(Comprehensive Coverage of topics relating toBanking and Financial Issues)

ByDhiraj Pandey

Upkar Prakashan, Agra-2

Revised & Enlarged Edition

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An Introduction

Modern banks have highly trained staff for delivering top quality service tocustomers. Other financial institutions like insurance companies now offer most of theservices provided by banks. Owing to this intense competition, banks need top qual-ity staff that is talented, reliable, trustworthy, and communicative. Many banking jobsare in specialist areas such as IT and corporate banking. Entry-level jobs will probablyinvolve processing checks so that the employee can meet the strict deadlines forovernight delivery to the bank’s head office. These employees are also involved inanswering customers’ questions and are the bank’s front line executives.

If the employee shows aptitude and initiative, he or she can become a supervisor,carrying responsibility for his or her own team. Once this employee passes their pro-fessional banking exams, he can be in- charge of the whole branch. Graduates canexpect to be placed on a fast track learning course, spending about two years movingthrough different jobs within the bank while learning how the bank works beforebeing promoted to a management position. Managers need a wide knowledge of thefinancial services available and should know when to bring in specialist advisers fromother areas of the bank.

All banking staff is expected to attend regular in-house training courses through-out their career to learn about new developments. Working hours of the staff aregenerally from 9 am to 5 pm, but working patterns may vary. Some branches will beopened on Saturdays and some are even open on Sundays. Salaries depend on theroles and responsibilities of the employee and the location of the bank. Most banksoperate on an annual appraisal system and salary increments are awarded according tothe performance of the employee during the year. Profit sharing, subsidized mort-gages, and non-contributory pension schemes form a part of their remuneration pack-age. There is a tremendous range of opportunities in commercial banking, starting atthe branch level. Different job options are Credit Analyst, Loan Officer, Branch Man-ager, Trust Officer, Mortgage Banker, and other jobs in accounting, marketing andadvertising, commercial card operations, securities transfer, wire operations, privatebanking, cash management services and operations and communications. In the caseof investment banking, the job options are manifold in areas like corporate finance,merger and acquisition deals, project financing, derivative financing, internationalsales, and retail brokeage.

Contents

1. INTERVIEW .................................................................................................................................... 3–4• What is Interview? ......................................................................................................................... 3• The Individual Interview ................................................................................................................ 3• Interviewing Panels ........................................................................................................................ 3• Purpose ........................................................................................................................................... 3• The Nature of an Interview ............................................................................................................ 3• Methods of Interview ..................................................................................................................... 4

2. INTERVIEWING APPROACHES .................................................................................................. 5–6• The Biographical Interview ............................................................................................................ 5• Interviews Planned by Reference to Assessment Headings ......................................................... 5• Structured Situational-Based Interviews ....................................................................................... 5• Structured Behavioural (Competency) Based Interviews .............................................................. 6• Structured Psychometric Interviews .............................................................................................. 6

3. INTERVIEWING TECHNIQUES–ASKING QUESTIONS ............................................................. 7–9• Open Questions .............................................................................................................................. 7• Probing Questions .......................................................................................................................... 7• Closed Questions ........................................................................................................................... 7• Hypothetical Questions ................................................................................................................. 7• Behavioural Event Questions ........................................................................................................ 8• Capability Questions ...................................................................................................................... 8• Questions About Motivation ......................................................................................................... 8• Continuity Questions ..................................................................................................................... 8• Career Questions ............................................................................................................................ 9• Questions about Outside Interests

4. PREPARING FOR AN INTERVIEW .......................................................................................... 10–13• Bank Interview Process ................................................................................................................ 10• Before the Interview ..................................................................................................................... 10• At the Interview ............................................................................................................................ 10• After the Interview ....................................................................................................................... 10• Documents Required for IBPS Bank Interviews .......................................................................... 10• Know Yourself .............................................................................................................................. 11• Prepare Yourself ............................................................................................................................ 11• Practice ......................................................................................................................................... 11• Checklist ....................................................................................................................................... 11• Research the Occupation ............................................................................................................. 12• Researching the Organization ...................................................................................................... 12• Most Employers Want to Know about You ................................................................................. 12• Bank Job Interview–Dos and Donts ............................................................................................ 12

