CAREER IN BANKING

INTRODUCTION

The economy of the country is growing at a steady pace, and this growth has been passed on to banks in a big way. Bank jobs were earlier considered the domain of only finance grads, but now graduates from every stream stands a chance as banks require candidates in various capacities. Banks present huge opportunities to young people and this is largely due to the fact that they have diversified into various other products than just core banking.

Banking offers a clean, peaceful and dignified work atmosphere and lifestyle. The banking sector embraces the entire society. A Career in banking offers promise of good remuneration and benefits. Prospects of promotion are good. Service condition ensures a secure and comfortable lifestyle. By sincerity and efficiency one can win respect and recognition in society.

The head of the bank branch is the branch manager. There are officers, clerical and other staff who undertake responsibilities in it’s various departments. All banks are governed by the regulations and directives from the Reserve Bank of India. The multinational banks follow a flexible and business oriented work structure. Corporate and merchant banks carry on business related activities. Investment banks are associated with financial activities. Lawyers, engineers, agriculturists, language specialists all work in banks as experts.

Managers/ Probationary Officer

Needless to say, a Bank P O’s position is regarded with tremendous respect in society as it offers a life long opportunity to grow, prosper and serve society in a senior and responsible position in the Banking industry. A Probationary Officer’s post is the point of entry to the coveted managerial positions in the banking industry. A P O starts as a trainee officer in the Junior Management Grade Scale (JMGS) of the bank and can rise to the highest levels, becoming a General Manager, an Executive Director or even the Chairman of the Bank.

Bank Clerk 

A young person joining a bank as a clerk-cum-cashier has the opportunity to start as early as at the age of 18 years after passing the 12^th standard exams. A bank clerk enjoys job security, a challenging work environment and the opportunity to strengthen customer relation skills, using the best available technology and learning from proficient senior officers. He is trained on the job and at the Bank’s Staff Training Colleges and given the opportunity, through departmental exams of the bank or otherwise, to rise to the higher levels of management in the bank. He gets the opportunity of life-long learning in Banking, Finance, Management and other areas of his choice through various national level institutions set up for Bankers’ education.

NATURE OF WORK

Managers/ Probationary Officer

Bank managers have the responsibility for running the branch, managing their staff and for generating profits. Banks have to compete with other banks and with other financial institutions. A good service increases business and generates profits. Hence managers are required to know their region well, the type of customers they are catering to and the services they will require. They have a good knowledge of all the services the bank can offer such as personal loan schemes, saving schemes, etc. to be able to advise customers appropriately. Managers have to motivate their staff so that they give the customers the best possible service.

Branch managers work in branch offices which can vary in size from a small branch with limited staff, to large branches with many on the staff. They spend time visiting customers at their offices, factories or farms and visiting large client companies.

Managers spend time in seeing customers, e.g., for personal or business loans, meeting the chief executive of a large company e.g. who wishes to increase his borrowing or he could be involved in giving his customer safe investment advice. Managers are also responsible for taking decisions regarding credit to customers by analyzing the risk and ensuring that the money is repaid. They are required to properties that they have taken as security for a loan, or visiting factories and businesses to see new equipment in operation, purchased from bank loan.

Staff in banks

Both men and women work in banks, keeping records of business, personnel accounts, installment loans, mortgages or the bank's own accounts, and providing customer services such as payrolls and inventory accounting. These are the regular jobs of bank clerks. Typists, secretaries, file clerks, custodians, messengers, receptionists and safe deposit attendants complete the staff in the banks. In larger banks each employee specializes in one job. In smaller institutions responsibilities may not be too specific. For example, a transit clerk might fill in for a teller in rush hours or vacations, and a messenger might take collections, be responsible for school savings, send out collection letters to other banks, and help post interest in savings account passbooks.

CONDITIONS OF WORK

Positives/Negatives

+ves:

·      Banking professionals are required all year long. After privatization, the requirement for banking professionals has increased manifold.

·      Students with different specializations such as Science, Arts and Commerce can apply for jobs with banks after equipping themselves with diplomas that provide them with the basic knowledge required in the banking organizations.

·      Salaries of students getting placed abroad are huge and provide excellent scope for professional and personal growth.

·      A banking job is a white collar job, which, compared to other fields, has less stressful hours of working.

-ves:

·      The layoffs in banking jobs have become frequent due to fluctuating stock markets in recent times.

·      Post recession, the enthusiasm of several banking organizations has been dampened.

·      A student from other fields will require developing enormous expertise in financial matters.

JOB HAZARDS

·         There may be chances of developing a stress-related physical or emotional ailment within several years on the job.

