My dear friends,
Today we are sharing with you an information article on “Career in Banking Sector”
As we all know there are ample of fields you can choose for your carrier, among them one of the lucrative option is Career in Banking Sector.
We all know that Banks are considered as the backbone of any country’s economy. During the global financial turmoil that happened in the year 2008, our country was least affected because of soundness of Indian Banking and Financial system. This shows, Indian Banking system is very strong and one of the fastest growing sectors in the country. This growth has brought many opportunities for all the aspirants who wish to see them as a banker.
Manpower requirements
According to experts the banking sector may create up to 20 lakh new jobs in the next 5-10 years, helped by issuance of new licenses and efforts being made by the RBI and the Government to expand financial services into rural areas.
Public sector banks in India employ more than 7 lakh people at present. Of these a large number of people will be retiring in next 5-6 years. To fill this gap and to take up the growing business the Banks are on a recruiting spree as can be seen in media and from vacancy announcements. Only this year about 40,000 vacancies have been created in public sector banks due to retirements, resignations and expansion of business.
Career Growth
There is a well-defined career progression path in each public sector bank. Performance and potential are key elements which determine this career progression. Most senior officials in public sector banks started their career as clerk or scale I officer only. In tune with the time banks have reviewed their promotion policy and now for bright, hardworking and knowledgeable employees it takes less time to move to higher scales. In many banks a person who joined as an officer may reach to the position of General Manager in 14 years. After that one can aspire for the position of executive director or chairman of a bank. These are very high positions, nomination to which is decided by the Government and not by the individual banks.
Many public sector banks have a network of foreign branches. Thus, joining a public sector bank gives you the opportunity of working abroad also. Transferability in a bank job provides you the chance of seeing different parts of the country.
Working as a banker you can ensure an upper middle class lifestyle after a few years of service. After 3 years of work experience in Bank, you may try for CAT, do MBA from Elite Institute = fat salary package in private banks / NBFCs. You can specialize in finance, and become the fabled ‘investment banker’ in top foreign banks, who mint crores of rupees. Here are few examples of the top leaders who are doing great in Banking sector being from different fields.
Even If you are not in IIM/IIT/IAS, you can still work your way to the top position. for example
- Arun Tiwari: BSc in Chemistry. Joined Bank of Baroda as PO in ’79. right now CMD of Union bank of India.
- KR Kamath: Did B.Com from Mysore, joined Corporation Bank as officer trainee ‘77. Today he is CMD of Punjab National Bank.
- Arundhati Bhattacharya: done BA in literature, joined SBI as PO back in ‘77. Today she is the Chairman of SBI.
- K. Dubey: MA in English, LLB, joined Punjab National Bank in ’77 as a management trainee (MT). Today he is CMD of Canara Bank.
This Opportunity is not possible in other places. For example,
- RBI Grade “B” officer: Can’t become the governor. That post is reserved for IAS/Exceptionally talented economists such as Raghuram Rajan.
- State services (Class I , Class II): The home Secretary, chief Secretary, DGP = reserved for IAS, IPS are selected.
- Private sector banks: You’ll need a degree in finance/MBA from a highly reputed institute + long work EXP. + right contacts, if you want to become CEO/MD/Chairman.
- SSC-CGL: You join as an Income tax inspector, later promotion to group-A but you can never become Finance Secretary to government of India. That post is reserved for IAS.
- ACIO: you get promotion to Group A, but you can never become DG (Intelligence). Again reserved for IPS.
In other government services, sometimes they ignore you for promotion if you’re too honest/don’t pay the cash to minister. Especially in state services. Banking sector doesn’t have that problem. And even if you’re overlooked for promotion, you always have the opportunity to join private sector bank/consultancy for a decent salary.
- Even if you can’t become MD/CMD, still in the top-management position you’ll get fat salary package and fringe benefits.
- Even after retirement, one can get very high paying jobs in private sector, insurance, finance, NBFC etc. in top positions.
- Privileges attached to PSU Bank officers: Housing, auto loans at much cheaper rates from the cooperative society/festival allowance/ furniture allowance/Newspaper allowance/ Maid allowance, even money to buy suitcase etc. (varies from bank to bank)
Career progression for Officers in Banking Sector
Junior Management Grade – Scale I: Officer
Middle Management Grade – Scale II: Manager
Middle Management Grade – Scale III: Senior Manager
Senior Management Grade – Scale IV: Chief Manager
Senior Management Grade Scale V: Assistant General Manager
Top Management Grade Scale VI: Deputy General Manager
Top Management Grade Scale VII: General Manager
Recruitment in higher scales
With some experience one can expect to join a public sector bank in a higher scale. Most of the vacancies in higher scales exist in Middle Management Grade II or III. Of course, the candidate should fulfill the eligibility criteria with regards to age and qualification. The experience required for higher scale keeps changing from bank to bank, it may be one year or more. Professionally qualified people (with qualifications like MBA, CA etc) stand better chance in this regard.
Campus Recruitment
Since last 3-4 years public sector banks have started recruiting from campuses. This campus recruitment covers only a small part of their manpower needs but it has opened a new window of opportunity to students wanting to make a career in banks. From campuses banks are taking MBAs from different disciplines, agriculture graduates, chartered accountants etc.
Job Satisfaction as a Banker
Dear friend as a banker, you will find a true job satisfaction as you have to help needy people to get loans for starting business, pursuing higher education, loans for buying home, car, bike etc. you bring happiness to many families in real terms you are helping them to stand on their foot.
- You’re helping poor women save their money away from their drunkard husband and so on….
- Banks help the economic growth in small towns and large villages=> prevent migration to metropolitans and subsequent problems related to slums etc.
- Thus, a Banker is also doing an essential public service– just like doctor and policeman.
- So, Apart from good salary, there is job satisfaction, the feeling of having done something good for another fellow Indian.
- All that is necessary for the triumph of evil is that good men do nothing. e.g. subprime crisis in USA because banks were run by idiots. Indian banking sector is immune from such shocks because by and large the officials are diligent in their work.
- In way this is just like politics- if good men stop coming then idiots will get in charge and ruin everything. If all good folks stop joining police force then only crooked will don the uniform, criminals don’t fear police anymore and that’s why all the riots and gangrapes.
- Same way, if good folks don’t join public sector banks and since private banks not interested in serving rural areas= poor people will keep suffering at the hands of evil money lenders, no rural growth, severe problem related with urban migration and abject poverty.
Conclusion
Public sector banks may not offer fancy financial packages which multinational and few other companies offer. But the compensation in these banks with the recent wage revision including perquisites is quite good. And there is an element of job security too. The housing and medical facilities are also considered attractive.
Public Sector Banks in India
Punjab National Bank
Bank of Baroda
Bank of India
Canara Bank
Allahabad Bank
Andhra Bank
Bank of Maharashtra
Central Bank of India
Corporation Bank
Dena Bank
Indian Bank
Indian Overseas Bank
Oriental Bank of Commerce
Punjab and Sind Bank
IDBI Bank
Bhartiya Mahila Bank
Syndicate Bank
UCO Bank
United Bank of India
Union Bank of India
Vijaya Bank
State Bank of India
State Bank of Hyderabad
State Bank of Patiala
State Bank of Mysore
State Bank of Bikaner and Jaipur
State Bank of Travancore.
All the Best to fellow Banking Aspirants!!
