Banking industry (Sector)

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..??