KOTHARI COLLEGE KOTHARI COLLEGE

“SECURE YOUR FUTURE “SECURE YOUR FUTURE WITH A BANKING CAREER”WITH A BANKING CAREER”

BY:BY:Ramnik KapoorRamnik Kapoor

KOTHARI COLLEGEKOTHARI COLLEGE

Mr. K.V. Kamath Mr. K.V. Kamath After graduating from IIM-A in 1971, Kamath started his career with ICICI (Industrial Credit and Investment Corporation of India), in the Project Finance division and moved on to different departments to gather experience which included setting up of new businesses such as leasing, venture capital, credit rating as well as handling general management positions. In 1988, Kamath joined the Asian Development Bank, Manila in their Private Sector Department. In May 1996, Kamath returned to ICICI as its Managing Director and Chief Executive Officer.

on 2nd may 2011 he is appointed as non-executive chairman of the second-largest software exporter, Infosys Ltd (earlier Infosys Technologies Ltd).

KOTHARI – IGNOU COMMUNITY KOTHARI – IGNOU COMMUNITY COLLEGECOLLEGE

Concept and History of Banking.Concept and History of Banking. Present Banking Scenario and new Present Banking Scenario and new Dimensions in Banking sector.Dimensions in Banking sector.

Why to opt for a Banking Career?Why to opt for a Banking Career? Scope of a banking career.Scope of a banking career. Different positions for entry in banks.Different positions for entry in banks. Qualifications required for entry at Qualifications required for entry at different levels.different levels.

How to prepare for the exam/ Interview.How to prepare for the exam/ Interview. Querries by the participants.Querries by the participants. Concluding the session.Concluding the session.

KOTHARI – IGNOU COMMUNITY COLLEGEKOTHARI – IGNOU COMMUNITY COLLEGE

BANKSBANKStake care of the money of take care of the money of individuals and corporateindividuals and corporate provide loans to people for provide loans to people for business or personal use. business or personal use. Services like exchange of foreign Services like exchange of foreign currency, Investment Banking, Mutual currency, Investment Banking, Mutual Funds, Insurance Business, D-mat Funds, Insurance Business, D-mat services, Online trading of shares, services, Online trading of shares, providing public utility services providing public utility services like e-tickets, payment of bills, like e-tickets, payment of bills, educative services etc. educative services etc.

KOTHARI – IGNOU COMMUNITY KOTHARI – IGNOU COMMUNITY COLLEGECOLLEGE

Kautilya, in 330 B.C. recognized the Kautilya, in 330 B.C. recognized the importance of accounting methods in importance of accounting methods in economic enterprises. He developed economic enterprises. He developed Book-keeping rules to record and Book-keeping rules to record and classify economic data. He also linked classify economic data. He also linked the successful enforcement of rules the successful enforcement of rules and regulations to their clarity, and regulations to their clarity, consistency and completeness. He also consistency and completeness. He also emphasized the role of ethics in the emphasized the role of ethics in the economic activitieseconomic activities..

KOTHARI – IGNOU COMMUNITY COLLEGEKOTHARI – IGNOU COMMUNITY COLLEGE

History of Banking :History of Banking : Pre-independence stagePre-independence stage Post Independence stagePost Independence stage Nationalization of BanksNationalization of Banks Introduction of Financial Sector Introduction of Financial Sector ReformsReforms

GlobalizationGlobalization IT revolutionIT revolution

KOTHARI – IGNOU COMMUNITY COLLEGEKOTHARI – IGNOU COMMUNITY COLLEGE

History of Banking in India:History of Banking in India:There were three oldest BanksThere were three oldest Banks Bank of BengalBank of Bengal Bank of BombayBank of Bombay Bank of MadrasBank of MadrasThese banks were called Presidency Banks.These banks were called Presidency Banks.They merged in 1925 to form the Imperial They merged in 1925 to form the Imperial Bank of India, which after independence Bank of India, which after independence became State Bank of India.became State Bank of India.Reserve Bank of India came into existence Reserve Bank of India came into existence in 1935 which took the responsibility of in 1935 which took the responsibility of regulating Banking sector as Central Bank regulating Banking sector as Central Bank in India. in India.

In 1948, the Reserve Bank of India In 1948, the Reserve Bank of India was nationalized, and it became an was nationalized, and it became an institution owned by the institution owned by the Government of India. Government of India.

