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Of course. That’s exactly what “due diligence” is all about. How thorough an investor will be depends to some extent on the professionalism of the investor, the size of the investment, and the stage of the company, but the checking will almost certainly entail requesting and reviewing all of the startup’s financial accounts and projections, customer contracts, cap table, IP filings, etc. (That’s one reason that a platform like Gust Launch can be so useful, because it ensures that everything is appropriately tracked and recorded.)Here is a typical business diligence checklist for an angel or venture investment:Company OverviewArticulate the “equity story” here (i.e. why the company is on to something and why its stock will appreciate greatly). Is it compelling?Does the company engage in thorough business planning?Does management have a clear understanding of the challenges it faces and a realistic plan to address them?Are there any skeletons in the company’s closet from previous activities (e.g. outstanding liabilities, unassigned IP)?Management TeamAre all resumes and personal references available?What key strengths does the management team have collectively and individually?What holes are there in the team and how/when might they be filled?Have there been any disgruntled employees and, if so, why? Do these employees cause any tangible risk going forward?What strengths does the Board bring to the company? How might it be augmented?Is there a Board of Advisors, and, if so, how active is it?MarketingDoes the company have a well-defined sense of what its true market is?·Is this market sufficiently large and fast-growing to be attractive?Is the company’s market generalized or niche?If generalized, does the company stand out from competitors?If niche, will the company dominate sufficiently to either build attractive cash flow or be bought by a larger firm?Is the company the leading firm in its market? Market share?What barriers to entry does the company enjoy? How long lasting are they?Does management understand the key metrics to measure its business and does it track its progress effectively? How do the metrics compare to similar firms?Does the company have a sensible business model?SalesDo customer reference calls bear out claims management make about demand for their products/services?Is the company pipeline attractive? What is the probability that it will hit its targets?Does the sales strategy make sense? What could be done to improve it?Can the company acquire customers profitably?Is the company’s sales cycle better or worse than its competitors and is it attractive?CompetitionDoes the company know who its competitors are, including indirect competitors?Where does the company stack up vs. competitors? Can it win business from them?Has the company focused its business plan narrowly enough to limit its competition?How well-funded is the competition?Product DevelopmentIs the product a need-to-have, a nice-to-have, or a luxury? Does it solve a critical problem or enable growth (if B2B)/provide entertainment (if B2C)?Describe the customer demand in detail?Has the company proven adept at product development? Does it have an adequate technical team?Did product development flow from perceived (or better yet researched) customer demand or from some other impetus? Explain.Intellectual PropertyDoes the company have an appropriate IP strategy? Explain.Are there any issues relating to patents or intellectual property?Production / Operations (HR, Customer Support, Fulfillment, Returns, Distribution Logistics)Do the management team and other employees enjoy appropriate incentives to run the company for the long term?Are the interests of management aligned with ours?Are total labor costs appropriate?Does the company have a realistic plan for managing its back office and customer support? Will it be able to handle customer growth while maintaining customer satisfaction?Financing StrategyIs the valuation attractive? What is the projected times money returned and IRR (if calculable)? Is the risk-adjusted return attractive?Does the company have a thorough plan as to what it will do with our money? Is it sensible?Is the company raising the right amount of money?What financing risk exists in the business plan? How much additional money must they raise and how flexible (in amount and timing) can they be in raising it?FinancialsDoes the company have a realistic set of projections based on reasonable assumptions?Are the projections bottom-up (good) or top-down (not so good)?Does the company have good operating leverage?Are the margins attractive (absolutely and relative to competitors)?Has the company met, exceeded or fallen short of its previous budgets? Analyze variances.Assets and PropertyAre there any issues here?Customer ReferencesWrite up summary of reference calls.Do customer reference calls bear out claims management make about demand for their products/services?Are there any issues flagged by customers? Does management recognize and admit to (without prompting) these issues?Contracts and AgreementsReview all contracts with legal counsel and flag any issues, risks or omissions.Corporate DocumentsReview all corporate documents with legal counsel and flag any issues, risks or omissions.TaxesReview company tax situation and analyze effects on cash flow over next several years.InsuranceAssess adequacy of insurance coverage and analyze risk to investment thesis of any insurance gaps.And here’s the legal/financial due diligence checklist that would accompany it in the case of a full venture or strategic round:“Please furnish for our review copies of the following documents or indicate in writing on a copy of this list that none exist. In addition, please provide a written summary of each oral agreement or arrangement which is responsive to the requests set forth below. Any documents identified as originals will be returned to you promptly.Unless otherwise indicated, (i) all requests are for any matters which are currently existing and in effect or which occurred at any time since the Company’s incorporation but which are not now existing or in effect, and (ii) each request applies to all past and present direct or indirect subsidiaries (if any), and all predecessors, whether corporations, partnerships or joint ventures. For purposes of this request, all such entities are included in the term “Company.” Where there is no information responsive to the request, please so indicate by writing “N/A” or the equivalent in the margin.I. Corporate Records.Chart showing, or a narrative description of, the corporate, partnership, limited liability company structures (parents, all subsidiaries and other financially or legally related entities) and ownership (including the number of shares and/or percentage of ownership) of the Company.Copies of the certificates of incorporation, by-laws, partnership agreements, operating agreements and other similar organizational documents of the Company.Stock record books and copies of all stock certificates, including reverse sides, of the Company and affiliates.List of all subsidiaries and affiliates of the Company, if any.List of jurisdictions in which the Company is qualified or has applied for qualification to do business and evidence of such qualification or application.List of jurisdictions where the Company has substantial contacts (e.g., real or personal property owned or leased, employees, sales representatives, etc.).List of the Company’s current shareholders, the numbers of shares owned and the consideration paid for such shares.Warrants, stock options, agreements relating to any warrants or options to purchase securities, any convertible security and other rights to subscribe for or purchase securities.Schedule of all outstanding stock options and warrants, including name of individual, grant date, expiration