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5. INTERVIEW QUESTIONS FOR BANK JOBS ........................................................................ 14–21• Frequently Asked Bank Interview Questions .............................................................................. 14• SBI Bank Interview Questions .................................................................................................... 14• Bank PO Interview Questions-Situational Questions .................................................................. 14• Important Questions and their Appropriate Answers ................................................................. 15• HR Questions .............................................................................................................................. 16• The Technical Questions ............................................................................................................. 17• Question Regarding Your Skills ................................................................................................... 17• Frequently Asked Interview Questions Related to Skills ............................................................ 17• Corporation Bank Interview Questions ....................................................................................... 17• Allahabad Bank PO Interview Questions .................................................................................... 18• Bank of Baroda Interview Questions ........................................................................................... 18• SBI Clerk Interview Questions ..................................................................................................... 18• Question Asked in State Bank of India (SBI) Interview ............................................................... 18• Don’t Worry about Interview Questions ..................................................................................... 20• Most Recurrently Asked Questions ............................................................................................ 20

6. THE BIODATA ........................................................................................................................... 22–24• Meaning of Bio-data ..................................................................................................................... 22• Definition of Bio-data ................................................................................................................... 22• Importance of Bio-data ................................................................................................................. 22• Most Important Basic Resume Tips ............................................................................................. 23• Avoid Mistakes ............................................................................................................................ 23

7. BODY LANGUAGE .................................................................................................................... 25–32• Meaning of Body Language ........................................................................................................ 25• The Importance of Body Language during a Job Interview ....................................................... 26• The First Meeting ......................................................................................................................... 27• Choosing the Right Seat .............................................................................................................. 27• Tune Your Body Posture .............................................................................................................. 27• What to do with your hands ........................................................................................................ 28• Movements: A Dynamic Interview? ............................................................................................. 28• When should you look at whom? ................................................................................................ 28• Also pay attention to the body language of your interview partners ......................................... 28• Do not worry too much about tension ......................................................................................... 28• Interview Body Language that Sends the Right Message .......................................................... 29• Eye Contact .................................................................................................................................. 29• Voice Delivery ............................................................................................................................... 30• The Interviewer’s Message .......................................................................................................... 30• Head .............................................................................................................................................. 31• Arms ............................................................................................................................................. 31• Hands............................................................................................................................................ 31• Legs and Feet ............................................................................................................................... 32

8. POSITIVE ATTITUDES.............................................................................................................. 33–34• Definition of Attitude ................................................................................................................... 33• The Power of Positive Attitude .................................................................................................... 33• The benefits of a positive attitude ............................................................................................... 34• Developing a positive attitude that will lead you to happiness and success ............................. 34

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9. POSITIVE THINKING ............................................................................................................... 35–36• Positive Thinking Your Key to Success ....................................................................................... 35• Positive thinking is contagious .................................................................................................... 35• Few actions and tips to help you develop the power of positive thinking ................................. 35• The Power of Positive Thinking ................................................................................................... 35• Practical Instructions .................................................................................................................... 36

10. SELF-CONFIDENCE .................................................................................................................. 37–41• Definition of Self-Confidence ....................................................................................................... 37• Building Self-Confidence .............................................................................................................. 37• The Secret to a Winning Interview: Self-Confidence and Learning to Relax ............................... 38• How Do You Stay Calm? .............................................................................................................. 38• Four Steps to Self-Confidence ..................................................................................................... 38• How to Overcome Self Doubt and Build Self-Confidence ........................................................... 39• Adjust Your Self-Perception ......................................................................................................... 39• Encourage yourself ...................................................................................................................... 39• Develop Positive Self-Esteem ...................................................................................................... 39• Accept your needs as valid .......................................................................................................... 39• Get past the opinions of others .................................................................................................... 39• Get away from negative influences .............................................................................................. 40• Find a support network ................................................................................................................ 40• Try New Things ............................................................................................................................ 40• Renew your confidence ................................................................................................................ 40

11. HOW TO DRESS FOR AN INTERVIEW .................................................................................. 42–44• The Importance of Dressing for Success ..................................................................................... 42• Men’s Interview Attire ................................................................................................................. 43• Women’s Interview Attire ............................................................................................................. 43• What Not to Bring to the Interview ............................................................................................. 43• Interview Attire Tips ..................................................................................................................... 43

12. HOW TO BEHAVE INSIDE AN INTERVIEW HALL ................................................................ 45–4513. EFFECTIVE COMMUNICATION .............................................................................................. 46–49

• What is effective communication? ............................................................................................... 46• Listening ....................................................................................................................................... 47• Tips for effective listening ........................................................................................................... 47• Non-verbal Communication .......................................................................................................... 47• Tips for improving how you read non-verbal communication .................................................... 47• Tips for improving how you deliver non-verbal communication ................................................ 48• Managing Stress .......................................................................................................................... 48• Quick stress relief for effective communication ........................................................................... 48• Emotional Awareness ................................................................................................................... 49• How emotional awareness can improve effective communication .............................................. 49• Effective communication requires both thinking and feeling ...................................................... 49• Emotional awareness is a skill you can learn ............................................................................... 49

