Banking on private enterprise

A high calibre workforce, better infrastructural facilities and excellent customer service provide foreign and private sector banks with an edge over the nationalised banks in India. The increasing number of private and international banks in India has inundated the job market with exciting job prospects.

DESPITE the vagaries of the nation's fortune, banking continues to be a stable and dependable profession promising a comfortable lifestyle and a secure job profile. The winds of change sweeping the country have revved up nationalised banks to meet the onslaught of globalisation. Infused with new zeal, the banking industry has expanded its services to include faster cash dispensing methods, 24-hour automated teller machines and computerised cash transactions. 25 foreign banks presently hold licences to operate in India. They also come under the purview of the RBI and have to follow guidelines similar to those applicable to scheduled and private banks. It is a Herculean task for nationalised banks to now retain valuable patrons. The emergence of financial institutions like venture capitalists, leasing and investment companies ensure that the nationalised banks spruce-up their act and offer better customer service to net more business.

What the future promises

Gone are the good old days when banking was considered a staid enterprise for boring mathematicians. It is a big number game now and competence, dynamism, initiative and results are what promise you success and more importantly, is the expectation from the new age bankers. Aspiring bankers can seek employment in a variety of banking establishments like the RBI, the regional reserve banks, the state bank of India and associate banks, nationalised banks, the private sector banks and foreign banks.

Corporate finance and banking

Corporate finance and banking deal with mergers and acquisitions, raising capital etc for well-established and reputed organisations, and credit and loan transactions, receiving deposits and transferring funds respectively.

Investment banking

Investment bankers advise companies on strategies for takeover or integration with other companies, managing sale of company shares, and issuance of bonds. Investment bankers should have an excellent grasp of finance and economics as they act as financial analysts and strategists, helping their clients implement their plans. Long work hours and intermittent travelling are an integral part of the job.

Personal, retail and rural banking

Personal banking involves catering to individual customers and deals with deposits, loans, credit, mortgages, investment schemes, insurance policies, pension funds and even providing financial advice.

Retail banking is concerned with money transfers, deposit and withdrawal transactions, en-cashing travellers' cheques etc. Though, work in rural banks is similar to other banking activities; the focus is on appraising and disbursing loans to farmers and agriculturists,

Treasury management

Treasury management is about managing foreign exchange reserves, dealing with foreign currency and portfolio management. Treasury managers need to be aware of the fluctuations in various foreign currencies of the world and efficiently manage their portfolio to avoid depreciation of the currency value. With a highly stressful job profile, treasury managers are amongst the highest paid in the bank.

Stepping into private enterprise

Unlike nationalised banks and the private sector, the hierarchy in foreign banks is not uniform. They usually employ experienced bankers for the middle level management positions and conduct on- campus recruitment from premier management institutes for entry- level posts. Private sector and foreign banks prefer to employ graduates with knowledge of computers. The recruitment process is usually through a written test, group discussion and interviews. With banking activities becoming more task oriented, foreign banks have begun to establish separate units catering to specialised activities like data processing and maintenance in order to deal with a global clientele. This has further increased the influx of a talented workforce into foreign and private banking establishments. ABN AMRO, BNP, Citibank, Stanchart, Deutsch Bank, American Express Bank, HSBC, etc are some of the international banks introducing Indians to a global banking culture.

Having had a taste of better banking practices, the nation therefore is keenly banking on more private enterprise for better service and lucrative employment.

Becoming a suave banker

Nationalised banks have their own training colleges, which provide orientation courses, initial and advanced training courses for bank employees. Tamil Nadu and Manipur University, offer graduate courses in bank management and banking.

Various universities and institutes across the country offer diploma and certificate courses in banking, lasting from a year to six months.

What it takes

The banker has to be the epitome of professionalism and efficiency. He has to be competent and customer friendly to be able to deal with an ordinary as well elite clientele.

It is essential that the banker possess an innate sense of duty, responsibility, neatness and integrity. The employees of a bank must have enough drive and competitive spirit, be aware of banking practices, rules and regulations to offer the best service to win and retain their customers. Both the managerial and the clerical cadre employees must have exceptional analytical capabilities, the ability to think fast, be accurate, have a fascination for numbers, be self- disciplined, and have a desire to turn in meticulous work.

More than just banking

Heralding the age of competitive banking, privatisation has literally sounded the death knell of the traditional banking industry. Those aspiring for more interesting options in banking can get into banking consultancy, handling financial services and also banking activities of large industries and organisations. Technological innovations have changed the way banking is done. With the aim of expanding their services, innovations such as home banking, tele-banking, voice mail and other back office services like automated reconciliation systems and intercity connectivity have led to extended banking hours and better customer service.

SAMYUKTA KODA

samyukta.hyd@careercommunity.co.in