Monday 27 January 2014

Clarification On Rumors Regarding Delay in IBPS PO III Result

Dear readers, some websites are spreading rumors that IBPS PO III result will be delayed due to some pending case in Jharkhand High Court. This is to inform you that these are just rumors and these website are spreading this kind of news just to bring traffic to their website.



There is a case pending in Jharkhand High Court (Filing Number -  012010011992014 Case type -WRIT PETITIONS/0000220/2014), which was filed on 15-January-2014, but Bank of India is the respondent in this case and Not IBPS. This case pertains to rejection of OBC Candidates (carrying invalid OBC certificates) at interview stage. In all probability, it is going to be dismissed in the initial hearing only.

As per our sources in IBPS, it is not going to impact the results of IBPS PO III recruitment process as the case is not directed towards IBPS. So, we request not to spread such rumors further.

In any case, we will keep you updated on any further development on this.


Sunday 26 January 2014

IBPS TOP 50 INTERVIEW QUESTIONS

1. Why do you want to enter banking?
Answer : Banking is one of the fastest growing sectors in India with more stable and high growth and more over providing wide range of career opportunities for graduates. So I want to take an opportunity to join in a bank.
2. 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 Cheque is written by an individual and withdrawn from the account whereas Demand draft is issued by a bank where you have to pay before issuing.
3.What are NBFCs and difference between NBFCs and Bank?
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.
4. What is Private Banking?
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.
5. What is the Use of Computers in a Bank?
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.
6.What is recession? What is the cause for the present recession?
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.
7 What is Sub-prime crisis?
The current Subprime crisis is due to sub-prime lending. These are the loans given to the people having low credit rating.
8 What is a Repo Rate?
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
9. What is Reverse Repo Rate?
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 this attractive interest rates.
10 What is CRR Rate?
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.
11 What is SLR Rate?
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.
12. What is Bank Rate?
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.
13. What is Inflation?
Inflation is as an increase in the price of bunch of Goods and services that projects the Indian economy. An increase in inflation figures occurs when there is an increase in the average level of prices in Goods and services. Inflation happens when there are fewer Goods and more buyers; this will result in increase in the price of Goods, since there is more demand and less supply of the goods.
14. What is Deflation?
Deflation is the continuous decrease in prices of goods and services. Deflation occurs when the inflation rate becomes negative (below zero) and stays there for a longer period.
15. What is PLR?
The Prime Interest Rate is the interest rate charged by banks to their ost creditworthy customers (usually the most prominent and stable business customers). The rate is almost always the same amongst major banks. Adjustments to the prime rate are made by banks at the same time; although, the prime rate does not adjust on any regular basis. The Prime Rate is usually adjusted at the same time and in correlation to the adjustments of the Fed Funds Rate. The rates reported below are based upon the prime rates on the first day of each respective month. Some banks use the name “Reference Rate” or “Base Lending Rate” to refer to their Prime Lending Rate.
16. What is Deposit Rate?
Interest Rates paid by a depository institution on the cash on deposit.
17. What is FII?
FII (Foreign Institutional Investor) used to denote an investor, mostly in the form of an institution. An institution established outside India, which proposes to invest in Indian market, in other words buying Indian stocks. FII’s generally buy in large volumes which has an impact on the stock markets. Institutional Investors includes pension funds, mutual funds, Insurance Companies, Banks, etc.
18 . What is FDI?
FDI (Foreign Direct Investment) occurs with the purchase of the “physical assets or a significant amount of ownership (stock) of a company in another country in order to gain a measure of management control” (Or) A foreign company having a stake in a Indian Company.
19 What is IPO?
IPO is Initial Public Offering. This is the first offering of shares to the general public from a company wishes to list on the stock exchanges.
20. What is Disinvestment?
The Selling of the government stake in public sector undertakings.
21. What is Fiscal Deficit?
