Banking Sector is in great demand these days. Apart from Engineering, Medical, IT etc. students prefer banking as their future career option and strive to excel in that as there are numerous opportunities available for the fresher’s in banks these days. And, this number only seems to be increasing nationwide every day. In this competitive environment today, apart from a will to be at the top, it’s important that we avail and make the best of the opportunity that comes forth. This article provides you with all the information that’s helpful for you to make a decision on the coaching institute and hence, a successful career in the making.You may be a good student academically but in these times it isn’t enough to score an edge competitively. You need that something; something extra so that you start to excel in the first step towards your goal. And, that’s where most of the coaching centers step in and play a major role. They offer you time tested test tips, techniques, strategies, short cut methods, tricks and solve problems effectively and quickly. may not be an answer to your problems as they may lack the potential to deliver what it takes. So, firstly one needs to gather all the apt information about its institute before joining. There are some parameters on the basis of which you can judge the coaching centers. Those parameters are: Reputation of the Institute Experienced and trained faculty members Quality of teaching and correct strategies Success rate Affordable fees structure, etc. The Banking Exams Pattern and Admission Processes are given below 1. Reserve Bank Of India- An All India Exam is conducted for first class posts. RBI examination consists of General Mental Ability Paper and English Proficiency Paper. 2. Foreign/Private Banks: Reputed management institutes like IIMs, University of Bombay, and University of Delhi make the selections. Candidates go through a 3 week orientation program before the 6 month-1 year training, they are made Assistant manager. 3. State Bank and other Nationalized Banks: Written test and Interview for Probationer Officer Selection is made by the Central Recruitment Board (SBI) 4. Nationalized Commercial Banks: Advertising is done through the Banking Service Recruitment Boards (BSRB) Banking Entrance Exam usually involves a selection process that could include a written test and a group discussion/personal interview. Banking sector in India thus comprises of Commercial Banks and Co-operative Banks which conduct the exams for the recruitment of candidates for various positions through advertising in national news papers. Different banks set different eligibility requirements for various posts. Generally graduates from any discipline are eligible for the entry point officer cadre positions in various commercial (public/private sector) banks. For more information about Bank PO Coaching and Clerical Exams, latest information with latest updates on our website. Competition Cell provides best
Liberalization of Indian Banking sector post 1991 led to a shift in banking culture from Class banking to Mass banking. This sector was and will continue to be the backbone of Indian economy. According to RBI, Indian banking industry is now well-regulated and adequately capitalized compared to banks across other developed countries. This has helped them in remaining resilient in the wake of global meltdown and sub-prime crisis.
Increasing presence of foreign banks, heightened competition and rapid technological advancement forced banks to become cost efficient and financially strong. Taking risks is part of a banks core business. They borrow money in the form of deposits and leverage it to lend it to borrowers at a higher rate. Banks therefore need to be highly regulated as even a small liquidity problem can create panic amongst depositors”, further deteriorating liquidity.
Since accepting deposits and providing loans and credit is primary business of a bank, some loans are bound to go bad. Making provisions for such losses on bad debts is therefore important to maintain liquidity. They also carry huge liabilities in the form of customer deposits. The best parameter used to judge a bank is the level of Non-Performing Assets it is carrying on its balance sheet. These are loans that do not pay off their principle amount or interest for at least 90 days. Due to its peculiar nature of business, cash flow statements of banks do not provide much insight into their performance.
Five important factors that investors should judge before investing in a bank are capital adequacy, credit quality, liquidity position, earnings and capital efficiency. Recent sub-prime crisis has highlighted the importance of banks” credit quality.
Banks usually pay-out dividends and are high yielding stocks. Performance of banking stocks on stock markets is directly impacted by overall economy”s health and changes in interest rates announced by RBI. This is reflected on Bankex, the index for banking stocks.
Indian banks are still recovering from the last year”s sub-prime effect and experts believe that several banks are still trading at a much lower price-to-earning ratio compared to the overall market. While public sector banks are shedding their excess flab by pruning manpower and NPAs, private banks are seen consolidating though mergers and acquisitions.
Government”s effort to encourage public sector banks to keep lending during the slowdown is expected to show positive results as soon as the economy shows positive signs. Private Banks played smart by shifting their focus from corporate lending to retail lending to cap their losses. Besides, indications from RBI that it does not plan to increase interest rates any time soon also helped improve investor sentiments about banking stocks. Experts believe that credit off-take will increase around 18% to 22% during the remaining part of this year driven by soaring demand from corporate sector.
The Chennai-based Shriram Group, which is keen to enter the banking space once the RBI issues the final guidelines on the entry of new players, believes it can leverage its 50-lakh customer base across companies for a successful business. Many of our chit fund customers do not have access to banking facilities and we feel they would require banking services like small cash transaction services or remittances. Hence, we are keen to get into the banking space though were awaiting the final guidelines, said Arun Duggal, chairman, Shriram Capital Trust. India Infoline in its report on SCUF sources over 90% of its business through the groups large chit fund infrastructure. SCUF benefits from low competitive intensity in its core geographic areas (Tamil Nadu and Andhra Pradesh) and product niches (two wheelers, used auto/CV, gold, small business and ). According to sources, Shriram Group is considered to be a strong contender for the banking licence. There are over half a dozen corporate houses keen to enter the banking space but the RBI is expected to cap number of new bank licences at four. At present, Shriram Group is present in the financial services space through its various subsidiaries that offer commercial vehicle financing, life insurance, consumer and small businesses financing, retail broking and chit fund business. Shriram Capital Trust is the holding company of Shriram Group. The beneficiaries of the Trust are the employees of Shriram Group. It is a unique ownership structure with an employee stock option and partnership, said Duggal. Shriram Chits has a turn over Rs 2,500 crore, 465 branches and 5,000 employees. Shriram Chits operates in four states Tamil Nadu, Andhra Pradesh, Karnataka and Maharashtra. The Group is also looking to grow its consumer and small businesses financing subsidiary, Shriram City Union Finance (SCUF), to enter the business. We will roll out the Shriram City Union branches in other states like Maharashtra and Gujarat. We will be entering the housing finance business once we receive the National Housing Bank approval, added Duggal.