Dezerv Treasury Analyst Interview: Rounds, Questions and Preparation

What the job involves

Treasury Analysts in banking, finance, and insurance manage a company's cash flows, liquidity, and financial risk. They monitor daily cash positions, forecast funding needs, execute investments or borrowings, and ensure compliance with regulatory ratios. At firms like Dezerv, they also support portfolio management and client fund movements.

Role and Technical Knowledge

1. 1

   What is the difference between cash flow forecasting and liquidity management?

   Explain that forecasting predicts future cash needs, while liquidity management ensures enough cash is available to meet those needs. Mention tools like rolling cash forecasts and liquidity ratios.

2. 2

   Which money market instruments would you use for short-term surplus funds?

   List instruments like treasury bills, commercial paper, certificates of deposit, and repo. Discuss safety, liquidity, and yield trade-offs.

3. 3

   How do CRR and SLR affect a bank's treasury operations?

   Define CRR and SLR as reserve requirements. Explain how they limit funds available for lending and investment, impacting treasury decisions.

4. 4

   What is the purpose of a bank reconciliation statement in treasury?

   Highlight that it matches internal cash records with bank statements to detect discrepancies, errors, or fraud. Mention frequency and controls.

Practical Scenarios

1. 5

   You forecast a cash shortfall of Rs 10 crore in 3 days. What steps do you take?

   Suggest options like drawing on credit lines, selling short-term investments, or delaying payments. Emphasize prioritization and cost of funds.

2. 6

   How would you handle a sudden spike in foreign exchange volatility affecting your company's receivables?

   Discuss hedging tools like forwards, options, or natural hedges. Mention monitoring exposure and communicating with stakeholders.

3. 7

   If your company has excess cash for 6 months, how do you decide where to invest?

   Consider credit risk, liquidity, return, and regulatory constraints. Suggest a laddered portfolio of CDs, T-bills, and commercial paper.

4. 8

   What would you do if you noticed a repeated mismatch in daily cash reports?

   Propose investigating the source, checking data entry, and reconciling with bank statements. Mention escalation and process improvement.

Behavioral and Situational

1. 9

   Describe a time you had to work with a tight deadline. How did you manage?

   Use STAR method. Focus on prioritization, communication, and staying calm under pressure.

2. 10

   Tell me about a time you made a mistake in a financial calculation. What did you learn?

   Show accountability, corrective action, and steps taken to prevent recurrence. Emphasize attention to detail.

3. 11

   How do you handle conflicting priorities from different departments?

   Explain how you assess urgency, impact, and align with organizational goals. Mention clear communication and negotiation.

4. 12

   Give an example of how you simplified a complex financial concept for a non-finance person.

   Highlight clarity, use of analogies, and checking for understanding. This shows communication skills crucial for treasury.

HR and Company Fit

1. 13

   Why do you want to work in treasury rather than other finance roles?

   Connect personal interest in cash management, risk, and markets. Mention desire to work at the intersection of finance and operations.

2. 14

   What do you know about our company's treasury operations or financial products?

   Research the company's business model, funding sources, and any public financials. Show genuine interest.

3. 15

   Where do you see yourself in 3 years in treasury?

   Outline a path from analyst to senior analyst, gaining expertise in risk or funding. Mention certifications like CFA or FRM if relevant.

4. 16

   How do you stay updated on financial markets and regulations?

   Mention reading RBI circulars, financial news, and following market data. Show proactive learning.