14. BANKING AND FINANCE KNOWLEDGE ............................................................................... 50–54• Evolution of Commercial Banks in India ...................................................................................... 50• Definition of Banks ....................................................................................................................... 51

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• Importance of Banks ..................................................................................................................... 51• The Main Functions of a Commercial Bank ................................................................................ 51• Banking Structure in India ............................................................................................................ 51• Banking Regulator: The Reserve Bank of India .......................................................................... 51• Functions of RBI .......................................................................................................................... 52• RBI as Bankers’ Bank ................................................................................................................... 52• RBI as supervisor ......................................................................................................................... 52• Scheduled Banks in India ............................................................................................................. 52• Public Sector Banks ...................................................................................................................... 52• Regional Rural Banks ................................................................................................................... 52• Private Sector Banks ..................................................................................................................... 53• Foreign Banks ............................................................................................................................... 53• Cooperative Banks ....................................................................................................................... 53• Competitive Landscape of Banks in India ................................................................................... 54• Term-Lending Institutions ............................................................................................................ 54• Non-Banking Finance Companies (NBFCs) ................................................................................. 54• Insurance Companies ................................................................................................................... 54• Mutual Funds ............................................................................................................................... 54

15. INDIAN FINANCIAL SYSTEM .................................................................................................. 55–57• Introduction to Indian Financial System ...................................................................................... 55• Significance and Definition .......................................................................................................... 55• The Concept of the Financial System .......................................................................................... 55• Inter-relationship in the Financial System ................................................................................... 55• The Organisation of the Financial System in India ...................................................................... 56• Rural Financial System ................................................................................................................. 57• The Banking System..................................................................................................................... 57

16. COMMERCIAL BANKING ........................................................................................................ 58–61• Evolution ...................................................................................................................................... 58• Financial Services ......................................................................................................................... 58• Fiduciary Services ........................................................................................................................ 59• Off-Balance Sheet Activities ........................................................................................................ 59• Analysis of Assets and Liabilities of Commercial Banks ............................................................. 59• Liabilities of a Commercial Bank ................................................................................................... 59• Deposits from Banks .................................................................................................................... 60• Borrowing from other Banking Companies, Agents .................................................................... 60• Assets of a Commercial Bank ....................................................................................................... 60

17. CENTRAL BANKING ................................................................................................................ 62–65• Monetary and Credit Policy ......................................................................................................... 62• Objectives of Monetary Policy in India ....................................................................................... 62• Policy of Credit Expansion ........................................................................................................... 63• Meaning of Credit Control ........................................................................................................... 63• Instruments of Monetary and Credit Policy ................................................................................ 63• Quantitative Credit Control .......................................................................................................... 63• Qualitative Credit Control ............................................................................................................. 64

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• Selective Credit Controls .............................................................................................................. 6418. RESERVE BANK OF INDIA (RBI) ............................................................................................ 66–68

• Functions of Reserve Bank of India ............................................................................................ 66• Issuing of Currency ...................................................................................................................... 66• Banker to Government .................................................................................................................. 66• Banker's Bank and Lender of the Last Resort .............................................................................. 67• Credit Control ............................................................................................................................... 67• Custodian of Foreign Exchange Reserves ................................................................................... 67• Regulator and Supervisor of Financial System ............................................................................ 67• Promotional Functions ................................................................................................................. 68• Classification of RBI's Functions ................................................................................................. 68

19. BANKS IN INDIA ....................................................................................................................... 69–76• State Bank of India ....................................................................................................................... 69• State Bank of Bikaner and Jaipur .................................................................................................. 69• State Bank of Hyderabad.............................................................................................................. 69• State Bank of Patiala ..................................................................................................................... 70• State Bank of Mysore ................................................................................................................... 70• State Bank of Travancore ............................................................................................................. 70• Allahabad Bank ............................................................................................................................ 70• Andhra Bank ................................................................................................................................ 70• Bank of Baroda ............................................................................................................................. 70• Bank of India ................................................................................................................................ 71• Bank of Maharashtra .................................................................................................................... 71• Canara Bank .................................................................................................................................. 71• Central Bank of India .................................................................................................................... 72• Corporation Bank ......................................................................................................................... 72• Dena Bank .................................................................................................................................... 72• Indian Bank ................................................................................................................................... 73• Indian Overseas Bank .................................................................................................................. 73• Oriental Bank of Commerce .......................................................................................................... 74• Punjab and Sindh Bank ................................................................................................................ 74• Punjab National Bank ................................................................................................................... 74• Syndicate Bank ............................................................................................................................. 75• UCO Bank ..................................................................................................................................... 75• Union Bank of India ..................................................................................................................... 75• Vijya Bank ..................................................................................................................................... 76