In 1949, the Banking Regulation In 1949, the Banking Regulation Act was enacted which empowered Act was enacted which empowered the Reserve Bank of India (RBI) the Reserve Bank of India (RBI) "to regulate, control, and inspect "to regulate, control, and inspect the banks in India." the banks in India."

Banking Scenario after Banking Scenario after IndependenceIndependence

Nationalisation of Nationalisation of BanksBanks

On July 19, 1969, 14 major On July 19, 1969, 14 major banks were nationalised.banks were nationalised.

On April 15, 1980 another 6 On April 15, 1980 another 6 banks were nationalised.banks were nationalised.

With the nationalisation, the With the nationalisation, the banking in India shifted from banking in India shifted from ‘Class’ banking to ‘Mass’ ‘Class’ banking to ‘Mass’ BankingBanking

LiberalisationLiberalisation In the early 1990s the Govt In the early 1990s the Govt embarked on a policy of embarked on a policy of liberalisation and gave liberalisation and gave licences to a small number of licences to a small number of private banks, which came to be private banks, which came to be known as known as New Generation tech-savvy New Generation tech-savvy banks like Global Trust Bank, UTI banks like Global Trust Bank, UTI Bank(now re-named as Axis Bank), ICICI Bank(now re-named as Axis Bank), ICICI Bank and HDFC Bank.Bank and HDFC Bank.

Current Banking Current Banking ScenarioScenario

Currently, India has Currently, India has 81 scheduled commercial banks (SCBs) – 81 scheduled commercial banks (SCBs) – 28 (19 Nationalized banks + 8 SBI 28 (19 Nationalized banks + 8 SBI Group + 1 IDBI), Group + 1 IDBI),

29 Foreign banks 29 Foreign banks 24 Private banks. 24 Private banks. combined network of over 53,000 combined network of over 53,000 branches and 17,000 ATMs. branches and 17,000 ATMs.

The public sector banks hold over 75 The public sector banks hold over 75 percent of total assets of the banking percent of total assets of the banking industry, with the private and foreign industry, with the private and foreign banks holding 18% and 7% respectively.banks holding 18% and 7% respectively.

Scope of Career in Scope of Career in BanksBanks

A career in the banks has always A career in the banks has always been a sought-after one. Fascination been a sought-after one. Fascination with banking services has never been with banking services has never been higher than at present. With the higher than at present. With the advent of private and foreign banks, advent of private and foreign banks, the interest of youth in joining the interest of youth in joining banks has only increased further. banks has only increased further. Another notable factor has also been Another notable factor has also been the pay package which has fattened the pay package which has fattened considerably with the coming of considerably with the coming of these banks. these banks.

As the industry is growing there As the industry is growing there is no dearth of opportunities. In is no dearth of opportunities. In nationalized banks, one can expect nationalized banks, one can expect regular promotions while in regular promotions while in private banks it is performance private banks it is performance that is rewarded. that is rewarded.

As financial services get As financial services get automated, the industry requires a automated, the industry requires a large number of computer experts. large number of computer experts.

OpportunitiesOpportunities

Career in Banking-Positions for Career in Banking-Positions for EntryEntry

Clerks Clerks Probationary Officers (PO)Probationary Officers (PO) IT Officers. IT Officers. Agriculture OfficersAgriculture Officers Industry OfficersIndustry Officers Law OfficersLaw Officers Hindi Officers Hindi Officers Economic OfficersEconomic Officers MBAS, CAS Direct Entry As MBAS, CAS Direct Entry As Manager, Sr. ManagerManager, Sr. Manager

Qualifications for Banking Qualifications for Banking JobsJobs

Clerical Jobs: Clerical Jobs: Minimum Qualifications 10+2 with Minimum Qualifications 10+2 with marks 50% and above or marks 50% and above or Graduation.Graduation.

Age 18 yrs to 28 years.Age 18 yrs to 28 years.

Probationary OfficersProbationary Officers Minimum Qualifications are Minimum Qualifications are Graduation with marks 55% and Graduation with marks 55% and above.above.

Age 21 yrs to 30 years. Age 21 yrs to 30 years.

EMOLUMENTS: PAYEMOLUMENTS: PAY   on probation for a period of two years on probation for a period of two years a starting basic pay of Rs. 16,900/- in a starting basic pay of Rs. 16,900/- in the scale of Rs.14500-600/7-18700-700/2 the scale of Rs.14500-600/7-18700-700/2 -20100-800/7-25700 applicable to Junior -20100-800/7-25700 applicable to Junior Management Grade Scale I. Management Grade Scale I.

initial monthly emoluments of initial monthly emoluments of Probationary Officers, including D.A., Probationary Officers, including D.A., H.R.A. and C.C.A., are approximately H.R.A. and C.C.A., are approximately Rs. 27,800/- at Metropolitan centersRs. 27,800/- at Metropolitan centers..