It is the difference between the government’s total receipts (excluding borrowings) and total expenditure.
22 What is Revenue deficit?
It defines that, where the net amount received (by taxes & other forms) fails to meet the predicted net amount to be received by the government.
23. What is GDP?
The Gross Domestic Product or GDP is a measure of all of the services and goods produced in a country over a specific period; classically a year.
24. What is GNP?
Gross National Product is measured as GDP plus income of residents from investments made abroad minus income earned by foreigners in domestic market.
25. What is National Income?
National Income is the money value of all goods and services produced in a country during the year.
26 . What is Per Capita Income?
The national income of a country, or region, divided by its population. Per capita income is often used to measure a country’s standard of living.
27 . What is SEZ?
SEZ means Special Economic Zone is the one of the part of government’s policies in India. A special Economic zone is a geographical region that economic laws which are more liberal than the usual economic laws in the country. The basic motto behind this is to increase foreign investment, development of infrastructure, job opportunities and increase the income level of the people.
28 Functions of RBI?
The Reserve Bank of India is the central bank of India, was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Reserve Bank of India was set up on the recommendations of the Hilton Young Commission. The commission submitted its report in the year 1926, though the bank was not set up for nine years.To regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage.” Banker to the Government: performs merchant banking function for the central and the state governments; also acts as their banker.Banker to banks: maintains banking accounts of all scheduled banks. 29 What is monetary policy? A Monetary policy is the process by which the government, central bank, of a country controls
(i) the supply of money,
(ii) availability of money, and
(iii) cost of money or rate of interest, in order to attain a set of objectives oriented towards the growth and stability of the economy.
30. What is Fiscal Policy?
Fiscal policy is the use of government spending and revenue collection to influence the economy. These policies affect tax rates, interest rates and government spending, in an effort to control the economy. Fiscal policy is an additional method to determine public revenue and public expenditure.
31 What is bank and its features and types?
A bank is a financial organization where people deposit their money to keep it safe.Banks play an important role in the financial system and the economy. As a key component of the financial system, banks allocate funds from savers to borrowers in an efficient manner.
32 What is Right to information Act?
The Right to Information act is a law enacted by the Parliament of India giving citizens of India access to records of the Central Government and State overnments.The Act applies to all States and Union Territories of India, except the State of Jammu and Kashmir – which is covered under a State-level law. This law was passed by Parliament on 15 June 2005 and came fully into force on 13 October 2005.
33 What is Cheque?
Cheque is a negotiable instrument instructing a Bank to pay a specific amount from a specified account held in the maker/depositor’s name with that Bank.A bill of exchange drawn on a specified banker and payable on demand.“Written order directing a bank to pay money”.
34 What is demand Draft?
A demand draft is an instrument used for effecting transfer of money. It is a Negotiable Instrument. Cheque and Demand-Draft both are used for Transfer of money. You can 100% trust a DD. It is a banker’s check. A check may be dishonored for lack of funds a DD can not. Cheque is written by an individual and Demand draft is issued by a bank. People believe banks more than individuals.
35 What is a NBFC?
A non-banking financial company (NBFC) is a company registered under the Companies Act, 1956 and is engaged in the business of loans and advances, acquisition of shares/stock/bonds/debentures/securities issued by government, but does not include any institution whose principal business is that of agriculture activity, industrial activity, sale/purchase/construction of immovable property. NBFCs are doing functions akin to that of banks; however there are a few differences:
(i)A NBFC cannot accept demand deposits (demand deposits are funds deposited at a depository institution that are payable on demand — immediately or within a very short period — like your current or savings accounts.)
(ii) it is not a part of the payment and settlement system and as such cannot issue cheques to its customers; and
(iii) Deposit insurance facility of DICGC is not available for NBFC depositors unlike in case of banks.
36 What is NABARD?