20. PRIVATE SECTOR BANKS ...................................................................................................... 77–80• Old Private Sector Banks .............................................................................................................. 77• Catholic Syrian Bank Ltd. ............................................................................................................. 77• City Union Bank Ltd. .................................................................................................................... 77• Dhanalakshmi Bank Ltd. ............................................................................................................... 77• Federal Bank Ltd. .......................................................................................................................... 77• ING Vysya Bank Ltd. .................................................................................................................... 78• Jammu and Kashmir Bank Ltd. ..................................................................................................... 78• Karnataka Bank Ltd. ..................................................................................................................... 78

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• Karur Vysya Bank Ltd. ................................................................................................................. 78• Lakshmi Vilas Bank Ltd. ................................................................................................................ 79• Nainital Bank Ltd. ......................................................................................................................... 79• Ratnakar Bank Ltd. ....................................................................................................................... 79• South Indian Bank Ltd. ................................................................................................................. 79• Tamilnad Mercantile Bank Ltd. ..................................................................................................... 79

New Private Sector Banks• Axis Bank Ltd. .............................................................................................................................. 79• Development Credit Bank Ltd. ..................................................................................................... 80• HDFC Bank Ltd. ............................................................................................................................ 80• ICICI Bank Ltd. ............................................................................................................................. 80• IndusInd Bank Ltd. ....................................................................................................................... 80• Kotak Mahindra Bank Ltd. ........................................................................................................... 80• Yes Bank Ltd. ................................................................................................................................ 80

21. FOREIGN BANKS IN INDIA ..................................................................................................... 81–83• Major foreign banks in India• ABN-AMRO Bank ........................................................................................................................ 81

• Abu Dhabi Commercial Bank Ltd. ................................................................................................ 81

• American Express Bank Ltd. ......................................................................................................... 81

• BNP Paribas .................................................................................................................................. 81

• Citibank ......................................................................................................................................... 81

• DBS Bank Ltd. .............................................................................................................................. 81

• Deutsche Bank ............................................................................................................................. 81

• HSBC Ltd. ..................................................................................................................................... 82• Standard Chartered Bank.............................................................................................................. 82• Barclays Bank ............................................................................................................................... 82• Foreign banks branches in India as on January 31, 2014............................................................. 82

22. COOPERATIVE BANKS IN INDIA........................................................................................... 84–86• Primary Cooperative Credit Societies ........................................................................................... 84• Central Cooperative Banks ........................................................................................................... 84• State Cooperative Banks .............................................................................................................. 84• Land Development Banks ............................................................................................................ 84• Features of Cooperative Banks .................................................................................................... 84

23. REGIONAL RURAL BANKS IN INDIA .................................................................................... 87–88• The Performance of Regional Rural Banks (RRBs) in India ......................................................... 88

24. FINANCIAL INSTITUTIONS .................................................................................................... 89–91• National Level Institutions ........................................................................................................... 89• State Level Institutions ................................................................................................................ 90

25. NON-BANKING FINANCIAL INSTITUTIONS AND OTHERS .............................................. 92–95• National Bank for Agriculture and Rural Development (NABARD) ........................................... 92• EXIM Bank ................................................................................................................................... 93• National Housing Bank (NHB) ..................................................................................................... 94••••• Small Industries Development Bank of India (SIDBI) .................................................................. 94• India Infrastructure Finance Company Ltd. (IIFCL) .................................................................... 94

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• Irrigation and Water Resources Finance Corporation (IWRFC).................................................. 94• SME Rating Agency of India Ltd. (SMERA) ............................................................................... 95• Industrial Finance Corporation of India (IFCI) ............................................................................ 95

26. ECONOMIC DEVELOPMENT THROUGH BANKING SYSTEM ........................................... 96–98• Implications of the Reforms for the Banking Sector .................................................................... 98

27. LIBERALISATION OF THE FINANCIAL SYSTEM............................................................... 99–10028. SAVING AND FINANCIAL INTERMEDIATION ................................................................... 101–107

• Saving .......................................................................................................................................... 101• Financial Intermediation ..............................................................................................................102• Money Market and Capital Market .............................................................................................102• Structure of Indian Money Market .............................................................................................102• Securities and Exchange Board of India (SEBI) ..........................................................................104• Depository System in India .........................................................................................................106

