A snapshot of the Banking Sector in India incl. market size, industry analysis and current trends and career prospects related to it.

1. CURRENT BANKING SCENARIO AND JOB
OPPORTUNITIES IN BANKING AND
INSURANCE SECTOR
Lipika Sharma (BE, MBA)
Freelance Consultant- HR
Former Asst Manager – ICICI Bank
Ltd

2. INTRODUCTION
 The Banking, Financial services, and Insurance (BFSI)
sector is an industry term used to define companies that
provide a range of financial products/services such as Core
banking, retail, private, corporate, investment. Its potential
for growth is especially stronger in developing nation like
India, as it is one of the fastest growing economies in the
world.
 Banking has emerged as a resurgent sector in the Indian
economy.
 The banking sector index has grown at a compounded
annual rate of over 51 per cent since the year 2001.
 At present 80% of the banking sector in India is under the
public sector, 15% under private sector and only 5% are
foreign banks

3. MARKET SIZE
 The Indian banking
system consists of 27
public sector banks, 22
private sector banks, 44
foreign banks, 56
regional rural banks,
1,589 urban cooperative
banks and 93,550 rural
cooperative banks, in
addition to cooperative
credit institutions

4. INDIAN ECONOMY'S GROWTH:
 It also plays a substantial role in promoting
the long term growth of the Indian economy,
led by the major segments of this industry,
viz. banking, insurance and mutual funds.
Moreover, the report also stated that the
banking and insurance sector contributes
more than 6 per cent towards India's GDP
during the year ended 2008.

5. BACKGROUND
 PHASE 1 : Pre - nationalization (prior 1955)
 PHASE 2 : Era of nationalization and
consolidation (1955 to 1990)
 PHASE 3 : Introduction of Indian Financial and
Banking sector. (1990 to 2004)
 PHASE 4 : Increased liberalization (2004 onwards)

6. PHASE 1
 1786 :The General Bank of
India
 (1809,1840,1843):Presidency
Banks
 1865: Allahabad Bank
 1894: Punjab National Bank
 1906-1913 : Canara bank,
Central bank, Bank of India,
Bank of Baroda, Indian Bank,
Bank of Mysore were
established

7. PHASE 2
 In 1980 seven more banks were nationalized which
brings around 80% banks under the control of Govt.
Govt. took the following steps:-
 1949: Enactment of Banking Regulation Act
 1955: Nationalization of SBI
 1959: Nationalization of SBI Subsidiaries
 1961: Insurance cover extended to deposits
 1969:Nationalization of 14 commercial banks
 1971:Creation of credit guarantee corporation
 1975:Creation of Regional Rural Banks (RRB)
 1980:Nationalization of banks with deposits over 200 crore

8. PHASE 3
 1991: NARSIMHAMCOMMITTEE I
 Reduction of SLR and CRR
 Minimum Capital Adequacy Ratio
 Prudential norms
 Disclosure norms
 Rationalization of foreign operations in India
 Special tribunals and Asset Reconstruction fund
 NARSIMHAMCOMMITTEE II
 Focus on technological upgradation in Banking sector
 Mergers of banks need to be encouraged
 Reorganizing of banks into global, national and regional
banks
 Autonomy of banks
 Capital Adequacy requirement

9. PHASE 4
 Increased Liberalisation......

10. RBI – CENTRAL BANK OF COUNTRY
Established on April 1, 1935
Mr Urjit Patel

11. PREAMBLE
 To regulate issue of Bank
notes, to keep the reserves
with a view to securing
monetary stability in India
and generally to operate the
currency and credit system of
the country to its advantage”
Role
 Issue of Notes
 Banker, Agent and advisor
to the government
 Banker’s Bank & Lender of
Last Resort
 Custodian of Foreign
Exchange Reserves
 Regulation of Banking
System
 Clearing House Functions
 Credit control

