September 30, 2010 • 11:41 am

BANKING

Education in India : Banking

Click here to get information on institutes offering banking industry programs

Looking for a Career Option in the Field of Banking ? This section features Banking as a career option, elaborated with reference to the job profile, personality traits required, the courses and training involved, premier institutions and future prospects.

Banking has emerged as one of the most challenging sectors in the country. Openings are available at various levels, from Bank Clerical to Probationary Officers (PO). There is great job security and the salary is very good, besides the perquisites of loans for employees. It is a lucrative career: till recently careers existed only in nationalised banks, but with liberalisation, a host of private banks have been set up. As a result, demand for trained professionals has increased substantially. The private banks offer better salaries but then the job security is also less.

Personality Traits

A clear logical mind, alertness, ability to take initiative, friendliness, assertiveness, diplomacy, capacity to motivate team members, efficiency, sincerity, drive, tact, sound knowledge of the banking system with up-to-date knowledge of recent developments, adaptability, dynamism and result-oriented outlook.

The person should have a mathematical aptitude. Employees joining as officers should be able to lead, motivate and manage the bank staff. Good verbal and written communication skills help in effective interaction with the clients as well as the staff. Integrity and honesty play a major role in all dealings related to money, staff and clients. A person responsible for foreign exchange transactions needs to have a sharp, quick and analytical mind.

Entry Process

Selection procedure for RBI

The Reserve Bank of India is the topmost financial institution in India which makes all the policies and regulations for the other banks. It conducts tests 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.

The examination is in parts.

Paper I is a written test comprising of General Mental Ability (Objective type).
Paper II is a subjective one which has English Essays/Comprehension/Precise writing etc. Paper III is on Economics and Social problems.

Selected candidates are shortlisted for an interview which forms the basis for the final selection.

Selection procedure for other Nationalised Banks

Recruitment for the public sector banks is done through the Banking Service Recruitment Boards (BSRBs). The advertisements for recruitment appear in newspapers as well as the Employment News. Recruitment is done on the basis of a written test, which consists of:

Test of Reasoning
Quantitative Aptitude
General Awareness
English Language
Descriptive Test

The test is qualifying in nature and the marks obtained are not added in the final merit list. Except for the descriptive portion, all other sections contain objective-type questions. In Reasoning, there is verbal and non-verbal sections. In English, the test is aimed at judging the overall comprehension and understanding of the language. The descriptive paper can be answered in English or Hindi. It judges the written expression of the candidates. All sections must be qualified.

Foreign banks pick up their personnel management institutes, from interviews held in the premier management institutes, from among finance professionals such as Chartered Accountants, Cost and Works Accountants and Chartered Financials Analysts and also from the fold of experienced personnel of the apex financial institutions and public sector commercial banks. Private banks recruit Officer Trainees from amongst first class graduates, Management Trainees from amongst MBAs, and also recruit experienced personnel from the banking sector for middle and higher management positions.

One can do a specialised course in banking from a number of universities offering such courses. The eligibility criteria is different for different courses and candidates are advised to check these out directly from the universities concerned.

Institutions

Please click here for the list of the Banking Institutes in India.

Placements And Prospects

As banking is a growing industry, the job prospects are good. In nationalised banks, one can expect regular promotions while in private banks it is performance that is rewarded. Promotions may be swift for deserving candidates. But it is not necessary to be a banking professional only to get into banks. As financial services are getting automated, the industry requires a large number of computer experts, both in computer maintenance and software. Private computer service contractors are also in great demand. It would be important to have a BE or MCA degree for such jobs.

Foreign banks and private banks mostly operate through branches in the metropolitan cities. Promotions are linked to a highly motivated, result-oriented and dynamic approach.

One reason to be excited about banking as a career is the rapid change taking place. Not only is there fresh competition, but technology promises to change the face of banking forever. The jobs are becoming comfortable, in the sense that the physical environment is pleasing and computerisation has taken the load off tedious jobs such as balancing accounts. As competition increases, a good banker will certainly be in great demand.

In the overall analysis, banking offers great scope for initiative and public service. Direct contact with people in the discharge of their duties helps bankers to keep their fingers on the pulse of the public. By their sincerity and efficiency they are able to win respect and standing in society.