Bank Branch Manager Interview Questions & Answers

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Investment banking manages portfolios of financial assets, commodity and currency, fixed income, corporate finance, corporate advisory services for mergers and acquisitions, debt and equity writing etc.

‘APR' (Annual Percentage Rate) can be ‘Fixed' or ‘Variable' type. In ‘Fixed APR', the interest rate remains same throughout the term of the loan or mortgage, while in ‘Variable APR' the interest rate will change without notice, based on the other factors like ‘prime rate'.

The classification of loan based on various risks and parameters like repayment risk, borrower's credit history etc. is known as ‘loan grading'. This system places loan on one to six categories, based on the stability and risk associated with the loan.

You can operate your bank accounts in different ways like

a) Internet banking
b) Telephone or Mobile banking
c) Branch or Over the counter service
d) ATM ( Automated Teller Machine)

A person who signs a note to guarantee the payment of the loan on behalf of the main loan applicant's is known as co-maker or co-signer.

APR stands for Annual Percentage Rate, and it is a charge or interest that the bank imposes on their customers for using their services like loans, credit cards, mortgage loan etc. The interest rate or fees imposed is calculated annually.

COFI is an index that is used to determine interest rates or changes in the interest rates for certain types of Loans.

The repayment of the loan by instalment to cover principal amount with interest is known as ‘Amortization'.

In my experience delegating responsibility and authority is crucial. A team needs to be able to develop and grow as individuals and a whole, not be held back by low expectations or ego.

When a loan is charged with high interest rate illegally then it is referred as ‘Usury'. Usury rates are generally set by State Law.

Any deposit that is held by one bank for another bank is known as inter-bank deposit. The bank for which the deposit is being held is referred as the correspondent bank.

Yes, bank will charge on ‘overdraft protection' services but the charges will be applicable only when you start using the service.

Payroll cards are types of smart cards issued by banks to facilitate salary payments between employer and employees. Through payroll card, employer can load salary payments onto an employee's smart card, and employee can withdraw the salary even though he/she doesn't have an account in the bank.

CASA stands for Current Account Savings Account. The CASA ratio shows how much deposit a bank has in the form of current and saving account deposits in the total deposit. A higher CASA ratio means better operating efficiency of the bank because on current account there is no interest payable whereas on savings account a tiny 3.5% interest is payable by the bank. CASA ratio shows how much of the deposit of the bank comes from the current and savings deposit.

Pay close attention to what made that boss the best in the candidate's mind. You have the chance to determine if the people in your organization will meet her standards. If she describes a supervisor who walked the floor daily and got involved in every project, and your management team sits behind closed doors, you may want to think twice about this hire. If she describes someone who never micro-managed and gave lots of opportunity for professional and personal development, then you need to be certain that you can provide an equal or better experience. Good people don't leave jobs; they leave people.

Commercial bank is owned by the group of individuals or by a member of Federal Reserve System. The commercial bank offer services to individuals, they are primarily concerned with receiving deposits and lending to business. Such bank earns money by imposing interest on the loan borrowed by the borrower. The money that is deposited by the customer will be used by the bank to give business loan, auto loan, mortgages and home repair loans.

For all job interview questions, it is important to stay away from any true weaknesses or shortcomings. Yet with management questions, it is acceptable to offer a minute amount of humility with your own abilities to provide a believable answer. An effective answer to these types of interview questions is, “Sometimes in the heat of a deadline, I have found that I have overlooked great work by a staff member. I am working on making sure everyone I work with gets their deserved recognition for successful completion of their tasks, because it is important that every individual staff member be recognized for their contributions toward building the company's success.”

ACH stands for Automated Clearing House, which is an electronic transfer of funds between banks or financial institutions.

A NPA is an obligation payable to the bank which has not been made or the interest and principal amount has not been paid on the due time. NPA is the loan or credit provided by the bank to its customers which could not be recovered in due time. Thus NPA is somehow not yielding any income to the lender either in the form of principal or interest payments. NPA is also known as “bad debts”.

NPA is shown at the assets side of the balance sheet whereas deposits are shown at the liability side.

If there is any recent story or news regarding NPA, then revise it thoroughly. For ex:- Recently, United bank of India was marred in loss due to its rising NPA. So was the case with Kotak Mahindra Bank.

One of the most common management job interview questions is going to be about your specific management style. There are various ways to answer this question. You may be tempted to share a specific management style, but the best answer to this question is, “I choose to adapt my management techniques based on the present situation, as work environments are constantly dynamic and often need to be handled in unique, novel ways.”

The RBI has advised banks to follow the Know Your Customer (KYC) guidelines where some personal information of the account holder is obtained by the bank. This information includes: - photograph, proof of identity and proof of address. In 2013, AADHAR cards and MNREGA cards are included in KYC papers. Without these documents a person can't open his account.

The different types of loans offered by banks are:

a) Unsecured Personal Loan
b) Secured Personal Loan
c) Auto Loans
d) Mortgage Loans
e) Small business Loans

Consumer bank is a new addition in the banking sector, such bank exist only in countries like U.S.A and Germany. This bank provides loans to their customer to buy T.V, Car, furniture etc. and give the option of easy payment through instalment.

The ‘balloon payment' is the final lump sum payment that is due. When the entire loan payment is not amortized over the life of the loan, the remaining balance is due as the final repayment to the lender. Balloon payment can occur within an adjustable rate or fixed rate mortgage.

Try your best not to focus on existential, immeasurable goals. Job interviews want to know what you truly bring, and you should be able to measure the results. The best answer to this type of interview question is, “Management is about setting and reaching goals and employee/organizational relationships. I measure effectiveness by looking at the data, ensuring that I am meeting deadlines early and helping to achieve organizational growth, and keeping morale high and those under my supervision engaged and active in their tasks.”