Make a career in Banking

Software entrepreneur Roshan’s liquid assets are worth Rs. 5 crores. This makes him a High Net Worth (HNI) individual, entitled to privileged banking services at his bank, a prominent private sector bank in India. His account is managed by Wealth Manager Sachin Khare* whose job it is to ensure that Roshan’s assets stay safe, and further more, grow.

This he does by strategising for and advising his client on his investment options and tax-planning. Taking into account Roshan’s financial goals, Sachin will draw up a financial plan for him, working with his distinct asset class such as equities, real estate, fixed income and others, and provide taxation, legal and risk management advice.

A decade ago such a job profile position may not have even existed in India! This is because for a long time, banking was a public sector affair, wherein the canvas was staid with limited job opportunities and jobs mostly at Grade 4 levels i.e. as a clerk or a teller, and of course, the more prestigious Probationary Officers positions.

One entered the bank at either of these two levels and spent entire careers in the same bank. Enterprising candidates moved to development banking institutions like ICICI, IFCI or IDBI, which focused on funding large projects.

But with liberalisation and entry of private banks, the scenario changed. Banking became the fulcrum of economic growth, and diverse segments like treasury, wealth management, retail banking, commodity futures and options, and cash management services came into being. The nature of banking too as changed. ATMs, credit cards, tele, mobile and net banking services have made banking easier and cost-effective for the urban populace (See table – Explore The Banking Landscape ). These new verticals are drawing a large number of working professionals.

For example, with the unprecedented growth in corporate income and a corresponding increase in income, wealth management as a segment is leading to ample job opportunities in banks. “For wealth management providers India continues to be an important market,” says Atul Singh, Head, Merrill Lynch. According to Merrill Lynch Global Wealth Management and Capgemini Annual World Wealth Report, June 2010, the High Net Worth Individuals  (HNI) population in India grew 50.9 percent in 2009.

The verticals
It was in 1969, that banks were nationalised under the Banking Companies (Acquisition and Transfer of Undertaking) Bill. The early 1990s saw opening of a few private banks. Another milestone in the banking industry came in 2004 when Foreign Direct Investment (FDI) was increased to up to 74 percent. The FDI relaxation gave a major boost to the sector, creating unprecedented job opportunities.

A commercial Bank, like YES BANK for instance, has a wide-ranging bouquet of products. “We offer corporate, retail and SME banking across business lines like financial markets, investment banking, corporate finance, branch banking among host of others,” says Deodutta Kurane, President, Human Capital Management, YES BANK. 

The verticals are supported by three functions: sales and marketing (new business generation, relationship management), operations (customer service, risk management, branch operation) and support functions (HR, legal, IT, Audit).

 The operations division generates maximum employment opportunities. A major percentage of employees, 55-60 percent, are employed in Operations, states JMaCS Analysis.

How to get in
The largest entry point still is the competitive examinations banks conduct for both clerical level entry and the probationary officers (PO) exams. The PO is equivalent to the management trainee’s position in the corporation. Normally banks put a fresh MBA through a two-year period wherein the candidate spends an equal amount of time on all aspects of banking. In most banks the CEOs are invariably from the PO ranks. For  example, K. Vaman Kamath , Chairman, ICICI Bank Ltd., began as a probationary officer.

Of late, the private and now even State Banks, scout for talent from B-Schools such as the IIMs, ISB, XLRI, MDI, SP Jain, IIFT and other A-category schools. A significant number of fresh recruitments are for relationship segments in Operations, hired for business units like Institutional banking, commercial and corporate banking. Banks also recruit fresh talent off-campus and generally use channels like direct applications, job referrals and search firms. Yes Bank prefers candidates with work experience. “Our experienced to fresher hiring ratio is 4:1, respectively,” says Deodutta.

Career progression
A fresh MBA usually starts as manager (sales/ operations) and moves on to specialised roles like managing or heading verticals at a bank. Graduates with up to two years of work experience work as Assistant Manager (sales) or (operations) in sales, customer service and desk operations. With 5-7 years of experience, some occupy senior managerial positions, before scaling to VP designation when 10 plus years of work experience has been acquired. Skilled category professionals like CA, CS, and CWAs usually work in departments like treasury, credit, risk and corporate banking. Some with exceptional skills also move into investment banking.

Those who are not interested in working for a bank or other financial institution can seek out opportunities in outsourcing companies. According to Indian Banking Association (IBA), the banking industry’s outsourcing size is Rs 4.08 billion and is expected to grow further, generating significant employment opportunities.

From high-risk spot and futures trading to teller functions, banking has a job to suit diverse careers360_cmseraments. All one needs is a flair for numbers and good interpersonal skills.  

Deodutta Kurane EXPERT TALK: “An analytical bent of mind gives you the edge”   Deodutta Kurane, President, Human Capital Management, YES BANK shares with Urmila Rao what the bank seeks in a new recruit. Q: What are the function areas for which recruitments are done off-campus and what is the medium used? A:  A majority of our lateral hiring for all functions takes place off campus. The media used are direct applications, job referrals, and internal job postings for specific positions/locations and selective search through leading search firms. We also provide internal job rotation opportunities to high performing/high potential executives for select functions/roles in the bank. Q: How many campus recruitments were done in 2009? A: Last year YES BANK hired a total of 150 executives for product functions like transaction banking group, financial markets and commercial banking. The other verticals where a significant number of students were hired were risk management, branch banking and operations and service delivery. Q: What qualities do you broadly look for in a candidate while hiring? A: YES BANK primarily aims at acquiring candidates who have completed their two years full-time MBA programmes. Candidates with a work experience in a Banking/NBFCs/ITES industry are preferred over freshers. We primarily focus on students who possess a strong academic background and an analytical frame of mind. Being good with numbers and a sound knowledge about the banking industry along with comprehensive knowledge about YES BANK is a standard requirement.

EXPLORING THE BANKING LANDSCAPE CONSUMER BANK