CASA Ratio: The percentage of total bank deposits that are in a CASA.

 CASA Ratio = CASA Deposits ÷ Total Deposits

A higher ratio means a larger portion of a bank’s deposits are in current

and savings accounts, rather than term deposit accounts. This is
beneficial to a bank because it gets money at a lower cost. Therefore,
the CASA ratio is an indicator of the expense to raise funds and,
therefore, is a reflection of a bank’s profitability or likelihood of
generating profit.

BASEL Norms :Basel is a city in Switzerland. It is the headquarters of Bureau of

International Settlement (BIS), which fosters co-operation among central banks
with a common goal of financial stability and common standards of banking
regulations.

Basel I
In 1988, BCBS introduced capital measurement system called Basel capital accord,
also called as Basel 1. It focused almost entirely on credit risk. It defined capital
and structure of risk weights for banks. The minimum capital requirement was
fixed at 8% of risk weighted assets (RWA). RWA means assets with different risk
profiles. For example, an asset backed by collateral would carry lesser risks as
compared to personal loans, which have no collateral. India adopted Basel 1
guidelines in 1999.

Basel II
In June ’04, Basel II guidelines were published by BCBS, which were considered
to be the refined and reformed versions of Basel I accord. The guidelines were
based on three parameters, which the committee calls it as pillars. - Capital
Adequacy Requirements: Banks should maintain a minimum capital adequacy
requirement of 8% of risk assets - Supervisory Review: According to this, banks
were needed to develop and use better risk management techniques in monitoring
and managing all the three types of risks that a bank faces, viz. credit, market and
operational risks - Market Discipline: This need increased disclosure requirements.
Banks need to mandatorily disclose their CAR, risk exposure, etc to the central
bank. Basel II norms in India and overseas are yet to be fully implemented.

Basel III
In 2010, Basel III guidelines were released. These guidelines were introduced in
response to the financial crisis of 2008. A need was felt to further strengthen the
system as banks in the developed economies were under-capitalized, over-
leveraged and had a greater reliance on short-term funding. Also the quantity and
quality of capital under Basel II were deemed insufficient to contain any further
risk. Basel III norms aim at making most banking activities such as their trading
book activities more capital-intensive. The guidelines aim to promote a more
resilient banking system by focusing on four vital banking parameters viz. capital,
leverage, funding and liquidity.

Sectors that banks provide loan

Knowledge on Home loans- calculations

CIBIL: Credit Information Bureau (India) Limited (CIBIL) is a credit bureau or credit information
company, engaged in maintaining the records of all the credit-related activities of companies as well
as individuals, including credit cards and loans.

CIBIL is India's first credit information company

CIBIL is the oldest credit rating agency in India and functions based on a license granted by the RBI. It
adheres to the Credit Information Act of 2005 and records the repayment of loans and credit cards
by both individuals and companies.

CIBIL scores can range anywhere between 300 and 900, with 900 denoting maximum
creditworthiness. A CIBIL score of 750 or above in your credit report is ideal.

CRISIL: Credit Rating Information Services ofIndiapopularly known as CRISIL operates as a

ratings, research, risk and policy advisory company. In a bid to assesses the ability of the
institute to impart quality education has the company has launched an education grading
initiative - CRISIL Business School Grading. This enables the institute to benchmark itself with
other business schools across the country.The business divisions of the company may be
broadly classified as:Rating- The Company rates all kind of organisation such as industrial
companies, banks, SMEs, non-banking financial institutions, insurance providers, mutual funds,
infrastructure entities, state governments, and urban local bodies.Research- offers an in-depth
research on Economy - Industry - Company spectrum. Advisory- Company provides advisory
services on policy, infrastructure and energy through its subsidiary CRISIL Risk and Infrastructure
Solutions (CRIS)..The company also engagged in the business of Ratings, Research.

Credit rating: Credit rating is an analysis of the credit risks associated with a financial instrument or a
financial entity. It is a rating given to a particular entity based on the credentials and the extent to
which the financial statements of the entity are sound, in terms of borrowing and lending that has been
done in the past.