·         Under the immense stress of their jobs, many suffer personal and emotional problems that escalate into full-blown crises, with some bankers developing conditions that linger long after they have left the industry.

HOURS OF WORK

Usually work regular office hours, but may need to work evenings and weekends or be on call.

EARNINGS

The pay scales for banking student who is a fresher could vary anywhere from Rs 8,000 to Rs 20,000 to begin with. Students who have post graduated from top b-schools and banking institutions can expect up to Rs 8 lakhs per annum. Several banking companies recruit Indian students from the IIMs, XLRI, FMS and other popular colleges every year for pay packages not less than Rs. 10 lakhs per annum.

1.      The salary of clerks in most of the public sector banks and some private banks is same. The initial Basic Pay of a clerk will be Rs.7200/- (DA+HRA) = Total- 14000/-

2.      Initial Basic Pay of a Bank Probationary officer / PO will be Rs.14,500/- (DA + HRA + CCA) = Total – 28000/- the total salary of a probationary officer on joining at a metro station will be around Rs.27,908/-. However, the total salary of a probationary officer who has to join in rural area will be about Rs 27078/-. [This includes HRA]. However, SBI gives four additional increments to Bank POs and thus salary will be higher by about Rs 4,000/-.See details below) 

Note: There are number of other perks available to Bank officers and these vary from bank to bank, and even the amount of such perks varies from bank to bank. SBI gives more perks than all other nationalized banks. 

EDUCATIONAL QUALIFICATIONS & TRAINING

Banking is a career that offers opportunities to students from all streams, be it humanities, commerce or science. However, to make a career in banking, you must be good at analyzing numbers, that is, your mathematics must be strong enough to interpret and analyze numerical data. You must be prepared for the Banking Entrance Exams and for the interviews that follow these entrance examinations. 

The basic educational qualification required for a bank job, whether private or government is a Bachelor’s degree, preferably with accounts as a subject. But a candidate with any background can apply for the jobs. Some banks even prescribe a diploma in banking and finance from the Indian Institute of Banking & Finance as a desirable qualification. And afterwards, the written examination has to be cleared for the public sector jobs, and interview for the private sector. The Private Sector banks prefer candidates with an MBA degree, if inexperienced, in Administration, Finance or Banking.

Computer literacy is sometimes compulsory, but usually a desirable qualification for both POs and clerks. A bank job aspirant must, therefore, secure a qualification or certification in computer applications. 

Types of exams

Indian banks conduct exams for probationary officers, clerical cadre and specialist officer. The exams enumerated below are prerequisites for gaining entry to the most prestigious banks in India:

·         A series of common written examinations (CWEs) conducted by the institute of banking personnel to serve as probationary officers / management trainees / clerks / specialist officers in 20 public sector banks (including IDBI) and for the officers and office assistants in 82 regional rural banks (RRB).

·         The exam conducted by the SBI and SBI associated banks for recruitment as clerks and officers.

·         The exam conducted by private sector banks for recruitment to the posts of clerks and officers.

Bank PO Exams: For PO exams, any graduate with prescribed marks, and within the age group of 21 to 30 years, is eligible. The banks normally prescribe 55% or 60% marks in graduation for PO aspirants. Some banks (though rarely) may prescribe 65% marks in graduation or a post-graduate degree as minimum eligibility. Some banks prescribe different sets of marks for science graduates and arts or commerce graduates. However, every bank provides for relaxation in age and educational qualifications for SC/ST and reserved category candidates. Normally, SC/ST candidates are given a relaxation of 5 years in age limit and 5% in marks. 

Bank Clerical Exams: In clerical exams, a graduate (or even an applicant who has passed the class 12 exam with prescribed marks) who is within the age-group of 18 to 28 years is eligible to apply. Generally a pass in graduation or 60% marks in class 12 is prescribed as the minimum eligibility. However, some banks prescribe only graduation as minimum eligibility.

A relaxation in age and educational qualifications is given to reserved category candidates and sports quota candidates as per government rules.

(As every bank is free to decide the eligibility criteria for its officers or clerks, the candidates must read the notifications carefully and ensure their eligibility before submitting applications.) 

Specialist Officers Exam: Banks also conduct recruitment exams for Specialist Officers to man their credit, legal, human resources, marketing, systems and other departments which have openings for candidates having requisite professional qualifications in agriculture, engineering, chartered accountancy, law, or a degree of MBA, MCA, etc. 

METHODS OF ENTERING THE JOB

The Reserve Bank of India, the State Bank of India and Associate Banks and Nationalized banks advertise in Newspapers from time to time inviting applications from candidates who are willing for a career in banking according to their vacancies. For this they have to clear written test and personal interview conducted by that bank. Now Private Sector banks like ICICI, Standard Chartered Bank, Times Bank, ABN Amro, HSBC etc., also facilitate entry for clerical cadre.