date and exercise price, of the Company.Voting agreements, voting trusts, shareholder agreements or other similar arrangements with or among shareholders or equity owners of the Company.Stock purchase and repurchase agreements.Stock restriction agreements.Registration rights agreements.Minutes or other records of meetings of the Board of Directors, committees of the Board of Directors or shareholders of the Company.All materials distributed to members of the Board of Directors, committees of the Board of Directors or shareholders of the Company since incorporation or organization (or written consents in lieu of meetings).II. Employee Benefit Plans and Other Employment Matters.Employment, consulting, compensation or other agreements or arrangements to which any director, officer or employee of the Company is a party.Copies of any provisions of any contract or arrangement, pursuant to which any director or officer (or other applicable principals, partners or members) of the Company is insured or indemnified in any manner against liability.All documents relating to pension, deferred compensation, stock option (including SARs), profit sharing and any other similar plans of the Company, all IRS determination letters relating to the foregoing and the most recent actuarial report for any defined benefit pension plan for the Company.All other employee compensation, bonus, incentive, benefit (e.g., life or health insurance) or similar plans of the Company, including plan evaluation and actuarial evaluation reports.Any standard form employment agreements used by the Company as well as any agreements that deviate in any material respect from such standard forms, and all severance or special termination agreements with senior management of the Company.Information with respect to any pension benefit plan subject to Title IV of ERISA maintained by an entity other than the Company which is, or was within the past five years, in a single controlled group with the Company.All collective bargaining agreements to which the Company is a party or by which it is bound, including any side letters.Any policy manuals or materials with respect to trade or employment practices of the Company.Confidentiality, proprietary rights, and non-competition agreements (i) between the Company and any officer, director, employee, consultant, representative, supplier or customer or (ii) which the Company’s employees or consultants have entered into with a prior employer.Information as to employment arrangements and/or compensation plans where any benefits or rights are triggered by a change in control of the Company, including any so called “golden parachute” or similar arrangements.Information as to employment arrangements and/or severance plans where any benefits or rights are granted upon severance or termination of an employee, whether or not in connection with a change in control of the Company.Any contracts for consulting or management services.III. Regulatory MattersAll applications, filings, findings, reports, registration statements, correspondence, complaints, consent decrees, determinations, orders, etc., relating to federal regulatory agencies and all foreign, state and local agencies performing similar functions. Include all exhibits for all filings, unless duplicative of material requested elsewhere.IV. Properties, Assets, and Leases.List of all real property owned, leased (as lessee or lessor) or used by the Company including all documentation of ownership, leasehold interest, any encumbrances or restrictions against transfer on such property, and any title insurance policies or title searches.List of all intangible or intellectual property e.g., patents, trademarks, copyrights, trade names, trade secrets and customer lists owned, leased, licensed or used by the Company and any patent or trademark registrations or similar documents in any domestic or foreign jurisdiction. Please include any required permits, licenses, approvals, related regulatory reports, or agreements and any actual or threatened claims of infringement or misappropriation.List of all fixed assets, personal property and equipment owned, leased or used by the Company including all documentation of ownership, leasehold interest or any encumbrances or restrictions against transfer of such property.With respect to all of the properties and leases described in this Item IV, please identify any officers, Directors, shareholders or employees of the Company holding an interest in such properties or leases.V. Material Agreements and Financing Documents.Loan agreements, lines of credit, indentures, revolving credit agreements, note purchase agreements, notes, other evidence of indebtedness and all related documents concerning any debt financing.Venture capital financing documentsAny agreements in principle or otherwise with respect to mergers, acquisitions, divestitures or sales of material assets of the Company, whether or not consummated.Mortgages, security agreements, pledges and other evidence of liens or letters of credit securing any obligations of the Company.Corporate and personal guarantees of any obligations and powers of attorney executed in the Company’s name.Schedule and copies of all contracts, agreements, arrangements or understandings under which the Company (i) has any surviving representations or warranties or any ongoing obligation to indemnify, defend or hold harmless any party, (ii) is subject to any other material commitment, contingency or liability or (iii) which restrict in any manner the right of the Company to conduct its business or to compete with any partyList of bank accounts belonging to the Company and its affiliates.Correspondence and internal memoranda relating to any documents requested in this Item V.VI. Marketing, Sales and Operations.Licensing agreements (including inter-company).Patents, patent applications, trademarks, trademark applications and copyrights (domestic and foreign), service marks (domestic and foreign) and documents relating to know-how, trade secrets, and other proprietary information used by the Company.Promotional material, sales literature and other advertising documents distributed to potential customers.Agreements with any educational institutions or relating to the Company’s provision of private student loans.Joint venture, partnership and limited partnership agreements.Agency, commission, distribution, franchise or sales representative agreements.Governmental contracts, agreements or purchase orders.Agreements under the which the company is obligated to provide or purchase a material amount of goods or servicesAll other contracts (including executory contracts) material to the Company.VII. Accounting, Financial and Insurance Matters.2004 annual and 2005 year to date monthly financial statements (including balance sheet and income statement).All documentation relating to any transaction between the Company and any director and officer including any loans or similar arrangement.Budgets, fiscal projections and strategic plans, together with a review of or comparison with actual results, if available.Summary of federal, state, local and foreign income tax status, including consents and agreements with any tax authority or any pending or threatened disputes concerning tax matters and all audit papers and communications between the Company and the Internal Revenue Service.Any documents relating to liabilities and obligations, including material contingent liabilities, write-downs or write-offs of notes or accounts receivable, incurred otherwise than in the ordinary course of business since formation.Copies of all insurance policies and a history of insurance claims, with details of any pending claims or incidents which may arise in claims.VIII. Legal Proceedings.List and description of all material litigation, administrative proceedings, arbitration proceedings, investigations, claims or disputes (including pending or threatened litigation or claims) involving the Company or any principal shareholder, officer, director, principal, partner or member of the Company as a plaintiff or defendant.All consent decrees, judgments, other decrees or orders, settlement agreements, injunctions or similar matters (continuing or contingent) to which the Company is a party or involving any person in his capacity as a shareholder, officer, director principal, partner, member or employee of the Company.Documentation with respect to any pending or threatened disputes with any governmental agency to which the Company is or may become a party.All correspondence dealing with actual or alleged infringement of patents, trademarks and copyrights.Any waivers or agreements canceling claims or rights of substantial value other than in ordinary course of business.IX. All other materials and documents involving the Company, not otherwise covered by the foregoing items, which, in your judgment, may be material to the business of the Company or which should be reviewed in making disclosures regarding the business and financial condition of the Company.”