ESG : The environmental, social and governance (ESG) information of listed companies has
always been valued by the global capital market, and more mature ESG investment and
rating systems have been developed. Following the inclusion of Chinese A-share by MSCI,
ESG ratings are also gaining more attention in China.

An MSCI ESG Rating is designed to measure a company's resilience to long-term, industry material
environmental, social and governance (ESG) risks. We use a rules-based methodology to identify
industry leaders and laggards according to their exposure to ESG risks and how well they manage
those risks relative to peers.

Credit risk, Customer Credit Rating: Credit risk refers to the risk of default or non-payment or non-
adherence to contractual obligations by a borrower. The revenue of banks comes primarily from
interest on loans and accordingly, loans form a major source of credit risk.

Factors to forecast loan demand:

How is the credit worthiness of customers checked

How will you differientaite bewteen premium and affordable housing loan

If you have 1 lakh cstomers how will you grant loans

Rank loans based on riskiness

Role of Product Manager: A product manager is the person who identifies the customer need and
the larger business objectives that a product or feature will fulfill, articulates what success looks like
for a product, and rallies a team to turn that vision into a reality.

Risk in specific sectors and Business

What are some rural products of our Bank:

ICICI: Instant Gold Loan

With ICICI Bank, get an instant loan against your gold and gold ornaments to fulfill your financial
requirements for agriculture or business.

Farmer Finance
From sowing stage to final harvesting & transportation stage, Farmer Finance programme of the Bank
takes care of all agricultural needs of farmers.

Rural & Agri Business

ICICI Bank offers you financing options designed to service your specific requirements. Be it
overdrafts or loans, our approvals are localised, speedy and hassle-free.
Agri Corporates
ICICI Bank recognises the role of prompt finance, and stable cashflows for a business.

Tractor Loan
ICICI Bank offers easy and hassle free Tractor Loans.

Micro Banking
ICICI Bank has created products that are simple, convenient and locally accessible so as to maximise
your comfort.

Kisan credit card

what are the external factors that affect agro loans

The factors are characteristics that influence the decision whether or not to grant credit including
age, account standing, type of farming enterprise, client’s success factor compared to
competitors, farm experience, collateral, credit record, education/qualification, farm ownership,
past and current financial information, experience, reputation, product market projections,
sustainability of the enterprise, and industry projection risk.

What can RBI do to increase value of rupee

It can intervene directly in the currency market by buying and selling dollars. If RBI wishes to prop up
rupee value, then it can sell dollar and when it needs to bring down rupee value, it can buy dollars.
The central bank can also influence the value of rupee by the way of monetary policy.

How RBI’s rate hike/cut influences rupee?

The repo rate is an instrument used by the Reserve Bank of India to control inflation. It is the rate at which the central bank
(Reserve Bank of India) lends money to commercial banks in the event of any shortfall of funds.

Higher interest rates in an economy tend to draw foreign investment, increasing the demand for and value of the home
currency. Similarly, lower interest rates tend to decrease exchange rates.

RBI can raise the repo rate, which leads to a rise in interest rates, bond yields and return on debt papers, drawing more
investor money to chase better returns if the same is low in other markets. On the other hand, higher interest rates stem
money circulation in the economy, leaving more money in the hands of RBI to manage the currency demand-supply
situation.

Also, the currency value drops, it tends to drive up inflation, as imported goods become costlier. By raising interest rates, the
central bank can lower demand for such goods, leading to pressure on prices.
what can u tell abt a customer based on spending pattern

What do you know about writing off loans and its implications on BS

Debt write-off signals the end of a bad asset in the balance sheet of a bank. It is replaced by
equivalent fund. The financial statement of the bank will indicate that the written off loans are
compensated through some other way. This is needed to cleanse the balance sheet of the bank.

What is Bundling ? What is Repo Rate ?

Repo rate refers to the rate at which commercial banks borrow money by selling their securities to
the Central bank of our country i.e Reserve Bank of India (RBI)

What is buying and merchandising

Merchandising is any practice which contributes to the sale of products to a retail consumer. At a
retail in-store level, merchandising refers to displaying products that are for sale in a creative way
that entices customers to purchase more items or products.

