What is Bank Management ?
The banking industry is undergoing a rapid transformation world wide propelled by two major factors : global convergence of financial services and information technology. The traditional distinctions between banking and other financial services like insurance on one side; and between commercial banking, developmental banking and investment banking are getting blurred. The emergence of universal banking and bancassurance (provision of insurance) are clear pointers. This global convergence of financial services may gather further momentum in the years to come. The power of information technology is driving the banking industry as never before, leading to faster, better and cheaper banking services, forcing new opportunities and challenges in the 21st century.
The scale and the scope of banking need to be global to be viable. Consequently risk management, on a global scale, becomes very critical. A big bank can be destroyed by a single rogue trader, the recent example being Société Générale of France. Global reputation can be sullied by unethical practices in one small corner. The concept of universal banking is under severe scrutiny, particularly in the context of conflict of interest between corporate banking and investment banking. Ethics and governance have become the key issues for survival and sustainable growth.
Thus, we realize that technology is changing how we deliver our products and that the customer, not the bank, now dictates those delivery channels. Hence the increasing demand for bright, talented and qualified bank management teams.
What do I have to do ?
Banking managers direct bank branches and departments, resolve customers’ problems, ensure that standards of service are maintained, and administer the institutions’ operations and investments. Bank managers also play a major role in bringing in new business and spend much of their time developing relationships with potential customers. The manager’s job involves organizing, controlling and supervising banking activities or holding overall charge of one or more departments or branches.
Activities at the head office centre on banking development and control. Officers here devise and implement new schemes to expand business. They are responsible for domestic operations, which involves keeping in touch with the bank’s branches.
In a branch, Bank managers are accountable for running the branch, managing their staff and generating profits. Managers need to acquaint themselves with regions, which are in their charge, the types of customers they are catering to and the services they will require.
Some banking institutions develop management systems using the information supplied by the existing “production” information system. The new system integrates a datawarehouse and synthesizes information for bank’s commercial, marketing and management divisions.
What should I study ?
You should have completed your BA/B.Sc/ B.Com. degree in any discipline from a recognized university. Graduates in engineering, computer sciences or law, chartered or cost accountants, or PG management diploma holders are eligible. Foreign banks take in MBAs from premier management institutes, or CAs with above average results.
What are the prospects ?
In most professional organizations, the senior managers are usually trained in management areas. There are more opportunities for management trained personnel than for almost any other functional qualification. The MBA Programme with its general management focus, and the blend of Indian and International perspective is the key competitive advantage as you enter the fiercely competitive business environment. It will help you move ahead and allow you accelerated access to senior management positions.
Banking managers find employment in various private sector banks like HDFC, IDBI, HSBC, ICICI, Centurion, Axis Bank etc.; in various multi national banks like Citibank, American Express Bank, ABN-AMRO Bank, Standard Chartered Bank, etc. You can also find opportunities in public sector and nationalised banks like the State Bank of India, Bank of Baroda, Allahabad Bank, Bank of Maharashtra, Central Bank of India, Canara Bank, etc.
Banking professionals are also in demand in various co-operative banks and in speciality banks like the National Bank for Agriculture and Rural Development (NABARD), Gramin Banks, SIDBI and so on. They can also work in regulatory banking authorities like the Reserve Bank of India and its regional branches.
Banking management professionals can also consider careers in banking and finance related consultancies.
Where should I study ?
The following institutes / colleges offer courses in Bank Management :-
National Institute of Bank Management, Kondhwe Khurd, NIBM P.O.,
Pune – 411 048, Website – www.nibmindia.org
Course: P.G. Programme in Banking and Finance
Indian Institute of Banking and Finance, “The Arcade”, Tower 4, 2nd Floor, World Trade Centre, Cuffe Parade, Mumbai – 400 005
Website – www.iibf.org.in
Course: Diploma in Banking and Finance
Indira Gandhi Open University, School of Management Studies
Maidan Garhi, New Delhi – 110068
Website – www.ignou.ac.in
Course: MBA in Banking and Finance
Directorate of Distance Education, Sikkim Manipal University of Health Medical & Technological Sciences, Syndicate House, Manipal – 576104
Course: MBA with specialization in Banking
Institute of Chartered Financial Analysts of India University, Tripura.
Course : MS Banking leading to the award of the designation “Certified Bank Manager” (CBM) from IBMR. The MS (Banking) Program is
intellectually stimulating with a strong practical focus. However, the pursuit of the MS (Banking) Program demands intellectual maturity, strength of purpose and willingness to work hard.
Madurai Kamaraj University Palkalai Nagar, Madurai-625 021. Website: http://www.mkuniversity.org/
Directorate of Distance Education
Course: M.Com (Banking)
Directorate of Distance Education, Annamalai University, Annamalai nagar, Tamil Nadu – 608002
Course: M.Com (Banking & Insurance Management)
Directorate of Distance Education, Pondicherry University, R.V. Nagar, Kalapet, Puducherry – 605 014. Website:http://www.pondiuni.edu.in/dde/
Course: PG Diploma in Banking and Finance
MBA (Finance) is also a suitable qualification.