Banking - Entry and Training

Banks recruit candidates at 2 levels the officer level and the clerical level. There is an intensive training course for training in the actual work in all of the bank’s departments. Employees are carefully screened and graded during this training period and are assigned to departments for which they are best fitted. The procedure of selection varies for international banks.

Managers/officers/probationary officers/clerks

Most managers start as officers and work their way up to being managers.

Foreign and Private banks - There are two ways of recruitment of officers: Bright candidates are taken on deputation from the parent organization on the basis of merit or campus selections are made at reputed management institutes, e.g., IIMs, Faculty of Management Studies-University of Delhi, Xavier Labour Relations Institute, Jamshedpur, Jamnalal Bajaj Institute of management studies (University of Mumbai). Chartered Accountants from premier firms are also recruited. MBAs have proved to be dynamic finance persons and have the ‘deal maker capability’. This procedure is followed by foreign and private banks.

Investment Banking requires MBAs who have studied the subject as coursework. Certified Investment Banking course is offered by ACIB/ ICFAI University. Courses conducted by National School of Banking, Pune, Indian Institute of Bankers, University of Mumbai are also appropriate.

Reserve Bank of India/State Bank & Associates/Nationalised Bank - The Reserve Bank of India(RBI) is the apex financial institution in India. Its primary role is to monitor and supervise the functioning of commercial banks and the circulation of currency. The Reserve Bank Services Board conducts examinations for selecting personnel for all branches of the the RBI . There are three points of entry into the RBI- the clerical cadres, Grade A officers and Grade B officers. The candidates are tested in general English, numerical aptitude , mental ability and logical reasoning. The entry point for clerical staff is in the cash department as examiners of notes and coins. They can appear for promotional departmental examinations after five years of service. They can then be promoted to Grade A positions. In another promotional examination clerical staff with 9-10 years of service are eligible.

Selection process for the officer cadres of the RBI, SBI and nationalised and commercial banks

Reserve Bank of India- The RBI services Board conducts an entrance examination for class I posts through an All India Exam. Graduate/Postgraduates/CA’s/MBA’s/PhD's in the 21-26-28 year age group are eligible. The examination is in 2 parts. The first phase is a written test comprising of Paper I - General Mental Ability (Objective), Eng.Language, Numerical Aptitude, Reasoning. Phase II has an Essay type paper of English including Comprehension/Precis/Essay etc. Paper II is a paper on Economic and Social problems. The test can be answered in Hindi also (except the English papers). Selected candidates are called for an interview. RBI Board office is located in Mumbai.

Specialised Divisions of RBI-There are 2 departments where candidates from specialised backgrounds are inducted. Department of Statistical Analysis and Computer Services (DESAC) and Department of Economic Analysis and Policy(DEAP).

Department of Statistical Analysis and Computer Services - DESAC is responsible for data compilation and analysis, sample surveys, systems design and programming . These are important functions of this apex institution for which officers in Grade B are inducted through selection made in written test of the post graduate level. The first selection is through a 3 hour objective type subject related paper. The candidates who pass this take a essay type exam on statistical and computer related questions. Selected candidates are interviewed for final appointment.

Eligibility - PG degree in Stats/Mathematical Stats/Mathematical Eco/Econometrics with agg 55% min or post graduates in Maths who have a one year diploma in Stats. Ph.d’s have a better chance for recruitment.

Age - 21- 30 years experienced candidates may get relaxation of maximum 3 years.

Department of Economic Analysis and Policy - DEAP is responsible for analysis, research and policy formulation for the economy in monetary, banking and pricing. It works on factors related to the international financial segments and studies constantly their impact on the Indian economy. In other words it serves as an observer to all banking and economic activities in the country. Grade B officers are inducted through a written examination followed by an interview.



While age requirements are 21- 30 years for this branch the candidates must be post graduates in Economics/ Econometrics/Commerce with a minimum aggregate of 55 %. The written test pattern is the same as described for DESAC the emphasis being Economics.



Other divisions for professional induction is for Civil engineers, fire officers and security officers.

SBI and other nationalised Banks- The Central Recruitment Board (SBI), H/2 Shiv Sagar Estate, Dr. Annie Besant Road, Worli, Mumbai is responsible for selecting Probationer officers for the branches of SBI in all parts of the country. Degree holders in the age group of 18-26 years have to clear a written test and interview. The test is in 2 parts the format being similar to the RBI examination. The test is followed by an interview. Clerical staff is recruited through the regional boards. The eligibility and test format are the same as for PO examination.

Other nationalised banks also advertise in papers as and when they recruit their man power.

Nationalised Commercial Banks- Commercial Banks regularly recruit Probationary Officers (‘PO’). They advertise through their Banking Service Recruitment Boards (‘BSRB’). (Currently a ‘hold up’ for fresh appointments has been announced). The recruitment is carried out by a regional office of BSRB. The regional recruitment system is only a matter of administrative convenience as the selected officers get an all India exposure of work situations. Eligibility is a graduate degree in any discipline and maximum age of 28 years.

Training of probationary officers

The PO has a 2 year stint in the various operations of a bank. PO is required to have experience with sectors dealing with loans, foreign exchange, savings and current accounts and the legal cell. At the end of the first year, an assessment examination is held to increase promotional avenues for the individual. For bank officers each promotion is scaled after due assessment, according to a systematic examination format. Officer can reach peak performance to become even chairman of the concerned bank or equivalent positions by the end of their service.

About the test

The officer cadre examination has two parts : objective and descriptive. The format is the same for RBI/SBI.

Written test- The reasoning test measures problem solving and logical reasoning. Problems in the form of figure designs and drawings are given, and are classified into analogies, etc. The test of English language has test of : grammar, vocabulary, synonyms, antonyms, sentence completion, comprehension, etc. General awareness includes understanding of people as well as events, socio-economic status, environmental and social issues.

The quantitative aptitude test is a measurement for the candidates numerical ability or accuracy in dealing with numbers. The questions range from purely numerical calculations to problems of arithmetical reasoning, graph and table reading, percentage analysis, categorisation and quantitative analysis.

The descriptive section of the paper may be answered in Hindi/English (for BSRB). Comprehending a situation, providing unique observations and analysing is generally the focus in this. A typical sample situation given is that of an observer at a public meeting. The candidate imagines himself as a witness to a large religious meeting, being addressed by a religious leader, in a remote place. He must give various reasons for which different groups have came to the meeting.

Earnings

Private sector

In Client servicing/Customer care Senior Manager may get Rs. 500,000 - Rs. 800,000 per annum. Assistant Manager gets Rs. 250,000 - Rs. 400,000 while juniors may get Rs. 150,000 - Rs. 250,000 per annum.

In Investment Banking

Officers/analysts hold an MBA or a CA qualification and begin generally at a 40,000 salary per month. With multinational firms the scale is even more. With growing responsibilities in senior positions and experience up to 5 years they may earn 8 to 12 lakhs per annum. The top positions with 10 years of experience can get a package of more than 30 lakhs.

Note- Scales may be revised from time to time.