Banking industry (Sector)
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- 1. BANKING INDUSTRY Presented By: Ankit Porwal & Team, MBA 1st SEM
2. HISTORY OF BANKING Evolution of the Indian banking industry classified into 4 phases PHASEI: Pre-Nationalization phase 1786-1969. PHASEII: Nationalization of Banks 1969-1991 PHASEIII: Advent of Indian financial and bankingsector reform after 1991-2004 PHASEIV: Increased liberalization 2004 onwards 3. Phase I Pre Nationalization Indian 1st Bank started in 1786Amalgamation of 3 banks formed Imperial Bank in 1920.RBI came into existence in 1935There were approx 1100 banks (mostly small banks). 4. Phase II- Nationalization SBI Nationalized in the year 195514 Banks were nationalized in 1969Creation of regional rural banksCreation of guarantee corporation7 banks were nationalized in 1980 5. Phase III- Advent of Indian financial and banking sector reform after 1991-2004 Many products & facilities in banking sectorintroduced. Many ATMs & foreign banks came into picture.Phone banking, Internet banking introduced.Banks diversified into many streams likeMerchant Banking, Mutual funds, Retail Baking, Factoring, Off-shore Banking , and so on. 6. Growth of Banking & GDP Ratio 7. Phase IV - liberalization 2004 onwards Foreign banks had liberalization to have up to 74% stake in capitalCustomization came into existenceFailure of banking in 2008-2009 because of crisisIssues & measures taken under considerationGrowth of industry taking place very fast. 8. Structure of Banking 9. Issues of Banking Industry Fiscal UncertaintyNPAs (Non Performing Assets)CAMELS Framework 10. NPAs (Non Performing Assets) 11. CAMELS Framework C Capital InadequacyA Asset Quality ExposureM Management & ModernizationE EarningLLiquiditySSensitivity to market risk 12. Growth in asset quality & profitability with other emerging economics banks. Banks helps GDP growth & employment.Skills level especially in sales & marketing, service operation, risk management, IT.Networking, growth branches, ATMs.Presence of more number of smaller banks.Strong regulatory rules by central STRENGT bank. HSWOPPORTU -NITIES Advancement of Technologies Strong asset based would help in bigger growth. Increasing risk management expertise.WEAKNE SSOTTREATHS 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. 13. Job Profiles for MBAs 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 14. Skills Set Required Communication Skills Analytical Skills IT Skills Excel* Convincing Skill Marketing Skill 15. Entering to Banking Industry IBPS (Institute of Banking Personnel Selection) Exam has to be cleared Requirement: Agegroup between 20 to 30 years Must completed degree from recognized university 16. FAQs What are Eligibility criteria? 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? Aggregate score in degree - 60% or more than that even 59.90 will not be rounded off.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. 17. THANK YOU FOR YOUR KIND ATTENTION.. 18. QUERIES WELCOME.. 19. How many of you wants to go in BANKING INDUSTRY..??