A shareholder's Agreement creates a relationship that is in some ways akin to a partnership agreement, so you need to consider similar issues to those you would consider when entering into a partnership.But the vehicle for this relationship is a company, so you need to consider some additional issues, simply for that reason.The list of issues below is not intended to cover commercial issues such as the identification of the business to be conducted and other commercial matters which may have been discussed between the parties themselves. This is intended to be a useful albeit non-comprehensive list of legal issues which can be used for information and to create a basis for discussions between the parties. It is based on Australian laws, so a few items are only going to apply in Australia; but most are relevant to just about anywhere in the OECD and similar countries.If you go to a lawyer with most of these already considered, and provisional answers/solutions agreed with your (proposed) co-shareholders, then you will save your lawyers some time, and yourselves some legal fees.1. BUSINESSWhat are the objectives and proposed business activities of the Company?Do the shareholders agree to limit the business activities of the Company to those referred to in the shareholders agreement unless they otherwise agree?2. CONDITIONS PRECEDENTAny conditions precedent to the contractual obligations under the shareholders’agreement? EG:Obtaining particular licences, regulatory approvals;Completion of other agreements; orApproval being given under the Foreign Acquisitions and Takeovers Act (Australian law) to one party subscribing under the shareholders’ agreement.3. BOARDHow many directors should there be?Who will have the right to nominate directors?Should the right to nominate directors be linked to equity holdings? For example:· A shareholder or shareholders together have the right to appoint one director for every 20% of the shares in the Company that they hold; or· The holder of a particular class of share has the right to appoint a director.In what circumstances will the right to appoint a director cease? For example:· Where a shareholder ceases to own a given proportion of shares in the Company; or· In other circumstances (such as, termination of a licence or management agreement).How many directors are required to form a quorum?Must a director appointed by each shareholder be represented at a meeting?How will the chairman be appointed?Should the right to appoint the chairman rotate?Will the chairman have a casting vote?· If so,is this sufficient to ensure that the Board will be able to continue carrying on its business and will not be deadlocked unless a Major Issue (defined below)arises?Will there be a managing director?· If so,how will the managing director be appointed?· Should there be a service agreement (see the section on service agreements below)?Will the matters considered by the Board only require a simple majority (that is 51%) unless it is a Major Issue?Will each director present have one vote? Alternatively, will the directors appointed by a particular shareholder have that number of votes proportionate to the number of shares held by the appointing shareholding?Appointment of alternate directors.4. MAJOR ISSUESCertain business activities and corporate actions can be defined as Major Issues which will require a “special majority” of directors or shareholders to implement apart from any requirement of the Corporations Act.Some items which might be included as Major Issues:· Amendments to memorandum and articles or other fundamental corporate changes such as,dissolution, amalgamation, schemes of arrangement and creation of new capital.· Issue,redemption and buy-back securities.· Incurring or repayment of indebtedness over a minimum threshold and the granting of security.· Capital expenditure and new business ventures otherwise than as contemplated and approved in the business plan.· Disposition of material asset or of substantially all of the assets of the Company or liquidation of subsidiaries.· Disposition of any shares in other companies held by the Company.· Non-arm’s length transactions or transactions with related parties.· Taking or defending of legal proceedings.Are here any other matters which should be included as a Major Issue?What is the special majority of directors or shareholders which is required before a Major Issue can be implemented? For example:· greater than 75% of voting rights; or· 100% of voting rights.If there is not unanimity on a Major Issue should a dissenting shareholder have the right to trigger the buy/sell mechanism?5. EQUITY STRUCTURE OF THE COMPANYWhat is the shareholding structure of the Company?Is any reclassification of shares required? For example, reclassification of ordinary shares into “A” class shares with different rights to voting, appoint directors and dividends. Are there any unusual rights attaching to shares which the shareholders do not wish to appear in the articles?What type and number of shares are being applied for under the shareholders’agreement? Consider subscription price,payment time and timing for issue of shares.Is there an obligation to subscribe for further shares? Are there pre-emptive rights on new issues of classes of shares?6. DEBT FINANCING OF THE COMPANYThe debt financing of the Company should be considered, in particular:Who is to contribute what? Consider amount of finance, interest, repayment and security.Third party financing: is there any requirement for shareholders to give guarantees?Is any special approval required for new debt or rights of first refusal to provide new debt? Will this be a Major Issue?Willshareholders be obliged to provide future debt financing:Should the failure to provide finance lead to equity dilution or an interest cost?7. RESTRICTIONS ON TRANSFERS AND PRE-EMPTIVE RIGHTSThe shareholders’ agreement might:Contain a prohibition on the transfer of, or creation of any interest in, or rights over, shares in the Company without complying with the rights of pre-emption of the other shareholders;Permit transfers by shareholders to a related body corporate provided that the shareholders’ agreement is novated;Limit the right to charge or encumber shares to financial institutions and, if permitted, impose conditions to which the lender must agree;Prohibit registration of a transfer of shares unless the transferee and the other shareholders have novated the shareholders’ agreement; andContain pre-emptive rights under which any proposing transferor of shares must first offer the share pro rata to existing shareholders. Should the existing shareholders have a right to have the shares valued to determine the price?8. COMPULSORY BUY/SELL PROVISIONSThe shareholders’ agreement might contain provisions relating to the forced disposition or acquisition of shares in the Company. Matters to be considered are:The circumstances in which the buy/sell mechanism will be triggered. For example:· Is there a general right of a shareholder to trigger the buy/sell after a fixed period;· Must there first be a “deadlock” on a Major Issue and attempts to resolve the dispute by a meeting representatives of the shareholders or some or other dispute resolution procedure have failed;· Is it triggered where there is a change in control of shareholder without consent of other shareholders?