Finance interviews: what recruiters ask, and the news to know.

What a good answer covers. CRR is the share of net demand and time liabilities a bank must hold as cash with the RBI; it earns no interest. SLR is the share held in liquid assets such as government securities, cash and gold on the bank's own books. Both lock up money that could otherwise be lent: CRR is a direct liquidity tool, while SLR also creates captive demand for government bonds. As of 5 Oct 2026, CRR is 3% (after four 25 bp cuts in 2025, the last from 29 Nov 2025) and SLR is 18%. Figures are as of the date stated; if the candidate quotes a later official figure correctly, treat it as correct.

What a good answer covers. A term loan becomes an NPA when interest or principal stays overdue for more than 90 days. Before that, special mention accounts flag early stress: SMA-0 is 1-30 days overdue, SMA-1 is 31-60 days and SMA-2 is 61-90 days. NPAs are then classed substandard, doubtful and loss, each needing a higher provision. A strong answer adds that banks move to forward-looking expected credit loss provisioning from 1 April 2027 (RBI final directions of 27 April 2026).

What a good answer covers. DSCR = cash available for debt service / debt service = 30 / 20 = 1.5 times. Many lenders look for about 1.25 times or more on a term loan, but the norm depends on the sector and the lender's own policy, so a good answer says so. It also looks at the trend and the weakest year rather than only the average.

What a good answer covers. Stay calm and speak to her privately with gentle questions, recognising the typical 'digital arrest' or impersonation pattern. Involve the branch manager, delay the transaction within policy, contact family if she agrees, and report the suspected fraud. Balance the customer's right to her money with the bank's duty of care, and record every step.

What a good answer covers. A bond's price is the present value of its fixed cash flows discounted at the market yield; a higher discount rate gives a lower present value. Longer maturity and lower coupon make the price more sensitive to yield changes, which is what duration measures.

What a good answer covers. By covered interest parity, forward = spot x (1 + rupee rate) / (1 + dollar rate) = 95.97 x 1.065 / 1.04, about 98.28. The forward premium is about 2.4%, roughly the interest differential. The higher-yielding currency trades at a forward discount, so dollar forwards against the rupee are at a premium.

What a good answer covers. Causes: Brent crude around $100 or more, foreign portfolio outflows, a US rate hike and US Treasury yields above 5%, and US tariffs. The FBIL reference rate was 95.968 on 28 Sep 2026 and spot passed 96 on 29 Sep 2026. RBI tools: spot and forward intervention, the June 2026 FCNR(B) incentives (CRR and SLR exemption on fresh deposits raised 8 Jun to 30 Sep 2026), wider foreign access to government bonds, and the policy rate. Reserves were $747.56 bn in the week ended 25 Sep 2026 after a record weekly fall of $18.3 bn. Figures are as of the date stated; if the candidate quotes a later official figure correctly, treat it as correct.

What a good answer covers. Cash conversion cycle = days inventory outstanding + days sales outstanding - days payables outstanding. Shorter is generally better because less cash is tied up, but stretching suppliers too far creates risk in the supply chain.

What a good answer covers. WACC = 0.6 x 14% + 0.4 x 9% x (1 - 0.25) = 8.4% + 2.7% = 11.1%. The debt cost is taken after tax because interest is tax-deductible; the weights should be market values, not book values.

What a good answer covers. Check receivables (longer credit to win the sales?), inventory build-up, capital expenditure, lower margins and the timing of payables. Recommend fixes such as a tighter credit policy, better collections and inventory planning, and show the cash bridge from profit to cash.

What a good answer covers. Project free cash flow (EBIT x (1 - tax rate) + depreciation and amortisation - capital expenditure - change in working capital) for 5-10 years, discount it at WACC, add a terminal value (Gordon growth or an exit multiple), then bridge from enterprise value to equity value and divide by diluted shares. Sensitivity-test WACC and the terminal growth rate.

What a good answer covers. Justified P/B = (ROE - g) / (COE - g) = (16 - 8) / (13 - 8) = 1.6 times. A bank earning more than its cost of equity deserves to trade above book value.

What a good answer covers. Expected loss = probability of default x loss given default x exposure at default. PD comes from ratings or scorecards, LGD from collateral and recovery experience, and EAD includes undrawn commitments likely to be drawn. Under expected credit loss provisioning, Stage 1 loans carry 12-month expected loss and Stages 2 and 3 carry lifetime expected loss; RBI's final directions (27 April 2026) apply to commercial banks from 1 April 2027.

What a good answer covers. The three stages are placement, layering and integration. Under the Prevention of Money Laundering Act, banks report to FIU-IND: cash transaction reports for cash over ₹10 lakh, or a linked series adding up to more than that in a month, and suspicious transaction reports, which have no threshold. The customer must not be tipped off.

What a good answer covers. 1-day 99% VaR = 2.33 x 1% x 100 = ₹2.33 crore. 10-day VaR is about 2.33 x square root of 10, about ₹7.37 crore, which assumes returns are independent and normally distributed.

What a good answer covers. The payer's app (the payment service provider) sends the request to NPCI's UPI switch, which routes it to the payer's bank; that bank debits the account after UPI PIN authentication, then the switch routes the credit to the payee's bank. Banks settle with each other later through NPCI in settlement cycles. A good answer mentions the virtual payment address and the merchant's acquiring bank.

What a good answer covers. At 0.4% with a ₹300 cap (as announced, as of 5 Oct 2026): ₹10,000 x 0.4% = ₹40. ₹1,00,000 x 0.4% = ₹400, which is capped at ₹300. The merchant pays, not the customer, and payments up to ₹2,000 stay free.

What a good answer covers. For a fee: running UPI and preventing fraud costs about ₹20,000 crore a year by NPCI's estimate, and the government subsidy was meant as a bridge, not a permanent model. Against: merchants may push customers back to cash or add surcharges, slowing digital adoption. The fee as announced (as of 5 Oct 2026) is 0.4% on merchant payments above ₹2,000, capped at ₹300; how a 'small merchant' is defined was reported but not confirmed. A good answer weighs both and suggests what to measure after launch.

What a good answer covers. With monthly compounding at 1% a month, about ₹11.5 lakh (about ₹11.6 lakh if each instalment is invested at the start of the month), on ₹6 lakh invested. The 12% is an assumption, not a promise; returns are not guaranteed.

What a good answer covers. On suitability she needs income, has a short horizon and can bear little risk, and small caps are volatile. Suggest an allocation using senior-citizen savings schemes, debt and hybrid funds with a modest equity share. Document the advice, and if she insists, record that she is acting against advice.