Banking is the backbone of and the catalyst for the holistic development of the economy. Mobilising household savings and channelising this capital formation for the creation of productive assets and financing of infrastructure projects is only a part of the multifarious critical roles played by banks.
The composition of the banking industry in India and the spread of players is massive – 26 public sector banks, 20 private sectors banks, 43 foreign banks, 56 regional rural banks, 1589 urban cooperative banks and 93,550 other cooperative banks plus cooperative institutions.
With the union government nudging banks in the direction of mergers and consolidation, it is only a matter of time before global sized banks emerge in India. The banking sector’s assets are closing in on Rs. 140 trillion (equivalent to approximately USD 2 trillion) and the growth trends are positive.
Initiatives of RBI/GoI
Policy and schematic initiatives launched by the Reserve Bank of India (RBI) and the Government of India (GoI) have spurred interest and ramped up growth expectations in the banking sector. RBI has announced the grant of in-principle licences to 10 applicants to open small finance banks and 11 applicants to open payments banks. The Pradhan Mantri Jan Dhan Yojana (PMJDY) has witnessed the opening of 210 million no-frills accounts and the issue of 174.6 million RuPay debit cards.
The implications for deposit mobilization and consequential deployment of funds for lending are simply mind-boggling. Complementing the deposit side initiatives, the GoI almost concurrently unveiled the Micro Units Development & Refinance Agency (MUDRA) Ltd. to refinance resources of banks for advances of up to Rs.10.00 lakh to micro-entrepreneurs.
The ‘Make in India’ initiative is one more GoI brainchild that encourages project and equipment investment affording more avenues to banks for remunerative lending activities. The growth of the banking sector and that of the economy are closely intertwined.
The Visible Future
The measures taken by the RBI and GoI have presented all banks with a golden opportunity to partner in the vibrancy and positivity that is emerging in the economy. India is regarded as one of the bright spots in the global economy and nearly every foreign investor is looking for a slice of the pie.
The headroom for supersonic growth in the industry is tremendous – only 57% of Indians have a savings bank account, only 13% have debit cards and only 2% have credit cards. With the economy slated to grow at more than 7.7% per annum for the next 5 years, and the burgeoning upwardly mobile middle-class demand for home, vehicle and consumption loans showing a steady increase, the prospects for credit deployment are bright.
The Human Factor
To capitalize on these opportunities, the best banks are looking for exceptional, professionally qualified, knowledgeable, forward-thinking talent, with passion and analytical skills, who can meet uncompromisingly high standards in deliverables with consistency. During the current year 2017-17 itself, it is estimated that around 450,000 posts will be filled by the banking industry. The next 5 years are likely to see an addition of another 2 million to the workforce in the industry. The banking industry in India is poised to achieve the rank of 5th largest worldwide by 2020 and the third largest by 2025.
Historically, generalist and probationary officers have served the banks well but banking is dynamic and constantly evolving. With the introduction of the structure of verticals, the concept of transfer pricing leading to the profit centre approach, and the increasing complexity of deposit and credit structures, banks have redefined their manpower assessments and opted for a specialist approach.
While skill building and sharpening continue to be priorities for the industry, at the appointment stage banks look for human resources who are battle ready. For knowledgeable, ambitious, career builders with the right skills sets, the sky’s the limit. Banking is not rocket science, and whatever be your academic background, you can acquire banking knowledge related to accounts, finance, IT, communication skills, and people management.
All that you need is to secure admission to TKWs Fellowship Program in Banking and Finance, a course that is designed by industry professionals, rich in theoretical and experiential learning, fine tunes students’ soft skills, and imparts classroom knowledge through faculty who are banking veterans and doyens of the industry.
Marshal Foch, a World War I General said: “Don’t tell me that the problem is a difficult one. If it were not difficult, it would not be a problem”. TKWs Fellowship Program encourages positive attitudes that visualize situations, no matter how complex, not as problems but as challenges and opportunities.
The banking sector in India is all set to enter into a brave new world where it is recognized as a powerhouse in the international arena. With the explosion of the banking sector, your personal career graph could reach for the sky. You just need to get ready. Reading the tea leaves, all that we can say is – right now is the best time to swap your current job for a high growth banking career.