After a hiatus which seemed like extending indefinitely, I am saying hello again - now as a final year student of Engineering. I got placed on the 17th of August, at a UBS Investment Bank affiliate (Verity Knowledge Solutions), Hyderabad. Term starts June next year.
I'm here to share my experience of the whole day...
8 30 AM
In bed, knowing that the PPT was at 8. Still awfully tired from the 10pm show of Lafangey Parindey. Heard that shortlisting was based on CGPA. Thought of chucking the ppt. Something happens in the mind that induces more and more restlessness. Awake I am, in 10 minutess. Brush my teeth, skip breakfast. Rush to the Training and Placement Section.
9 AM
Company reps aren't there yet. Arriving late. Also, rumors that the cutoff CGPA lowered to 7.5 from last year's 7.9. At 7.60, I'm mildly hopeful that I might just get a shot at this company. Rush to room. Quickly done with my ablutions. Get back at 11 for the ppt.
11 AM
Interesting and quick ppt. Cutoff for first round of interviews declared by the company to be 7.5. 105 shortlisted. Odds of getting through even if they recruited 10? 9.5%
Rush back to room to get into formal clothing. CV and certificates ready. My second ever interview experience.
PERSONAL INTERVIEW (TECHNICAL)
The first round lasted 20-25 minutes. The interviewer asked me to introduce myself and lead him through my CV. He saw that I had done NCFM (NSE's certification in financial markets) tests, and started quizzing me on the modules that I had done.
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1.What do you mean by equity?
Investment vehicles - basically shares and securities that investors can own of a company.
2. What are derivatives?
functions of an underlying that provides us with returns with lower risks, as derivatives are used as hedging instruments
3. What do you mean by underlying?
It could be an asset, a basket of assets, and index, a currency, etc
4. Which are the 4 major currency derivatives?
Yen, Dollar, Pound, Euro
5. Why isn't the Chinese Renminbi traded in the derivatives markets?
Illiquid currency, and it's grossly undervalued.
6. Explain how the markets work
Companies need to raise capital for their businesses. This requires huge money, and this they do by releasing IPOs in what is known as the primary market where these are bought for a price (determined by different methods). These bought shares of the company are then bought and sold again in the secondary market, ie the stock exchanges at prices based on company valuations, public sentiment, and external factors.
7. How does power transmission and generation take place? Explain it to me as you would to a layman.
Power is generated at generating stations (hydel, thermal, etc) at low voltages in the order of 13.6kV. It then has to be transmitted over long distances to the loads - where we, the consumers need it. For this, the voltage needs to be stepped up to higher voltage so as to avoid transmission losses, and this is done using a transformer...
8. A layman wouldn't know what Stepping up means. Why high voltages...?
Consider this analogy. If one needs to transfer water through a pipe from one place to the other, it can most effectively be done if water at one place is at a higher gradient as compared to the other. Same goes with electricity. A high potential gradient causes smooth and efficient transfer of power to the load. Once at the receiving end substation, the voltage is again stepped down using transformers to match the voltage requirements.
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That was all. He asked me whether I had any questions about the company. I asked him about the analytics work of the company. He cleared my doubts. We talked about working hours, and the quality of work. The interviewer was friendly and we shook hands. He said he hoped we'd meet again at Hyderabad next year. I had sort of nailed it already.
PERSONAL INTERVIEW (HR)
The second round was a breeze. There were 2 interviewers on the panel. They asked me to introduce myself, and sought reasons for my interest in the company. They asked me whether I wanted to do an MBA or not. I told them that I definitely was interested in MBA, but only after saving enough for it. I made it clear that I had no intentions for higher studies anytime soon. They asked me about Option Calls. When are Calls in-the-money? Brief us on the concept of finite investment and infinite return in Options. Under what circumstances is it the other way round? Why are Call options sold?...
All these questions were related to NCFM modules that I had completed.
Then they asked me a puzzle. Incidentally, it wasn't the first time I came across that problem:
You are provided 9 identical looking balls. 8 of these balls are of equal weight, and 1 is of unequal weight. You are provided with a pan balance. Find the minimum number of weightings one needs to do in order to find the unequal weighted ball. (Note: we don't know whether the unequal ball is of weight greater than or less than the 8 equally weighing balls)
Ans: 3
I'm sure you'll figure out how. :-)
SUGGESTIONS TO JUNIORS
To anyone who wishes to pursue an MBA later on in Finance, this is really good work experience to start with. NCFM helped me a lot, and so CGPA wasn't a deterrent at all. In fact CGPA never is a deterrent, as long as you qualify the minimum requirement. They were looking for people who could think fast when faced with a problem situation, with decent academics. Go through the basics of Engineering Economics and Accountancy that you've studied in your third year. Know a little about Indian economy and reforms, current M&As, etc. Be thorough with whatever is in your CV.
This was my second company that I made to the interview. I remember that the first one was a failure because I was desperate to get the job, nervous and was talking fast - thought all jammed. :-) Avoid that. Contract. Relax, and let the day be yours!
Stay cool during the interview. I don't know whether I had a smile on my face or not, but my heartbeat was definitely not racing. Maintain eye contact, and avoid lapses in concentration :-)
Don't be too desperate about getting the job. Opportunities shall abound in plenty. All the best!