· Is it triggered where a shareholder is in material breach of the agreement?· Death/disability/insolvency style event of a shareholder?What type of buy/sell provision should apply:· “shot-gun”provision where one party can specify a price at which that party will either sell or buy and the other party has the right to elect to buy or sell (but must do one or the other);· a “put”option (usually to create liquidity for a minority shareholder); or· a“call” option (usually to give a majority shareholder the right to remove a minority shareholder in specific circumstances) – sometimes call options arenot capable of exercise for a specified period.In case of death and disability should there be a cross option deeds entered which enable the other shareholders to use the proceeds of certain insurance policies to “buyout” a deceased or disabled shareholder’s shares.If there is a shot-gun provision or put or call options, consider:· Basis of valuation method for put and call options (net asset value, earnings etc);· General closing mechanics, including mechanisms to ensure completion such as power of attorney, trustee holding shares, authorising the Company to register transfers;· How to address the existence of shareholder loans and guarantees on transfers of shares, including whether debt should be repaid, if repayment is not otherwise assured (valuation issues) or security for guarantees not released; and· Whether there should be:(a) “piggyback” rights to ensure the protection of minority shareholders who are entitled to block the sale unless they are given the same offer; and(b) “carry along” rights which entitle one shareholder to force the other to sell to a third party who is only prepared to purchase 100% of the Company.In the event of an insoluble difference of opinion should one shareholder have the right to call on all other shareholders to liquidate the Company?If the Company is wound up or the shareholders’ agreement terminated should any particular assets revert to a particular shareholder? For example, client lists.9. TERMINATIONApart from material breach should there be any additional circumstances giving rise to a right to terminate the shareholders’ agreement?10. BUSINESS DEVELOPMENTAre theshareholders contributing any other assets or resources to the Company?Are thereany warranties or representations to be given by the respective parties?11. BUDGETS AND BUSINESS PLANSIs there to be a system of periodic budgets, plans and financial reporting?If so,consider:· Who is to prepare them;· Timing;· Format;· Approval;and· Dispute resolution procedures.12. MEETINGS OF MEMBERSWho isentitled to call a meeting of shareholders? It is suggested that as a minimum any director have the right to do so.Should the shareholders also have this right?How many shareholders are required to form a quorum?If a quorum is not present at a meeting and any reconvened meeting should this trigger the dispute resolution provisions?13. NON-COMPETITIONShould there be a non-competition restriction?If so,in what area, for what period and in respect of what activities?Do any of the shareholders have an existing business or interests which are in competition or could result in a conflict of interest?How long should the confidentiality restriction apply after termination of the shareholders’ agreement or transfer of shares?14. SERVICE AGREEMENTSAre anyservice or consultancy agreements between the shareholders (or a director of ashareholder) and the Company required. Consider:· Defining the responsibilities of the employee;· Remuneration and other entitlements; and· Circumstances in which the service agreement may be terminated. Will this give rise to a right to trigger the buy/sell provisions?15. DIVIDENDSIt will be important for shareholders to consider the impact of taxation on dividends. The shareholders may have different expectations and desires concerning the payment and franking of dividends. Shareholders may require the right to restrict the payment of a dividend if the form in which it is paid would have adverse tax consequences for the shareholder.Dividend policy, consider whether left to directors’ or shareholders’ discretion or determined in advance subject to available profits and the Corporations Act.16. MISCELLANEOUSConsider:Insurance.Banksigning authorities.Are auditors required or desirable? If sowho will be appointed as auditors?What will the Company’s financial year be?Is a confidentiality clause required?What amendments will be required to the constitution of the company?Payment of legal and accounting costs – borne by holders or venture.17. FURTHER INFORMATIONThere may be other matters and information to consider, and this list is not exhaustive or tailored to any individual request for advice.18. GET SPECIFIC ADVICE BEFORE COMMITTINGEach party to a shareholders agreement should obtain and consider relevant and independent financial (including duty, VAT/GST and income tax issues), legal and other professional advice before committing to any binding agreement.

Part: 001Tips for Interview for recruitment as officers in banks in IndiaInstructions to candidatesThe purpose of the interview:The purpose of any interview is to select one suitable person for the concerned post. The person to be interviewed may be having better qualifications; however, he may not be having the requisite potentials or caliber in handling the job offered namely; better communication ability, leadership quality, emotional strength and efficient interpersonal relationship. Banking demands people who are willing to work hard by mingling with customers freely and friendly apart from maintaining a cordial; ssocial and friendly relationship with their colleagues and superiors.Phases of the interview:The interview is conducted in four phases namely;·the first phase during the course of which questions are asked about the person and his specialization in any area;·the second phase wherein questions are asked about the bank for which the interview is conducted;·the third phase wherein questions are asked about general banking, economy, finance and latest developments are asked and·the fourth phase is the final round for the interview.The interview committee:The interview committee consists of three to five imminent personalities who are well versed in banking matters and normally the services of executives or retired executives of various public sector banks are utilized for the purpose of conducting the interview. The following system is adopted by the committee members during the course of interview process:·While one member poses questions to the candidate, the other two members analyze the body language of the individual as to how he reacts to the questions and especially in respect of difficult questions;·They also review as to how the candidate comes forward to present the answers in a crisp manner thereby providing the relevant points expected by the committee members.·Basing upon the answering ability, communication ability, level of confidence, willingness to accept challenges etc., the committee members select the individuals by awarding better grades.