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April 21, 2018

SBI Chief Manager S-4 Interview

I have appeared for SBI Chief Manager S-4 (Credit Analyst) Interview on 19th Apr 18 at LHO Mumbai (BKC complex)

On Arrival
S-1 or S-2 level officer will check your Certificates/Documents . After their confirmation you will be called in interview.

My interview panel had 5 members (1 GM and 4 DGM)
 and i was asked following questions:-

1) Name of your current head/reporting manager?
2) What are the challenges your clients/customers have faced?
3) What are the items in P&L have direct link to Balance Sheet?
4) How stock holding is measured and what is it called?
5) What are your view on Corporate Loan product of SBI?
6) How are DTL/DTA created? What can be the causes for creation of DTL/DTA?
7) What is willful default?

Rest of the questions were completely resume based and about the companies mentioned in my resume.

Interview lasted for 15-20 min thereafter i was reimbursed the airfare.

April 16, 2018

Rule of 72

What is Rule 72?

In personal finance, if you divide the number 72 by the rate of interest, you get to know the number of years it will take for you to double the money..

Eg: if the rate of interest is 9%, simply divide the number 72 by 9% and the answer is 8. Thus it will take 8 years to double your money if you invest at 9% p.a. rate of interest.

INTEREST:

We can use this rule in reverse to know the rate of interest needed to double your money to achieve your set goal.

Eg: If you have 250k today and you need 500k in 5 years. Just divide the number 72 by 5, the answer is 14.41%. Thus you need a type of investment avenue, where you earn at least 14.41% p.a. as rate of interest/returns to double your investment amount in 5 years.

INFLATION:

This 'Rule 72' helps you to understand about inflation also. It helps you to calculate the amount of time it will take for inflation to make the real value of money half. Let's say present inflation is 5.5%. When you divide 72 by 5.5% the answer is 13.09 years. That is to say, if you have 100k in your kitty today, it would take around 13.09 years for the value of the money to be halved.