you should keep telling jokes. It means to make a passing comment that ,
perhaps, makes the interviewer smile. Basically just be yourself, make your self comfortable and the others too.
EYE CONTACT
You must maintain eye contact with the panel, throughout the interview. This shows your self confidence and honesty.
Maintain interviewees while answering, tend to look away. This conveys you are concealing your own anxiety, fear, and lack of
confidence.
Maintaining an eye contact is a difficult process. As the circumstances in an interview are different, the value of eye contact is
tremendous in making a personal impact.
relaxed, thoughtful, caring, or concerned look
normal blinks, genuine smile, relaxed mouth
Have an eye contact while speaking to someone or listening to someone.
VOICE:
Resonant, firm, pleasant
Select the appropriate pitch according to the audience
BE NATURAL:
Many interviewees adopt a stance which is not their natural self. It is amusing for the interviewers when a candidate launches into
an accent which he or she cannot sustain consistently through out the interview or adopt mannerism that are inconsistent with his
or her personality. Interviewers appreciate a natural person rather an actor. It is the best for you to talk in natural manner because
then only you appear genuine.
BODY LANGUAGE:
Walk into the room with energy (does not mean you start galloping like a horse)
Sit straight comfortably without craning your neck. Do not slouch. Shoulders straight neither drooping nor elevated
Look attentive, keen and interested.
 As you sit across the interviewer(s), look confident and relaxed.
 In most cases the interviewers themselves will try to put you at ease.
 Talk clearly, maintaining a pitch that is comfortably audible to the person(s) around.
 Do not get overexcited even while describing your achievements and strengths.
 Listen to the queries attentively, constantly maintaining polite eye contact with the interviewers.
 Nod your head to show that you are listening, interjecting appropriately with ‘Yes Sir/Madam’, absolutely, definitely etc.
 Lean forward a little as you speak and backward as you listen.
 Do not touch your face, or shake your legs.
 Keep your arms either on your sides or in your lap. Do not fold your arms, as it is a sign of rudeness.
 Use short simple sentences while talking.
 Do not make unrealistic tall claims during the interview.
 Never get too arrogant or aggressive in front of the interviewers.
 Do not show your disappointment and disinterest.
 Maintain your poise till the end.
 Always thank the interviewers as you leave.
 Animated hand movement- Whenever you talk it is always good to use your hands to express yourself, it is a sign of self
surety and confidence. Then again it does not mean you start throwing your hands all over the place. Slight movements,
thats it
 Basically the whole idea of giving these tips is to make you realise the importance of being yourself, being human and not
stiff as a robot. Practice remaining calm and composed.

Credit rating agencies

Credit Rating Agencies in India

A credit rating agency is a company which rates the debtors on the basis of their ability to pay back the debt in timely manner.

There are three big credit rating agencievvs in the world which are
 1.Standard & Poor's (S&P) – Headquarter – New York, US
 2.Moody's – Headquarter - New York, US,
 3.Fitch Ratings- New York, US


There are mainly 5 credit rating agencies in India which are

CARE (Credit Analysis and Research):Founded: 1993,Mumbai  It is the second-largest credit rating agency in india


CRISIL (Credit Rating Information Servicesof India Limited):Founded: 1987,mumbai. It is the largest credit rating limited company.with a market share of
greater than 60%.
*CRISIL’s majority
shareholder is
Standard & Poor’s.

ICRA ( Investment information andcredit rating agency)Founded: 1991 at Gurgaon
It is public limited company .Majority share holder is Moodys

SMERA( SME Rating Agency of India Ltd):Founded: 2005 ,mumbai
*SMERA is a full   service credit rating sector
 agency in India, exclusively set up MSME

ONICRA Gurgaon. It is a Pvt sector agency  set up by onida finance

Very useful terms for interviews

Very useful terms for Promotion exams



 Profitability Concepts



1 What is the relevance of profits

Augment economic capital,

Helps retained earnings to increase capital base

Improves Investors confidence

Index of efficient use of funds

Makes a viable organization

2 What is profit and profitability Profit represents an

absolute figure

Profitability is measured by Ratios and shows operational efficiency

3 Name few profitability ratio ROA,NIM,ROE, Book

value,

4 What is ROA, how it is measured and what is the ideal ROA

ROA is Return on Asset and is the ratio of net profit to total assets. The standard measure of ROA

globally is 1%

5 What is NIM, how it is arrived and what is desirable NIM

NIM is Net Interest Margin and is the ratio of net interest income to average earning assets. The desired NIM is

above 3%

6 What is ROE

ROE is Return on Equity / Net worth. It is ratio of Net profit to Average Net worth (Capital + Reserve- intangible

assets)

7 What is Book Value and how it is arrived

It is net worth divided by No. of shares. Market price of share generally factors book value.

