Careers in Banking
Banking is one of the most important drivers of the economy. With the liberalization of the country the banking sector has seen tremendous change in the past decade or so. Apart from regular banking operation, termed as ‘house-keeping’, commercial banks are now diversifying and giving thrust to areas like corporate banking, merchant banking, investment banking and treasury and forex functions. Besides growing income, economic liberalization, has resulted in increased volumes of international trade, and these factors together have given impetus to the demand for better banking facilities which are at par with international standards. There is thus an increasing demand for professionals in the banking sector.
Educational Qualification For Starting a Career in Banking
There are diversified needs of each bank and thus people from different background are hired for specific needs.As such banks hire based on their needs by following three methods:
1) Exams by RBI : The Reserve Bank of India conducts an examination on the all India basis for recruitment for three types of entry level positions.
- Clerical grade
- Grade A officers
- Grade B officers
The entry point for clerical staff is in the cash department as examiners of coins and notes. They are promoted to the next grade when they successfully clear the relevant examinations after 5-10 years of service. There is an All India Exam conducted for class I posts. Graduates, Post Graduates, CA's, MBA's in the 21-26 years of age group are eligible. The candidates are tested in logical reasoning, mental ability, numerical aptitude and general English.
2) 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.
3) 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. Freshers are taken as trainees for a period of six months to one year and thereafter confirmed as Assistant Managers.
Career Prospects of A Banker
Assistant Managers: Multinational banks recruit fresh management graduates as Management Trainees and appoint them as Assistant Managers on confirmation. The area of work may depend on the area of specialisation in MBA and can be corporate banking, merchant banking, forex management and retail banking etc. Generally fresh Management graduates from leading B-Schools are considered for this position.
Clerks: The job of a clerk, in banking sector, is to deal with public, maintain the records of accounts for customers and banks, foreign exchange, in house/ intra branch transfer accounts etc. With the introduction of Information Technology, the traditional working patterns have been replaced by IT networking and these clerks are required to be skilled in computer. For this position, the candidate must have passed Xth with 60 per cent; 10+2 with 50 per cent and Graduates of any discipline in the age group of 18-26 years are eligible to appear in the Competitive Written Examination, followed by an Interview.
Officers in RBI:The nature of job of an Officer in RBI is different from the other Nationalised Banks of the country. RBI plays the role of a regulator and monitors the functioning of commercial banks. Along with Ministry of Finance it lays down the broad parameters of the country’s monetary policy. Therefore the officers in RBI deal mostly in monetary policies related with the market and operation of the banking system in the country. The Reserve Bank Services Board conducts an examination on the all India basis for recruitment Grade A and B officers. Graduate/ postgraduates/CA’s/MBA’s in the 21-26 year age group are eligible to take the examination.
Probationary Officers: The entry-level position, in the officer category, in Public Sector Banks is that of a Probationary Officer. These officers are work as probationers for the first two years and gain experience in various type of banking operations e.g. loans, savings and current accounts, forex operations etc. Graduate in any discipline in the age group 21-28 years are eligible to appear in the Competitive Written Exam, followed by an Interview held by Central Recruitment Board on an all India basis. Also see ‘introduction’ to banking.
Apart from the afore mentioned careers in banks, 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. Computer Professionals are also in great demand for planning, programming and maintaining computers and other electronic equipments. Candidates, with a background in agriculture science, are recruited in the area of agri-banking. Postgraduates and doctorates in Economics can find direct recruitment as grade ‘B’ or ‘A’ officer in RBI.
Most Public sector banks clerks can get around Rs 10,000 - 12,000 while officers can begin in the Rs 12000 - 18000 per month scale. Professional like MBAs, CAs and CFAs recruited by public sector banks can have higher salary. But same professionals recruited by private and foreign banks are given pay packages to the extent of about Rs 25000-30000 a month.