ICFAI Interview Questions & Answers

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ICFAI Interview Questions & Answers

Have you been looking for a career in teaching in a professional manner then look a view into wisdomjobs showering a plenty of opportunities? Teaching is a profession that leads you to build up a bright future. ICFAI is offering the brilliant and talented persons for technical, research, professors, lecture delivering in this respective field. Engineering and non-engineering field are most important and student handling is the priority for faculty. To give their best ICFAI jobs interview questions and answers page is available for gain and score some capabilities. Job givers are looking for both freshers and experienced who gives most priority and willing of respective teaching. In no second thought just go on for an interview with great confidence and abilities in the finest career.

ICFAI Interview Questions

ICFAI Interview Questions
    1. Question 1. What Does Icfai Stands For?

      Answer :

      It is the short for Institute of Chartered Financial Analysts of India. It was established in 1984 as a not-for-profit educational society in Telangana, India. The institution has been offering quality education to students across the country through its various programs in the field of higher education.

    2. Question 2. What Are Treasury Bills?

      Answer :

      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.

    3. Question 3. What Is Yield?

      Answer :

      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).

    4. Question 4. What Is Htm & Afs?

      Answer :

      • Available-for-sale (AFS).
      • Held-to-maturity (HTM).

    5. Question 5. What Is Mark To Market?

      Answer :

      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.

    6. Question 6. What Are Dated Securities?

      Answer :

      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.

    7. Question 7. Founder Of Niacl? What Do You Know Abbot Niacl? Source Of Income For Niacl?

      Answer :

      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.

    8. Question 8. What Is The Benefit Of Nationalization On Indian Banks?

      Answer :

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

    9. Question 9. What Is The Difference Between Cheque And Demand Draft?

      Answer :

      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.

    10. Question 10. What Are Nbfcs And Difference Between Nbfcs And Bank?

      Answer :

      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.

    11. Question 11. What Is Private Banking?

      Answer :

      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.

    12. Question 12. What Is The Use Of Computers In A Bank?

      Answer :

      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.

    13. Question 13. What Is Recession? What Is The Cause For The Present Recession?

      Answer :

      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.

    14. Question 14. What Is The Difference Between Nationalized Bank And Private Bank?

      Answer :

      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.

    15. Question 15. What Is Laf?

      Answer :

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

    16. Question 16. What Is Sensex And Nifty?

      Answer :

      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. Whereas 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.

    17. Question 17. What Is Fiscal Deficit?

      Answer :

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

    18. Question 18. What Is Subprime Crisis?

      Answer :

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

    19. Question 19. What Is A Repo Rate?

      Answer :

      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.

    20. Question 20. What Is Reverse Repo Rate?

      Answer :

      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 these attractive interest rates.

    21. Question 21. What Is Crr Rate?

      Answer :

      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.

    22. Question 22. What Is Slr Rate?

      Answer :

      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.

    23. Question 23. What Is Bank Rate?

      Answer :

      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.

    24. Question 24. Why The Banks Are Going To Lend The Money At Varied Interest Rate?

      Answer :

      Banks are going to lend the money at varied interest rates depending upon the purpose, amount and period of loan.

    25. Question 25. What Are Your Career Goals? Where Do You See Yourself Five Years From Now? Ten Years?

      Answer :

      Most importantly are realistic Blue sky stuff brands you as immature. One or two management jumps in three to five years is a reasonable goal. If your track indicates you are on line for senior management in ten years its okay to mention. However if you have had a rocky road its better to be introspective.

    26. Question 26. Have You Applied To Any Other Areas Apart From Banking?

      Answer :

      Here of course your answer will hold some other finance or sales and marketing careers – insurance or accountancy, altogether these careers should have skills related to banking. Here of course because banking sector is booming sector even though in resssation our banking sectors performed well and its give good shape to your carrer.

