A future in the Banking sector – Scope and Opportunities

Indian Banking System has seen significant growth since 2016. The total assets in the banking sector will have increased to US$ 2.67 trillion in 2022. During the FY16-22, the credit grew at a CAGR of 0.62% and the deposits grew at a CAGR of 10.92% reaching US$ 2.12 trillion by 2022.

This shows that the financial industry is on the raise and bringing with it ample banking career opportunities for freshers and veterans alike.

The banking sector in India is segregated on the basis of shareholding, functions, purpose, geographical location, and Government regulations. The types of banks are – 

  1. Commercial Banks – These are privately owned by an individual, partner, group, or company. The primary purpose of such banks is to accept deposits and grant loans on which they earn profit. They are further divided into foreign banks which have their headquarters in a foreign country but operate as a private entity in India, private sector banks which have majority shareholding by private shareholders, and regional rural banks which are specifically aimed at helping the weaker sections of the society and focus on the agricultural sector.
  2. Public Sector banks – Majority stakes are owned by the government. They have nationalized banks spread across the country. 
  3. Small Finance Banks – They are aimed at helping those sections of society not served by other banks such as unorganized sectors, marginal farmers, or micro industries. 
  4.  Co-operative banks – These banks are formed by a group of people who come together for a common purpose. It is registered under the Cooperative Societies Act, 1912. It is further divided into urban and state cooperative banks. 

The Urban cooperative banks cater to urban and semi-urban areas whereas the state cooperative banks are the apex institutions in the state’s cooperative structure. They are the medium through which the RBI lends to cooperative banks.

Currently, with the digitization of banking activities and mobile banking services, the opportunities for anyone skilled in tech-based banking are growing manifold. The potential careers in the Banking sector are  – 

  • Financial Analyst– A financial analyst monitors a company’s performance, forecasts trends and variations, and reports the organization’s fiscal health. The person also suggests changes in the organization’s capital structure if necessary.
  • Private banker – A wealth manager or a private banker is an advisor to HNIs (High Net Worth Individuals). HNIs may be companies or individuals with a surplus over Rs. 5 crores. The person guides the clients on various investment decisions and assists them in creating a financial plan & portfolio.
  • Banking associate – A banking associate is a person who is the liaison between the bank and the client. He guides the customers on various offerings of the bank and ways to invest in them.
  • Financial Service Consultant – A financial consultant works closely with the client to understand the client’s assets, and guides them with investment or asset management decisions. They are assists clients with estate planning, tax planning, retirement planning, and business and financial planning of an individual.
  • Investment Banker – An investment banker manages larger projects, assesses the risks involved and guides the companies in planning their investments. In investment banking, the banker helps in raising capital and with mergers & acquisitions, mutual funds, hedge funds, corporate restructuring, and debt & equity.
  • Loan Officers – The critical responsibility of a loan officer is to grow the bank’s revenue through increased loan applications. They assess individual portfolios, generate needs in the market, and persuade customers to opt for credit purchases against their credit, debit cards or mortgages for long-term benefits.
  • Auditors – They are responsible for assessing the financial health of any organization or individual. Auditors are expected to check the financial statements for any errors or fraudulent activities. They are certified to declare the insolvency of any unit. 

The Government of India is encouraging the growth of the banking sector by sanctioning advanced infrastructure, continued reforms, and digitization. This is expected to give this sector an impetus, thus creating more employment opportunities.

Gauging this boom in the future, updating yourself through upskilling courses gives the candidates an extra edge over the competition.

MIT School of Distance Education (MITSDE), is an AICTE-approved distance learning institute that understands the current skill gaps in the market, and hence brings to you a holistic approach to imparting necessary skills through Post Graduate Executive Diploma in Banking & Financial Management. The finance & banking course covers the basics of finance, financial modelling, financial markets, mergers and acquisitions, and international finance and hands-on training in the latest tools and techniques.