12. RECENT ACTION
 As per law, the RBI
Guidelines are statutory
and mandatory.
 The violations of same by
banks constitute an
important defense for the
borrowers and guarantors.
 Re-introduction of interest
rates futures in Sep-2009
 License to S.A. “First Rand
Bank”
Bank Rate, Repo Rate,
Reverse Repo Rate, Cash
Reserve Ratio kept
unchanged. Statutory
Liquidity Ratio restored to
25%
 RBI to launch plastic Rs 10
currency shortly

13. TYPES OF BANKS
 Central Bank - The Reserve
Bank of India
 Public Sector Banks State
Bank of India and its associate
banks called the State Bank
Group.
 20 nationalized banks.
 Regional rural banks mainly
sponsored by public sector
banks.
 Private Sector Banks Private
Banks
 Foreign banks operating in
India.
 Scheduled co-operative banks.
 Non-scheduled banks

14. COOPERATIVE AND DEVELOPMENT BANKS
 Co-operative Sector - Finance rural areas under: Farming
(Cattle, Milk, Hatchery, Personal Finance)
 State co-operative Banks
 Central co-operative banks
 Primary Agriculture Credit Societies
 Development Banks/Financial Institutions IFCI
 IDBI
 ICICI
 NABARD
 Export Import Bank of India
 National Housing Bank

15. FOREIGN BANKS
 ABN-AMRO Bank
 Abu Dhabi Commercial
Bank
 Bank of Ceylon
 BNP Paribas Bank
 CitiBank
 China Trust Commercial
Bank
 Deutsche Bank
 HSBC
 JPMorgan Chase Bank
 Standard Chartered Bank
 Scotia Bank

16. REGIONAL RURAL BANKS
 United Bank of India
 Haryana State Cooperative Apex Bank Limited
 NABARD National Bank for Agriculture and Rural
Development.
 Sindhanur Urban Souharda Co-operative Bank

17. CURRENT TRENDS
 Indian banking industry has recently witnessed the roll out of
innovative banking models like payments and small finance
banks. RBI’s new measures may go a long way in helping
the restructuring of the domestic banking industry.
 The digital payments system in India has evolved the most
among 25 countries with India’s Immediate Payment
Service (IMPS) being the only system at level 5 in the
Faster Payments Innovation Index (FPII).*
UPI
AEPS
USSD
CARDS
E Wallets

18. ROLE OF IT
 Payments and transactions;
 Mobile and retail banking;
 Trading and commodities markets;
 FX;
 Peer to peer lending & crowdfunding;
 Risk and compliance;
 Security and privacy;
 Digital & alternative currencies (i.e. Bitcoin) and
digital wallets;
 Financial advisory services and insurance.

19. CONTINUED...
 Role of Customer Relationship Management
 Foreign Direct Investment (FDI) and Voting rights of
foreign investors
 Proxy banking: Tapping the rural market
 New banking correspondents
 Regional banks going national
 Consolidation of banks and financial players
 Outsourcing business to cut costs
 Credit Card business growing in spite of downturn
 Retail banks to change models from credit base to
deposit base

20. INITIATIVES TAKEN BY GOVERNMENT
Digital Payments
Lucky Grahak Yojna
Digi Dhan Vyapar Yojna
 National Electronic Clearing Service (NECS) : the core banking
solutions
 Reduction in the Reserve Bank's policy rates ,repo and reverse repo
rates
 Tax free cash withdrawals from banks , Inter-ATM usage transaction
 Mr Arun Jaitley, Minister of Finance, Government of India, introduced
'The Banking Regulation (Amendment) Bill,2017', which will replace
the Banking Regulation (Amendment) Ordinance, 2017, to allow the
Reserve Bank of India (RBI) to guide banks for resolving the
problems of stressed assets.

21. UDYAMI MITRA
 A new portal named 'Udyami
Mitra' has been launched by
the Small Industries
Development Bank of India
(SIDBI) with the aim of
improving credit availability to
Micro, Small and Medium
Enterprises' (MSMEs) in the
country.
 As on January 4, 2018, the
Lok Sabha has approved
recapitalisation bonds worth
Rs 80,000 crore (US$ 12.62
billion) for public sector
banks, which will be
accompanied by a series of
reforms.