·When the candidate is found to be inattentive on account of low level of self confidence, the committee members pose provoking questions so that the candidate is emotionally provoked to come forward with appropriate answers.The interview process:The interview process consists of the following stages:·Verification of the certificates namely; qualification certificates, experience certificates, certificates relating to extracurricular activities etc., by the team members and filling up of the requisite formats by the candidates;·Candidates waiting at the reception hall for their turn;·Candidate entering the interview room duly seeking permission of the team members;·Candidate thanking the interview members for permitting him/her inside the cabin;·Candidate sitting on the seat once offered by one/more members in the interview committee;·Candidate thanking the person who had offered the seat;·Candidate shaking his hands with the members, if offered;·Candidate eagerly awaiting for the questions from the members;·Candidate trying to attend the interview with full concentration maintaining regular eye contact with the interviewers;·Candidate answering the questions posed by the members till the entire process is treated as completed;·Candidate collects all certificates and documents once the interview is treated as completed;·Candidate thanks the committee members and·Candidate politely raises from the chair, walks towards the entrance, opens the door and gently closes the door;·Candidate meets other candidates awaiting at the reception hall cheerfully.Dress code:·Dress code is more important and a person is judged by the dress he wears. Dress makes half man.·For men: Please wear a neat trouser and one full length shirt – preferably white or light shaded; Usage of “T” shirts greatly dampens the image of the candidate and the purpose of using any ‘T” shirt is to have better comfort during the course of walking, relaxing, jogging, running, partying and relaxing. As such “T” shirts are not considered to be a fit wear during professional meetings including interviews. The candidate has to wear a good quality shoes neatly polished. If possible he can wear a “tie” and this is purely optional and certain organizations pay more attention to the personality which gets improved by way of better dressing.·For girls: Under any circumstances girls should not wear provoking dresses namely; “T” shirts, jeans pants, trousers, half gowns and shirts with messages and blouses with low cuts. A neat chudithar is considered to be the best option and wearing of sarees improves the image of the individual.A.Questions during the first phase:·Initially the candidates are invited to tell about themselves, their family members, their ambitions, their qualifications, their achievements in studies, sports, music and any other extracurricular activities;·The second question is about the place to which the candidate belongs. In case the candidate belongs to Chennai, he will be asked to tell about Chennai and the importance of the place. Necessarily the candidate should have a thorough knowledge about the place from which he is hailing;·The interviewers will pose “ice breaking questions” in order to shift the focus of the candidate. This is for the purpose of finding out the reaction of the candidate during such “focus change”. (Banks demand people who are able to face any challenges);·During the first two to three minutes, more than 80 percent of the questions will be on the personal details and basic information about the candidate. It has to be remembered that – “The first impression is the best impression” and accordingly the candidate has to behave politely, calmly, courageously and confidently.Sample questions during the first phase:·01. My dear friend, now tell us about yourself: The candidate has to inform in a crisp manner about himself, his family, his qualifications, achievements if any etc. Unnecessary details should be avoided altogether and the candidates at no cost should provide information to the committee members with an intention to derive sympathy from the committee members. Such an attitude will prompt the members either to reject or award poor marks.·02. I see – you are from Chennai – please tell me about Chennai: Since the candidate belongs to Chennai, he is invited to tell about Chennai and he should have pre-hand information about Chennai and should come forward to tell about important places in Chennai namely; Marina beach, High Court, Kabaleeswarar Temple, Metro train facilities, Santhome church, International airport, Asia’s biggest bus station at Koyembedu and many more.·03. I find that you had studied in Presidency college. Why you preferred this college ?. How was your life in the college? The candidate has to tell about the college; the achievements of the college in academic scenario as well as in sports and in other areas;·04. I find that you had studied “EEE” - why you had chosen the course? The candidate has to tell about the purpose and the potential available for the students who had opted to pursue EEE course.·05. You are in Chennai for a long period. What is your opinion about Chennai?·06. You are having “EEE” in engineering and why you are willing to get employed in banks? (Your reply should be – In fact by working in a bank, I can develop my relationship with customers, improve my knowledge and provide better service to as many people as possible. I find that I can have more career prospects by getting employed in the banks)·07. What are your strengths and weaknesses? – Your answer should be: I am always willing to work hard under all circumstances and since I have a good communication ability, I hope that I can surely develop friendship with my colleagues, clients and others in a fast manner so that I can contribute better to the society.·08. You are a highly qualified person having one MBA degree apart from a degree in Engineering. What is the guarantee that you will be in the bank for quite a long time without shifting your attention to some other employment potential after some time ?: Your reply should not be: On account of unemployment problem, I am joining the bank; Your reply should be – even though I have better qualifications, I wish to work in the banking industry because I can have better opportunities to serve for the welfare of the society by working in the bank than any other organisations.Responsibilities of the candidates appearing for the interview:The candidate should do a home work and he should always depend upon his positive straits namely; his strength, achievements and abilities and necessarily he should believe in himself that he can accept and do the job in a better manner and he should altogether avoid any negative reply or angry reply under any circumstances; even when provoked or tempted by the interview board members and the candidate should remain calm and wear a broad smile during the entire interview process.A smile has the power to keep the individual in better spirits at all times.The following question may provoke the candidate –·Dear friend, considering your personality, I find that you look like a film actor. How do you feel yourself ?(You had not at all expected this question and you are tempted to provide an apt reply to them: Your reply should be– In fact I am fond of wearing a neat dress and I take care of my health by doing physical exercises regularly apart from eating moderate food and getting into the bed at the appropriate time. I always believe in the following proverb – “Health is wealth”. An individual may not be in a position to discharge his duties properly without adequate health.B.Second phase of the interview process:During this phase, questions will be asked about the bank for which the candidate is appearing for the interview and the following are some sample questions in case the candidate is appearing for a post in Punjab National Bank:·Do you know – where is the head office of Punjab National Bank?·Who is the present chairman of the bank?