With a pronounced shift towards profit-oriented, market-driven banking even in the public sector, banking as a career option has become attractive and remunerative againOnce upon a time a job in Indias closely-held private sector banks, promoted by heavy-weight business houses such as the Tatas, Birlas, Devkaran Nanji etc, was a much prized career option. Then in 1969 in a burst of ideological populism, the countrys largest 26 banks were nationalised. As the nationalised banks multiplied their branches rapidly, they inevitably morphed into giant paper-shuffling bureaucracies driven by archaic rules and regulations rather than contemporary risk assessment methodologies.
But with a pronounced shift towards profit-oriented, market-driven banking even in the public sector following the economic liberalisation and deregulation initiative of 1991, and a plethora of private and foreign banks becoming active within the globalising Indian economy, banking as a career option has become attractive and remunerative again. Consequently a growing number of commerce/economics graduates and postgraduates, MBAs, chartered accountants (CAs) and chartered financial analysts (CFAs) are re-entering the banking and related services sector.
Most public sector banks (PSBs) recruit probationary officers through written tests and interviews. The All-India Examination conducted by PSBs is the stepping stone of most graduates opting to enter the banking sector. The Reserve Bank of India, the countrys topmost financial institution which frames policies and regulations for the banking and finance industry, also conducts an All-India Exam for recruiting its class I officers from among graduates, postgraduates, CAs, MBAs in the 21-26 age group.
On similar lines, State Bank of India (SBI) — the countrys largest bank in terms of branch network (13,000) — conducts an annual recruitment examination for selection of probationary officers (POs), specialist officers and clerical staff for itself and associate banks. The recruitment of POs for other public sector commercial banks is done by the Banking Services Recruitment Board (BSRB), with each region having its own BSRB. Graduates in the age group 21-28 years are eligible for writing the regional BSRB test which is followed by an interview.
Private sector/foreign banks recruit management trainees from premier B-schools and from among finance professionals such as chartered accountants, cost and works accountants and CFAs. However for senior positions, they prefer to poach experienced bankers from apex-level financial institutions and public sector commercial banks. Therefore, signing up with a public sector bank as a PO doesnt necessarily mean confinement to PSBs.
Although not essential, specialised courses in banking and finance are offered by several universities and B-schools. For instance the National Institute of Bank Management, Pune, offers a highly regarded one-year postgraduate programme in banking and finance. Likewise a number of B-schools offer programmes encompassing almost all banking and finance related subjects as well as insurance study.
Jobs are for the asking in banking and finance corporates which offer spectacular remuneration packages to B-school graduates. Moreover with PSBs continuing to expand their branch network in every nook and corner of the country even as a host of private banks are mushrooming, the demand for trained professionals has increased substantially.
Most PSB officers take home a basic salary of over Rs.10,000 per month except for a small percentage who are recruited by SBI for specialised functions from top B-schools at Rs.55,000. In private and foreign banks whose salaries are more or less on a par, a fresher at the entry level could start at Rs.350,000 per annum which could shoot up to Rs.15-20 lakh within five years. Promotions are quick for result-oriented performers in private and foreign banks.
Theres growing need for greater banking efficiency due to international trade and industrial liberalisation, which have forced changes in traditional banking norms and practices. These developments have opened up opportunities in banking and finance for people with marketing and technological skills, apart from finance backgrounds, says Mumbai-based Arun Malkani, vice-president (marketing services) HDFC Bank, the first private sector bank promoted in 1995 and winner of the ‘Best Bank in India awards of the Hongkong-based Finance Asia magazine in 2005, Outlook Money, Business Today and the television channel NDTV Profit.
A commerce and business management (marketing) graduate of Mumbais H. R. College of Commerce, and Sydenham College, Malkani began his career in the advertising industry with Hindustan Thompson Associates. Subsequently he signed up with Countrywide Financial Services, and got a big break in 2001 with Citibank as its marketing services manager. In 2004, he was head-hunted by Centurion Bank and following the merger of Centurion Bank with HDFC in May this year, he supervises the marketing operations of the merged entity.
With M&A (mergers and acquisitions) activity in banking and finance on the upswing, the market for such services is huge. Therefore a career in this sector can be very rewarding and challenging as banks are the lifeline of the economy, says Malkani.
Indra Gidwani (Mumbai)