29. PUBLIC DEBT ......................................................................................................................... 108–111• Classification of Public Debt .......................................................................................................108• Internal Debt ................................................................................................................................ 108• External Debt ...............................................................................................................................108• Ownership of Debt ......................................................................................................................109• Maturity Pattern of Debt ............................................................................................................. 109• Secondary Debt Market ..............................................................................................................110• REPOs .......................................................................................................................................... 110• Reverse Repo ...............................................................................................................................110• Advances to Priority Sector ........................................................................................................ 111• Supervision System .....................................................................................................................111

30. NON-BANKING FINANCIAL COMPANIES ......................................................................... 112–114• Definition of Non-banking Finance Company ............................................................................112• Difference between Banks and NBFCs .......................................................................................112• Different Types of NBFCs ...........................................................................................................112• Type of Services Provided by NBFCs .........................................................................................113• Financial Sector Reforms and Liberalization Measures for NBFCs ............................................ 114

31. MERCHANT BANKING ......................................................................................................... 115–116• Merchant Banking in India ..........................................................................................................115• Definition of Merchant Banker ....................................................................................................115

32. MUTUAL FUNDS ..................................................................................................................... 117–119• Mutual Funds in India .................................................................................................................117• Types of Mutual Funds ...............................................................................................................117• Private Mutual Funds .................................................................................................................. 118• Unit Trust of India .......................................................................................................................119• Money Market Mutual Funds (MMMF) ....................................................................................119

33. STOCK MARKETS IN INDIA ............................................................................................... 120–121• History of Stock Exchanges ........................................................................................................ 120• Stock Exchange............................................................................................................................120• Organisation ................................................................................................................................ 120

34. BASEL III ................................................................................................................................ 122–124• Basel I and II ................................................................................................................................ 122• Basel 3 and Indian Banks ............................................................................................................123• RBI Guidelines on Basel III Capital Regulations ......................................................................... 123

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35. INDIAN CURRENCY AND COINS ....................................................................................... 125–127• About India Currency ................................................................................................................ 125• Role of the Reserve Bank in Currency Management ................................................................. 125• Numerical System of India Currency .......................................................................................... 125• Indian Rupee Sign .......................................................................................................................126• Source ......................................................................................................................................... 126• Coins ........................................................................................................................................... 126• Issue of India Currency Coins .................................................................................................... 126• Blueprint ..................................................................................................................................... 126• Present India Currency Banknotes ............................................................................................. 127• India Currency Languages ......................................................................................................... 127

36. FINANCIAL REGULATORY BODIES IN INDIA .................................................................. 128–131• Reserve Bank of India ................................................................................................................. 128• Securities and Exchange Board of India (SEBI) .......................................................................... 129• Insurance Regulatory Authority of India (IRDA) .......................................................................129• Pension Fund Regulatory and Development Authority (PFRDA) ............................................. 129• Competition Commission of India ...............................................................................................130• Forward Markets Commission ..................................................................................................... 131• Financial Sector Legislative Commission (FSLRC) ..................................................................... 131

37. INFORMATION TECHNOLOGY IN THE FINANCIAL SECTOR ....................................... 132–135• Role of Technology in Indian Banking Sector ............................................................................ 132• Electronic Payment Services – E-Cheques .................................................................................. 132• Real Time Gross Settlement (RTGS) ............................................................................................ 133• Electronic Funds Transfer (EFT) ................................................................................................. 133• Electronic Clearing Service (ECS) ................................................................................................ 133• Automatic Teller Machine (ATM) ...............................................................................................133• Point of Sale Terminal (PoS) ........................................................................................................ 133• Tele Banking ................................................................................................................................ 133• Electronic Data Interchange (EDI) .............................................................................................. 133• Implications ................................................................................................................................. 134• Issues in IT Delivery in the Banking Sector ............................................................................... 134• Virtual Currency ........................................................................................................................... 135

38. IMPORTANT CONCEPTS REGARDING BUDGET ............................................................ 136–13939. ECONOMIC TERMINOLOGY .............................................................................................. 140–14940. TERMS ASSOCIATED WITH CAPITAL MARKET ............................................................. 150–15041. BANKING TERMS FOR INTERVIEW .................................................................................. 151–15342. FINANCE TERMS ................................................................................................................. 154–156 � Simple Questions and Their Answers on Banking Sector .................................................. 157–176

Handbook forHandbook forHandbook forHandbook forHandbook forBanking InterviewBanking InterviewBanking InterviewBanking InterviewBanking Interview

What is Interview ?� A job interview is a process in which a potential

employee is evaluated by an employer forprospective employment in their company,organisation, or firm. During this process, theemployer hopes to determine whether or not theapplicant is suitable for the role.