8 What is EPS

EPS is Earning Per Share. It is the ratio of net profit to No. of shares

9 What is CRAR, what it indicates

Capital to Risk Weighted Asset Ratio. The total capital, consist of Tier I & Tier II Capital as a ratio of Risk

Weighted Assets. It indicates the soundness and risk bearing ability of a Bank.

10 What do you understand by Yield on Advances

Interest Income on advances divided by average advances indicates average yield on advances. This ratio

enables cost benefit assessment from various loan products.

11 What is yield on Investments

Interest and dividend income on investment divided by average investments indicate yield on investments.

12 What is the cost of deposit

Interest paid on deposit divided by average deposits is called cost of deposit. It consists of Current, SB

and Term Deposit.

13 Which are the operational efficiency ratios,

Cost – Income ratio and Burden ratio is called as operational efficiency ratio.

14 What is Cost Income ratio

Non-Interest Expenditure divided by Net Total Income (Total Income minus

Banking New trends

Inflation index bonds

Inflation Indexed Bond (IIB) is a bond issued by the Sovereign, which provides the investor a constant return irrespective of the level of inflation in the economy. The main objective of Inflation Indexed Bonds is to provide a hedge and to safeguard the investor against macroeconomic risks in an economy.



Issue of IIBs has assumed significance in the context of high level of inflation experienced in the Emerging Market and Developing Economies during the recent years, as the value of money[1] loses rapidly in an environment of high inflation. The issue of Inflation Indexed bonds in advanced economies is limited on account of low inflation experienced in these economies.





Operation of IIBs



For understanding the concept of IIB, it has to be compared with the instrument of fixed deposits with the bank. While fixed deposit offers a fixed rate of interest for the investment for a given number of years, it does not protect the investor from the erosion of real value of the deposit due to inflation. IIB on the other hand, gives a constant minimum real return[2] irrespective of inflation level in the economy. Capital increases with the inflation, so actual interest is better than originally promised. In case of deflation, interest payments decrease with the negative inflation. However, capital does not decline below the face value, ie. Initial investment, in case of deflation. The working of IIB is given through the following example:



End of the 1st year End of the 2nd year

Principal : Rs 1000 Principal : Rs 103

Inflation in the economy : 3 percent Inflation in the economy : 6 percent

Inflation accrual : Rs. 30 Inflation accrual : Rs.61.8

Principal at the end of the first year : Rs 1030 Principal at the end of the 2nd year : Rs 1091.8



Promised rate of return : 3 percent Promised rate of interest : 3 percent

Interest : 1030 x 3/100: Rs 31 Interest : 1091.8 x 3/100: Rs 32.7

Totalreturn:Rs.30(inflation)+Rs:31(interest):Rs 61 Total return:Rs61.8(inflation)+Rs:32.7(interest): :Rs 94.5





Thus, inflation component on principal is not paid with interest but the same is adjusted in the principal. At the time of redemption, adjusted principal or the face value, whichever is higher, would be paid. If adjusted principal goes below the face value due to deflation, the face value would be paid at redemption and thus, capital will get protected. Interest rate will be provided protection against inflation by paying fixed coupon rate/interest rate on the principal adjusted against inflation.



There are no special tax concessions for these bonds. IIBs are treated as government securities (G-Sec) and therefore, would be eligible for short-sale and repo transactions and gets SLR status (i.e., they are eligible to be kept as part of Statutory Liquidity Ratio requirements of banks).





Background



In the Indian context, inflation was one of the major macroeconomic concerns of the economy during the period 2008-2013 where real interest rates[3] were consistently negative. The period also was noted for the high current account deficit (CAD)[4] , which saw huge investment in the alternate instrument – gold – by the households, necessitating heavy import of gold. In order to reduce the attractiveness of gold for investment and reduce the CAD, the Government of India launched Inflation indexed bonds (IIB) on 4 June 2013[5].



The Reserve Bank of India auctioned its first tranche, linking to Wholesale Price Index (WPI) inflation, as WPI headline inflation was then used as the key measure of inflation by RBI. IIB bonds were issued on monthly basis (on last Tuesday of each month) till December 2013. These bonds offered annual return of 1.44% (through half yearly coupon) over and above the headline inflation (WPI). These 10 year bonds could be traded in the Order Matching Negotiated Dealing Systems (NDS-OM), NDS-OM (web-based), Over the Counter (OTC) market, and stock exchanges. Approximately IIB bonds worth Rs 6500 crore were issued in 2013.



