ICICI Bank Interview Questions for Treasury & Credit Manager Role: Your Complete Guide

Preparing for an interview with ICICI Bank, especially for roles like Treasury or Credit Manager, can be a challenging task. The process tests your knowledge of finance, banking regulations, credit appraisal, and market understanding. This article presents a detailed guide on the frequently asked interview questions and the expectations from candidates. If you are aiming for a career in ICICI Bank’s Treasury or Credit Management team, this article will help you prepare thoroughly.

Overview of the ICICI Bank Treasury & Credit Manager Role

Before diving into interview questions, it is essential to understand the role you are applying for. The Treasury and Credit Manager role at ICICI Bank involves handling credit underwriting across various customer segments such as individuals, businesses, and rural customers. The role demands a 360-degree approach to banking, meaning you will evaluate the customer’s entire financial ecosystem to recommend appropriate banking solutions.

As a Credit Manager, you work closely with sales and relationship teams to onboard valuable customers. You will also be responsible for managing the entire loan lifecycle from credit appraisal to disbursement and post-disbursement monitoring. The job requires you to have sound knowledge of finance, risk mitigation strategies, and regulatory compliance, alongside good communication and negotiation skills.

What to Expect in the Interview?

ICICI Bank interviews are known to be comprehensive. They test your technical knowledge, market awareness, understanding of banking laws and regulations, and your ability to apply these in real-world scenarios. Below is a breakdown of the key areas and typical questions you should prepare for.

1. Questions on Accounting Standards and Financial Principles

What is Ind AS 116?

Ind AS 116 relates to accounting for leases and became effective in India from 1 April 2019. It replaces the earlier Ind AS 17. Under Ind AS 116, lessees recognise almost all leases on the balance sheet by recording a right-of-use asset and a lease liability.

How does Ind AS 116 impact the balance sheet, profitability, and EBITDA?

The adoption of Ind AS 116 results in an increase in both assets and liabilities on the balance sheet due to recognition of lease liabilities and right-of-use assets. On the profit and loss statement, operating lease expenses are replaced by depreciation and interest expenses, which affects profitability and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation). EBITDA generally improves because operating lease expenses were previously part of operating expenses but are now replaced by depreciation and interest expenses, which are below EBITDA.

2. Market Awareness and Investment Knowledge

What is the current share price of ICICI Bank? What is your view on it?

Interviewers expect you to be updated with the latest market data. You should know the current share price and be prepared to give a brief, informed opinion on the bank’s performance, prospects, and factors influencing its stock price.

Your advice for trading in futures and investing in the current market scenario?

This question tests your understanding of market dynamics and risk management. You may be asked to share your views on futures trading strategies, risk mitigation, and how you would advise clients or the bank regarding investment decisions considering economic and market conditions.

3. Understanding Key Financial Ratios

Financial ratios are essential tools in credit appraisal. Be prepared to explain and calculate the following:

• Debt Equity Ratio: Measures the relative proportion of shareholders’ equity and debt used to finance assets.
• Asset Turnover Ratio: Indicates how efficiently a company uses its assets to generate sales.
• Solvency Ratio: Measures the company’s ability to meet long-term obligations.
• Financial Leverage Ratio: Assesses the degree to which a company is financing its operations through debt.

You should be able to explain what these ratios indicate and how they affect credit decisions.

4. Questions on Banking and Legal Framework

What is Section 44AD?

Section 44AD of the Income Tax Act, 1961 provides for presumptive taxation for small businesses. It allows eligible businesses to declare income at a prescribed rate (usually 8% or 6%) of turnover or gross receipts, thus simplifying tax compliance. Knowledge of such provisions is important for evaluating creditworthiness of small and medium enterprises.

Difference between Gramin Bank and Normal Bank?

Gramin Banks are regional rural banks that focus on rural and agricultural sectors, providing banking services in rural areas. Normal banks, or commercial banks, have a broader customer base and wider service offerings. Understanding this distinction is useful when dealing with different customer segments.

Difference between Secured and Unsecured Loans with examples?

• Secured Loans: Loans backed by collateral such as property or equipment (e.g., home loan, vehicle loan).
• Unsecured Loans: Loans without collateral, based on borrower’s creditworthiness (e.g., personal loan, credit card).