� A somewhat formal discussion between a hirerand an applicant or candidate, typically inperson, in which information is exchanged, withthe intention of establishing the applicant’ssuitability for a position.

� An interview means a face-to-face interactionbetween the interviewer and the candidate/candidates so as to obtain desired informationfrom him/them. It can also be defined as a way ofexchanging meanings between individuals byusing a common set of symbols. Interviewsgenerally need a preparation. Job interviewsseem frightening, even if the individual is wellprepared. Interviews have a definite structure.Clear communication should take place duringan interview. All interviews have a definitepurpose familiar to the interviewer and thecandidate/interviewee.

The Individual InterviewThe individual interview is the most familiar

method of selection. It involves face-to-facediscussion and provides the best opportunity forthe establishment of close contact rapport betweenthe interviewer and the candidate.

Interviewing PanelsTwo or more people gathered together to

interview one candidate may be described as aninterviewing panel. The interviewers can discusstheir joint impressions of the candidate’s behaviourat the interview and modify or enlarge any superficialjudgements.

PurposeThe purpose of the selection interview is to

obtain and assess information about a candidatewhich will enable a valid prediction to be made ofhis or her future performance in the job incomparison with the predictions made for any othercandidates.

Interviewing therefore involves processingand evaluating evidence about the capabilities of acandidate in relation to the person specification.

In particular, selection interviews aim toprovide answers to these questions :� Can individuals do the job – are they competent?� Will individuals do the job – are they well

motivated?� How will individuals fit into the organization?

The Nature of an InterviewAn interview can be described as a

conversation with a purpose. It is a conversationbecause candidates should be induced to talk freelywith their interviewers about themselves, theirexperience and their careers. But the conversationhas to be planned, directed and controlled toachieve the main purpose of the interview, which isto make an accurate prediction of the candidate’sfuture performance in the job for which he or she isbeing considered.

However, interviews also provide a valuableopportunity for an exchange of information, whichwill enable both parties to make a decision: to offeror not to offer a job; to accept or not to accept theoffer. It may be better for the candidates to ‘de-select’ themselves at this stage if they do not likewhat they hear about the job or the company ratherthan take on a disagreeable job. Interviews are oftenused to give the candidates a favourable impressionof the organisation and the job.

11111InterviewInterviewInterviewInterviewInterview

4 | Banking Interview

Methods of InterviewThere are a number of methods of conducting

interviews. At their worst, interviewers adopt anentirely unstructured approach, which involvesasking random questions that are not based on anyunderstanding of what they are looking for. At best,they are clearly structured and related to a thoroughanalysis of role requirements in terms of skills andcompetencies.

Generally, an interview can be divided into fiveparts:

1. The welcome and introductory remarks.

2. The major part concerned with obtaininginformation about the candidate to assess againstthe person specification.

3. The provision of information to candidatesabout the organisation and the job.

4. Answering questions from the candi-date.

5. Closing the interview with an indication ofthe next step.

Banking Interview | 5

22222Interviewing ApproachesInterviewing ApproachesInterviewing ApproachesInterviewing ApproachesInterviewing Approaches

The Biographical InterviewThe traditional biographical interview either

starts at the beginning (education) and goes on insequence to the end (the current or last job or themost recent educational experience), or proceeds inthe opposite direction, starting with the present joband going backwards to the first job and thecandidate’s education or training. Manyinterviewers prefer to go backwards withexperienced candidates, spending most time on thepresent or recent jobs, giving progressively lessattention to the earlier experience, and only touchingon education lightly.

The aim is to obtain information under each ofthe main headings to indicate the extent to which thecandidate matches the specification.

Typical headings are:� Knowledge, skills and expertise – What the

candidate is expected to know and be able to doas a result of experience, education and training(work-based competencies), for example,technical or professional knowledge, numeracy,manual skills, and experience at the appropriatelevel in carrying out relevant work.

� Personal qualities – How the candidate will beexpected to behave in carrying out the job, suchas working with other people, exercisingleadership, influencing people, communicating(e.g. report writing, making presentations)achieving results, decision-making, taking theinitiative, and being self-reliant (behaviouralcompetencies).

� Qualifications– Essential academic orprofessional qualifications.

A ‘person specification’ setting out suchrequirements can be sent to candidates (or postedon an online recruitment site). The applicant is asked

to respond with information on how they believethey match these requirements. This approach canmake it much easier to sift applications.

Interviews Planned by Reference toAssessment Headings

Assessment headings define a number of areasin which information can be generated and assessedin a broadly comparable way. But as Edenborough(1994) points out, they do not provide any clearindication of which items of the data collected arelikely to predict success in a job.

