The banking sector in India is booming. Thanks to the reforms done by the Government. Now, there are ample opportunities for making a thriving career in banking sector. Today, in this post we are sharing an informative article on, Career in Banking Sector.
Many aspirants ask how to start a career in banking sector.
They look for information on the Internet. However, there are only few quality posts which focus on the subject of how to start a career in banking sector.
Therefore, we felt the need to compile a comprehensive post giving information on a career in banking sector.
As a matter of fact, Banks can rightly be called the backbone of a country’s economy. Moreover, the Banking Sector is regarded as one of the fastest growing sectors in the country.
It means a lot of opportunities for all the aspirants who wish to make their career in banking sector.
Manpower Requirements in the Banking Sector
According to the experts, the banking sector is poised to register a steep growth in the next five to ten years. It is being propelled by the issuance of new licenses and the efforts taken by the RBI and the Government of India to expand banking services in the rural areas.
It translates into the creation of 20 lakh new job opportunity in the banking sector in the next five to ten years. This year alone, 40000 vacancies have been created in the Public Sector Banks due to retirements, resignations, and expansion of business.
Career Growth in the Banking Sector
The banking sector provides a well-defined career path. Potential and performance are the key ingredients which decide your career growth in the banking sector.
With your sincere and dedicated performance, you can reach to the position of senior officials even if you have started your career as a clerk or scale I officer.
Moreover, banks have revised their promotion policy, and now it takes less time to promote bright and knowledgeable candidates to higher scales. For example, an officer can reach to the position of General Manager in 14 years.
A fresher can get anywhere between Rs.8000 to Rs.20000, to begin with. However, those who have post-graduated from top B-Schools and other banking institutions can get up to Rs.8 lakh per annum for their role as relationship managers in private sector or multinational banks.
The IIM students can even get at least Rs. 10 Lakhs per annum as pay package from several banking companies.
Tips for Getting Hired
You should be thorough with accounting and financial skills.
Develop a mathematical aptitude.
Assure the interviewers that you are willing to work extra hours as and when it is required.
Carry your certificates and awards along with you when you appear for the interview.
Speak to the point and measure everything quantitatively.
Dress formally for the interview and speak boldly.
Assure the interviewers that you are willing to take responsibilities and challenges. Pose yourself as a target oriented person who adheres to deadlines.
The Banking Sector
In India, there are different types of banks by which the customers can do their financial works very easily.
The bank is that place which takes care the money of the people and corporates. The function of a bank is to deposit the money of the customer and give the interest on that money.
It provides the loans to the people for increasing the profit of the bank as well as with the help of the customers for different types of works. It gives the advice to the people that how they can get the more profit by using different schemes.
With the new technologies, the works of banks are improving day by day.
For example, by using computer facility, all works can be done within few minutes. By using ATM card a man can withdraw his money very easily in any place and can deposit his money very easily.
By using internet banking, a man can take different types of information of bank. The bank website provides any information related to any banking issue.
Bank representative facility is also provided by which a man can open his account easily and can get the information in his home.
There are two sectors in which students want to make their career in the banking sector:
- Private sector
- Government sector
It depends on the skills and interests of the students. In today’s life mostly students want to make their career in the Government sector, but all students are not able to clear the entrance exams for government jobs, so they change their career path to the private sector.
Advantages of Making Career In Banking Sector
There are many advantages of banking jobs like
- In banks, we can get higher salary also according to our qualification and skill.
- We can get the right post by giving examinations of different levels.
- We can promote ourselves by giving a good performance.
- We can take the transfer easily according to our situation and condition.
- After the retirement, we can get the good pension, gratuity, and fund also by which we can do our financial works easily and can make our old age safe.
- The duty timings are also good and suitable
- In banks, we can get the higher position and status in society in our life.
Nature of work
As a nature of work, a manager is responsible for the growth of the bank as well as for the customers. He is responsible for giving advice to various issues like insurance facility, loan facility, interest rates facilities, and also different schemes.
The manager has to coordinate the activities of the bank as well as of the customers and has to achieve the target by making a profit of both.
He is responsible for the efficient functioning of the bank and different related issues. He has to manage all human resource in a right way and satisfied the grievances of the customers as well as of the employees so that they can do their work more efficiently. He has to give the advice and give the information also for making a profit.
A manager of the bank should be able to satisfy the customers and for making the profit of the bank also by their good qualification and technical skills also so that he can do all works easily.
It is related to the investment management, and it includes management of public issues, mutual funds, securities and international funds.
It is related to the corporate issues and clients for giving information on many issues like capital structure, mergers acquisitions, public issues, etc.
Treasury and Forex Functions
The success of any business is calculated by the management of fund this makes treasury management.
For the management of treasury requires the knowledge of global money markets and financial instruments like treasury bills, forecasting, source evaluation, deposit certificates.
A good banker should have an intelligent mind in mathematics.
Officers who are responsible should have a good ability to solve any dispute and problems and can easily manage the customers as well as the bank’s management by good written and verbal communication skills and can coordinate the activities of clients and banks.
He should be the honest person on his work as well as his responsibilities.
Entry Level Information
The recruitment of the candidates is conducted at two levels in the banks.
Selection Procedure for RBI
The Reserve Bank of India makes all the policies and regulations of the other banks. It conducts the test for three types of posts:
- Clerical grade
- Grade A officers
- Grade B officers
The entry level for clerical staff is related to the cash department as the examiner of coins and notes. When they successfully clear the exam after 5-10 years of the service, they are promoted.
There is an All India Exam is conducted for Class I posts, for that who are a graduate, CA’s MBA’s and who are 21-28 years old are eligible. In this, there is the test of reasoning, mental ability, general English and numerical.
The examination is in parts
- Paper, I is written test of General mental ability (objective)
- Paper II is subjective including English essays/Comprehension/Precise writing etc.
- Paper III is of Economics and Social problems
And selected candidates are called for interviews for the final selection.
Selection Procedure For Other Nationalized Banks
The person who is 18-28 years old is eligible for the written exam. It is similar to RBI exam.
The test is followed by an interview. Through the regional boards, the Clerical staff is recruited.
Selection procedure for nationalized commercial banks
Commercial banks advertise through their Banking Service Recruitment Board to recruit PO, Probationary officers. The candidate must be a graduate and should be not over 28 years.
About the examinations
The examination is of two parts- Objective and subjective.
Written Test – By this, the Analytical skills and problem-solving skill are calculated of the candidate, By the English the grammatical skill is judges.
By the general awareness, the social and general knowledge is calculated.
By the quantitative test, the skill of mathematical and numerical skill is calculated.
The interview is based on the knowledge of the subject, personality and general awareness, candidate’s communication skill, and management skills.
Thus, we can say that there are different career paths in which career in banking will be very helpful for making their career good and bright. By getting the knowledge of banking, we can make it very easily.
Selection Procedure for Private Sector Banks
Most of the private sector banks do not conduct nationwide examinations for recruiting candidates. However, there are a few exceptions.
Private sector banks like ICICI Bank hold a written examination for recruiting candidates as Management Trainees. In most of the cases, candidates are selected from top B-Schools, and banking institutions such as IIMs, FMS, etc.
Candidates should hold a degree in financial subjects, such as MBA in Finance. Candidates having experience in Banking Industry are given preference.