    27. Question 27. Why Do You Want To Work Here?

      Answer :

      If you have done your homework about this organization now is the time to use that knowledge. Remember even as a recruited candidate some facilities will want to understand why you would select them. If you are a recruited candidate remind them that you were not looking when you were contacted but that the challenge sounded intriguing and that a solid opportunity for career advancement is important to you.

    28. Question 28. I Have Completed B-tech.if Interviewer Asks Why Are You Wanted To Join Banking Sector Instead Of Doing Engineering Field. What Should Be The Answer?

      Answer :

      Just tell them that banking industry is developing in such way that it gives a lot of career opportunity. And also you are very much attracted with the respect people have towards a bank employee…especially say the banks name in which you are called for..Say something about the technological advancement in the banking industry that attracted you most.

    29. Question 29. If Any Interviewer Ask If You Get More Salary Other Than My Company Will You Go For That?

      Answer :

      As an aspirant for successful professional, i think it is the experience not the salary that matters to get the peak. Besides, this company is on a high growth trajectory. Hence if i am eligible it is an honor to grow with my company.

    30. Question 30. Describe Your Gaps In Employment Frequent Job Changes Or Your Being Asked To Leave Your Last Position?

      Answer :

      Addressing mistakes in choices you made in the past will demonstrate maturity. Being unable to do so will cost you the job. From commuting issues to re engineering there are people who never expected job loss or changes to be a problem to address. Be able to address each issue clearly with solid information. This is an opportunity to grow with new challenges. Convey why you can and are ready to settle down now and your ability to make a contribution to a new organization. If you have taken time off between positions it is OK to let them know that you were not looking for another job. Let the interviewer know with increased responsibility and your broaden experience you will be an asset to their team. If you had offers and did not accept them, let them know you are looking for the perfect organization theirs Be positive introspective and honest but do not dwell on the question.

    31. Question 31. Why Banking That Also Clerk After Mba?

      Answer :

      My passion is to be in a banking sector .So that i can start my career with bank and attain good position.

    32. Question 32. What Do You Consider Your Most Significant Strengths?

      Answer :

      Be prepared by knowing your four or five key strengths. Be able to discuss each with a specific example. Select those attributes that are most compatible with the job opening. Some people say management or good inter-personal skills in answer to this. Do not answer this way unless you can describe with specific examples the characteristics of management (planning organizing results staffing etc.) or how your relationship skills have proven critical to your success.

    33. Question 33. Describe Your Typical Day?

      Answer :

      The interviewer is looking for your organizational skills and the functions you handle to determine if you can address their problems. Before the interview review what you do daily weekly and monthly. Being energetic planned able to set goals and willing to be flexible are all important aspects of successfully managing your new responsibilities. Extensive discussion about putting out fires may signal a problem with your ability to plan or anticipate problems. The interviewer wants to know whether you are a responsible person or not .You have to impress him by narrating your day in such a way that he gets aglimpse of your responsibility, efficiency, hard working nature, & above all you are putting all efforts to reach your goal.

    34. Question 34. Why Do You Believe That You Are Qualified For This Position?

      Answer :

      Be certain you know the specifics of the question do they need a person to maintain the status quo or make major changes Do they want staff development a hands-on manager or an administrator to facilitate policies with upper administration. Pick two or three main factors about the job and about you that are most relevant. Provide specific details. Select a clinical or technical skill or a specific management skill (organizing staffing planning) and combine it with a personal success attribute. Have you ever accomplished something you didn’t think you could the interviewer is trying to determine your goal orientation work ethic personal commitment and integrity. Provide a good example where you overcame numerous difficulties to succeed. Prove you are not a quitter and that you will get going when the going gets tough. Specify all your strengths and relate them to the position you are applying.

    35. Question 35. What Do You Like Dislike Most About Your Current Position? What Will You Miss Most About Your Current Position?