Structured Situational-Based Interviews

In a situational-based interview (sometimesdescribed as a critical-incident interview) the focusis on a number of situations or incidents in whichbehaviour can be regarded as being particularlyindicative of subsequent performance. A typicalsituation is described and candidates are asked howthey would deal with it. Follow-up questions are askedto explore the response in more detail, thus gaining abetter understanding of how candidates might tacklesimilar problems.

Situational-based questions ask candidateshow they would handle a hypothetical situation thatresembles one they may encounter in the job.

Situational questions can provide some insightinto how applicants might respond to particular jobdemands and have the advantage of being work-related. They can also provide candidates with someinsight into the sort of problems they might meet inthe job. But, because they are hypothetical and cannecessarily only cover a limited number of areas;they cannot be relied on by themselves. They couldindicate that candidates understand how they mighthandle one type of situation in theory but not thatthey would be able to handle similar or othersituations in practice.

6 | Banking Interview

Structured Behavioural (Competency)Based Interviews

In a behavioural-based interview (sometimesreferred to as a criterion-referenced interview) theinterviewer progresses through a series of questions,each based on a criterion, which could be abehavioural competency or a competence in the formof a fundamental skill, capability or aptitude that isrequired to achieve an acceptable level ofperformance in the job.

The aim is to collect evidence about relevantaspects of experience in using skills andcompetencies on the assumption that such evidenceof past performance and behaviour is the bestpredictor of future performance and behaviour aslong as the criteria are appropriate in relation to thespecified demands of the job.

Behavioural-based questions ask candidatesto describe how they dealt with particular situationsthey have come across in their past experience. Ineffect they are asked to indicate how they behaved

in response to a problem and how well that behaviourworked. Questions are structured around the keycompetencies identified for the role. The definitionsof these competencies should identify what isregarded as effective behaviour as a basis forevaluating answers. A list of questions can be drawnup in advance to cover the key competencies set outin the person specification.

Structured Psychometric InterviewsAnother type of structured interview consists

of entirely predetermined questions as in apsychometric test. There is no scope to followthrough questions as in the other types of structuredinterviews referred to above. Responses to thequestions are coded so that results can be analysedand compared. The aim is to obtain consistencybetween different interviews and interviewers. Atypical question would be: ‘Have you ever been in asituation where you have had to get someone to dosomething against their will?’; (if yes) ‘Please giveme a recent example.’

Banking Interview | 7

Open QuestionsOpen questions are the best ones to use to get

candidates to talk – to encourage a full response.Single-word answers are seldom illuminating. It helpscandidates to settle in.

Open questions or phrases inviting a responsecan be phrased as follows:� I’d like you to tell me about the sort of work you

are doing in your present job.� What do you know about?� Could you give me some examples of?� In what ways do you think your experience fits

you to do the job for which you have applied?� How have you tackled?� What have been the most challenging aspects of

your job?� Please tell me about some of the interesting things

you have been doing at work recently.Probing Questions

Probing questions are used to get furtherdetails or to ensure that you are getting all the facts.When answers have been too generalized or wheninterviewer suspects that there may be some morerelevant information that candidates have notdisclosed.

A candidate may claim to have done somethingand it may be useful to find out more about exactlywhat contribution was made. Skilled interviewers areable to flex their approach to ensure they get thefacts while still keeping control to ensure that theinterview is completed on time.

Example:� What was your precise role in this project?� What exactly was the contribution you made to

its success?� What knowledge and skills were you able to apply

to the project?

33333Interviewing Techniques–Interviewing Techniques–Interviewing Techniques–Interviewing Techniques–Interviewing Techniques–

Asking QuestionsAsking QuestionsAsking QuestionsAsking QuestionsAsking Questions� Were you responsible for monitoring progress?� Did you prepare the final recommendations in

full or in part? If in part, which part?

Closed QuestionsClosed questions aim to clarify a point of fact.

The expected reply will be an explicit single word orbrief sentence. In a sense, a closed question acts asa probe but produces a succinct factual statementwithout going into detail. When interviewer asks aclosed question he intends to find out:� What the candidate has or has not done – ‘What

did you do then?’� Why something took place– ‘Why did that

happen?’� When something took place– ‘When did that

happen?’� How something happened– ‘How did that

situation arise?’� Where something happened – ‘Where were you

at the time?’� Who took part – ‘Who else was involved?’Hypothetical Questions

Hypothetical questions are used in structuredsituational-based interviews to put a situation tocandidates and ask them how they would respond.Such questions may be phrased: ‘what do you thinkyou would do if ?’ When such questions lie wellwithin the candidate’s expertise and experience, theanswers can be illuminating. Hypothetical questionscan produce hypothetical answers.

