1.0 Indian Banking System
The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. At the end of March 2007, India had 89 scheduled commercial banks (excluding regional rural banks), comprising
28 public sector,
28 private,
29 foreign.
Branches numbered 68,116, of which approximately 69.5 percent were located in rural or semi- urban areas. The size of the total banking assets is estimated to be over US $ 540 billion.
Bank privatization brings about increased competition. As in other sectors, it is important to encourage competition in the financial system to reduce costs and encourage innovation. In India, in January 1993, there was an entry of new private sector banks; the RBI granted approval
to set up 13 new privately owned domestic banks. They were: IndusInd. Bank, UTI Bank, ICICI Bank, Global Trust Bank Ltd., Bank of Punjab, HDFC Bank Ltd., Centurion Bank Ltd., Times Bank Ltd., IDBI Bank Ltd., Development Credit Bank Ltd.
The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity.
1.1. Banking as a career
Banking is one of the most sought after career choice among the students. It is an entry into a well paid, secure and status career. Though it may appear that these jobs are meant for commerce/economics students but the fact is that majority of bank officers are from different streams of education. Further, it is also not a fact that top positions in Foreign/Multinational Banks are held by MBA's from Premier Management Institutes. Though the Public sector Banks
are now appointing management graduates, CAs and CFAs but bright graduates from any subject
can get entry in the Public sector Banks through an All India Examination conducted by them.
Public sector Banks recruit mainly graduates...