What is market risk, how risks affect banks

Market risk is the risk of losses in positions arising from movements in market variables like prices
and volatility. There is no unique classification as each classification may refer to different aspects of
market risk

This relates to the risk of loss associated with adverse deviations in the value of the trading portfolio,
which arises through fluctuations in, for example, interest rates, equity prices, foreign exchange
rates or commodity prices.

How do banks manage market risk?

ways to mitigate market risks and make the best of your...

1. Diversify to handle concentration risk. ...

2. Tweak your portfolio to mitigate interest rate risk. ...
3. Hedge your portfolio against currency risk. ...
4. Go long-term for getting through volatility times. ...
5. Stick to low impact-cost names to beat liquidity risk.

What is procurement to order

Procurement is the process of identifying, shortlisting, selecting, and acquiring suitable goods or
services or works from a third-party vendor through a direct purchase, competitive bidding, or
tendering process while ensuring timely delivery of the right quality and quantity.

What is RERA Act

The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India which
seeks to protect home-buyers as well as help boost investments in the real estate industry.
Why Banking sector

1. There is Job security. One strives to find a job that provides job

security.
2. Banking is one of the fastest-growing sectors in India,  offering
stability and career growth opportunities. It is  estimated that credit
growth in India’s banking sector would improve in FY22.
3. Banking Sector offers tremendous growth opportunities  as
candidates reach from Probationary Officer level to a General
Manager level.
4. There is a certain level of respect Bank employees  get in society.
The reason is that there is direct interaction with the customers.
They are also active in various social schemes, which are important
and beneficial for society.
5. It provides a challenging working environment, with big
opportunities to learn.
6. Banks are now using the best available technology for  their work.
Employees work on the latest banking  software, which enhances
their profile.
7. Bankers enjoy various perks and low-interest loans, which are
attractive options found by most aspirants.

Why CRM Profile

Customer relationship management (CRM) is a technology for managing all your company's
relationships and interactions with customers and potential customers. The goal is simple: Improve
business relationships. A CRM system helps companies stay connected to customers, streamline
processes, and improve profitability.

Why Internal Audit

Which is riskier - personal/business/education loan

Why bank and not fintech

Types of cheque

1. Bearer Cheque
A bearer cheque is the one in which the payment is made to the person bearing or carrying the
cheque. These cheques are transferable by delivery, that is, if you are carrying the cheque to the
bank, you can be issued the payment to. The banks need no other authorisation from the issuer
to be allowed to make the payment. 

How can you identify a bearer cheque? You know it is a bearer cheque when you see the words
‘or bearer’ printed on them. 

2.  Order Cheque                                              

In these cheques, the words ‘or bearer’ is cancelled. Such cheques can only be issued to the
person whose name is mentioned on the cheque, and the bank will do its background check to
authenticate the cheque bearer’s identity before releasing the payment. 

3. Crossed Cheque

You may have observed cheques with two sloping parallel lines with the words ‘a/c payee’ written
on the top left. That is a crossed cheque. The lines ensure that irrespective of who presents the
cheque, the payment will only be made to the individual whose name is written on the cheque, in
other words, the a/c payee along with his/her account number. These cheques are relatively safe
because they can be encashed only at the drawee’s bank. 

4. Open cheque
An open cheque is basically an uncrossed cheque. This cheque can be encashed at any bank,
and the payment can be made to the person bearing the cheque. This cheque is transferable
from the original payee (the original recipient of the payment) to another payee too. The issuer
needs to put his signature on both the front and back of the cheque. 

5. Post-Dated Cheque

These types of cheques bear a later date of being encashed. Even if the bearer presents this
cheque to the bank immediately after getting it, the bank will only process the payment on the
date mentioned in the cheque. This cheque stands valid past the mentioned date, but not
before. 

6. Stale Cheque
A cheque past its validity, three months after the date of being issued, is called a stale cheque. 

7. Traveller’s Cheque

Foreigners on vacations carry traveller’s cheques instead of carrying hard cash, which can be
cumbersome. These cheques are issued to them by one bank and can be encashed in the form
of currency at a bank located in another location or country. Traveller’s cheques do not expire
and can be used for future trips. 