The best data upon which judgements aboutcandidates can be made are what they have actuallydone or achieved. Interviewer needs to find out ifcandidate have successfully dealt with the sort ofissues and problems they may be faced with if he/she join your organization.

8 | Banking Interview

Behavioural Event QuestionsBehavioural event questions as used in

behavioural-based structured interviews aim to getcandidates to tell you how they would behave insituations that have been identified as critical tosuccessful job performance. The assumption uponwhich such questions are based is that pastbehaviour in dealing with or reacting to events is thebest predictor of future behaviour.

The following are some typical behaviouralevent questions:� Could you give an instance when you persuaded

others to take an unusual course of action?� Could you describe an occasion when you

completed a project or task in the face of greatdifficulties?

� Could you describe any contribution you havemade as a member of a team in achieving anunusually successful result?

� Could you give an instance when you took thelead in a difficult situation in getting somethingworthwhile done?

Capability QuestionsCapability questions aim to establish what

candidates know, the skills they possess and useand their competencies – what they are capable ofdoing. They can be open, probing or closed but theywill always be focused as precisely as possible onthe contents of the person specification referring toknowledge, skills and competencies.

Capability questions are used in behavioural-based structured interviews.

Capability questions should therefore beexplicit – focused on what candidates must knowand be able to do. Their purpose is to obtain fromcandidates evidence that shows the extent to whichthey meet the specification in each of its key areas.

Example:� What do you know about?� How did you gain this knowledge?� What are the key skills you are expected to use in

your work?� How would your present employer rate the level

of skill you have reached in…?� Could you please tell me exactly what sort and

how much experience you have had in…?� Could you tell me more about what you have

actually been doing in this aspect of your work?

� Can you give me any examples of the sort of workyou have done that would qualify you to do thisjob?

� What are the most typical problems you have todeal with?

� Would you tell me about any instances whenyou have had to deal with an unexpected problemor a crisis?

Questions about MotivationThe degree to which candidates are motivated

is a personal quality to which it is usually necessaryto give special attention if it is to be properlyassessed. This is best achieved by inference ratherthan direct questions. ‘How well are you motivated?’is a leading question that will usually produce theresponse: ‘Highly.’

Interviewer can make inferences about the levelof motivation of candidates by asking questionsabout:� Your career – replies to such questions as ‘Why

did you decide to move on from there?’ can givean indication of the extent to which they havebeen well motivated in progressing their career.

� Achievements– not just ‘What did you achieve?’but ‘How did you achieve it?’ and ‘Whatdifficulties did you overcome?’

� Triumphing over disadvantages– candidateswho have done well in spite of an unpromisingupbringing and relatively poor education may bemore highly motivated than those with all theadvantages that upbringing and education canbestow, but who have not made good use of theseadvantages.

� Spare time interests– don’t accept at its facevalue a reply to a question about spare timeinterests that, for example, reveals that acandidate collects stamps.

Continuity QuestionsContinuity questions aim to keep the flow going

in an interview and encourage candidates to enlargeon what they have told you, within limits. Here aresome examples of continuity questions:� What happened next?� What did you do then?� Can we talk about your next job?� Can we move on now to…?� Could you tell me more about…?

Banking Interview | 9

It has been said that to keep the conversationgoing during an interview the best thing aninterviewer can do is to make encouraging grunts atappropriate moments. There is more to interviewingthan that, but single words or phrases like ‘good’,‘fine’, ‘that’s interesting’, ‘carry on’ can help thingsalong.

Career QuestionsAs mentioned earlier, questions about the

career history of candidates can provide some insightinto motivation as well as establishing how they haveprogressed in acquiring useful and relevantknowledge, skills and experience.

Such questions as:� What did you learn from that new job?� What different skills had you to use when you

were promoted?� Why did you leave that job?

� What happened after you left that job?� In what ways do you think this job will advance

your career?

Questions about Outside InterestsIt is seldom relevant, it can give some insight

into how well motivated candidates are if the depthand vigour with which the interest is pursued isexplored.

Active interests and offices held at school,colleges or universities can, however, provide someinsight into the attributes of candidates in theabsence of any work history except, possibly,vacation jobs. If, for example, a student has been ona long back-pack trip, some information can beobtained about the student’s initiative, motivationand determination if the journey has beenparticularly adventurous.

Handbook For Banking Interview

Publisher : Upkar Prakashan ISBN : 9789350134924 Author : Dhiraj Pandey

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