Job opportunities in banking sector
Part –I Where are the Largest number of Entry-Level Jobs in Banking? Why are they in Demand? And how do they hire?
A bank is an intermediary between depositors who have surplus money and borrowers who are in need of money. They collect money from depositors by paying them interest and lend the same to people at a higher rate of interest. On the whole, they deal with finances of companies, individual customers, or group of customers.
Banks can be classified into various types
Public Sector Banks/Nationalized Banks (PSB or PSU Banks): These are organizations owned by the government. In addition to profit objectives, they also meet social objectives.
Private Banks: These are not owned by the government. Since they have limited social objectives, they focus more on the urban areas, and customers from the middle class and above.
Foreign Banks: These banks operate in India, but the ownership is largely held overseas.
Retail Banks: They deal with individuals and small businesses. They lend money to individuals in the form of loans such as personal loans, car loans, home loans, as well as to small firms to start up their business.
Investment Banks: They assist individuals, corporations, and governments in raising financial capital.
Corporate Banks: They serve big corporates. They provide long-term funds and short-term funds in large amounts.
Co-operative Banks: These are owned by a group of individuals/institutions on a co-operative basis set up to help each other. They mostly serve the financial needs of their own community.
Regional Rural Banks: They are banking organizations set up in different states of the country to serve rural citizens residing in various towns and villages. They might operate in urban areas too, but their main focus is to serve rural areas. As of 2017, there are 27 public sector banks, 26 private sector banks, 46 foreign banks, 56 regional rural banks, 1,574 urban cooperative banks and 93,913 rural cooperative banks, in addition to cooperative credit institutions.
Non-Banking Financial Companies
The NBFCs do what the banks do—raise money from depositors and others and lend to borrowers. A good example of an NBFC is the ‘chit fund’.
Employment Opportunities In The Banking Sector
For the year ending 31 March 2013, Indian banks did business worth over 2 trillion USD.As of 2013, 26 public sectors undertaking (PSU) banks were the largest employers in banking with 73 per cent of the workforce and all of them need fresh talent. The 23 private sector banks are growing very rapidly and require fresh talent. So jobs are available in the PSU sector as well as the private sector. As per the NSDC Human Resource and Skill Requirements reports, the banking and NBFC sectors will hire 67 per cent more manpower between 2013 and 2022. This is a dream opportunity for fresh graduates.
Where are the largest numbers of Entry-Level jobs in banking?
Every retail bank has five sets of people.
- The first set markets the liabilities—fixed deposits, current and savings accounts, recurring deposits.
- The second set markets the assets—car loans, housing loans, personal loans, gold loans, credit cards, working capital loans, long-term loans.
- The third set conducts customer transactions, including resolving customer complaints, opening new accounts. This staffs is called the Operations Staff.
- The fourth set is composed of banking specialists who provide foreign exchange services, corporate credit, treasury, Letters of Credit (LCs), among other services.
- The fifth set is made up of the Back Office Team which does the accounting and provides back office support like administration and IT for the above transactions.
By far the largest and the most important people in a large private sector retail bank are the first three sets of people. However a PSB’s focus has been on operations and the bulk of its employees are clerks and officers operating from a branch.
Why are banking jobs in demand? Why should anyone join the banking industry?
Many graduates prefer a PSB job as it offers more job security than a job in the private sector, and the pay and perks are also decent. There is a mistaken notion that the PSU banks will retain everyone irrespective of performance. This may be true of the past, but it is not true anymore. Despite this, PSU bank jobs are very popular because the salary and benefits are very attractive.
Many private sector banks offer salaries and perks that are more attractive, but job security depends mainly on performance.
The most interesting part is that students from any field can pursue a career in banking. Private sector banks often focus on hiring management graduates, Chartered Accountants, and certified Financial Accountants, but any student with a good academic background who passes the all-India banking examinations conducted by them, can get a decent job in a PSB.
How do banks hire?.
Passing the Common Written Examination (CWE) and common interviews conducted by the Institute of Banking Personnel Selection (IBPS) is a prerequisite for selection as a Probationary Officer (Scale 1), Specialist Officer posts, Clerical Cadre posts in 20 PSU banks (excluding, the State Bank of India [SBI], and its subsidiaries), and regional rural banks. Since 2014, only those who have a university degree are eligible for taking these tests. You also have to be within the specified age limit.
The CWE syllabus and general instructions on filling in the IBPS online application are provided in the exam notification. Each candidate is intimated the date and venue of the exam via a call letter that becomes available for download a few days after they register at the IBPS website. The IBPS CWE is one among the most competitive and popular examinations in India. In the year 2013–14, alone more than 22 lakh youth took the CWE III exam.
Author: T. Muralidharan
Name of publication: Telangana Today
Date published on: 14/05/2018
published in: Hyderabad
Tags: Jobs and Careers