NABARD was established by an act of Parliament on 12 July 1982 to implement the National Bank for Agriculture and Rural Development Act 1981. It replaced the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of Reserve Bank of India, and Agricultural Refinance and Development Corporation (ARDC). It is one of the premiere agency to provide credit in rural areas. NABARD is set up as an apex Development Bank with a mandate for facilitating credit flow for promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts.
37 What is SIDBI?
The Small Industries Development Bank of India is a state-run bank aimed to aid the growth and development of micro, small and medium scale industries in India. Set up in 1990 through an act of parliament, it was incorporated initially as a wholly owned subsidiary of Industrial Development Bank of India.
38 What is SENSEX and NIFTY?
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. Where as 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.
39 What is SEBI?
SEBI is the regulator for the Securities Market in India. Originally set up by the Government of India in 1988, it acquired statutory form in 1992 with SEBI Act 1992 being passed by the Indian Parliament. Chaired by C B Bhave.
40 What are Mutual funds?
Mutual funds are investment companies that pool money from investors at large and offer to sell and buy back its shares on a continuous basis and use the capital thus raised to invest in securities of different companies. The mutual fund will have a fund manager that trades the pooled money on a regular basis. The net proceeds or losses are then typically distributed to the investors annually. A company that invests its clients’ pooled fund into securities that match its declared financial objectives. Asset management companies provide investors with more diversification and investing options than they would have by themselves. Mutual funds, hedge funds and pension plans are all run by asset management companies. These companies earn income by charging service fees to their clients.
41 What are non-perfoming assets?
Non-performing assets, also called non-performing loans, are loans,made by a bank or finance company, on which repayments or interest payments are not being made on time. A debt obligation where the borrower has not paid any previously agreed upon interest and principal repayments to the designated lender for an extended period of time. The nonperforming asset is therefore not yielding any income to the lender in the form of principal and interest payments.
42 What is Recession?
A true economic recession can only be confirmed if GDP (Gross Domestic Product)growth is negative for a period of two or more consecutive quarters.
43 What is foreign exchange reservers?
Foreign exchange reserves (also called Forex reserves) in a strict sense are only the foreign currency deposits and bonds held by central banks and monetary authorities.However, the term in popular usage commonly includes foreign exchange and gold,SDRs and IMF reserve positions.
44. What is the difference between Nationalized bank and Private Bank ?
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.
45. What is CRM?
Customer Relationship Management (CRM) refers to the ability to understand, anticipate and manage the needs of the customer, interaction and relationship resulting in increased profitability through revenue and margin growth and operational efficiencies.
46. What is dematerialisation ?
Dematerialisation is a process by which the paper certificates of an investor are taken back by the company/registrar and actually destroyed and an equivalent number of securities are credited in electronic holdings of that investor.
47. What is Defivative ?
A derivative is a financial contract that derives its value from another financial product/commodity (say spot rate) called underlying (that may be a stock, stock index, a foreign currency, a commodity). Forward contract in foreign exchange transaction, is a simple form of a derivative.
48. What is Bancassurance ?
Bancassurance stands for distribution of financial products particularly the insurance policies (both the life and non-life), also called referral business, by banks as corporate agents, through their branches located in different parts of the country.
49. What is LAF ?
Liquidity Adjustment Facility (LAF) was introduced by RBI during June, 2000 in phases, to ensure smooth transition and keeping pace with technological
upgradation.
50. What is Money Laundering ?
Money laundering means acquiring, owning, possessing or transferring any proceeds (of money) of crime or knowingly entering into any transaction related to proceeds of the crime either directly or indirectly or concealing or aiding in the concealment of the proceeds or gains of crime, within or outside India. It is a process for conversion of money obtained illegally to appear to have originated from legitimate sources.

