Shriram Finance Treasury Analyst Interview: Rounds, Questions and Preparation

What the job involves

Treasury Analysts in banking and finance manage the company's cash flows, liquidity, and funding requirements. Day to day, they monitor bank balances, forecast cash positions, execute fund transfers, and support investment or borrowing decisions. At a large NBFC like Shriram Finance, they also help manage interest rate risk and ensure regulatory compliance.

Role and Technical Knowledge

1. 1

   What is the difference between treasury management and cash management?

   Treasury is broader, covering funding, risk, and investments; cash management focuses on day-to-day liquidity and bank operations.

2. 2

   Explain the concept of liquidity risk and how a treasury analyst mitigates it.

   Cover maintaining adequate cash buffers, diversifying funding sources, and using short-term instruments like CDs and CPs.

3. 3

   What are the key money market instruments used by NBFCs for short-term funding?

   Include commercial papers, certificates of deposit, treasury bills, and call money, and mention their typical tenures.

4. 4

   How do you calculate and interpret the current ratio and quick ratio?

   Current ratio = current assets / current liabilities; quick ratio excludes inventory. Both measure short-term solvency.

Practical Scenarios

1. 5

   You notice a sudden cash shortfall of Rs 50 crore due to delayed customer repayments. What steps would you take?

   Prioritise immediate funding options like bank lines or CP issuance, and communicate with stakeholders to manage expectations.

2. 6

   How would you forecast cash flows for the next quarter for an NBFC with seasonal lending?

   Use historical data, adjust for seasonality, consider loan disbursement and repayment cycles, and include buffer for contingencies.

3. 7

   If interest rates are expected to rise, how would you adjust the company's short-term investment portfolio?

   Shift to shorter-duration instruments to reduce price risk, and lock in higher yields gradually.

4. 8

   You are asked to reconcile a bank statement with a large number of unreconciled entries. How do you proceed?

   Start with high-value items, use automated tools if available, and investigate timing differences or errors systematically.

Behavioural and Situational

1. 9

   Describe a time you had to work under pressure to meet a deadline. How did you handle it?

   Use STAR method: Situation, Task, Action, Result. Highlight prioritisation and calm decision-making.

2. 10

   Give an example of when you identified a mistake in a financial report. What did you do?

   Show attention to detail, ownership, and corrective action, such as informing seniors and fixing the error.

3. 11

   How would you handle a situation where a senior asks you to process a payment that seems non-compliant?

   Emphasise integrity, asking clarifying questions, and escalating through proper channels if needed.

4. 12

   Tell me about a time you worked in a team to achieve a common goal.

   Focus on collaboration, your specific contribution, and the outcome. Avoid generic statements.

HR and Company Fit

1. 13

   Why do you want to work in treasury, and why at an NBFC like Shriram Finance?

   Link your interest in financial markets and risk management to the NBFC sector's role in serving underserved customers.

2. 14

   Where do you see yourself in five years in treasury?

   Show ambition to grow into roles like Treasury Manager, with a focus on deepening expertise in funding and risk.

3. 15

   What do you know about Shriram Finance's business model?

   Mention its focus on commercial vehicle finance, rural lending, and its diversified funding sources.

4. 16

   How do you keep yourself updated on financial market news and RBI regulations?

   Name specific sources like RBI website, financial newspapers, and online courses. Show genuine interest.