Banking as a Career Option
The Banking Sector offers a wealth of opportunities in India and across the world. Banking is one of the most preferred career choices among students. It is an entry into a well-paid, secure career. According to a report published in the Hindu, banking sector in India may create up to 20 lakh new jobs in the next 5-10 years, helped by issuance of new licences and efforts being made by the RBI and the Government to expand financial services into rural areas. Hiring trend may get a further boost from the Public Sector banks, as many of them would need to hire fresh talent in the wake of nearly half of their workforce scheduled to retire in the next few years.
Though it may seem like these jobs are meant only for commerce / economics students, the fact is that majority of bank officers are from different streams of education like Arts, Science and others. The all-round demands for professionals have made banks – Public Sector, Foreign and Multinational – to hire more and more Management Students (MBA Graduates), Chartered Accountant (CAs) and CFAs to enhance efficiency. The emergence of technology-driven new private banks has broadened the scope and range of banking service and entry of Financial Institutions into the short term lending business is resulting in needs for more professionals. Now banks are in the mutual funds, securitisation business, credit cards, consumer loans, housing loans besides trading in gold and forex activities.
Bright graduates from any subject can get entry into the Public Sector banks through an All India Examination conducted by banks. Emergence of technology-driven new private banks and entry of Financial Institutions into short term lending business have created the requirement of more professionals. Generally, banks look for good communication skills, good interpersonal skills, 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. For example, expertise in project analysis, credit appraisal skills, managing huge loan portfolios, general and foreign exchange and money. Good computer knowledge is always preferred. Besides, the skills expected from students to clear the interview include good communication skills, aptitude for banking, sales, marketing and money matters. If you are an enthusiast who love trading in stocks, mutual funds, hedge funds and understand the pros and cons of availing personal loans and insurance policies, then it only adds to your career prospects.
Job Prospects In Banking
In India, there are excellent job opportunities for graduates and post-graduates in banking sector. Private Sector with the entry of new banks mostly promoted by the major Financial Institutions like IDBI, ICICI, etc. has provided competition to both Public Sector and Foreign Banks. They are more technology savvy and offer better salaries than Public Sector Banks. Unlike Public Sector banks, the promotional avenues are not time-bound. Foreign Banks are the most sought after due to their salary packages comparable to the best in the country and better job profiles. However, in addition to personal performance, the job security in these banks is also dependent on various external factors, like the economy of the parent country, performance of the bank worldwide, change in expatriate management, etc. Besides, positions in insurance, personal loans, mortgages, collections and back office operations are always vacant and offer all bright to average students to avail the opportunities presented. There are front office personnel in all banks, and then there are supervisors who handle most back office operations like completion of transactions, general ledger work, overall supervision. Banks are now offering good salary packages. Most Public Sector bank officers can begin in the Rs 6000-8000 per month scale. MBAs recruited by private and foreign banks are given plum packages to the extent of about Rs 25000-30000 a month.
Different Career Opportunities In Banking
1. Clerk – Cum – Cashier / Office Assistant
A bank clerk or cashier is a financial service professional who serves as the primary point of contact for most bank customers, administering basic banking transactions and answering most questions, interacting with customers, maintaining account and doing other works specified by bank. This role is seen as an entry-level position and is a starting point for a career in banking, especially for candidates with minimum qualification of 12th or equivalent (nowadays lots of banks are looking for Graduates even for Clerical post). The job profile of a clerk is to take care of general banking.
Salary & Emoluments :
The total starting emoluments of a Clerical Cadre employee payable at Metro like Mumbai will be around Rs.17500.00 per month inclusive of D.A. and other allowances at the current rate. Allowances may vary depending upon the place of posting.
PAY SCALE : 7200-400/3-8400-500/3-9900-600/4-12300-700/7-17200-1300/1-18500-800/1-19300 (under review).
2. Probationary Officer (PO)
A Bank Probationary Officer (PO) in the bank is the starting-level appointment for bank officers and the promotional prospects are quite healthy. Profile of a PO is General Banking, administration work and any other work assigned by the bank. Probationary Officers are trained in all departments and assist their Managers in various activities in the Probation period. PO’s are trained for Marketing, Accounting, Finance, Investment, Loan as well as Billing. Usually the Probation period for a PO is 2 years. Any candidate with a graduate degree is eligible to apply for Bank PO position.
PAY SCALE: The starting basic pay is Rs. 16,900 (with 4 increments) in the scale of Rs. 14500-600/7-18700-700/2-20100-800/7-25700 applicable to Junior Management Grade Scale I. The official will also be eligible for D.A, H.R.A & C.C.A as per rules in force from time to time. The compensation per annum at Mumbai is around Rs. 8,40,000. The break up of monthly compensation is as under:
Cash Component : Rs. 34,320 Bank’s contribution to : PF Rs. 1,690 Housing (Lease Rental) : Rs. 29,500 Perquisites (Conveyance, Newspapers, Entertainment Allowance, House & Furniture Maintenance, etc. : Rs. 4,130.
In addition, the officers are also entitled to other benefits like –
(i) Medical Aid for self (100%) and for family (75%)
(ii) Home Travel Concession / Leave Fare Concession
(iii) Concessional Interest Rates for Housing / Car / Personal Loans
The salary scales are under revision with effect from November 2012.
3. Specialist Officer
A Specialist Officer in a bank is appointed for specialised roles in various departments, according to their expertise and educational background. The Specialist Officers work in specific departments like:
• Engineering
• Systems
• IT
• Marketing
• Logistics
• Public Relations
• Legal etc.
Candidates from specific areas are recruited for Specialist Officers. Professional Graduates with specialised degrees work in capacity of Specialist Officers.
4. Agriculture Officer
Public Sector banks lend loans to farmers for Agriculture purposes. Agricultural Officers are recruited to assess, verify and provide support for people in rural areas. An Agricultural Officer in a bank is the person who is responsible for promoting rural lending for general and agricultural purpose under the various schemes framed by the government and also other schemes offered by various other financial institutions. The officer needs to increase the sale of loan products of agriculture and agriculture-related activities. The other responsibilities are lead generation, client acquisition, site visit before the loan is sanctioned, loan sanction, loan disbursement, follow-up after the loan is disbursed and loan recovery. The officers have to achieve the given business target set-based on the place of posting.
Candidates with degree in Agriculture, Veterinary Science, Horticulture, etc. are preferred.
5. Manager / Assistant Manager
A Branch Manager is responsible for all of the functions of a branch office, like hiring employees, approving loans and lines of credit, marketing the branch, building a rapport with the community in order to attract business and assisting customers with account problems. A Branch Manager is also responsible for making sure that the branch’s goals and objectives are met in a timely fashion. Managerial positions are mostly filled up through promotions held within the bank. But, sometimes, candidate with three or more years of experience are also recruited by banks.