Top 50 Bank Branch Manager Interview Questions You Must Prepare 23.Jul.2024

Q1. Tell Me What Are The Different Types Of Lo Offered By Banks?

The different types of lo offered by banks are:

  • Unsecured Personal Loan
  • Secured Personal Loan
  • Auto Lo
  • Mortgage Lo
  • Small business Lo

Q2. Tell Me What Are The Various Risks That Banks Face?

Sir, there are mainly three types of risks faced by banks:-

Credit Risk: - loan or NPA.

Market Risk: - Money invested in the market.

Operational risk: - Day-to-Day working risks.

Q3. Tell Me How Do You Approach The Decision-making Process? In Other Words, How Do You Make Difficult Decisions Without The Input Of Others?

I think about the outcome from a comprehensive perspective. I think about how the outcome will impact clients or customers, and if it will leave them with a positive impression of the company. I also think about how it will impact the workers and revenue. If I believe that a decision will make a positive impact in all three areas, I will usually say “yes.” If the decision will only benefit one person or lower sales, I will more than likely decline. To me, it is a matter of attempting to gauge the outcome of a situation.

Q4. Explain Me What Is Cost Of Funds Index (cofi)?

COFI is an index that is used to determine interest rates or changes in the interest rates for certain types of Lo.

Q5. Do You Know What Is Investment Banking?

Investment banking managed portfolios of financial assets, commodity and currency, fixed income, corporate finance, corporate advisory services for mergers and acquisitions, debt and equity writing etc.

Q6. How Do You Measure Your Success As A Bank Branch Manager?

Try your best not to focus on existential, immeasurable goals. Job interviews want to know what you truly bring, and you should be able to measure the results. The best wer to this type of interview question is, “Management is about setting and reaching goals and employee/organizational relationships. I measure effectiveness by looking at the data, ensuring that I am meeting deadlines early and helping to achieve organizational growth, and keeping morale high and those under my supervision engaged and active in their tasks.”

Q7. Explain What Is Commercial Bank?

Commercial bank is owned by the group of individuals or by a member of Federal Reserve System. The commercial bank offer services to individuals, they are primarily concerned with receiving deposits and lending to business. Such bank earns money by imposing interest on the loan borrowed by the borrower. The money that is deposited by the customer will be used by the bank to give business loan, auto loan, mortgages and home repair lo.

Q8. Tell Us What Is The Card Based Payments?

There are two types of card payments:

  • Credit Card
  • Debit Card

Q9. Explain Me What Are The Non Performing Assets Of A Company?

A NPA is an obligation payable to the bank which has not been made or the interest and principal amount has not been paid on the due time. NPA is the loan or credit provided by the bank to its customers which could not be recovered in due time. Thus NPA is somehow not yielding any income to the lender either in the form of principal or interest payments. NPA is also known as “bad debts”.

Q10. Do You Know What Is The Difference Between Bank Guarantee And Letter Of Credit?

There is not much difference between bank guarantee and letter of credit as they both take the liability of payment. A bank guarantee contains more risk for a bank than a letter of credit as it is protecting both parties the purchaser and seller.

Q11. Explain What Is Overdraft Protection?

Overdraft protection is a service that is provided by a bank to their customer. For instance, if you are holding two accounts, saving and credit account, in the same bank. Now if one of your accounts does not have enough cash to process the cheques, or to cover the purchases. The bank will trfer money from one account to another account, which does not have cash so to prevent check return or to clear your shopping or electricity bills.

Q12. Do You Know What Is (apr) Annual Percentage Rate?

APR stands for Annual Percentage Rate, and it is a charge or interest that the bank imposes on their customers for using their services like lo, credit cards, mortgage loan etc. The interest rate or fees imposed is calculated annually.

Q13. Explain Me In What Type Of Environment Do You Feel You Thrive? What Types Of Work Environments Or Working Conditions Would You Prefer To Avoid?

This one is a no-brainer. If the candidate doesn't describe your company's culture, run the other way. The person has not only just told you in no uncertain terms that he will not fit in, but also just let you know that he did not do his interview homework.

Q14. Explain Me What Are The Different Ways You Can Operate Your Accounts?

You can operate your bank accounts in different ways like

  • Internet banking
  • Telephone or Mobile banking
  • Branch or Over the counter service
  • ATM ( Automated Teller Machine)

Q15. Explain What Do You Mean By Co-maker?

A person who signs a note to guarantee the payment of the loan on behalf of the main loan applicant's is known as co-maker or co-signer.

Q16. How Do You Keep Staff Members Motivated As Bank Branch Manager?