·How many branches are there in Punjab National Bank as on date?·Can you tell me about the total business of the bank?·Can you tell me about some deposit schemes available in the bank?·What do you know about the logo of Punjab National Bank?·What is the punchline of Punjab National Bank?·What is the position of Punjab National Bank among the nationalized banks as on date?(It is the responsibility of the candidate to collect the basic information about the bank for which he is appearing for the interview by visiting the website of the bank and referring other material sources in order to get the required information about the bank namely; the headquarters, number of branches, total business, profit position, important schemes, tie up with another banks, achievements of the bank, if any; the present position and ranking of the bank in terms of business, profitability, non performing assets, productivity of the employee etc., In case the candidate is appearing for a group of banks, he should have information in general about all the banks in the group)C.Third phase of the interview:During this phase, questions will be asked on general banking practices as mentioned below:The following are the questions regarding the banks in general:·Have you visited any bank branch? What was your experience?·What is the business of any bank?·What are the essential/primary functions of any bank?·What are the secondary functions of any bank?·Who can open a savings bank account?·What do you know by KYC guidelines?·Why banks insist customers in adhering to KYC guidelines?·What is the difference between Current deposit account and Savings deposit account?·What do you mean by CASA account?·Who normally opens a current account?·What do you know by a fixed deposit account?·Can a company open a savings account?·Can the director of a company open a savings account?·Who is the controlling authority for the banks in India?·What is a foreign bank?·What is meant by a public sector bank?·Which is the largest private sector bank in the country?·Which is the largest bank in the country?·You are working as an officer in savings department. The customer complains about the irritating behavior of the clerk who is working under your supervision. What will you do in this situation?·Your manager delegates some work and you are failing in doing the work within the allotted time and your manager is not happy with your performance. How will you convince your manager?·Today there is some news about annual credit policy. What do you know by that?·What do you know by reverse repo rate?·What is called as inflation?·What is rupee convertibility?·What do you know by gross domestic product?·What do you know by ASBA?·What do you know by Sensex?·What do you know by a convertible debenture?·What is an initial public offer?·What do you know by facebook – whether it is good or bad for any individual and what is your opinion?·What are the advantages and disadvantages of Whatsapp?(The above questions are illustrative and not exhaustive and the candidate should know fairly well about many banking as well as general aspects)D.The fourth phase of the interview:Like the initial phase or first phase, this fourth phase is also important wherein tricky questions will be asked as mentioned below:·You are hailing from Coimbatore. In case you are posted to Chennai whether you will be willing to work at Chennai. (Your answer: If I am posted at Coimbatore, I shall try my level best to bring more business to the bank since I know the place and people well and I can take care of family members who are dependent on me)·Suddenly on account of computer crash, you have to sit late – whether you will be willing to sit late and finish the job or leave early without informing your superiors? (Definitely I will never mind in sitting late and I shall always cooperate with my superiors in finishing the day to day functions of the branch. I am one among the team members and I have the responsibility to cooperate with other members during critical situations)·What information are you willing to tell about yourself? (If I am selected, I shall work hard and I shall discharge my duties to the entire satisfaction of my superiors. I shall always do the best from my side)Part: 002Selected Interview QuestiomsCandidate: 00101.Why you are willing to join in a bank?02.What do you mean by appraisal of gold loans?03.What are the different kinds of term deposits available in a commercial bank?04.What is the minimum period for which a fixed deposit is accepted and the maximum period for which a fixed deposit is accepted?05.Whether a fixed deposit can be accepted for a period more than ten years?06.What do you mean by FERA?07.What do you mean by ECS?08.What is the minimum amount that can be sent through RTGS?09.What is the maximum amount that can be remitted through NEFT?10.What is the maximum amount that can be sent abroad by any resident individual?11.What is the name of apex bank which is responsible for the development of agriculture in the country?12.What are the different kinds of schemes available in our country aiming towards poverty alleviation?13.What do you mean by crossing of any cheque?14.What are the different kinds of crossing?15.What do you mean by CASA?16.Whose signature is available in Rs. 100/- currency note?17.What do you know by dividend?18.Bank holidays are declared according to which act?19.Banks are functioning according to which act?20.RBI is functioning in the country as per which act?Candidate: 00201.What do you mean by a guarantee?02.What are the different types of guarantees?03.What do you mean by letter of credit?04.What do you know by packing credit advance?05.What do you mean by special crossing?06.What do you know by IFSC code ?07.Which is called as mother of deposits?08.Who is a called as natural guardian?09.Whether grandfathers and grandmothers can be natural guardians?10.Which type of credit facility is available to a farmer for raising crops?11.What do you mean by NULM?12.What do you mean by Gram Sadak Yojana?13.What are the salient features of MGNREGA?14.Which authority is supervising the functions of insurance companies?15.What is meant by IPO?16.What is meant by ASBA?17.What is meant by Performance guarantee issued by any commercial bank?18.What do you mean by packing credit facility issued by any commercial bank?19.What do you mean by notice money?20.Treasury bills are issued by which authority and what are the different kinds of treasury bills available in the country?Candidate: 00301.What do you know by PIN number?02.What do you know by PAN number?03.What do you mean by ASBA account?04.What are the functions of DICGC?05.What is the role played by ECGC?06.Mention the Regional Rural Banks which are functioning in Tamilnadu?07.What do you mean by Mergers and what are the different kinds of mergers?08.What do you mean by horizontal merger and reverse merger?09.Which are the top two private sector banks in our country?10.Whether housing loan is a priority sector advance and if so, upto what amount?11.Whether educational loan is a priority sector advance?12.What do you mean by micro small and medium enterprises?13.What do you mean by KYC and name any two important documents which are obtained as per KYC?14.What is the present repo rate and reverse repo rate?15.In the case of MICR code, the middle three digits represent what?16.PAN number consists of how many alpha characters?17.What do you know by biometric automated teller machines?18.What is the criteria by which a bank is considered as largest bank?19.What do you mean by commercial paper?20.What do you mean by FCNR?Candidate: 00401.What do you mean by money laundering?02.What do you mean by subprime lending?03.What is meant by LPG and who is responsible for introduction of LPG strategy in our country?04.What do you mean by PURA?05.What do you know by current ratio?06.At present how many