Banking in India is a sunrise sector and competition has made this sector metamorphose into a robust, strong and well-organised sector contributing to the growth of economy, said Mr R. Venkatraman, General Manager-Credit, Syndicate Bank.
Delivering the Business Line Club lecture “Trends in banking industry” sponsored by Syndicate Bank for the students of Indian Academy School of Management Studies, he said that banking existed in all activities of society and according reports, the sector may offer four to seven lakh job opportunities in the near future.
“For young management graduates, there cannot be a better time than now to enter banking sector and it could be a win-win situation for job aspirants and banks,” Mr Venkatraman noted.
Speaking about the banking scenario in India, he said that the banking sector had successfully weathered the global financial slowdown on the back of robust economy, a stable retail deposit base, prudent regulatory environment, credit quality and better risk management practices.
This was a matter of great pride as many financial institutions in the US, and Europe went bust because they were private enterprises, he remarked.
“The banking has evolved over the years. Earlier, the focus was on mobilising deposits for lending. However, now, they are financial supermarkets offering a host of services,” Mr Venkatraman said.
There existed challenges too. The total business done by the top five Indian banks is approximately equal to 51 per cent of the business done by Bank of China.
Scope for growth
“This means that there is scope for tremendous growth. This will happen when monetisation is channelised through banks and, hence, there is a dire need for banks to focus on outreach programmes as well as activities,” Mr. Venkatraman noted.
The market determines the existence and growth of a financial institution and, hence, it was prudent on part of Indian banks to address various issues including globalisation, advancement of technology, effective corporate governance and so on, he said.
During the interactive session, he told the students that the package for a fresh management graduate would be Rs 40,000 in a private bank and Rs 25,000 in a public sector bank.
“But, don't look at the package. The job profile will be challenging as well as exciting,” Mr. Venkatraman added.
Information on “SyndYuva” and “SyndVidya”, the two products of Syndicate Bank for the youth, and also interbank mobile payment services offered by the bank, was provided to the students.
Dr. Prakash B Nayak, Director, Indian Academy School of Management Studies, was present.