The Reserve Bank Services Board conducts an examination on the all India basis for recruitment of class I Officers. Graduate/ postgraduates/CA’s/MBA’s in the 21-26 year age group are eligible to take the examination.

Central Recruitment Board (SBI) and the Banking Services Recruitment Board (BSRB) recruit Probationary Officers for State Bank of India, and its associate banks, and other nationalized banks respectively, through competitive exam comprising of written test followed by an interview. Graduates in any discipline can take these exams. The upper age limit is 28 for SBI and 26 for other nationalized banks.

Private Banks and Foreign Banks advertise their posts in leading newspapers. However in management cadres, positions are largely filled through campus recruitment at management institutions.

Professionals from streams like law, engineering, agriculture also have opening in the management cadre of various banks.  Lawyers in banks advise on laws and regulations affecting the operations of the institution. Engineers work with industries and businesses on behalf of the bank.

PERSONAL ATTRIBUTES REQUIRED

To be successful in banking sector following skills are required:

·         People skills

·         Analytical skills

·         Detail orientation

·         Management skills

·         Organizational skills

·         Honesty and Integrity

·         Quick learning abilities

·         Good Communication skills

·         Banking Industry familiarity

·         Knowledge of computer orientation

·         Aptitude for banking, sales, marketing and money matters

·         Knowledge of Mathematics, Accounting, and book keeping

Posts of officers require people with leadership qualities, Integrity, confidentiality and honesty in dealing with money, customers and staff. Good personal habits, such as neatness, promptness and organized mind are valuable personal qualities.

ADVANCEMENT /PROMOTIONS

A Probationary Officer starts as a trainee officer in the Junior Management Grade Scale (JMGS) of the bank and can rise to the highest levels, becoming a General Manager, an Executive Director or even the Chairman of the Bank.

There are many opportunities for advancement for individuals in bank teller jobs also due to the demand for skilled financial workers in many regions worldwide. Bank tellers who choose to take on more responsibilities and have earned an education in business may go on to become head bank tellers, loan and mortgage officers, debt counselors or bank managers. These advanced jobs can often require five or more years of work experience; however, some bank tellers move up the ranks faster by getting a four-year college degree and working with mentors within their banking institutions. In addition to working within banks, tellers who want to advance in the financial industry may do so by obtaining more experience and training and getting certified as accounting professionals.

TYPICAL PLACES OF EMPLOYMENT/SELF EMPLOYMENT

A.    Public Sector Banks are the major recruiters of candidates aspiring for bank jobs. These banks are:

1.          The State Bank of India Group (Total:8 Banks) namely SBI (State Bank of India), State Bank of Indore, SBBJ (..Bikaner & Jaipur), SBH (..Hyderabad), SBM (..Mysore), SBP (..Patiala), SBS (..Saurashtra), and SBT (..Travancore).

2.          Nationalized Banks (Total: 19 Banks) namely Allahabad Bank, Andhra Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce, Punjab & Sind Bank, Punjab National Bank, Syndicate Bank, UCO Bank, United Bank of India, Union Bank of India and Vijaya Bank.

3.          Other Public Sector Bank i.e. IDBI Bank Limited.

B.     Private Sector Banks (Total: 27 Banks). The major recruiters in the private sector include the ICICI Bank, HDFC Bank, Axis Bank, Federal Bank, Centurion Bank of Punjab, Indusind Bank, Kotak Mahindra Bank, Yes Bank, ING Vysya Bank, Bank of Rajasthan, Karur Vysya Bank, Karnataka Bank, Jammu & Kashmir Bank, South Indian Bank, Bharat Overseas Bank, etc. These banks conduct their own exams, but normally follow patterns similar to those of the exams of the public sector banks.

C.     Co-operative Banks: All major National and State Co-operative Banks and Scheduled Urban Co-operative Banks conduct their own exams to recruit staff. Their recruitment exams, too, are generally similar to the exams of the public sector banks.

Opportunities for Self Employment and Other Settings

• You can be a private Accountant / Finance Adviser in Pvt. Company.
• You can start your own academy (Banking coaching classes/ crash courses).

INSTITUTES

•         Institute for Development & Research in Banking Technology, Hyderabad

•         National Institute of Bank Management, Pune

•         Private institutions such as NIIT (National Institute of Information Technology) IIPM, Amity, Birla Institute for Insurance offer diploma and degree programs.

SOURCES OF FURTHER INFORMATION:

• Employment newspaper
• CIRTES
• www.time4education.com/career_in_banking
• http://www.jagranjosh.com/careers/banking-1291209346-1

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