IBPS PO 3 INTERVIEW MARKS

“After a Storm Comes a Calm” – said Mathew Henry. But this may not be true with aspirants who have given their attempt to any of the competitive examinations. For them, it’s quite different, I would quote it as, “Storm before and after the calm (exam).” The reason why I refer so is that many aspirants before giving their exams storm in several sites and Facebook group asking for question papers, notes etc., and once the exam is completed they storm predicting the cut off and once the results are released they storm discussing the possibility of getting the job and this is what has happened after IBPS has released the marks and cut off for the post of PO for the year 2013-14.

What am I going to tell new about IBPS PO 3?

  • The first and foremost is that, at the end of this article the aspirants will be confident that almost all have chance to clear the interview and get allotted in various banks irrespective of the marks they scored.
  • How date of birth may play a vital role in determining your posts?
  • Why there is no use in discussing/predicting cut off online?
 If you wish to know answers for the above mentioned, I advise you to read further. The below claims made my are based on data collected from IBPS and other authentic sources (related to past experience).

Cut off in IBPS PO 3 and chances in Interview

 IBPS has released its mark statement and cut off on 07.12.2013. Once the marks are released, almost all blogs and Facebook groups started flooding with a common question. And the questions are,
 “Sir, I have scored 64 in UR, what is the chance that I will clear?”
“I have scored just 62 in OBC, I think I have less chance. What’s your opinion?”
“Unbelievable, I have scored 99 in UR. What is my chance?” – (To these people I would say there is no chance as they either make to fun of others or they are bookworms.)
 The one word answer to all these questions is that, everyone who got their call to interview have chance to get allotment. The one with more marks have bright chance and one with less marks need to perform well in interview. But how do I say? Am I preaching confident development? Of course I am, but not just with assumptions but with real data.
 I am going to compare the data’s of IBPS PO 2 and IBPS PO 3, for coming into a conclusion. I am going to compare last year cut off, final marks for allotment in both phases and student to vacancy ratio.

What will be the ratio of candidates called for interview?

 It should be 1:3. It means 3 candidates for 1 post. This is because in IBPS PO 2, there were around 21000 vacancies approximately and 60 thousand candidates have cleared the examination (last year common interview was decided after declaration of result, so we are not sure how many among the 60k missed their ticket to interview, but for data classification we will assume all the 60k candidates were called.) Similarly this year around, 57000 candidates have cleared (approximate value said by IBPS personnel when contacted via toll free number - @courtesy – Ramandeep Singh- bankexamtoday). If you wish, you can cross verify in this toll free number 1800 222 366 between 9.30 AM and 6.00 PM and the vacancies are expected to be same as we have additional institutions recruiting this year compared to last year (apart from Mahila Bank, which recruited 105 women candidates at the year end).So we can confirm that the ratio is 1:3 this year too. Many claim that due to incomplete filling in IBPS PO1, we had many vacancies in  PO2. It is true to some extent, but the same difference will be balanced with the new organisations, unfilled vacanices after round 2 of allotment and also the branches have increased for all banks so the demand for more PO is always there. However this ratio may change later once the attendance of interview and pass percentage in interview is known. At the final stage it almost comes to 1:2.

Comparison chart of IBPS PO-2 and IBPS PO-3 cut off

 This chart can be otherwise said as the marks obtained by the last selected candidate in various categories who are called for interview.

IBPS
UR
OBC
SC
ST
HI
OC
VI
PO-2
135
135
127
106
108
127
110
PO-3
61
60
50
26
26
47
27

Marks of PO 1 is not considered as it didn't have common interview, also there is no use in comparing the cut off of IBPS-2 and IBPS-3 as the number of candidates attended and the difficulty level were comparatively higher. The above table is just to give a glimpse of the lowest marks of each category with which candidates went for interview in 2012 and to compare that with this year marks. The above mentioned marks is out of 250 in PO2 and 200 in PO 3, which is later converted to 80 while calculating the component from written examination. 

Maximum and minimum marks in allotment process in phase -1 (IBPS PO – 2)

Category
Maximum
Minimum
UR
81.96
62.12
OBC
77.32
58.32
SC
71.88
55.84
ST
71.92
47.36
HI
66.36
45.80
OC
75.16
55.88
VI
69.76
42.84

 This above table gives an idea of the final marks after the interview for which allotment is made in first round. 80% of written marks is carried forward to the interview and 20% of the interview marks is calculated to arrive to the final marks. So how much should least scorer in each category has to score in interview to enter into final merit list? Probably the below table will answer it. 

Category
Min Marks
Final Marks(CWE + Interview) for allotment – phase 1
80% of CWE
Required 20% in Interview
Marks required in interview out of 100
UR
135
62.12
43.2
18.92
94.6
OBC
135
58.32
43.2
15.12
75.6
SC
127
55.84
40.64
15.2
76
ST
106
47.36
33.92
13.44
67.2
HI
108
45.80
34.56
11.24
56.2
OC
127
55.88
40.64
15.24
76.2
VI
110
42.84
35.2
7.64
38.2
  
Explanation of above table

  • Min Marks - it is the least marks of IBPS P0 -2 for various category. 
  • Final Marks - it is mark scored by the last selected candidate in various category, after calculating the 80% component of written and 20% component of interview which is conducted for 100 marks.
  •  80% of CWE - It is the 80% component carried forward by the least mark candidate to next stage.
  • Required 20% - It is the 20% marks required for a candidate to get into the list of merit.
  • Marks required - It is the marks required by the candidate who went to the interview with the least mark to get qualified in the phase 1 of allotment.
Interpretation of above data

