101 Banking Terms Asked in Bank Exams and Interviews

by Jasjot Singh on October 5, 2014

Banking-TermsJust like every arena in the world, there are different terms used in the banking industry. For laymen people like us, only a few of these banking terms may be required, but for people who are involved in banking industry to a larger extent, knowing these banking terms is of prime importance. For candidates who are preparing for SBI PO exam, SBI clerical exams, IBPS PO exams and IBPS clerical exams, knowing these terms is of prime importance as these are asked directly in the preliminary exam as well as final interview. Find out about these terms below.

Banking Terms asked in Bank PO and Clerical Interviews

Although it is usually said that candidates are asked questions about themselves in the bank PO and clerical interviews, the interviewers also like to know whether you know something about the banking industry. They usually test your understanding of the banking industry by asking you very basic banking terms.

In my interview for IBPS PO last year, here were some of the questions related to banks and banking terms that I was asked in the interview:

Ques: How do banks make money?

  • Banks make money by lending money at a higher rate of interest than they pay for deposits. The difference, called margin, is kept by the bank. For e.g, they pay interest at 4% rate of interest to depositors but charge 11% rate of interest on loans taken from the bank by customers.

Ques: How do banks get money to lend as loans?

  • Banks use the money that is deposited with them by depositors. They lend this money as loans.

Ques: What are NPA’s and how do they affect a bank?

  • NPA’s are non performing assets; loans that have not returned any dividend in the past 90 days. NPA’s wreck a bank’s profitability both through a loss of interest income and write-off of the principal loan amount itself, i.e, banks have to absorb the loss of the money they had lent.

As you can see, basic knowledge of banking and banking terms is very important in SBI PO, IBPS PO and all clerical posts interviews. You can spend money on buying books to get acquainted to these terms, or you can GET THEM HERE, FOR JUST A SMALL FEE !!!

All you have to do is click on the link below. You will be taken to a site named Smashwords, where you can buy this file for just Rs 99!! This is super cheap compared to what coaching institutes will charge you for similar information.

101 banking terms asked in bank PO and clerical exams and interview

More Banking Terms

Though I have tried my best to cover every possible term that can be asked in an bank interview, if you believe I still have missed out on a few, please let me know in the comments below or contact me. I shall be grateful to you for helping me out help others !!

{ 4 comments… read them below or add one }

Vijay KumarJaiswal March 7, 2015 at 4:26 pm

Thank you, for this useful information. Inform me regarding new post in banking sector.

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jasjotbains March 7, 2015 at 5:03 pm

You are welcome Vijay

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dev April 8, 2015 at 11:35 am

thanks for sharing the information

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Parul May 31, 2015 at 5:45 pm

Thanks for the information

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