regional rural banks are functioning in our country?07.What do you know by MICR?08.When it comes to rural lending, which are all considered to be priority sector advances?09.Who is called as an authorized dealer?10.When a loan is considered for a cobbler, the loan is granted under which category?11.Name any three security features available in any currency note?12.What is the latest private sector bank in our country?13.What do you mean by small bank and payment bank?14.What are the differences between NEFT and RTGS?15.Who is deciding the rate of interest for savings deposit accounts?16.Who cannot open savings deposit accounts?17.What is meant by memorandum of association?18.What is known as power of attorney?19.In which currencies FCNR accounts can be opened in our country?20.What are the differences between NRE and FCNR?Candidate: 00501.What do you mean by IPO?02.What do you mean by secondary market in our country?03.What do you mean by fund based limits and non fund based limits?04.What do you mean by off balance sheet items?05.What are the advantages and disadvantages of CASA?06.What are the benefits available for any bank by means of CASA?07.What do you mean overdraft facility granted by a bank?08.What do you mean by collateral security?09.In regard to educating a customer, what are the different kinds of information boards displayed in a bank branch?10.Who is the present RBI Governor?11.What do you mean by unclaimed deposits?12.How many regional centres are available for RBI in the country?13.From which date present RBI Governor is functioning and from whom he took charge as RBI Governor?14.What are the advantages of CTS?15.Certificate of deposit is issued by whom?16.RBI is called by which names – mention four names?17.What are the traditional functions of RBI?18.Who is banking ombudsman and by whom he is appointed?19.What is the time limit available for sending a complaint to banking ombudsman?20.Where is the headquarters of State Bank of India?Candidate: 00601.Why commercial banks are more particular about demand deposits?02.What do you mean by CRR?03.Where do commercial banks keep the excess cash?04.What is the function of any currency chest?05.Which are called as financial intermediaries?06.What do you know by FEMA?07.What do you mean by tag line for any bank and why banks are particular about taglines?08.Who is the first Governor of RBI?09.Who was the first Governor of RBI represented by an Indian National?10.What do you mean by PAN and who issues a PAN card?11.What do you mean by POS?12.What is the shareholding pattern by Government of India, State Government and Sponsor bank in the case of RRBs?13.What do you mean by greenshoe option?14.What is meant by doubtful assets?15.What is meant by prime security?16.New Bank of India merged with which bank in the country?17.Who has presented the theory regarding PURA?18.In the case of MGNREGA, how many days’ work has to be allotted as at present?19.What is the rate of interest charged in the case of DRI loans?20.Commercial banks have to lend how much percentage of loans under priority sector category?Candidate: 00701.What do you mean by capital market?02.Which kinds of securities are available through capital market?03.Which is the biggest stock exchange in our country?04.What do you mean by SENSEX?05.What do you mean by market capitalization?06.Tell the name of the private sector bank which was opened during this year?07.What do you mean by LIBOR?08.What do you mean by Pay in slip?09.What do you mean by withdrawal slip?10.Can you tell the name of football legend who visited India recently?11.Who is the present world chess champion?12.What do mean by nomination facility available in the banks?13.Whether nomination facility available is for loan accounts?14.What do you mean by CTS?15.What is the difference between a commercial bank and a development bank?16.What do you mean by letter of credit issued by banks?17.What do you mean by usance bill?18.A customer who has availed overdraft facility from the bank is found to utilize the amount for acquiring long term assets and what do you mean by it?19.What are the different types of loan facilities available from a commercial bank?20.What do you know by atal pension yojana?Candidate: 00801.What do you mean by garnishee order ?02.What do you mean by ITA order and on whom such order is issued?03.Under what circumstances, a bank need not honour garnishee order and ITA order?04.What are the different kinds of services available through automated teller machines?05.What is the safety measure available in automated teller machine?06.What is the maximum number of operations that are permitted for automated teller machines?07.What are the different kinds of electronic funds transfer facilities available in commercial bank nowadays?08.In the case of a cheque who is called as payee?09.What do you mean by open cheque and crossed cheque?10.What do you mean by EEFC account?11.What is known as POS?12.What do you mean by factoring?13.What do you mean by PAN number and TAN number?14.What do you mean by red label automated teller machine?15.What are the different kinds of guarantees available from a bank?16.What is meant by off balance sheet items?17.What is known by current ratio?18.Whether a deposit can be opened in the name of a blind person and what is the procedure?19.What is meant by bill of lading?20.Name any two instruments are considered as semi negotiable instruments?Candidate: 00901.Who can open Non resident external account?02.What do you know by Non resident ordinary account?03.What are the advantages and disadvantages in opening Non Resident Ordinary account?04.What are the different kinds of deposits which can be opened by a Non resident Indian?05.What is the maximum insurance claim settled by DICGC in the case of deposit accounts in case of insolvency of a bank?06.What do you mean by arbitrage?07.What do you mean by arbitrator?08.What is known as MSF?09.What is the difference between bank rate, MSF and Repo rate?10.What are the different kinds of tools employed by RBI in order to control liquidity adjustment facility in our country?11.What do you know by pay in slip and withdrawal slip which are used in banks?12.Who is known as proprietor?13.What do you mean by RKBY scheme?14.What do you know by SJSRY scheme?15.What do you mean by base rate?16.Who is an executor and who is an administrator?17.What do you mean by financial inclusion?18.When interest paid in savings deposit account is taxable?19.What is the minimum and maximum period for which one FCNR deposit is opened?20.Who can open EEFC account?Candidate: 01001.What do you know by conversion?02.What is called as material alteration?03.What do you know by CSR?04.Name any three negotiable instruments which are widely used in banks?05.What is NIFTY and on which basis, it is calculated?06.What do you know by above par, at par and below par?07.What are the loan facilities available for a transport operator?08.What do you know by SLR and what is the present SLR?09.What is the capital requirement in case of newly opened private sector bank?10.What do you mean by intangible asset?11.How many members are there in RBI board?12.RBI board consists of how many Governors, deputy governors and directors?13.Whether a minor can open an account with a commercial bank?14.What is the minimum age limit for a minor for opening a bank account?15.What is known by partnership firm?16.What are the different kinds of crop loans provided to farmers in the country?17.What do you mean by merchant banking?18.What do you know by debt recovery agent?19.What is Lok adalat?20.What do you know by break even point?Candidate: 01101.What is meant by round revolution?02.What is meant by pink revolution?03.What do you know by deferred payment guarantee?04.Name the different kinds of risks faced by any commercial bank ?05.Who is called as an arbitrator?06.What do you