Future Direction  of Indian Banking and

Career Opportunities in Banking Sector

By

M.V Tanksale,CE,IBA

Market Share

Indian Banking- Players

Public Sector Banks 27

Private Sector Banks 23

Foreign Banks 46

RRBs 56

Co-op Banks UCBs 55Rural credit societies (in 000s)

Differentiated Banks Yet to be operational

Payment Banks 11

Small Banks 10

Indian Banking- FactsChannels & Outlets Penetration

Bank Deposit 68% of GDP. Stood at

₹91 lakh Crs

Bank Credit 52% of GDP.

Stood at ₹ 68 lakh Crs.

Investments stood at ₹ 26 lakh Crs.

Population per Branch = 10,800

Indian Banking- Exposure

Challenges

• Risk Management – Credit/Market/Operational Risks.

• Capital to meet the growing needs of the country and Basel III. •Stressed Assets and Management of NPAs

• People – Specialized and skilled staff. HRM Management.

• Differentiated Banks and adjustments in the Banking Landscape.

• Robustness of the system to detect fraud and money laundering. • Leveraging technology to improve the productivity.

• Technological Devts – Disruptive Innovations – Fintech/E-Commerce,etc .

Opportunities

Upward growth of the Indian Economy in the next 3-5 Years.

Greater Demand for Skilled & Talented personnel particularly

Banking, Financial Services and Insurance Sector.

Analytical Skills , logical bent of mind with forecasting abilities, the ability to investigate or translate numeric or fiscal information to trends, awareness of economic or financial scenarios are imperative to excel in a career of finance.

Para Banking Activities –Insurance, Mutual Funds and Pension products of third parties . Cross Selling of Products. Fee Income of Banks.

Exposure in all verticals Corporate, retail , treasury, Agriculture etc

Opportunities Public Sector Banks have presence in all geographic regions

of the country, have good branch network, hence sufficient

exposure in all geographic regions.

Private banks offer equally competitive exposure.

Challenging opportunities in all verticals of the Indian Banking Sector

Corporate Segment Retail Segment, Priority Sector Educational Sector SME Segment Specialised Areas like Treasury Risk Management, Economic Research HR Management Parabanking Activities

Scope for innovation and opportunities to move up in career for

Management Students in Financial Sector.

Financial Inclusion• India has 6 lakh unbanked villages.

• Bank-led Financial Inclusion -Flagship Programme of the Government – PMJDY

• Pradhan Mantri Jan Dhan Yojana successfully accomplished. 19.34 crores accounts opened. ₹ 26,956 crore deposits mobilised.

• Pradhan Mantri Jan Suraksha yojana launched . Aims to offer insurance and pension services to the masses. 9.17 crs Suraksha Bima Policies and 2.86 crores Jeevan Jyoti Bima Policies opened.

• Direct Benefit Transfer already in vogue. All subsidy payments are routed through bank accounts.

• For KYC- Aadhar is being used.

8

ROLE & RESPONSIBILITY ROLE & RESPONSIBILITY OF FUTURE BUSINESS OF FUTURE BUSINESS

LEADERSLEADERS What does Business School contributes?

Business Schools create Entrepreneurs & Leaders.

What is expected of MBAs of Business School?

What would be our role in shaping our world?

What kind of a generation of leaders will it take to tackle problems of inclusive growth, sustainable growth amidst challenges posed by uncertainties of several kinds-

Economic uncertainty

Political uncertainty

Environmental uncertainty

ROLE & RESPONSIBILITY ROLE & RESPONSIBILITY OF FUTURE BUSINESS OF FUTURE BUSINESS

LEADERSLEADERS India Needs Entrepreneurs Management Students To Choose Between Consultancy

And Entrepreneurship

Banks To Supplement With Finance/Capital

Bring Best Global Practices

Good Governance

Business Ethics & Values

Public Banks and Private Banks are equal in terms of opportunity, but competition within the bank is pronounced in

Private than in Public.

Young people are fit to invent than to judge; fit for execution than for counsel; and fit for new ideas than for clichés.

SUCCESS MANTRA FOR A LEADER: For true success ask yourself these four questions; Why? Why not ?Why not me? Why not now?

THANK YOU