Management job interview questions about motivating staff or delegating tasks are common in management interviews. When you wer them you should focus on communication and team building, “I do my best to show recognition and acknowledgement to all employees that meet goals, which keeps morale high and employees on task. Also, when applicable, I keep tasks interdependent within the team, so that staff members require and encourage fellow staff members to complete their work.”

Q17. Explain Me What Is Cashier's Cheque?

A cashier cheque issued by the bank on behalf of the customer and takes the guarantee for the payment. The payment is done from the bank's own funds and signed by the cashier. The cashier cheque is issued when rapid settlement is necessary.

Q18. Please Explain What Is Home Equity Loan?

Home equity loan, also known as the second mortgage, enables you to borrow money against the value of equity in your home. For example, if the value of the home is $1, 50,000 and you have paid $50,0@The balance owed on your mortgage is $1, 00,0@The amount $50,000 is an equity, which is the difference of the actual value of the home and what you owe to the bank. Based on equity the lender will give you a loan. Usually, the applicant will get 85% of the loan on its equity, considering your income and credit score. In this case, you will get 85% of $50,000, which is $42,500.

Q19. Explain Me How Would Your Previous Employees Rate Your Performance As A Manager Or Supervisor?

I believe they would rate me fairly highly. I took the time to foster relationships with all of my workers, and I believed that everyone was important to the company. I treated all of my employees with respect, without compromising sales and customer satisfaction. Of course, there were situations that required a degree of firmness, but I always remained fair.

Q20. Explain What Are The Different Types Of Lo Offered By Commercial Banks?

Start-Up Lo: This type of Loan is offered to borrower to start their business and can be used to build a storefront, to acquire inventory or pay franchise fees to get a business rolling.

Line of Credit: Lines of credit are another type of business loan provided by commercial banks. It is more like a security for your business; the bank allows the customer to withdraw the amount from readily available funds in an adverse time. Customer or Company can pay back over time and withdraw money again without going into the loan process.

Small Business Administration Lo: It is a Federal Agency (U.S) that gives funding to small businesses and entrepreneurs. SBA (Small Business Administration) lo are made through banks, credit unions and other lenders who partners with SBA.

Q21. Tell Me What Is Charge-off?

Charge off is a declaration by a lender to a borrower for non-payment of the remaining amount, when borrower badly falls into debt. The unpaid amount is settled as a bad debt.

Q22. Explain Me What Are The Types Of Commercial Banks?

Retail or consumer banking

It is a small to mid-sized branch that directly deals with consumer's traction rather than corporate or other banks

Corporate or business banking

Corporate banking deals with cash management, underwriting, financing and issuing of stocks and bonds

Securities and Investment banking

Investment banking manages portfolios of financial assets, commodity and currency, fixed income, corporate finance, corporate advisory services for mergers and acquisitions, debt and equity writing etc.

Non-traditional options

There are many non-bank entities that offer financial services like that of the bank. The entities include credit card companies, credit card report agencies and credit card issuers.

Q23. What Would You Do If You Had A Subordinate Doing Their Job Inefficiently As Bank Branch Manager?

True leadership is about personal responsibility. That is why an effective wer to this question is, “I consider anyone who works with me to be an extension of my effectiveness as manager. I will discuss any problems with the employee individually and honestly, but if their work affects the bottom line of the company, their shortcomings are also my responsibility.”

Q24. Explain Me Have You Ever Had To Delegate A Responsibility To A Subordinate? If So, What Was The Outcome?

No, I have never delegated a responsibility to a subordinate. I believe that supervisors should be held accountable for all of their responsibilities. Delegating responsibilities to unqualified individuals is dishonest and can have a negative impact on the company's operations.

Q25. Tell Me What Do You Understand By The Gdp Of The Country?

The final value of all the goods and services produced under the geographical area of a country is the Gross Domestic Product of that country. GDP is calculated at consumption, investment and exports and imports are subtracted from the sum of these three. 

Q26. Tell Me What Is Convertibility Clause?

For certain loan, there is a provision for the borrower to change the interest rate from fixed to variable and vice versa is referred as Convertibility Clause.

Q27. Tell Me After Doing / / Mba / Ma Why Do You Want To Choose Banking? Why Not Something Related With You Field Of Education?

You must give honest and sensible wers to such question. For ex:- A MBA candidate may say that there are hardly good jobs in MBA as of now. Banking is a safe sector providing great employment opportunities. In the wer, you must show your keen interest in joining banking sector and it should not look like you don't have an option so you are choosing it.

You can also expect some questions from academics. A science stream student may be asked about about Newton's Law etc. So, you must also prepare the subjects studied by you in the degree.

Q28. Where Have You Come From And What Is Famous In Your City?

