Banking Service Job & Careers
The banking sector has always been one of the most preferred destination of employment among the youth. The Banking sector offers a wealth of opportunities in India and across the globe. Of late, the sector has emerged as the sunrise sector in Indian economy. Banking is one of the most sought – after career choices among the students. It is an entry into a well – paid, secure and prestigious career.
The banking sector in India may create up to 20 lakh new jobs in the next 5 – 10 years, helped by the issuance of new license and efforts being made by the RBI and the Union Government to expand financial services into rural areas. Hiring trend may get a future boost from the public sector banking, as many of them would need to hire fresh talent in the wake of nearly half of their workforce schedule to retire in the next few years.
The Indian youth of today are endowed with an innate drive for making the country an ideal home for everything that is attractive and worth having. They are well aware of the fact that it is the proper utilisation of human resources that can put the country on the path of sustainable growth. It is the need of the hour in the present phase of economic instability through which the hitherto considered sound economies of the world are passing. Looking at the cou8 from this viewpoint, the role of banking service appears to be of key importance. As we have discussed earlier, Banking is one of the most important career choice among students because it is well paid, secure and has a high status associated with it. Through it may appear that jobs in the banking sector are meant from commerce / economics student, the fact is that majority of bank officer are from different stream of education like Arts, Science and others. The all – round demand for professionals has made banks : Public Sector, Foreign and Multinational to recruit more and more MBA graduate, CAS and CFAs to enhance efficiency. Nevertheless, bright graduates from any subject can get entry in the Public Sector Banks through an All India Examination conducted by banks themselves. Emergence of the technology- drive new private banks and entry of Financial Institute into short – term lending business has created the requirement of more professionals. Now banks are in the mutual funds, securitisation business & credit cards, consumer loans, housing loans beside trading in good and forex activities Banks have diversified their function. Also, may leading Indian banks have gone global, setting up offices in foreign countries themselves or through their subsidiaries.
BANKING IN INDIA : THE HISTORY
A banking history helps in assessing the development of country, as it reflects evolution in the trade and commerce. It highlight the political, social and cultural ethos of its people.
The beginning of commercial banking of the join stock variety that prevailed elsewhere in the world could be traced back to the early 18th century. The first bank of a joint stock variety was Bank of Bombay, established in 1720 in Bombay. This was followed by Bank of Hindustan in Calcutta, which was established in 1770 by an agency house, which was later closed down in 1832. In 1786, General Bank of India was set up, which also proved short lived and got close in 1791. The older bank in existence in India is the State Bank of India. The State Bank of India of today owes its origin to the Bank of Calcutta which had come into existence in 1806 and was rechristened the Bank of Bengal very soon. This was one of the three banks funded by the presidency government, the order two being the Bank of Bombay and the Bank of Madras. These all were established under charters from the British East India Company. Later on, 1921, these three banks were merged and together emerged as the Imperial Bank of India. After India’s emergence as an independent state, the Imperial Bank of India become the State Bank of India because the State Bank of India in 1955. For many years, the presidency bank had acted as quasi central banks, as did their successors, until the Reserve Bank of India was established in 1935, under the Reserve Banks of India Act, 1934.
After Independence, the Government of India initiated measures to pay an active role in the economic life of the nation and the Industrial Policy Resolution adopted by Government in 1948 envisaged mixed economy. This resulted into greater involvement of the state in different segments of the economy, including banking and finance. The major steps related to regulating banking sector included the following :
- India’s central banking authority, “ The Reserve Bank of India”, was nationalised on January 1, 1949 under the term of the Reserve Bank of India ( Transfer to Public Ownership ) Act, 1948.
- The same year, the Banking Regulation Act came into force empowering the Reserve Bank of India “ to regulate, control and insect the bank in India.”
- The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the Reserve Bank of India, and no two bank could have common directors.
BANKING IN INDIA : EVOLUTION
In modern sense, banking as an industry developed in India in India in the 18th century, which was the origin of Western types commercial banking in the country. But historically, banking dates back to the Vedic period or much beyond, evident from the reference to Seth’s, chettis or mahajans, who had been carrying on the business of banking. The existence of professional banking in India could be traced to the 500 BC. Kautilya’s Arthashastra, dating back to 400 BC contained reference to creditors, lenders and lending rates. Trade guilds, temples village communities acted as bankers, both receiving deposits and issuing loans. The initial banks in India were primarily traders ‘ banks engaged only in financing activities. banks engaged only in financing activities. banks engaged only in financing activities. The initial days of the industry saw a majority private ownership and a highly volatile work environment.
