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Commercial Banks Interview Questions & Answers - Learning Mode

Commercial Banks Interview Questions & Answers - Learning Mode

A Commercial bank is a type of financial institution that provides services such as accepting deposits, making business loans, and offering basic investment products.

Try Commercial Banks Interview Questions & Answers - Exam Mode


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Commercial Banks Interview Questions & Answers - Learning Mode
Try Commercial Banks Interview Questions & Answers - Exam Mode
Question: State the structure of Commercial Bank?

Answer: 1)Scheduled Banks
a)Public Sector Banks
b)Private Sector Banks
c)Foreign Banks
2)Non Scheduled Banks Source:
Question: What are Investment Banks?

Answer: An investment bank (IB) is a financial intermediary that performs a variety of services. Investment banks specialize in large and complex financial transactions such as underwriting, acting as an intermediary between a securities issuer and the investing public, facilitating mergers and other corporate reorganizations, and acting as a broker and/or financial adviser for institutional clients. Source:
Question: State the role Commercial banks?

Answer: 1. Mobilizing Saving for Capital Formation
2. Financing Industry
3. Financing Trade
4. Financing Agriculture
5. Financing Consumer Activities
6. Financing Employment Generating Activities
7. Help in Monetary Policy Source:
Question: Describe the other types of Banks?

Answer: Central banks are normally government owned and assigned with regulatory responsibilities, such as supervising commercial banks or controlling the cash interest rates etc.
Islamic Banks are established in accordance of concepts of Islamic Law. This form of banking revolves around several well established principles based on Islamic canons. Source:
Question: Describe the nature of Commercial Banks?

Answer: a)Commercial Banks are the organizations which cater certain financial transactions.
b)Its aim is to earn profit.
c)Transactions are socially and legally approved.
d)Responsible for customer deposits in the bank.
e)Established and operated under the control of central bank of a nation. Source:
Question: State the meaning of Commercial Banks?

Answer: A commercial bank is a financial institution that provides services, such as accepting deposits, giving business loans and auto loans, mortgage lending, and basic investment products like savings accounts and certificates of deposit. Source:
Question: Give the functions of Commercial Banks?

Answer: (1) Primary Function:
1. Accepting Deposits
2. Advancing of Loans
3. Credit Creation
(2) Secondary Function:
1. Agency Functions
2. Public Utility Functions Source:
Question: State the purpose of Narasimhan Committee?

Answer: a)To study all aspects relating to the structure and procedures of the financial systems.
b)To recommend improvements in their efficiency and productivity
c)To reform the Indian Banking sector Source:
Question: What is Cash reserve ratio?

Answer: Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank. CRR is set according to the guidelines of the central bank of a country.
Question: State the discussion on Liquidity VS Profitability?

Answer: Profitability is the relationship between profits and capital (the "static" resources set aside to earn those profits). Measuring profitability means that you have to relate a profit figure (from the Profit and Loss Account) to a resources figure (from the Balance Sheet).
Liquidity may be defined as the ability of a firm to meet its financial obligations as they fall due. The balance sheet (defined as "a structured statement of assets and liabilities")measures these resources and claims, and Source:
Question: What is the meaning of a Bank?

Answer: An establishment authorized by a government to accept deposits, pay interest, clear checks, make loans, act as an intermediary in financial transactions, and provide other financial services to its customers. Source:
Question: State the principles of the Investment policy of Commercial Banks?

Answer: a)Liquidity
e)Stability of securities Source:
Question: Name the two expert committees which were set up in 1990s?

Answer: The first Narasimham Committee was appointed by Manmohan Singh as India's Finance minister on 14th August 1991. And the second one was appointed by P.Chidambaram Finance minister in December 1997. Source:
Question: Give the list of Commercial Banks in India?

Answer: List of Commercial Banks in India:
Reserve Bank of India
Abu Dhabi Commercial Bank
Allahabad Bank.
Andhra Bank
Bank of India
Bank of Madura
Bank of Punjab
Canara Bank
China trust Commercial Bank
City Union Bank
Corporation Bank
Question: What is the meaning of Capital Adequacy Ratio (CAR)?

