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Q.1 What do you know about commercial banking?
Commercial banks are those banks which take deposits from the
public and use these deposits
further in lending for common public for making money out of
it.
Q.2 Draw a diagram for Indian baking system?
Bank
Q.3 What is SLR, CRR, and bank rate?
SLR:- The % of total public deposits which is mandatory for
banks to invest in government
securities.
CRR:- The % of total public deposits which is mandatory for
banks to keep with RBI in cash.
Bank rate:- Bank rate, also referred to as the discount rate, is
the rate of interest which a central
bankcharges on the loans and advances that it extends to
commercial banks and other financial
intermediaries.
Q.4 What are main recommendation of Narsimhan report?
The main recommendations of Narsimhan report are as
follows:-
Reduction in CRR (from 15% to 5%) and SLR (from 38.5% to 25%).
Deregulation of interest rates. Introduction of capital adequacy
norms. Access to capital market. New private sector banks.
Introduction of new norms for NPAs for scheduled commercial banks.
Local area banks.
Commercial
bank
Public sector bank
Foreign bank
Private bank
Regional bank
Financial
institutions
NBFCs
NBFC-D
NBFC-ND
Cooperative
society
http://en.wikipedia.org/wiki/Interest_ratehttp://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/Interest_rate
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Recovery of banks.Q.5 Draw a diagram of treasury structure of
commercial bank?
Chairman & M.D. Executive director Bank treasury head
Q.6 What are current trends regarding SLR, CRR, bank rate?
The current SLR, CRR and bank rate are 24%, 6%, 6%,
respectively.
Q.7 What do you mean by NPA? Explain its various types?
An asset, including a leased asset, becomes non performing when
it ceases to generate income
for the bank. It is basically of 3 types:-
Substandard assets:- An asset would be substandard asset when
there is no recovery fromthe NPA from the time it becomes NPA till
one and half year.
Doubtful assets:- The substandard assets will become doubtful
assets in one and halfyear.
Loss assets:- When there is no recovery from an NPA in 3 years,
it becomes loss assets.Q.8 Draw a diagram of Indian FIs?
Financial Intermediary State level FIs (RFCs, RIDs)
Other public FIs (NBFCs)
All India FIs (EXIM bank,
NABARD, NHB, SIDBI)
Investment institutions (LIC,
GIC)
Chief dealer
Analysis manager
Fund manager
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Q.9 What is the primary role of RBI?
The main role of RBI is as follows:-
Bankers of the government and commercial bank, als known as the
apex bank.
Fiscal agent of government as well as superior/advisor. Sole
authority of currency issue. Custodian of foreign exchange reserve.
Controller of credit
Q.10 List all the lending facilities provided by the commercial
banks?
There are 2 types of facilities provided by the banks which are
as follows:-
1) Fund based
Overdraft Cash credit hypothecation Demand loan Term loan Bill
discounting
2) Non fund based
Letter of credit Letter of guarantee
Q.11 What is schedule bank?
The scheduled banks are those included in the second schedule of
the RBI act, 1934.