The early years of Independent ( 1947 to 1967 ) posed several challenging with an underdeveloped economy presenting the classic case of market failure in the rural sector, where information asymmetry limited the foray of banks. There were however, problems of connected lending as many of the banks were under the control of business houses. Major strides towards public ownership and accountability were made with nationalisation in 1969 and 1980 which transformed the face of banking in India. The industry in recent times has recognised the importance of private and foreign players in a competitive scenario and has moved towards greater liberalisation.
The Indian banking industry by 1960 had become an important tool to facilitate the development of the Indian economy.Also, it emerged as a large employer, and therefore the need for nationalisation of banks which, were till then owned by private players, was felt. Mrs. Indira Gandhi, the than Prime Minister of India, expressed the idea in the annual conference of the All India Congress. The Government of India issued an ordinance and nationalisation the 14 largest commercial banks with effect from the midnight of july 19, 1969. These banks contained 85 percent of banking deposits in the country. The Banking Companies ( Acquisition and Transfer of Undertaking ) Bill received the presidential approval on August 9, 1969. In 1980, six more commercial bank were nationalised. The objective of the nationalisation drive was to give the government more control of credit delivery. Which the second dose of nationalisation, the Government of India Controlled around 91 percent of the banking business of India. This period was characterised by rapid branch expansion that helped to draw the channels of monetary transmission far and wide across the country. The share of unorganized credit fell sharply and the economy seemed to come out of the low level of equilibrium trap. However, there was very little operational flexibility for the commercial banks. Profitability occupied a back seat. Bank also suffered from poor governance.
Fortunately, for the Indian economy, quick action was taken to address these issues. The Narasimha Rao Government in 1990 embarked on a policy of liberalisation and licensed a small number of private banks. There came to be known as New Generation tech savvy banks, and include Global Trust Bank ( the first of such new – generation banks to be set up ), which late amalgamated with Oriental Bank of Commerce, UTI Bank ( since renamed Axis Bank), ICICI Bank and HDFC Bank. The initiative of the Government in this regard helped the banking sector in India to grow rapidly.
Nationalisation Banks/ Public Sector Banks in India are as follows :
- Allahabad Bank
- Andhra Bank
- Bank of Baroda
- Bank of India
- Bank of Maharashtra
- Bhartiya Mahila Bank
- Canara Bank
- Central Bank of India
- Corporation Bank of India
- Dena Bank
- IDBI Bank
- India Bank
- Indian Overseas Bank
- Oriental Bank of Commerce
- Punjab National Bank
- Punjab & Sind Bank
- State Bank of India
- Syndicate Bank
- UCO Bank
- Union Bank of India
- United Bank of India
- Vijaya Bank
The following banks are subsided of State Bank of India :
- State Bank of Bikaner & jaipur
- State Bank of Hyderabad
- State Bank of Mysore
- State Bank of Patiala
- State Bank of Travancore
- State Bank of Indore ( merged with SBI in 2008 )
Besides these, there are 23 private banks. Some major ones are :
Axis Bank (Formerly UTI Bank )
Federal Bank Ltd.
Karur Vysya Bank
ING Vysya Bank ( merged with kotak Mahindra Bank in April 2015 )
Jammu & Kashmir Bank
Nainital Bank Ltd.
Agro Bank Corporation
There are several Indian banks which have business outside India. They are as follows :
SBI ( Canada ) Ltd.., Toronto, Vancouver, Mississauga
SBI ( California ) Ltd.., Los Angeles Artesia, San Jose ( Silicon Valley )
SBI Finance Inc.., Delaware, USA SBI International ( Mauritius ) , Mauritius ( off-shore Bank )
SBI ( China ) Ltd.., Shanghai
Bank of Baroda ( Uganda ) Ltd…, kenya
Bank of Baroda (UK) Nominee Ltd.., London United Kingdom
BOB ( Hong kong ) Ltd.., Hong kong ( Converted into Restricted Licence Banks )
Bank of India Finance (Kenya) Ltd.., kenya
IOB Properties Pte Ltd., Singapore Bank of Baroda ( Botswana ) Ltd.., Gaborone, Botswana
Bank of Baroda ( Guyana ) Inc.., Georgetown, Guyana ( South America ) ICICI BANK UK Ltd.., London (UK) ICICI Bank Canada Ltd.., Toronto ( Canada)
Bank of Baroda ( Tanzania ), Tanzania
Bank of Baroda ( United Arab Emirate ), Dubai, Abu Dhabi, Ras Al khaimah, Deira, Dammam, Salalah, Al Ain
Bank of Baroda Muscat, Oman Bank of Baroda, Brussels, Belgium ICICI Bank Eurasia LLC, Russia PT Bank Indomonex, Bank Ltd. ( IOIB Port Louis, Mauritius
Punjab National Bank International Limited ( PNBIL), London, United kingdom
Bank of Baroda ( Trinidad and Tobago ) Limited, Trinidad & Tobago
PT Bank Swadesi Tbk, Indonesia Bank of Baroda ( Trinidad and Tobago ) Limited, Trinidad & Tobago
with time, like others field, banking sector has also undergone expansion and its convergence with the other financial sector such as insurance and Capital markets, retirement of the existence employees and financial inclusion have created more number of opportunities in the banking sector. Bank jobs are always considered a very much secure career option with great pay and other amenities. Bank jobs are very lucrative, and the popularity of bank jobs among people is evident from the large number of people applying for the Common Written Examination conducted by the IBPS to recruit people to different posts in banks – Probationary Officers (PO), Clerks and Specialist officers ( SO ). A total of 19 Public Sector Banks of India participate in the Common written Examination ( CWE ) Conducted by IBPS. On the basis of the CWE Score Card Banks call candidates for the Group Discussion/ Personal Interview and then on the basis of the IBPS CWE score and the GD / PI score, the individual banks take out the final merit list of the candidates to be appointed in the banks.
