BANKING INDUSTRY Presented By: Ankit Porwal & Team, MBA 1 st SEM

Banking industry (Sector)

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Page 1: Banking industry (Sector)

BANKING INDUSTRYPresented By: Ankit Porwal & Team, MBA 1st SEM

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Evolution of the Indian banking industry classified into 4 phases

PHASE I: Pre-Nationalization phase 1786-1969.

PHASE II: Nationalization of Banks 1969-1991

PHASE III: Advent of Indian financial and

banking sector reform after 1991-2004

PHASE IV: Increased liberalization 2004 onwards

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Phase I – Pre Nationalization

Indian 1st Bank started in 1786

Amalgamation of 3 banks formed

Imperial Bank in 1920.

RBI came into existence in 1935

There were approx 1100 banks (mostly

small banks).

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Phase II- Nationalization

SBI Nationalized in the year 1955

14 Banks were nationalized in 1969

Creation of regional rural banks

Creation of guarantee corporation

7 banks were nationalized in 1980

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Phase III- Advent of Indian financial and banking sector reform after 1991-2004

Many products & facilities in banking sector


Many ATM’s & foreign banks came into picture.

Phone banking, Internet banking introduced.

Banks diversified into many streams like-

Merchant Banking, Mutual funds, Retail Baking,

Factoring, Off-shore Banking , and so on.

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Growth of Banking & GDP Ratio

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Phase IV - liberalization 2004 onwards

Foreign banks had liberalization to have

up to 74% stake in capital

Customization came into existence

Failure of banking in 2008-2009 because

of crisis

Issues & measures taken under


Growth of industry taking place very


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Structure of Banking

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Issues of Banking Industry

Fiscal Uncertainty

NPA’s (Non Performing Assets)

CAMELS Framework

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NPA’s (Non Performing Assets)

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CAMELS Framework

C – Capital Inadequacy

A – Asset Quality Exposure

M – Management & Modernization

E – Earning

L –Liquidity

S –Sensitivity to market risk

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•Skills level especially in sales & marketing, service operation, risk management, IT.

•Presence of more number of smaller banks.

•Growth in asset quality & profitability with other emerging economics banks.

•Banks helps GDP growth & employment.

•Networking, growth branches, ATM’s.

•Strong regulatory rules by central bank.

•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.

•Advancement of Technologies

•Strong asset based would help in bigger growth.

•Increasing risk management expertise.






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Job Profiles for MBA’s

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

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Skills Set Required

Communication Skills Analytical Skills IT Skills – Excel* Convincing Skill Marketing Skill

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Entering to Banking Industry

IBPS (Institute of Banking Personnel Selection) Exam has to be cleared


Age group between 20 to 30 years Must completed degree from recognized


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What are Eligibility criteria? Aggregate score in degree - 60% or more than that even

59.90 will not be rounded off. 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? 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


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How many of you wants to go