Future Direction of Indian Banking and Career Opportunities in Banking Sector By M.V Tanksale,CE,IBA

Market Share Indian Banking- Players Public Sector Banks27 Private Sector Banks23 Foreign Banks46 RRBs56 Co-op Banks UCBs 55 Rural credit societies (in 000s) Differentiated BanksYet to be operational Payment Banks11 Small Banks10

Indian Banking- Facts Channels & 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 crores accounts opened. 26,956 crore deposits mobilised. Pradhan Mantri Jan Suraksha yojana launched. Aims to offer insurance and pension services to the masses 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 OF FUTURE BUSINESS LEADERS 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 OF FUTURE BUSINESS LEADERS 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?

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