Knowing this helps in assessing risk and loan terms.

Current Repo Rate, Reverse Repo Rate, CRR, and SLR?

These are monetary policy instruments controlled by the Reserve Bank of India (RBI):

• Repo Rate: Rate at which RBI lends to commercial banks.
• Reverse Repo Rate: Rate at which RBI borrows from banks.
• Cash Reserve Ratio (CRR): Percentage of a bank’s total deposits to be maintained with RBI in cash.
• Statutory Liquidity Ratio (SLR): Percentage of deposits banks must maintain in safe assets like government securities.

Being updated on current rates is critical for credit risk evaluation and interest rate decisions.

5. Questions Related to the Role of Credit Manager

What are the roles and duties of a Credit Manager?

A credit manager is responsible for assessing credit applications, analysing financial statements, managing risk, approving loans, monitoring loan portfolios, and ensuring compliance with banking policies and regulations. The manager also collaborates with other departments such as legal, risk, and sales teams to ensure smooth credit operations.

What is Working Capital Requirement (WCR)?

WCR is the amount of funds a business needs to cover its short-term operational expenses. It is the difference between current assets and current liabilities. Understanding WCR helps in evaluating the liquidity position and short-term funding needs of a borrower.

6. Behavioural and Situational Questions

Apart from technical knowledge, interviewers may assess your soft skills, problem-solving abilities, and attitude. You may be asked about:

• How you would handle a difficult customer
• How you prioritise tasks under tight deadlines
• Your approach to teamwork and collaboration
• Instances where you identified risks and mitigated them successfully

Prepare real-life examples to demonstrate your capabilities.

Educational and Experience Requirements

To be eligible for the role, ICICI Bank typically requires candidates to have:

• A graduate degree with professional qualifications such as Chartered Accountancy (CA), ICWAI, CFA, or
• CA/ICWAI Intermediate with MBA in Finance and 2 years of experience, or
• Graduate/Post-graduate degree from a premier institution in Economics, Commerce, Business Administration, or Finance with a minimum of 3 years’ experience.

Experience in credit underwriting, credit appraisal, finance, risk, and audit is preferred.

Key Competencies and Skills Required

• Strong analytical skills and financial acumen
• Basic knowledge of financing, financial statements, and risk mitigation
• Ability to understand policies, rules, and their impact on credit portfolios
• Strong communication and negotiation skills
• Attention to detail and ability to articulate viewpoints clearly
• Ability to work collaboratively across functions

Primary Responsibilities in the Job

• Conduct comprehensive 360-degree banking assessments and recommend appropriate credit solutions
• Ensure thorough credit appraisal within defined turnaround times
• Deliver excellent service and transaction experience to customers
• Understand market factors and regulatory changes impacting credit decisions
• Manage loan lifecycle from application to disbursement and post-disbursement monitoring
• Coordinate with internal teams such as legal, valuation, field investigation, and risk containment
• Monitor loan utilisation, repayment capacity, and ensure compliance with loan covenants and policies

Tips to Prepare for ICICI Bank Interviews

1. Stay Updated: Follow financial news, RBI announcements, and stock market trends regularly.
2. Understand Concepts Thoroughly: Focus on accounting standards like Ind AS 116, financial ratios, and banking regulations.
3. Practice Financial Analysis: Be comfortable reading and interpreting balance sheets, profit and loss accounts, and cash flow statements.
4. Mock Interviews: Practice answering questions clearly and confidently. Use real examples from your experience.
5. Communication Skills: Work on articulating complex financial concepts in simple language.
6. Know the Bank: Study ICICI Bank’s products, services, recent performance, and strategic initiatives.

Conclusion

Cracking the ICICI Bank Treasury or Credit Manager interview requires a blend of technical knowledge, market awareness, and strong interpersonal skills. By understanding the interview questions outlined above and preparing accordingly, you can increase your chances of success.

Remember, interviewers look for candidates who not only have the knowledge but can also apply it practically to make sound credit decisions while delivering excellent customer service.

Prepare well, stay confident, and good luck with your ICICI Bank interview!