The candidate must tell about his place of living- city and state. If the board further asks about any specifications, then name of the district etc. should be told. He/she must tell about the famous things of his place. For ex:- a candidate from Lucknow may tell about Imambara, chicken clothes, “tehzeeb” of Lucknow etc. The key things to deal this question effectively are:-

The candidate must know about the local MLA and MP from his area. If any renowned personality belongs to that area, you should be aware of the details.

He must have full knowledge about that place, its history, famous monuments, personalities, rivers, at times even number of railway stations in the city etc., also about the politics of that state-CM and ruling party and all other nitty gritties of his place.

For ex: - A candidate from Ghazipur, U.P. was asked about cultivation of “Poppy seeds” as Ghazipur is famous for cultivation of poppy seeds.

At times, questions about local politics are also put forward like a candidate, from Amethi was asked about the electoral battle between Rahul Gandhi and Kumar Vishwas form Amethi.

A good wer to such questions leaves a very positive impact on the board as it demonstrates your awareness about the surroundings and the fact that you are well prepared puts you ahead of others.

Q29. Tell Me What Is Debt-to-income Ratio?

The debt-to-income ratio is calculated by dividing a loan applicant's total debt payment by his gross income.

Q30. Do You Know What Is The Difference Between Nationalized Banks And Private Banks?

A nationalized bank is owned by the govt. of that country and is also known as public sector bank whereas a private sector bank is owned by an independent individual or company.

Q31. Tell Me Looking Back Through Your Career, What Are Some Common Themes? What Are You Known For?

This question creates an opportunity for a candidate to talk about the mark he or she has left on other organizations. You can determine whether what a candidate brings to the table is something you really need. Since this question is not as common as tell me your greatest strengths, candidates are less prepared with a stock wer, and actually reflect on their value proposition.

Q32. Do You Know How Bank Earns Profit?

The bank earns profit in various ways:

  • Banking value chain
  • Accepting deposit
  • Providing funds to borrowers on interest
  • Interest spread
  • Additional charges on services like checking account maintenance, online bill payment, ATM traction

Q33. Explain Me Are You Comfortable Reprimanding Employees For Negative Behaviors? If So, Can You Provide Your Approach To Discipline?

Yes, I am comfortable reprimanding employees if they engage in behaviors that have a negative impact on the company. It can be awkward, but it is necessary if someone refuses to perform the job properly since his or her performance is a reflection of your managerial aptitude. I believe a minor infraction warrants a warning. An intermediate infraction warrants a write-up. If an employee fails to improve or commits a serious infraction, termination or suspension may be considered. I have never had to discharge an employee on those grounds, but I have had to issue warnings and write ups.

Q34. Explain Me What Is Bank? What Are The Types Of Banks?

A bank is a financial institution licensed as a receiver of cash deposits. There are two types of banks, commercial banks and investment banks. In most of the countries, banks are regulated by the national government or central bank.

Q35. As You Know Our Work Is Always Changing. As Such, What Have You Done With Regards To Personal Development When It Comes To Our Posted Bank Branch Manager Position In The Last 12 Months?

That is a really great question. While I haven't had the opportunity to develop within this particular role per se, I have actually become very involved in my local foodbank this year. This has taught me a great deal about community, teamwork, and taking initiative.

Q36. Explain What Is Iloc (irrevocable Letter Of Credit)?

It is a letter of credit or a contractual agreement between financial institute (Bank) and the party to which the letter is handed. The ILOC letter cannot be cancelled under any circumstance and, guarantees the payment to the party. It requires the bank to pay against the drafts meeting all the terms of ILOC. It is valid upto the stated period of time. For example, if a small business wanted to contract with an overseas supplier for a specified item they would come to an agreement on the terms of the sale like quality standards and pricing, and ask their respective banks to open a letter of credit for the traction. The buyer's bank would forward the letter of credit to the seller's bank, where the payment terms would be finalized and the shipment would be made.

Q37. Please Explain What Is Inter-bank Deposit?

Any deposit that is held by one bank for another bank is known as inter-bank deposit. The bank for which the deposit is being held is referred as the correspondent bank.

Q38. Explain Me What Is Consumer Bank?

Consumer bank is a new addition in the banking sector, such bank exist only in countries like U.S.A and Germany. This bank provides lo to their customer to buy T.V, Car, furniture etc. and give the option of easy payment through instalment.

Q39. Do You Know What Is Negative Amortization?

When repayment of the loan is less than the lo accumulated interest, then negative Amortization occurs. It will increase the loan amount instead of decreasing it. It is also known as ‘deferred interest'.

Q40. Explain Me Something About The 27th Or Latest Public Sector Bank In India?