  • Marks required by UR in interview is 94.6, which is quite high. The reason for the same is many candidates in reservation who scored good marks enter into this zone. In other words toppers are in this zone irrespective of reservation which keeps the cut off high. This is the same reason why the required marks in reservation is considerably low.
  • This year it is expected from the marks revealed by candidates in various forums, most of the candidates are expected to be in the bracket of 65 to 80. 
  • The marks revealed online by various candidates cannot be considered for coming to a conclusion in deciding the safe zone, as many give a fake claim and even if they are true they form a less portion. Hardly 200 to 300 give their scores and you cannot predict the same for 57000 candidates. One good example is that many forums predicted above 80 cut off and now it is 61. However the graph is almost similar to last year and the safe marks in interview will work out this year too.

Maximum and minimum marks in allotment process in phase -2 (IBPS PO – 2)

 The above mentioned data is for the first allotment, after many candidates failed to join another round of allotment was made and the below table gives the minimum final marks for which candidates are called.  This marks can also be said as the marks scored by the last selected candidate who got allotted in IBPS PO-2 .


Category
Minimum
Marks required in Interview
UR
60.56
86.8
OBC
57.24
70.2
SC
54.56
69.6
ST
41.88
39.8
HI
*
*
OC
54.36
68.6
VI
*
*

So what does the above table indicate, it is very clear that everyone who got selected for interview has chance to get allotted to some bank irrespective of marks. The above mentioned marks is the minimum required in interview for a candidate who went with the least mark in various categories. 

Why second allotment in IBPS PO-2?
 Many candidates who selected in first allotment did't turn back to join the allotted bank due to multiple reasons and to fill this shortage waiting list candidates were called for next round of allotment.

How many vacancies were there is second allotment?
I am sure you will be in surprise, if you never heard before. Totally 5806( UR-3080; OBS - 1431; SC-794; ST-501; VI-111;HI-166; OC-70) candidates didn't join the allotted bank in round 1. It is almost 27% of the total vacancies. It is also sure that all these 5806 were not filled as many refused in this stage too. The left over seats were carried forward to this year allotment.

Why candidates refuse to join?
Allotment is made on all India basis, many candidates prefer home state, so when they are allotted in other states they refuse to join. Some candidates (particularly women candidates) have requested for allotment in home state showing genuine reason for not able to join in other state. They were allotted in home state in second round. One of my friend who was 9 months pregnant during allotment was allotted in Dena bank (Mumabi branch) in allotment 1, she gave a request showing the same, to offer her allotment in Chennai. She was allotted in Syndicate bank, Chennai in the second allotment and above that she was asked to undergo initial one month training in Chennai itself where others had their training in Manipal. Some claim it is because of some political backup, but I know her personally and it was a genuine request. Apart from this many candidates who already employed also refuse, but this percentage will be less compared to the above.

Date of Birth and final allotment
 Compared to last year the gap in score between many candidates is very narrow as many stand in the zone of 65 to 80. I assume that in the final stage many may stand with the same marks. In this case banks have a soft corner towards seniors and the list when score is same will be decided on the basis of age. The same was done last year too.

Why there is no use in discussing cut off and other predictions online?
 Many sites give claim based on their assumptions. In fact most of the times it didn't work out. During SBI PO, almost all sites predicted cut off around 110 for UR, but it was above 160. The same happened with SSC CGL  and also now with IBPS PO 3. So do not waste your time in discussing all these useless things online as they are of no use.

Just think about it : What if a candidate has less score, but has incredible skills which he expresses during interview? I am sure he will be brought into the merit list by awarding marks accordingly. This has happened with many candidates. But may be they may not get the bank and state of their choice. So keep this and above data in mind. Ensure yourself that you still have a good chance. Start preparing for interview. I wish everyone of you to move ahead in life getting the bank of your wish.

Give your honest feedback, comments, criticisms and corrections if any which will be valuable and help other candidates in future.

"If Someone can, why can't you"