State Bank of India conducts written test and interview separately for their recruitment to the Clerical cadre, PO & SO post. Beside other Cooperative Banks, Gramin Banks, Private Sector Banks recruit huge number of people every to fill different posts.
Job opportunities for graduate and post – graduates in banking are excellent in India. The Private sector with the entry of new banks mostly promoted by the major Financial Institution like IDBI, ICICI, etc. has provided competition to both Public sector and Foreign Banks. Public Sector bank recruit mainly graduate for Clerical and Probationary Officer post on the basis of All India Level examination. However, professionals like engineers, doctors, technologists, lawyers, ex – defence officers, etc. are recruited to senior positions through All India tests. Graduates with commerce/ economics are desirable candidate but anyone from any stream can enter this services by qualifying in the exam conducted by banks. Private Sector / Foreign Banks prefer to take MBAs, CAS, CFAs, etc. At junior position through Campus recruitment and interviews, However, at the senior positions they opt from experienced bankers. Thus, the officers from Public Sectors banks become the natural Choice for such positions. Beside academic background, banks generally look for good communication skill, good interpersonal skill, the ability to deal with customers, an alert nature and basic knowledge of the industry. However, to join Foreign or Private Sector banks at higher than entry level, one needs specialisation in some specific areas like project analysis, credit appraisal skills, managing huge loans portfolios and foreign exchange. Good computer knowledge is also always preferred.
Careers in banking can be divided into two categories – clerical jobs and officers cadres. To make a beginning in the banking career for both the levels, one need to pass a written examination followed by an interview. Those youth who can serve long house and have patients to handle stress can rise swiftly in the banking careers. All level offer handsome remuneration to workers, depending on the nature of their of their responsibilities. Besides a good salary, banking staff get bonus, medical benefits, house allowance, travel allowance, easy loans for buying or building a home, for vehicle, etc. For managerial posts at the higher level in the private and foreign banks, those which professional experience and technical expertise have to simply undergo an interview.
Most public Sector Bank clerks can get around Rs.15,009 – 20,000, while Probation Offices can begin in the Rs. 30,000 – 35,000 per month scale. Professional like MBAs, CAS and CFAs recruitment by Public Sector banks can have higher salary. But the same professionals recruitment by private and foreign bank are given pay package to the extent of about Rs.40,000 -45,000 a month.
International bank also open several career opportunities to professionals, which include bank tellers, banking credit analysts and loan officers.
Apart from these job openings, professionals who are knowledgeable about financial management can apply for the top positions in the banking industry. They can work as Personal Bankers and Assistant Branch Managers. If they have sufficient experience, they can apply as Branch Managers and Vice – Presidents too.
Being the inseparable part of economy, bank are always expanding to reach out to every part of the country and the expansion of banking services depends on the ever- increasing number of banking staff at all levels. Every year, large – scale recruitments both at the clerical and managerial levels are made. As there is no dearth of banks in any part of the country,, people now lay more emphasis on quality services. The bank are also ready to offer a wide range of service. As there has been a spurt of growth opportunities in banks, more and more aspiring youth are getting interested in joining banking services. In order to be successful in this field, an aspirant should be honest, as he / she will have to handle large sums of money. Those who are desirous of joining a bank, must be fond of working with figures and should have a knack for accuracy. There is no room for casual approach and carelessness in their field at any level. A banking staff is supposed too maintain secrecy, so far as the money deposited by an account holder is concerned. A banking staff should never forget that he/she will have to be service minded in order to get an edge over other banks’ staff. There is no end to expansion of banking services and opportunities for the youth, as banks are vying with one another to attract more and more business opportunities.
Read More :
- History of Banking in India – Origin and Development of Banking in India- Bank Exam Study Material
- Non – Banking Financial company – NBFC
- Chartered Accountancy(CA)- Qualification and Skills information