Over the time, IIB bonds lost its attractiveness, as there has been significant moderation in inflation since 2014-15. The IIB bonds turned highly illiquid, as WPI inflation remained negative for consecutive 15 months (as on Feb 2015) since November 2014. With a view to improve the liquidity in G Secs market, Government decided to buy back the IIB bonds. The Government of India announced the repurchase of 1.44% Inflation government stocks 2023 in February 2016 through reverse auction for an aggregate amount of Rs. 6500 crore (face value). The repurchase was undertaken as an adhoc measure to redeem the government stock prematurely by utilizing surplus cash balance.



Since April 2014, RBI adopted consumer price index (CPI -combined) as the key measure of inflation for its monetary policy stance. In case RBI issues new IIB bonds in the near future, it would be based on CPI, as CPI (combined) has been accepted by RBI as the key measure of inflation for its monetary policy stance, since 2014.



A predecessor of Inflation Indexed Bonds (IIBs) was Capital Indexed Bonds (CIBs) issued during 1997. However, the CIBs issued in 1997 provided inflation protection only to principal and not to interest payment. IIBs provide inflation protection to both principal and interest payments.





1.Here, real value of money means what one unit of money is capable of purchasing; in short, its purchasing power. For instance, if a person is able to get only 1 unit of a good with Rs. 1 now as compared to 2 units of that good in a previous period, we can say that the value of money has decreased. This happens because the price of the good has doubled.



2.Real Return = Rate of Nominal Return – rate of Inflation



3.See footnote 2



4.When value of imports exceeds that of exports, resulting in net outflow of money from the economy



5.It was announced in the Union Budget 2013-14 as an instrument to protect savings from inflation, especially the savings of the poor and middle classes.

Current affair s on 07.04.2019

Today's Headlines from www:

*Economic Times*

📝 RBI to examine merger proposal of Indiabulls and LVB

📝 Govt may now sell enemy property shares in ACC, Grasim, Tata Steel

📝 SAIL's RMD reports highest ever iron ore production in FY19

📝 Defence production likely to open up for Kerala startups

📝 Proposal to allow banks to buy gold from local refiners discussed

📝 Vodafone Idea, Airtel bet big on machine learning; readying networks for 5G

📝 Global ecommerce sales surged to $29 trillion in 2017

📝 India in continuous talks with US over Iran waiver

*Business Standard*

📝 Next wave of DTH consolidation imminent as Jio GigaFiber readies for launch

📝 Bidding for Jet Airways delayed, banks await RBI nod on debt conversion

📝 BPM companies increasingly moving towards outcome-based deals

📝 Asian Paints counting on core business, allied segments to drive growth

📝 Chegg eyes India for next level growth, aims to cash in on edtech boom

📝 Priority Sector Lending Certificates volume crosses Rs 3-trillion mark

📝 US reaches 65,000 H1B visa cap in five days for Financial Year 2020

📝 Hyundai Motor, Tencent tie up to develop self-driving cars software

📝 Branded apparel makers post steady profit growth in December quarter

*Financial Express*

📝 Future Group’s Foodhall partners with delivery platform Scootsy

📝 Mudra Yojna: About 25 per cent of this year’s target met in just one month

📝 Chinese investors account for 58% Greek ‘Golden Visas’ issued from 2013

📝 India’s imports from China slow down by 5%

📝 India’s GDP to touch $10 trillion, become third largest economy by 2030, says Jaitley

📝 New e-commerce policy: Push for level playing field for offline, online players

📝 Tata Steel posts record output after Bhushan purchase

📝 Zomato costs pile up 6X to Rs 3,500 crore; posts over Rs 2,000 loss in FY19

*Mint*

📝 Pound investors eye Brexit relief as Theresa May pursues deal or delay

📝 Telecom firms should back rollout of public wi-fi hotspots: Niti Aayog secy

📝 RBI to set up regulatory sandbox for fintech firms

📝 Saudi Aramco set for $10 billion bond sale touted by JP Morgan's Jamie Dimon

📝 Deutsche Bank said open to US restructuring in merger talks with Commerzbank

📝 Google accidentally leaks new 'Pixel 3a' smartphone

📝 Zydus receives tentative approval from USFDA for Tofacitinib tablets.