Finance Interview Preparation Booklet
■ Technical Finance Questions & Answers
Q1. What is the difference between Forward and Future contracts?
Ans: A Forward contract is a customized, over-the-counter (OTC) agreement between two parties
to buy/sell an asset at a future date at a pre-decided price. A Future contract is a standardized
contract traded on exchanges with daily mark-to-market settlements.
Q2. What is WACC?
Ans: Weighted Average Cost of Capital (WACC) is the average rate a company is expected to pay
to finance its assets, weighted according to the proportion of debt, equity, and preferred stock.
Q3. What is NPA?
Ans: Non-Performing Asset (NPA) refers to loans or advances where interest or principal remains
overdue for more than 90 days in banking terms.
Q4. How do you value a stock?
Ans: A stock can be valued using methods like Discounted Cash Flow (DCF), Price-to-Earnings
(P/E) ratio, Price-to-Book (P/B) ratio, and Dividend Discount Model (DDM).
Q5. Explain the concept of Beta in finance.
Ans: Beta measures a stock's volatility compared to the overall market. A beta > 1 indicates higher
volatility than the market, < 1 indicates lower volatility.
Q6. What is the difference between Primary and Secondary Market?
Ans: In the Primary Market, securities are issued for the first time (IPO). In the Secondary Market,
investors trade previously issued securities among themselves.
Q7. What are derivatives?
Ans: Derivatives are financial contracts whose value is derived from an underlying asset, index, or
rate. Examples: Forwards, Futures, Options, Swaps.
Q8. What is the Capital Structure?
Ans: It refers to the mix of debt and equity that a company uses to finance its operations and
growth.
Q9. Explain the concept of Leverage.
Ans: Leverage refers to the use of borrowed capital (debt) to amplify potential returns of an
investment.
Q10. What is the Time Value of Money (TVM)?
Ans: The concept that money available today is worth more than the same amount in the future due
to its potential earning capacity.
■ HR Interview Questions & Answers
Q1. Tell me about yourself.
Ans: I am a PGDM student specializing in Finance with internship experience at Bank of India. I
have strong skills in financial analysis, corporate finance, and risk management. My strengths
include analytical ability, adaptability, and communication skills.
Q2. Why Finance?
Ans: Finance excites me because it combines analytical thinking with real-world decision-making. I
enjoy analyzing numbers, identifying trends, and supporting strategic decisions that impact
businesses.
Q3. What did you learn in your internship?
Ans: I learned practical aspects of retail banking, customer handling, loan processing, digital
banking, and compliance. I also gained insights into how theoretical finance concepts are applied in
practice.
Q4. What are your strengths?
Ans: My strengths are analytical ability, attention to detail, and effective communication. I adapt
quickly and work well under pressure.
Q5. What are your weaknesses?
Ans: Sometimes I focus too much on details, which can slow me down. However, I am working on
balancing accuracy with efficiency.
Q6. Where do you see yourself in 5 years?
Ans: I see myself growing into a leadership role in the finance domain, contributing to
decision-making, and adding value to the organization.
Q7. Why should we hire you?
Ans: I bring a strong academic background, practical exposure through my internship, and a
genuine passion for finance. I am eager to learn and contribute to the team.
Q8. Tell me about a challenge you faced.
Ans: During my internship, I had to handle customer queries on digital banking services. Initially, it
was challenging, but I quickly learned the systems and provided effective solutions.
Q9. Are you a team player?
Ans: Yes, I strongly believe in teamwork. In my academic projects and internship, I collaborated
effectively with peers and seniors to achieve goals.
Q10. What motivates you?
Ans: I am motivated by learning, achieving targets, and contributing to the success of the
organization.