know by banking ombudsman?07.What is meant by black money?08.What do you mean by money laundering?09.What is the purpose of special crossing?10.When there is a claim by legal heirs and nominee in regard to a particular deposit when the depositor dies, to whom the bank has to pay the amount ?11.In the case of payment of deposit money to the nominee, who can prohibit the bank in settling such claims?12.What do you mean by BSBDA account and what is the present name for BSBDA account?13.What do you know by Jeevan Jyothi Bima Yojana?14.Vehicle insurance facilities are provided by which public sector insurance companies in our country?15.What do you mean by horticulture?16.What is meant by mortgage and hypothecation?17.For which kinds of banking services nomination facility is available?18.What are the different kinds of capital?19.What do you know by articles of association?20.The certificate of incorporation and certificate of commencement of business are registered with whom?Candidate: 01201.What do you mean by call money, notice money and term money?02.What is meant by layer farming?03.What is known as sericulture?04.What do you know by SHG?05.What do you know by micro credit?06.What do you know by DIR scheme?07.What do you mean by FIR?08.What is known as CAMELS?09.What do you mean by tier I capital as per BASEL-II accord?10.What do you mean by bills discounting facility provided by any bank?11.What are the differences between overdraft facility and term loan facility provided by banks to their customers?12.Who is the topmost authority in any bank?13.The topmost authority in any bank is appointed by whom?14.What do you know by JAIIB and CAIIB?15.What is the term meant for honeybee rearing?16.What do you know by SARFAESI act?17.How many banks were nationalized during the first stage?18.What do you mean by a public sector bank?19.What do you mean by a nationalized bank?20.What is the different between nationalized bank and public sector bank?Part: 003A mock interview(This is one imaginary interview session conducted with Mr. Ashwin for the purpose of guiding the candidates)Mr. Ashwin is an engineering graduate and he had completed his graduation from an engineering college situated at Chennai. Even though he wanted to get an employment in prominent companies, he could not get the job and on getting the information that banks are providing employment opportunities on large scale to all graduates in the country, he applied for IBPS officers’ examination and came out successful in the common written examination.He was informed about the interview process in the regional office of one prominent bank in Chennai and in order to avoid any tension and nervousness he came to the interview hall half an hour earlier to his scheduled timing.He started reading the day’s news paper and started relaxing himself so that he can answer the questions posed by the committee members calmly and confidently.Now he is called by the attending staff to enter into the interview room.Mr. Ashwin neatly dressed in white shirt with full sleeves wearing a dark colored pant walks inside the cabin after closing the door gently.-May I come in Sir?-Yes – Please come in and be seated.-Thank you sirsMr. Ashwin sits on the chair provided to him and looks at the members for their questions-Mr. Ashwin, which place do you belong?-Sir, I am from Chennai-What about your father?-My father is working as an accountant in a private firm.-How many members are there in your family?-Myself, my elder sister since married; my younger sister studying in a College; my younger brother working in a private firm and my father and my mother-I find that you are an engineering graduate and why you are willing to join in a bank?-I find that career growth is found to be better in banks nowadays. Apart from the above, I can serve people more while working in a bank.-(The details namely; better salary, job security, comfortable working hours etc., are to be kept in mind and under no circumstances to be disclosed to the interview committee)-Can you tell me about Chennai?-Chennai is one among the four metropolitan cities of our country. It is fast growing. Chennai is famous for automobile production and health care. There are many reputed hospitals and a large number of automobile manufacturers in the city. Apart from the above in the case of information technology, Chennai ranks number two next to Bangalore and there is a lot of scope for people who are willing to work in IT industries. The population is around 70 lakhs and by areawise, Chennai is the largest among all cities in the country. Marina beach is world’s second largest beach.-Can you tell me about Repo rate?-Commercial banks can borrow funds from RBI against government securities at Repo rate and there is an implied condition that the banks will repurchase the government securities after clearing the loans. The present repo rate is 6.25%-What is the difference between bank rate and repo rate?-When the commercial banks borrow funds from RBI against discounting bills they have to pay interest at bank rate and presently the bank rate is 7.25%. Normally Repo loans are given towards meeting short term requirements and loans at bank rate are provided towards meeting long term requirements-What do you mean by non resident Indian?-Non Resident Indian is Indian national who has gone abroad for the purpose of business, studies or employment and stayed there for more than 182 days-What do you mean by Persons of Indian Origin?-Persons of Indian Origin are people whose forefathers are/were non resident Indians at any point of time. In other words PIOs are the sons/daughters/grandsons/granddaughters of Non resident Indians who had already settled in the foreign countries and PIOs are the citizens of those countries and not of India.-What do you mean by CBS?-CBS means Core Banking Solutions. Nowadays, the entire banking functions are carried out through computers in banks and branches of all banks are connected through common network and transactions can be done from one branch of one bank with another branch of another bank comfortably using internet banking or mobile banking.-What do you mean by Moratorium?-It is the repayment holiday permitted for repayment in the case of term loans. Normally organizations generate income after some period from the date of installation of the machineries and other inventories and they may not be able to generate sufficient income towards payment of instalments due to the bank and in this connection banks permit some cushion time called as repayment holiday or moratorium. The repayment holiday may be for three months, six months or nine months depending upon the nature and size of the industry. On completion of the moratorium period, the organizations start repaying the loans.-What do you mean by EMI?-EMI means equated monthly instalments. It consists of repayment of both principal and interest payable either at monthly or quarterly intervals. Normally EMI is permitted in the case of loans like housing loans, personal loans, white goods loans etc., where the borrowers have regular income like salaries or any other remuneration.-OK Ashwin, I find that you are highly qualified having M.E. in civil engineering and MBA. Whether you will continue in the bank?-Definitely sir. I am informed that a person who joins as a clerk or an officer in any bank can get promotion upto General Manager level by the time he retires from his services and I hope that I can utilize the knowledge acquired by me while discharging my duties in the bank and I shall definitely aspire for promotions in case if I am selected in the bank.-OK. Ashwin – thank you:-Thank you sirs for your nice company.Ashwin gets up from his chair gently, moves towards the door, opens the door slowly and after getting out of the room closes the door gently.(The interview with Mr. Ashwin is treated as completed.)