Answer: Percentage ratio of a financial institution's primary capital to its assets (loans and investments), used as a measure of its financial strength and stability. According to the Capital Adequacy Standard set by Bank for International Settlements (BIS), banks must have a primary capital base equal at least to eight percent of their assets: a bank that lends 12 dollars for every dollar of its capital is within the prescribed limits.

Question: List the banks under Retail Banks?

Answer: a)Commercial Banks
b)Community Banks
c)Credit Union Banks
d)Postal Saving Banks
e)Ethical Banks Source:
Question: State the sources and application of funds of Commercial Banks?

Answer: 1)Sources of Funds
a)Share Capital
b)Reserves and Surplus
2)Application of Funds
a)Cash and cash Balance with RBI
b)Cash balance with other banks
d)Advances Source:
Question: What is the meaning of Non Performing Asset (NPA)?

Answer: A loan or lease that is not meeting its stated principal and interest payments. Banks usually classify as nonperforming assets any commercial loans which are more than 90 days overdue and any consumer loans which are more than 180 days overdue. More generally, an asset which is not producing income. Source:
Question: Give the meaning of Combined Banks?

Answer: Combined Banks are also called as Universal banks. These are commonly known as financial services companies; engage in several of diversified financial services. Source:


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Latest 20 Questions
Payment of time- barred debt is: (a) Valid (b) Void (c) Illegal (d) Voidable
Consideration is defined in the Indian Contract Act,1872 in: (a) Section 2(f) (b) Section 2(e) (c) Section 2(g) (d) Section 2(d)
Which of the following is not an exception to the rule, "No consideration, No contract": (a) Natural love and affection (b) Compensation for involuntary services (c) Completed gift (d) Agency
Consideration must move at the desire of: (a) The promisor (b) The promisee (c) The promisor or any other party (d) Both the promisor and the promisee
An offer which is open for acceptance over a period of time is: (a) Cross Offer (b) Counter Offer (c) Standing Offer (d) Implied Offer
Specific offer can be communicated to__________ (a) All the parties of contract (b) General public in universe (c) Specific person (d) None of the above
_________ amounts to rejection of the original offer. (a) Cross offer (b) Special offer (c) Standing offer (d) Counter offer
A advertises to sell his old car by advertising in a newspaper. This offer is caleed: (a) General Offer (b) Special Offer (c) Continuing Offer (d) None of the above
In case a counter offer is made, the original offer stands: (a) Rejected (b) Accepted automatically (c) Accepted subject to certain modifications and variations (d) None of the above
In case of unenforceable contract having some technical defect, parties (a) Can sue upon it (b) Cannot sue upon it (c) Should consider it to be illegal (d) None of the above
If entire specified goods is perished before entering into contract of sale, the contract is (a) Valid (b) Void (c) Voidable (d) Cancelled
______________ contracts are also caled contracts with executed consideration. (a) Unilateral (b) Completed (c) Bilateral (d) Executory
A offers B to supply books @ Rs 100 each but B accepts the same with condition of 10% discount. This is a case of (a) Counter Offer (b) Cross Offer (c) Specific Offer (d) General Offer
_____________ is a game of chance. (a) Conditional Contract (b) Contingent Contract (c) Wagering Contract (d) Quasi Contract
There is no binding contract in case of _______ as one's offer cannot be constructed as acceptance (a) Cross Offer (b) Standing Offer (c) Counter Offer (d) Special Offer
An offer is made with an intention to have negotiation from other party. This type of offer is: (a) Invitation to offer (b) Valid offer (c) Voidable (d) None of the above
When an offer is made to the world at large, it is ____________ offer. (a) Counter (b) Special (c) General (d) None of the above
Implied contract even if not in writing or express words is perfectly _______________ if all the conditions are satisfied:- (a) Void (b) Voidable (c) Valid (d) Illegal
A specific offer can be accepted by ___________. (a) Any person (b) Any friend to offeror (c) The person to whom it is made (d) Any friend of offeree
An agreement toput a fire on a person's car is a ______: (a) Legal (b) Voidable (c) Valid (d) Illegal
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