Career in Banking: Trends & Selection Process for Banking Jobs

By Devendra Singh

The current scenario, is witnessing great euphoria for banking jobs among jobseekers. The major reason being the attraction for a white-collar job with a reputed organisation and a potential for career growth. With RBI giving licenses to new banks and vigorous expansion plans of existing network of banks, the sector is certainly gaining a lot of traction and is a lucrative career option for many.

The Public sector banks in India employ approximately seven lakh people. A large percentage of the current employees belong to the retirement age bracket. In order to fill the gap and execute major expansion and business plans, banks are on a recruiting spree through various mediums and recruiting activities. As per the latest numbers, about 40,000 vacancies have been created in public sector banks due to retirements, resignations and expansions. The next two years are expected to witness recruitment of about 5-7 lakh people in private sector, owing to the issuance of new licences and efforts being made by the RBI and the Government to expand financial services into rural areas.

In India, about 5 million students graduate every year including 1.5 million Engineers who have no skills or attributes required for banking. These students need skill based training & grooming to increase their chances of being absorbed by banks. For public sector banks, IBPS is organising a selection process for various categories like Clerk, Probationary officers/Management trainees, Technical officers etc. The IBPS initiative is a three tier process: preliminary examination followed by final examination and interview. Millions of candidates apply for the same every year, which is considered to be one of the toughest selection processes.

There are a number of training institutes which cater entry level job opportunities in private sector banks. These organisations provide skill based training to its candidates. In addition to the courses offered, these institutes also have tie-up with a number of Banks/NBFC to provide job opportunities for enrolled candidates.

Graduation years are considered to be the most apt phase for laying down the foundation of a banking career. Fresh graduates with a positive attitude, professionalism, confidence and good communication skills are always preferred during bank recruitments. Most employers look for various qualities while considering a particular person for a specific job post such as general skills like communication, teamwork, problem solving, numerical ability, leadership, adaptability, creativity, MS Office etc. A candidate can increase his or her employability by opting for NISM certifications. The most popular certifications are the following:

NISM Module V-A: The certification is related to Mutual Funds and provides the candidate with expanded knowledge of Mutual Funds and different schemes thereof.

NISM Module VI: The certification is related to depository operation and is mandatory for Demat services.

The current banking job scenario is not limited only to a commerce graduate. Students from Arts and Science streams with at least 50% aggregate can also apply for banking jobs. However, the graduation degree should not be through distance learning/correspondence; there should not be any unjustified gap and the university must be recognised by UGC. There has been a substantial increase in the number of graduates who lack appropriate/job-ready skills leading to a wide gap between knowledge gained through formal education and industry expectations.

The working trends in banks have witnessed a paradigm shift over the last one and a half decades. Owing to the digital and technology era, bank employees no longer have to update ledgers, passbooks, make payments or accept deposits manually. Banks are now concentrating on relationship building with their customers, where they get into advisory role of understanding the customer’s financial need and providing solutions accordingly. Therefore, bank employees are imperative to have adequate knowledge of investment products and financial mathematics to understand the customer’s requirements and offer a product which suits them best. These activities also help in generating commission income for the banks, resulting in a demand for trained manpower. The remuneration is not a constraint for the right candidate.

Devendra Singh

About the Author:

Devendra Singh is a PGDBM subject matter expert with Times Centre for Learning Ltd. (TimesPro).