22. MUDRA SCHEME
UNDER THE UNION BUDGET 2018-19, THE
GOVERNMENT HAS ALLOCATED RS 3
TRILLION (US$ 46.34 BILLION) TOWARDS
THE MUDRA SCHEME AND RS 3,794
CRORE (US$ 586.04 MILLION) TOWARDS
CREDIT SUPPORT, CAPITAL AND
INTEREST SUBSIDY TO MSMES.
IN MAY 2018, THE GOVERNMENT OF INDIA
PROVIDED RS 6 TRILLION (US$ 93.1 BILLION)
LOANS TO 120 MILLION BENEFICIARIES
UNDER MUDRA SCHEME.

23. PMVVY
 The PMVVY scheme has been
implemented through Life
Insurance Corporation of India
(LIC) to provide social security
during old age and protect
elderly persons aged 60 years
 The scheme provides an
assured pension based on a
guaranteed rate of return of 8
per cent per annum for ten
years
 As of March 2018, a total
number of 2.23 lakh senior
citizens were getting regular
pension under the Pradhan
Mantri Vaya Vandan Yojana
(PMVVY).

24. ROAD AHEAD
 Robust Growth
.
 Competitive Edge
 Contactless Debit and
Credit Cards (NEC
Mechanism)
 Grow to Digital Payments
Economy rapidly

25. YEAR IN THE REVIEW- HOW BANKING
SECTOR PERFORMED IN 2017
 The RBI has advised banks to set aside 50% provisioning
against secured exposure and 100% against unsecured
exposure in all cases referred for bankruptcy.
 Reform agenda is the highest priority which has to be
implemented along with capitalization. A whole lot of reforms
will come so that genuine borrowers don’t suffer and get
hassle-free, need based credit
 The other highlight of 2017 was the merger of five
associates and the Bharatiya Mahila Bank with State Bank
of India (SBI), catapulting the country’s largest lender to
among the top 50 banks in the world.

26.  Special focus would be on micro, small and medium
enterprises (MSME), financial inclusion and job creation,
he said. To facilitate consolidation in the public sector
banking space, the Cabinet in August gave in-principle
approval for PSBs to amalgamate through an Alternative
Mechanism (AM).
 As part of its resolve to bring down burgeoning NPAs, the
government issued two ordinances -- Banking Regulation
(Amendment) Ordinance, 2017 and Insolvency
and Bankruptcy Code (Amendment) Ordinance, 2017 -
during the year.
 The RBI in its second list of big defaulters released in
August asked banks to resolve 28 large accounts till
December 13 or report them by December 31 to NCLT for
insolvency proceedings. Of these, banks are set to refer
as many as 23 accounts for insolvency proceedings.
 These 28 accounts together account for 40% of bad loans
or around ₹4 lakh crore.

27. CAREER PROSPECTS

28. A BFSI CAREER: PROSPECTS AND ESSENTIAL
SKILLS
 Banking is defined as the business of dealing in money while
insurance is the protection against possible loss. Actuary
sciences, auditing, financial counselling, claims examination and
policy processing are some fields that come under this
 Banking occupations span core banking activities, retail, private,
corporate, investment and credit cards, while jobs in insurance
cover both life (Living) and non-life (Non-living) insurance cover
products. Financial Services careers encompass stock broking,
mutual funds. Career prospects are bright with graduates in
disciplines such as ICT, engineering, mathematics, data analytics,
business and law in demand for the thousands of additional jobs
that are projected for the sector over the next 5-10 years.

29. MANPOWER REQUIREMENT IN BFSI INDUSTRY
 According to a report by National Skill Development Corporation
(NSDC) for banking, financial services and insurance industry,
India is one of the few countries in recent times to have a backing
of strong productivity gains and progressive integration into the
global economy.
 Being an important sector that can further accelerate the growth
of the country, the manpower requirement in the BFSI industry
has risen to fuel that progress, with over 8.4 million individuals
projected to be employed in the next couple of years. The NSDC
also reported that the projected human resource requirement
between 2008 and 2022 is estimated to reach over 4.2 million.
 Now, let us explore the various aspects of the BFSI industry, its
career prospects, and the kind of skills required to fulfill the skill
requirements for job roles within.