      Answer :

      The interviewer is trying to determine compatibility with the open position. If you have an interest in the position is careful. Stating that you dislike overtime or detail work can cost you the position. There is nothing wrong with liking challenges pressure situations opportunities to grow or a dislike for bureaucracy or frustrating situations. Again be positive about your current position.

    36. Question 36. Describe The Difference Between Being A Manager And A Leader And A Follower?

      Answer :

      Your answer will tell the interviewer about your understanding of hiring motivating and retaining staff. Following directions thinking outside of the box empowering people or just doing what needs to be done all of these management approaches have their time. Its OK to be a manager certain situations require it. Being a leader is the next level of managerial development, so convey what is appropriate for you. Manager in the sense of manage the management. It includes planning, coordinating, controlling, all these thinks. Leader is nothing but to lead the team. It mainly concentrates to avoid any speculation of work and follow the managerial activities of above. A follower is just like follow to who are giving one work should be clearly fulfill that.

    37. Question 37. Describe Your Involvement In Re Engineering Down-sizing Or Cost Containment Processes?

      Answer :

      Healthcare continues to go through major changes. Describe in a positive way what changes you led facilitated or were involved in as a participant. Use examples where you specifically made changes and describe the outcome.

    38. Question 38. Why Do You Choose Banking Sector?

      Answer :

      Banking sector has evolved tremendously in the past decade. It is not just limited to its basic role of lending money n taking deposits. This scope has been widened. There has been development of adequate professional management and modern managerial techniques and practices in banking. Banking operations now also serve a large social purpose. Such highly evolved booming as well as challenging sector requires upbeat and enthusiastic workers with strong interpersonal skills.

    39. Question 39. What Are Probability Officer And Its Duties And Responsibilities?

      Answer :

      The Main role of Probationary officer in banking is to maintain the operation in all levels of banking and he holds the position period up to the bank’s rule. After Completion of training only you have the Responsibilities under which u have to be promoted. post in banking system is to maintain al the activities related to bank. Works like castor oriented as created deposits from the castor, giving loan to the customers, opening any type of a/c, increasing the customer by convincing it, maintaining the cash in the drawer, voucher authorisation, day to day generating the reports,npa recovery, telling government scheme to the customers and many more like all the branch operation.

    40. Question 40. How Do You Handle Pressure?

      Answer :

      High achievers tend to perform well in high pressure situations. These questions also would imply that the position is pressure packed. If you do perform well under stress provide an example with details giving an overview of the stressful situation. Let the interviewer feel the stress by your description. In such a stressful situation first you would try to be focused and strategically plan to arrive at the best and logical decision, which the situation would require.

    41. Question 41. Where Have You Saved Money Handled More With Less Or Found Other Ways To Cut Cost Or Increase Productivity?

      Answer :

      Describe your actions with a positive can-do attitude. Most organizations face these same issues and your proven success will make a good impression. Be specific and describe your successes in quantifiable terms. Share those achievements where you increased revenue reduced costs improved quality of care or otherwise improved the bottom line. Know the positive impact you have made for your current and past organizations. Well articulated, these answers can land your next opportunity.

    42. Question 42. What Are The Challenges For Banking Sector Of India?

      Answer :

      As it is banking sector, it has to face social and economic factors which leads to economic growth for developed and underdeveloped countries. Mainly banking is solid foundation and meets needs of industry and commerce. Every sector has its own kind of challenges to face when it comes to banking sector its challenges are very high. If you see some development in India it’s because of banking sector because its contribution to economy is maximum.

    43. Question 43. Who Are Our Major Competitors And What Differences Do You Notice In Our Bankings Products?

      Answer :

      The company will be expecting that you have done your research on the industry generally. You should be familiar with the bank’s products and services – literature on these can be picked up at any branch. Read the banks brochures and annual reports – these may be in the careers information room. Be aware of current trends in the market and try to find out what each bank is doing in these areas. Insurance and Mutual Fund sectors are competitors to banking industry. Banking products are different than those products as banking products assure rewards on investment where as others can’t give any assurance.

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