Career in Banking Sector

Banking is one of the most required after career option between the students. It is an entry into a well paid, secure and status career. These jobs are meant for commerce/economics students but the fact is that majority of bank officers are from different streams of education. Now appointing management graduates, CAs and CFAs but bright graduates from any subject can get entry in the Public sector Banks through an “All India Examination” conducted by them. Now banks are in the mutual funds, securitization business credit cards, and consumer loans, housing loans, housing loans besides trading in gold and forex activities.

Generally banks look for good communication skills, good interpersonal skills, and the ability to deal with customers, an alert nature, and basic knowledge of the industry. Good computer knowledge is always preferred.

There is a growing need for better and better banking facilities due to international trade and industrial liberalization which have contributed a lot to the change in the banking environment. All this has created an increase in opportunities in banking jobs and a requirement for people with marketing and technological skills apart from financial background.

There are various different levels at which a person can join the bank namely clerk, a Grade I officer, a Grade II officer or as a manager.

A good banker is a person who has a well-organized mind with an eye for detail. It helps in maintenance of records accurately and neatly. The person should have a mathematical aptitude. Employees joining as officers should be able to lead, motivate and manage the bank staff. Good verbal and written communication skills help in effective interaction with the clients as well as the staff. Integrity and honesty play a major role in all dealings related to money, staff and clients. A person responsible for foreign exchange transactions needs to have a sharp, quick and analytical mind.

There are front office personnel in all banks, and then there are supervisors who handle most back office operations like completion of transactions, general ledger work, and overall supervision. Banks are now offering good salary packages.

State Bank of India is the top commercial bank of the country. The Private sector with the entry of new banks mostly promoted by the major Financial Institutions like IDBI, ICICI etc has provided competition to both Public sector and Foreign Banks. They are more technology know-how and offer better salaries than Public sector Banks. Unlike public sector banks, the promotional avenues are not time-bound.

Foreign Banks are the most sought after due to their salary packages comparable to the best in the country and better job profiles. Public sector Banks recruit mainly graduates at the entry level on the basis of All India Level examination. However professionals like engineers, doctors, technologists, lawyers, ex-defence officers etc are recruited on senior positions through All India tests.

Private sector/Foreign Banks prefer to take MBA’s, CA’s etc at junior positions through Campus recruitment and interviews. However, at the senior positions they opt for experienced bankers. Thus the officers from Public sector Banks become the natural choice for such positions. Thus job-hopping has become a well-accepted norm in the Industry.

Therefore joining a Public sector Bank as Probationary Officer (Direct Officer) on the basis All India exam has become a stepping stone for the career growth in the Banking Industry.

Selection procedure for RBI

The Reserve Bank of India (RBI) is the topmost financial institution in India which makes all the policies and regulations for the other banks. It conducts tests for three types of entry level positions:

• Clerical grade
• Grade I officers
• Grade II officers

The entry point for clerical staff is in the cash department as examiners of coins and notes. They are promoted to the next grade when they successfully clear the relevant examinations after 5-10 years of service.

There is an All India Exam conducted for class I posts. Graduates, Post Graduates, CA’s, MBA’s in the 21-26 years of age group are eligible.

The candidates are tested in

• Logical Reasoning,
• Mental Ability,
• Numerical Aptitude
•  General English

The examination is in parts.

Paper I is a written test comprising of General Mental Ability (Objective type).

Paper II is a subjective one which has English Essays/Comprehension/Precise writing etc.

Paper III is on Economics and Social problems.

Selected candidates are shortlisted for an interview which forms the basis for the final selection.

Selection procedure for other nationalized banks

 Anyone in the age group of 18-26 years having a degree is eligible for appearing in the written test. The format of the test is similar to the RBI examination. Test is followed by an interview. Clerical staff gets recruited through regional boards. The eligibility and test format are the same as for PO examination.

Selection procedure for nationalized

commercial banks

Commercial banks regularly advertise through their Banking Service Recruitment Board (BSRB) to recruit Probationary Officers (‘PO’). Each region has its own BSRB which carries out the recruitment. Eligibility is a graduate in any discipline with an upper age limit of 28 years.

Information about the examination

The office grade examination has 2 parts – objective and subjective.

Written Test

 The test of reasoning judges the analytical and problem solving skills of the candidate. The English language test focuses on the grammar, synonyms, antonyms, vocabulary etc. General awareness tests the understanding of environmental and social issues, people and events etc.

The quantitative aptitude test measures the numerical ability and accuracy in mathematical calculations. The questions range from purely numeric calculations to problems of arithmetic reasoning, graph and table reading, percentage analysis, categorization and quantitative analysis.

The subjective part of the paper typically involves imagining oneself in a situation such as observer in a public meeting. One has to then comprehend the situation, provide unique observations and analysis.

Interviews

Selection in the interview is based on the knowledge of the subject of study, personality and awareness. Candidate’s communication skills and leadership qualities are judged during the interview. Typically 30% of the candidates get selected after the interview.