Banking industry (Sector)
Post on 16-Nov-2014
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BANKING INDUSTRYPresented By: Ankit Porwal & Team, MBA 1st SEM
HISTORY OF BANKING
Evolution of the Indian banking industry classified into 4 phases
PHASE I: Pre-Nationalization phase 1786-1969.
PHASE II: Nationalization of Banks 1969-1991
PHASE III: Advent of Indian financial and
banking sector reform after 1991-2004
PHASE IV: Increased liberalization 2004 onwards
Phase I – Pre Nationalization
Indian 1st Bank started in 1786
Amalgamation of 3 banks formed
Imperial Bank in 1920.
RBI came into existence in 1935
There were approx 1100 banks (mostly
small banks).
Phase II- Nationalization
SBI Nationalized in the year 1955
14 Banks were nationalized in 1969
Creation of regional rural banks
Creation of guarantee corporation
7 banks were nationalized in 1980
Phase III- Advent of Indian financial and banking sector reform after 1991-2004
Many products & facilities in banking sector
introduced.
Many ATM’s & foreign banks came into picture.
Phone banking, Internet banking introduced.
Banks diversified into many streams like-
Merchant Banking, Mutual funds, Retail Baking,
Factoring, Off-shore Banking , and so on.
Growth of Banking & GDP Ratio
Phase IV - liberalization 2004 onwards
Foreign banks had liberalization to have
up to 74% stake in capital
Customization came into existence
Failure of banking in 2008-2009 because
of crisis
Issues & measures taken under
consideration
Growth of industry taking place very
fast.
Structure of Banking
Issues of Banking Industry
Fiscal Uncertainty
NPA’s (Non Performing Assets)
CAMELS Framework
NPA’s (Non Performing Assets)
CAMELS Framework
C – Capital Inadequacy
A – Asset Quality Exposure
M – Management & Modernization
E – Earning
L –Liquidity
S –Sensitivity to market risk
•Skills level especially in sales & marketing, service operation, risk management, IT.
•Presence of more number of smaller banks.
•Growth in asset quality & profitability with other emerging economics banks.
•Banks helps GDP growth & employment.
•Networking, growth branches, ATM’s.
•Strong regulatory rules by central bank.
•Huge investment in technologies
•Inability to meet the additional capital requirement.
•Loss of capital to the entire banking system, due to M&A.
•Rise in inflation figures which would lead to increase in interest rates.
•Advancement of Technologies
•Strong asset based would help in bigger growth.
•Increasing risk management expertise.
STRENGTH
WEAKNESS
OPPORTU-
-NITIESTREATHS
S W O T
Job Profiles for MBA’s
Credit Risk Analysis Banking Development Relationship Managers Mortgage Banking Investment Banking (IPO, M&A, Underwriting) Corporate Credit- Credit Appraisal Foreign Exchange Consultant Business Development Executive – Marketing Operations Department
Skills Set Required
Communication Skills Analytical Skills IT Skills – Excel* Convincing Skill Marketing Skill
Entering to Banking Industry
IBPS (Institute of Banking Personnel Selection) Exam has to be cleared
Requirement:
Age group between 20 to 30 years Must completed degree from recognized
university
FAQ’s
What are Eligibility criteria? Aggregate score in degree - 60% or more than that even
59.90 will not be rounded off. What is the age range for bank jobs?
For post of Clerks – 18 to 28 years. Fro post of PO/Officer – 21 to 30 years.
Is MBA is necessary? No, Minimum eligibility would be a degree that to from
recognized university. Does all bank exams have negative marking
scheme? Yes, because to reduce the number of applications for the
job.
THANK YOU FOR YOUR KIND
ATTENTION..
QUERIES WELCOME..
How many of you wants to go
in BANKING INDUSTRY..??
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