Sir, the 27th public sector bank in India is Bhartiya Mahila Bank. It was created by Finance Bill 20@The first BMB was opened in Mumbai on 19th November 2013 on the 94th birth anniversary of Indira Gandhi. India is the third country in the world to have a bank especially for women after Pakistan and Tanzania.

  • Tagline- “women empowerment economically”.
  • Head- Usha Anantha Subramanayam
  • The bank allows deposit from everyone, but lending will be focused for women.
  • This bank is very important because it is the latest and 27th PSB of India. So, try to know every basic point about BMB.

Initial capital of Rs. 1000 crore.

Similarly, if there has been some other initiative in that year, you should be well aware of it.

Q41. Do You Know What Is Payday Loan?

A pay-day loan is generally, a small amount and a short-term loan available at high interest rate. A borrower normally writes post-dated cheques to the lender in respect to the amount they wish to borrow.

Q42. Tell Us What Are The Things That You Have To Keep In Concern Before Opening The Bank Accounts?

Before opening a bank account, if it is a saving account, you have to check the interest rate on the deposit and whether the interest rate remains consistent for the period. If you have the checking account, then look for how many cheques are free to use. Some banks may charge you for using paper cheques or ordering new cheque books. Also, check for different debit card option that is provided on opening an account and online banking features.

Q43. Explain What Are Payroll Cards?

Payroll cards are types of smart cards issued by banks to facilitate salary payments between employer and employees. Through payroll card, employer can load salary payments onto an employee's smart card, and employee can withdraw the salary even though he/she doesn't have an account in the bank.

Q44. How Would You Describe Your Management Style As Bank Branch Manager?

One of the most common management job interview questions is going to be about your specific management style. There are various ways to wer this question. You may be tempted to share a specific management style, but the best wer to this question is, “I choose to adapt my management techniques based on the present situation, as work environments are constantly dynamic and often need to be handled in unique, novel ways.”

Q45. Explain Me Why Do You Want To Join The Banking Industry?

To wer this question, you can say something like –“I want to join this industry because it can provide me a stable career with good growth prospects. It is one of the fastest growing sectors of the nation and provides great career opportunities.

There could be many other reasons for you wanting to join the bank industry for e.g. it is an honest organization, good working conditions, chances to directly interact with public etc. The choice of reason could be anything that suits you as a person.

Q46. Explain Me Do You Have Any Previous Management Experience, Or Will This Be Your First Job In A Managerial Position?

I do have previous experience as a manager. At my first job in this industry, it was my responsibility to manage a team of tellers. I was responsible for ensuring that all banking regulations were followed, and if workers had any concerns or questions, I was responsible for intervening. Under my watch, productivity soared and the turnover rate decreased. At my second job, I was a front-end manager at a grocery store. I oversaw a team of cashiers and baggers and ensured that customers remained satisfied. Both of these jobs provided me with a great deal of management and supervisory experience.

Q47. Do You Know What Ach Stands For?

ACH stands for Automated Clearing House, which is an electronic trfer of funds between banks or financial institutions.

Q48. Explain Me What Experience Do You Have With Respects To This Particular Bank Branch Manager Position?

Ever since my first paper route at age 10 I've been doing something to keep myself busy and earn money. Back then, it was obviously about earning some spending money. What I didn't realize was that I was actually starting the journey of establishing what I liked to do and how I fit in to the grand scheme of things. I then worked as a junior computer tech in my last 2 summers of high school. It was here that I discovered what I was passionate about and what I wanted to do. I enrolled in college to get my degree in computer sciences, and I have been working around technology ever since.

Q49. Tell Us What Are The Types Of Accounts In Banks?

  • Checking Account: You can access the account as the saving account but, unlike saving account, you cannot earn interest on this account. The benefit of this account is that there is no limit for withdrawal.
  • Saving Account: You can save your money in such account and also earn interest on it. The number of withdrawal is limited and need to maintain the minimum amount of balance in the account to remain active.
  • Money Market Account: This account gives benefits of both saving and checking accounts. You can withdraw the amount and yet you can earn higher interest on it. This account can be opened with a minimum balance.
  • CD (Certificate of Deposits) Account: In such account you have to deposit your money for the fixed period of time (5-7 years), and you will earn the interest on it. The rate of interest is decided by the bank, and you cannot withdraw the funds until the fixed period expires.

Q50. Explain Me About The Best Boss You Ever Had?

Pay close attention to what made that boss the best in the candidate's mind. You have the chance to determine if the people in your organization will meet her standards. If she describes a supervisor who walked the floor daily and got involved in every project, and your management team sits behind closed doors, you may want to think twice about this hire. If she describes someone who never micro-managed and gave lots of opportunity for professional and personal development, then you need to be certain that you can provide an equal or better experience. Good people don't leave jobs; they leave people.