According to the Reserve Bank of India (RBI), India’s banking segment is well-balanced and amply capitalised. The economic and financial situation of Indian economy is in a much better position as compared to other economies around the globe. Credit market and liquidity threat surveys hint that the Indian banks are quite flexible and have survived the global crisis really well.
Indian Banking is currently undergoing through the initiation stage of new banking models such as payments and small finance banks. 11 payment banks are likely to be operative in 2016 and 2017. 10 more small finance banks are also to be initiated. This is all a result of RBI’s new and reformed policies taken in this regard.
There are in all 26 public sector banks, 25 private sector banks, 43 foreign banks, 56 regional rural banks, 1,589 urban co-operative banks and around 93,550 rural co-operative banks besides some co-operative credit institutions. Around 80% of the market is regulated by public-sector banks and the balance chunk is left for the private sector.As per the Standard & Poor’s estimate, the credit growth/improvement in the Indian banking sector would be enhanced to 12-13% in Financial year 2016 from 10% of the 2nd half of the year 2014.
Growth and Opportunities in Banking/Finance Sector
RBI has been empowered by The Banking Laws (Amendment) Bill, being approved in the Parliament in the year 2012, to issue concluding guidelines for the new banking licenses to be given. Also, the Indian Government is contributing to the development of the banking sector notably. It is being assumed that with the upcoming policies of the RBI, the trend of wicked borrowers will come down. As a result, the loan scheme in the economy will be restructured. Banking and Financial Sector includes Insurance sector as well which further comprises of Life Insurance & Health Insurance
Job Trends of Banking/Finance Sector
The banking sector is likely to cater to the needs of around 20 lakh people in the coming 5-10 years. This would be possible because of the efforts done by the RBI, the Government is widening the financial sector in rural areas as well. The Banking and Financial Services Industry (BFSI) is likely to hire somewhere around 8.4 million workforce per annum as per the current growth rate.
The PSU banks are to hire workforce in large chunks (about 7-10 lakhs in the upcoming decade) given the fact that around half of their employees are due to retire in the near future. This sector will be the top job creator in the coming future. Also, as per the ‘Human Resource and Skill Requirements in the Banking, Financial Services & Insurance Sector) Report, the hiring trend is being diverted more towards the contractual type employment, where employees will be bound by a certain period to work with an organisation. This trend is generally achieved through several financial positions like Direct Selling Agents (DSA’s), Insurance Agents, Mutual Fund Consultants, etc.
Also, hiring is not only done directly into banks, but its allied sectors too.
Given the fact that only 30% of the Indian population has bank accounts, top banking companies are ready to explore this opportunity by providing access into the unexploited rural sector of India.
One of the major drawbacks and challenges that India is facing today is increase in the degree of financial exclusion situation. This level is at a very startling position and needs to be dealt with as soon as possible.
Financial Exclusion is a situation where the banking and financial services are not made available to the low-income or no-income group. This is one of the main factors as to why the poor are not being able to come out of the web of poverty.
According to the IBA-BCG survey of banks, the degree of assurance in solving the problem of financial exclusion is very low. New banks are facing a challenge of opening new branches to the tune of 25% in the rural areas, as till now it were only the public sector banks that were taking care of the financial inclusion. At present, the PSU banks have the most number of branches in comparison to any other bank group in the rural and semi-urban areas.
Also, there are other challenges for the sector that include, cut-throat pressures, variation in customer loyalty, strict regulatory scenario and entry of new companies. All these factors are encouraging the existing companies to adapt with the environment and adopt new working models, update operations and improved processes.
The Indian economy is on the initiation stage of several transformation policies that are just about to take place in the near future. Major factors like increased customer confidence, improved inflation condition and positive outlook towards business policies, are likely to build up the economy’s growth and development.
As per the IBA-FICCI-BCG analysis, India’s GDP growth will position the Banking Industry at the 3rd place in the world by 2025.
Advancement of technology is another aspect to be considered in this regard. With mobile and internet banking facilities, the banking and financial sector in India is moving ahead with high-pace.
Near field Communication (NFC) methodology is being used by many banks like, HDFC, ICICI and AXIS to initiate contact-less credit and debit card facilities. This technique will enable the customers to enjoy the services of credit and debit cards without having to swipe or insert the card.
Since, the future scope of the Banking and Financial Industry looks promising, the job opportunities will increase at a magnificent rate.
Top Employers in Banking and Financial Industry
The top recruiters in this sector include; ICICI Bank, HDFC Bank, AXIS Bank, IndusInd Bank, Kotak Mahindra, YES Bank, ING, Standard Chartered, RBS, Deutsche Bank amongst others.