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SBI PO Interview Questions

April 1st, 2010 Posted by VFreshers


SBI Probationary Officer Exam: Interview Questions & Answers

Introduction:

Banking profession enjoys much respect and prestige in the society. The only way to enter into this career is through Probationary Officers Exams conducted by individual banks. Banks select eligible graduates through this exam and train them for a probation period of two years.

State Bank of India (SBI) is one of the largest banks in India. SBI recruits a huge number of officers called Probationary Officers every year in the month of September-October. At present the initial salary of an SBI PO is approximately Rs.16, 850.

This article is intended to help a user who is preparing for SBI PO exam for the first-time.

Eligibility:

The following are the criteria to appear for the PO exam:

a)    Educational qualifications

General category candidates and others need to have a minimum of 60% marks in XII and 50% marks in Graduation or Post-graduation. SC/ST candidates need to have 55% marks in XII and 50% marks in Graduation or Post-graduation.

b)    Age limit

The age limit of the candidate must not be less than 21 years and more than 30 years.

c)     Number of attempts

A General category candidate can attempt for a maximum of three times. This restriction is not there for SC/ST/OBC candidates.

Selection Process for SBI PO Examination

The selection is conducted in the following three phases:

  • Phase 1 - In this phase a preliminary exam is conducted for two hours on objective type questions.
  • Phase 2 - In this phase the main exam is conducted for three hours, Objective type two hours and Descriptive type one hour.
  • Phase 3 – In this phase Group Discussion and Interview are conducted.

Note: You need to score a minimum of 40% in order to qualify these tests.

Frequently Asked SBI PO Interview Questions and Hints

1.    What is SLR?

The ratio of liquid assets to demand and time liabilities is known as Statutory Liquidity Ratio (SLR).

2.    What are Repo rate and Reverse Repo rate?

Repo (Repurchase) rate is the rate at which the RBI lends shot-term money to the banks.

Reverse repo rate signifies the rate at which the central bank absorbs liquidity from the banks

3.    What is the difference between Bank Rate and Repo Rate?

Bank Rate is the rate at which RBI allows finance to commercial banks in India

Repo is a money market instrument, which enables short term borrowing and lending.

4.    What is a bank?

A bank is a financial institution whose primary activity is to act as a payment agent for    customers and to borrow and lend money.

5.    What is Banking Business?

Banking Business is the business of receiving money on current or deposit account, paying and collecting cheques drawn by or paid in by customers.

6.    What is Accounting for Bank Accounts?

There are two types of accounts Debit and Credit.

7.    What are the Economic functions of Banks?

  • Issue of money
  • Netting and settlement of payments
  • Credit Intermediation
  • Credit quality improvement
  • Maturity transformation

8.    What is relation between Inflation and Bank interest Rates?

The major factor affecting Bank interest rate is inflation. An increase in inflation leads to an increase of interest rate.

9.    What are the different channels of Banking you use in your daily life?

A branch, ATM, Mail, Telephone, Online Banking

10.   How many types of banks are there?

Banks’ activities can be divided into Retail Banking, Corporate banking, Business banking, Investment banking.

You have successfully gone through the SBI PO interview questions.


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