Federal Bank Interview Questions and Answers for Experienced

Current assets can be calculated by adding together all assets that are expected to be converted into cash or used up within one year.

• Calculate current assets by adding together cash, accounts receivable, inventory, and other assets expected to be converted into cash within one year.

• Exclude long-term assets such as buildings or equipment from the calculation.

• Examples of current assets include cash, marketable secu...read more

The Ombudsman is appointed by the President of the country.

• The Ombudsman is appointed by the President of the country.

• The appointment of the Ombudsman is usually based on recommendations from a selection committee.

• The Ombudsman is responsible for investigating complaints against government officials and agencies.

• The Ombudsman serves as an independent and impartial mediator between the government and the public.

Rural banking refers to banking services provided in rural areas to cater to the financial needs of the rural population.

• Rural banking focuses on providing financial services to people living in rural and remote areas.

• It includes services like savings accounts, loans, insurance, and other financial products tailored to the needs of rural customers.

• Rural banks often have branches in small towns and villages to ensu...read more

Obtain credit rating of an SME customer by analyzing financial statements, credit reports, and industry trends.

• Request financial statements from the SME customer

• Analyze the financial statements to assess the financial health of the SME

• Obtain credit reports from credit rating agencies like Moody's or S&P

• Consider industry trends and economic factors that may impact the credit rating

• Consult with credit analysts or fi...read more

I have a diverse background in management, with experience in team leadership, project coordination, and strategic planning.

• Over 5 years of experience in team management, leading a team of 10 in a retail environment.

• Successfully implemented a new inventory management system that reduced stock discrepancies by 30%.

• Conducted training sessions for new hires, improving onboarding efficiency by 25%.

• Collaborated with cr...read more

Repo rate is the rate at which the central bank of a country lends money to commercial banks.

• Repo rate is used by central banks to control inflation and liquidity in the economy.

• A higher repo rate means commercial banks will borrow at a higher interest rate, leading to less money in circulation.

• Conversely, a lower repo rate encourages borrowing and spending, stimulating economic growth.

• For example, if the repo rat...read more

Increase in repo or reverse repo rates can lead to higher borrowing costs for banks, impacting liquidity and interest rates in the economy.

• Higher repo or reverse repo rates can lead to increased borrowing costs for banks, as they have to pay more interest on funds borrowed from the central bank.

• This can result in a decrease in liquidity in the banking system, as banks may be less willing to lend to each other or t...read more

Liquidity ratio of a bank impacts its growth by determining its ability to meet short-term obligations. Vertical growth refers to expansion within the same industry.

• Liquidity ratio measures a bank's ability to meet short-term liabilities with its short-term assets.

• A higher liquidity ratio indicates a bank has more assets readily available to cover its liabilities, which can support growth by providing financial st...read more