Banks handle deposits and withdrawal of money, provide loans, pay a part of the surplus as interest and the rest is kept back for the smooth functioning of the bank and profit making. If you are interested in making a career in banking, go through the following details.
A bank’s functions can be divided into various divisions like:
Corporate Banking: A career in banking (corporate) can be quite rewarding if you have the required expertise. They deal with medium to large-scale companies and government agencies. It could start at the local branch manager level, though dealings that are more complex are routed through corporate divisions of clearing banks and their merchant banking subsidiaries. If you want to make a career in banking (Corporate), you will deal with credit and advances, trade finance, foreign exchange management, asset management, lease financing of heavy equipment, infrastructure, machinery, credit risk assessment, etc.
Retail/Personal Banking: This division provides a range of financial services to individual customers and small companies. Retail banking includes routine transactions like deposits and withdrawals of money; money transfer; foreign currency exchange and traveler’s cheque encashment.
Merchant Banking: Investment management is the primary activity of this group. It could be on behalf of corporate clients, or institutional investors-like pension funds, investment trusts, or those in the securities business.
Treasury group: This group takes care of the total funds of a bank including foreign exchange reserves. Responsibilities include bank portfolio management, dealing in foreign currency, etc.
Rural Banking: This group deals with the banking and credit needs of people in the rural sector. Not all banks have this group and some banks have separate subsidiary companies for rural banking. A career in banking (rural) has become quite popular at present.
Once you opt for a career in banking and if you have completed a series of management/officer level postings, your progress and performance will be reviewed and you will be assigned as a Branch Manager in any town or city. In some banks when you join as a management trainee, you are generally trained in all aspects of banking for the initial two years. Then, you are assigned the responsibilities of an Assistant Manager in a particular functional group or you become a Branch Manager. This is how you will progress if you opt for a career in banking
If you have chosen a career in banking and after 2-3 years of experience, you will be given independent charge of a product of a functional group. Another 3-4 years of experience may see you as the head of a functional group.