30. ASSOCIATED JOB ROLES IN BFSI:
 Insurance agents: Insurance agents are professionals who represent an insurance
firm and sell policies to people on its behalf. Since this is a commission-based
service, agents try to attract as many clients as possible to generate maximum value
for their respective insurance companies. They are the official representatives of the
company.
 Bank and Financial product sales executive: Bank sales consultants and sales
managers are responsible for handling and looking after the sales of all bank
products and financial services to the clients. Products include loans, credit cards,
mortgage, etc
 Equity product sales executive: Equity sales executives and/or equity dealers are
responsible for researching latest equity trends, fund management, and generating
total returns on allotted assets
 Investment representatives: Investment representatives/financial planners/advisors
are professionals who work at either banks, credit unions, or investment firms to
provide advice related to investment products and other financial services. They offer
representation and advice for various financial products like - Annuities, Estate
planning, Insurance, Mutual funds, Retirement plans, Stocks, Education savings, and
Trust funds
 Stockbrokers: Stockbrokers are registered specialists associated with brokerage
firms or are independent brokers who are responsible for buying and selling stocks
and other similar securities for retail as well as institutional patrons. The job is usually

31. JOBS AND SALARY
 Freshers in the BFSI
industry can expect to
get up to Rs 10,000 to
Rs 12,000 per month,
while those with an
experience of one year
and more can take home
approximately Rs 15,000
to R 30,000. A seasoned
professional can also
earn lots of incentives,
like a 7-30 per cent
share in sales
depending on the level
of task accomplished

32. SKILLS REQUIRED
 While each job role in this industry will require specific skills, the most
common requirements are: Proficiency in sales, stock market
knowledge, mathematical aptitude, mutual fund awareness, and
knowledge about banking operations.
 Other aspects like good communication skills, confidence, and being
well-groomed can help individuals succeed, not just in the BFSI sector,
but other industries as well.
 Apart from the skills mentioned, those looking for a career in the BFSI
sector can also improve their industry expertise by earning certificates,
which can become an added bonus to their budding career. Some
companies organise regular training sessions for employees to keep
them abreast of latest trends in this space and improve their efficiency.
 Furthermore, earning certification from institutions like the National
Institute of Securities Markets (NISM), the Association of Mutual Funds
in India (AMFI), and Insurance Regulatory and Development Authority of
India (IRDA) can help candidates get lucrative job offers without any
hassle.

33. FINTECH
 A merging of the words ‘Financial’ and ‘Technology’,
FinTech has become the global term for technology
applied to financial services. In its broadest sense,
FinTech is shorthand for ‘innovation in financial
services’ - new products from new startups, or the
adoption of new approaches by existing players
where technology is the driver.
 FinTech is developing at a furious pace. By
developing and using new technology, start-ups can
use their lower costs to undercut banks and
established industry players with a cheaper and
faster service. Up to5,000 new jobs could be created
in the Irish FinTech Sector by 2020.

34.  Fintech companies use disruptive technologies
and innovation to change the way financial
transactions take place. It has become a
significant growth industry and includes a huge
number of job opportunities, ranging from the
typical technology roles such as project
managers, developers, testers and analysts, to
highly-specialised positions, for example,
cryptocurrency engineers, who have familiarity
with bitcoin, or specialist roles within financial
services where specific software packages are
used i.e. Calypso or MIG21.

35.  FinTech companies are
seeing new
requirements that are
creating increased
demand for people with
experience in
cybersecurity and
payments. There have
been dramatic increases
in cybersecurity roles
and roles in the area of
risk and threat
intelligence.