8. Self Cheque
You can identify self cheques by the word ‘self’ written in the drawee column. Self cheques can
only be drawn at the issuer’s bank. 

9. Banker’s Cheque
A bank is the issuer of these types of cheques. The bank issues these cheques on behalf of an
account holder to make a remittance to another person in the same city. Here the specified
amount is debited from the account of the customer, and then, the cheque is issued by the bank.
This is the reason banker’s cheques are called non-negotiable instruments as there is no room
for banks to dishonour these cheques. They are valid for three months. They can be revalidated
provided specific conditions are met. 

What is most important aspect of the client that you will take note before sanctioning a loan

LOANS

BASEL -II, BASELL-III Norms

ESCROW account

An escrow account is a third party account where funds are kept before they are transferred to the
ultimate party. It provides security against scams and frauds especially with high asset value and
dispute-prone sectors like Real Estate.

IL&FS crisis

IL&FS had defaulted on its debt obligations, triggering a liquidity crisis in the financial services
market.

banking ratios- Net interest margin: Net interest margin is a measure of the difference between the
interest income generated by banks or other financial institutions and the amount of interest paid
out to their lenders, relative to the amount of their assets. It is similar to the gross margin of non-
financial companies

Net Interest Margin = (Net return on investment – Interest paid) / Average Assets.

capital adequacy: The capital adequacy ratio (CAR) is a measure of how much capital a bank has
available, reported as a percentage of a bank's risk-weighted credit exposures. The purpose is to
establish that banks have enough capital on reserve to handle a certain amount of losses, before
being at risk for becoming insolvent.
 tier1 capital: Tier 1 capital refers to the core capital held in a bank's reserves and is used to fund
business activities for the bank's clients. It includes common stock, as well as disclosed reserves and
certain other assets.

CET1 ratio: CET1 ratio compares a bank's capital against its risk-weighted assets to determine its
ability to withstand financial distress. The core capital of a bank includes equity capital and disclosed
reserves such as retained earnings.

NPA ratio:
Liquidty coverage ratios: The liquidity coverage ratio (LCR) refers to the proportion of highly liquid
assets held by financial institutions, to ensure their ongoing ability to meet short-term obligations.

what are NPAs classification of NPAs

A nonperforming asset (NPA) refers to a classification

for loans or advances that are in default or in arrears. A loan is in arrears
when principal or interest payments are late or missed. A loan is in default
when the lender considers the loan agreement to be broken and the debtor is
unable to meet his obligations.

 NPAs can be classified as a substandard asset, doubtful asset, or loss

asset, depending on the length of time overdue and probability of
repayment.
Types of Nonperforming Assets (NPA)
Although the most common nonperforming assets are term loans, there are
other forms of nonperforming assets as well.

 Overdraft and cash credit (OD/CC) accounts left out-of-order for more

than 90 days
 Agricultural advances whose interest or principal installment payments
remain overdue for two crop/harvest seasons for short duration crops or
overdue one crop season for long duration crops
 Expected payment on any other type of account is overdue for more
than 90 days

Gross and net NPA difference

Gross NPA is the summation of the principal and the interest that is left unpaid after the repayment
period while Net NPA is the amount obtained on deducting provisions from gross NPA. Gross NPA
gives a grace period after which the loan is to be repaid while Net NPA does not give any grace
period.

CAMEL model for checking bank performance

CAMEL stands for Capital Adequacy, Asset Quality, Management Efficiency, Earnings and Liquidity.

The higher value of this ratio reflects the better resilience ability of a bank to crisis situations.

Operating leverage of banks

Operating leverage is a measure of how revenue growth translates into growth in operating income.
It is a measure of leverage, and of how risky, or volatile, a company's operating income is.
Interest rates for loans and deposits high or low

Asset Liability management

Products of the bank u apply

RBI policies in recent times for banks.

macro factors affecting Banks functions

FCFF vs FCFE: https://corporatefinanceinstitute.com/resources/knowledge/valuation/fcff-vs-fcfe/

banks also provide insurance facilities to some extent, jis bank ko apply karray dekh uska
insurance ka kya hai