Initial monthly emoluments for clerks Initial monthly emoluments for clerks 15000/ including D.A., H.R.A. and C.C.A15000/ including D.A., H.R.A. and C.C.A

Entitlement of perquisites are Entitlement of perquisites are as per extant instructions as per extant instructions applicable from time to time applicable from time to time viz.  HTC / LFC, Provident viz.  HTC / LFC, Provident Fund/ Pension, Medical aid for Fund/ Pension, Medical aid for self and dependents, leased self and dependents, leased house, Concession for house, Concession for Housing / Car / Personal LoansHousing / Car / Personal Loans

Features of Banking Features of Banking JobsJobs

The best features of the job are The best features of the job are SecuritySecurity Good perks Good perks Good salary Good salary Loans for employees. Loans for employees. Good scope for promotions. Good scope for promotions. Demand for trained professionalDemand for trained professionalss

Job RequirementsJob Requirements Bank jobs come with responsibility, as Bank jobs come with responsibility, as the banker handles other people's the banker handles other people's money. The person must be service-money. The person must be service-oriented and like to look after oriented and like to look after customers. customers.

Assess your aptitude before joining a Assess your aptitude before joining a career in banking. The personality career in banking. The personality required is a mix: for marketing and required is a mix: for marketing and meeting customers an outgoing meeting customers an outgoing personality is required, while for personality is required, while for keeping accounts a diligent and keeping accounts a diligent and persevering attitude is required. persevering attitude is required.

Environment in BanksEnvironment in Banks One reason to be excited about One reason to be excited about banking as a career is the rapid banking as a career is the rapid change taking place. The jobs are change taking place. The jobs are becoming comfortable, as the becoming comfortable, as the physical environment is pleasing physical environment is pleasing and computerisation has taken the and computerisation has taken the load off tedious jobs. As load off tedious jobs. As competition increases, a good competition increases, a good banker will certainly be in great banker will certainly be in great demand. demand.

Source of information about jobsSource of information about jobs

The advertisements for The advertisements for recruitment appear on recruitment appear on website of respective banks, website of respective banks, in newspapers as well as in newspapers as well as www.atozinbanking.comwww.atozinbanking.com which which is a dedicated website for is a dedicated website for Bankers and aspiring Bankers and aspiring bankers.bankers.

Subjects for Banking ExamsSubjects for Banking Exams

Recruitments are on the Recruitments are on the basis of a written testbasis of a written test

General AwarenessGeneral Awareness Test of reasoningTest of reasoning Quantitative AptitudeQuantitative Aptitude English languageEnglish language IT TerminologyIT Terminology Concepts of Marketing Concepts of Marketing and/or a descriptive test. and/or a descriptive test.

After the written examination, the After the written examination, the short-listed candidates are called for short-listed candidates are called for an interview. General questions are an interview. General questions are asked to check the candidate's general asked to check the candidate's general awareness and relevant issues related awareness and relevant issues related to Economy. to Economy.

Interview focuses on the candidates Interview focuses on the candidates aptitude on Decision Making, Risk aptitude on Decision Making, Risk Taking, Marketing, Knowledge of Taking, Marketing, Knowledge of Computer and Aptitude for accepting Computer and Aptitude for accepting Challenges.Challenges.

Preparation for interviewPreparation for interview

Position of Openings in BanksPosition of Openings in Banks

During Current year Banking During Current year Banking System is likely to offer System is likely to offer employment to about 4 to 6 lac employment to about 4 to 6 lac people out of which SBI has people out of which SBI has already declared openings for already declared openings for 20000 clerks, 3500 POs, 150 20000 clerks, 3500 POs, 150 Technical Officers. Other banks Technical Officers. Other banks have also offered similar have also offered similar positions in addition to positions in addition to regular recruitments by Private regular recruitments by Private and Foreign Banks.and Foreign Banks.

Banking Career makeover Banking Career makeover Program Program

Banking Career Banking Career makeover makeover Program Program

Comprehension of English Comprehension of English LanguageLanguage

General AwarenessGeneral Awareness MathematicsMathematics Test of Reasoning/Mental Test of Reasoning/Mental Ability/AptitudeAbility/Aptitude

Computer KnowledgeComputer Knowledge Knowledge of MarketingKnowledge of Marketing