BANKING SECTOR

Banks are considered the backbone of a countrys economy. Its more true for a developing country like India. Indian Banking system is very strong. In the global financial turmoil that happened sometime ago, our country was least affected because of soundness of Indian Banking and Financial system. In fact many countries of the world are trying to learn lessons from our disciplined system of Banking. Banks in India are not only strong but are also growing fast. According to studies, Banking sector is one of the fastest growing sectors in the country. This growth has brought many opportunities. Indian Banking Scenario Regulation of Banking system in India started with Banking Regulation Act, 1949. Banks in India used to be in private hands. In 1969, 14 big private banks were nationalised bringing them under the ownership of government. After 11 years, in 1980, six more banks were nationalised. Of these 20 banks, one New Bank of India got merged in Punjab National Bank. Now in all there are 27 public sector banks in the country consisting of 19 nationalised banks and 8 banks from State Bank group (State Bank of India and its associates). In the last two decades Public Sector Banks in India have witnessed a transition from traditional banking to modern technology driven banking. Exposure to competition has made these banks re-engineer and re-structure their processes, systems and product line. After economic liberalization these banks have been given enough freedom to do so. However, for various matters these are required to follow guidelines issued by Ministry of Finance, Reserve Bank of India and Indian Banks Association. Post nationalisation, the Banks were asked to open more branches in rural areas. Large numbers of people were recruited to man these newly opened branches. Expanded network gave a new identity to these banks and millions of new customers came to the fold of Banking. The business of Banking moved from class banking to mass banking. Career Prospects Finally selected candidates can look forward to a fruitful career in the bank, they join. All public sector banks provide training to new employees for equipping them to take up their assignments. Induction training which happens immediately or soon after joining is the first training programme they attend. Subsequently they are offered training in various banking disciplines.

Public sector banks are few organisations which offer promotion from one cadre to another. Thus those who join as clerks may be promoted as officers, as per banks norms. For bright candidates, in some banks, this promotion from a clerk to officer is possible in a period as short as one year.

Career Progression There is a well defined career progression path in each 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 banks have a network of foreign branches. Thus joining a 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. Conclusion 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 and including perquisites is quite good. And there is an element of job security too. The housing and medical facilities are also considered attractive. The expansion mode in which banks in India are, is creating large number of opportunities for young people to choose banking as their career.