36. GETTING INTO BANKING
 Getting into Banking
 Many young people enter this area of employment after
graduating in business, accountancy, economics and financial
studies. Others gain employment on leaving school and may
decide at a later stage to arm themselves with further
qualifications.
 Bank cashiers and other clerical workers require a Leaving
Certificate level of education. Most banks seek people who have
good communication skills, enjoy public contact and feel
comfortable handling large amounts of cash.
 Each bank is overseen by a Bank Manager. He or she has an
assistant manager to help with the managerial tasks. Sales
representatives and those in executive and management
positions usually need a degree in a business or finance related
area.

37. THE RECRUITMENT PROCESS
 The recruitment process of public sector
banks includes competitive examination
followed by an interview. Several public
sector banks, regional rural banks and
cooperative banks recruit personnel, based
on the performance of candidates in the
competitive examinations conducted by the
Institute of Banking Personnel Selection

38. IBPS
 Institute of Banking
Personnel Selection is an
autonomous body set up
by the banking industry to
cater to its recruitment
needs. 19 banks including
Bank of Baroda, Andhra
Bank, Canara Bank and
Allahabad Bank recruit
probationary clerks,
probationary officers and
specialist officers based on
performance of candidates
in competitive
examinations conducted
by the institute.

39.  However, RBI and SBI conduct separate
examinations for recruitment for their banks.
 To begin your career in the banking industry,
you can take one of the competitive
examinations, based on your academic
background and aspirations.

40. PRIVATE BANKS
 Axis Bank Young Bankers
Program
 ICICI PO Programme
 HDFC PO Programme
 Post Graduate Diploma in
Banking & Finance
 Smart Achievers Plan for
sales
 MBA ICICI NIT university

42. ELIGIBILITY
 The eligibility criterion for probationary clerks and
probationary officers is a Bachelor’s degree. The first
stage of recruitment process, the online written test, is
objective type. The questions are aimed at assessing
candidates on areas like reasoning, English, numerical
ability, general awareness and computer knowledge.
 Candidates who clear this test are called for interview.
 To be eligible to take the specialist officer examination,
you should attain a degree in the specific specialist field.
 For instance, graduates in Agriculture are eligible to apply
for Agriculture Field Officer and graduates in Law can
apply for Law officer

43. COURSES THAT COMPLEMENT CAREERS IN
BANKING
 Indian Institute of Banking and Finance, Mumbai offers Diploma in Banking and
Finance. This course is designed to address the demand for the professionally
qualified manpower for the banking and finance sector
 The course aims at providing knowledge of modern banking environment and
operational processes so that the students are job ready once they complete the
course.
 The institute offers several distance mode courses in specialised areas. It also
supports learning through contact classes, virtual classes, e-learning through
portals etc.
 Another course that can improve your prospects in the banking sector is MBA in
Banking.
 The programme, MBA Banking, imparts knowledge of financial and strategic
management of banks. Through this course, you will learn about international
financial services that have direct impact on the banking practice.

44. CERTIFICATIONS
 AMFI
 IRDA
 Certified Trade Finance Professional
 Certificate in International Trade and
Finance (CITF)
 JAIIB, CAIIB
 Certificate in Treasury Management (CTM)
 Certificate Course in Foreign Exchange

45. INSTITUTES THAT OFFER MANAGEMENT
PROGRAMMES RELATED TO BANKING:
ICC Academy by International Chamber
of Commerce
IIBF- Indian Institute of Banking and
Finance
ICAI -The Institute of Chartered
Accountants of India

46. CONCLUSION
The BANKING sector in India has become stronger in terms of
capital and the number of customers. It has become globally
competitive and diverse aiming, at higher productivity and
efficiency.
Exposure to worldwide competition and deregulation in
Indian financial sector has led to the emergence of better
quality products and services. Reforms have changed the
face of Indian banking and finance. The banking sector has
Improved manifolds in terms of Technology, Deregulation,
Product & Services, Information Systems, Etc
“With new opportunities unfolding Banking Sector, India
is emerging as a global power in banking services in the
next two decade."

47. LIPIKA SHARMA
Email : ast.lipika@gmail.com
LinkedIn : www.linkedin.com/in/lipikasharma
Twitter: @erlipika
Blog : refulgentlipika.blogspot.in