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Commercial Banks Interview Questions & Answers - Learning Mode
COOLINTERVIEW.COM INDIAN FINANCIAL SYSTEM INTERVIEW QUESTIONS COMMERCIAL BANKS INTERVIEW QUESTIONS 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 sources and application of funds of Commercial Banks?

Answer: 1)Sources of Funds
a)Share Capital
b)Reserves and Surplus
c)Deposits
d)Borrowings
2)Application of Funds
a)Cash and cash Balance with RBI
b)Cash balance with other banks
c)Investments
d)Advances Source: CoolInterview.com
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: CoolInterview.com
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: CoolInterview.com
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: CoolInterview.com
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: CoolInterview.com
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.
Source: CoolInterview.com
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: CoolInterview.com
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: CoolInterview.com
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: CoolInterview.com
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: CoolInterview.com
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: CoolInterview.com
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.





Source: CoolInterview.com
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: CoolInterview.com
Question: State the principles of the Investment policy of Commercial Banks?

Answer: a)Liquidity
b)Profitability
c)Safety
d)Diversity
e)Stability of securities Source: CoolInterview.com
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: CoolInterview.com
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
Citibank
City Union Bank
Corporation Bank
Source: CoolInterview.com
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: CoolInterview.com
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: CoolInterview.com
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: CoolInterview.com

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