Commercial Banking

Introduction | Sweet - The Pros | N' Sour - The Cons |  
Employment Tips | Corporate Recruiters

Introduction

Lending, borrowing, risk and returns – this is what commercial banking is all about. Take deposits from customers, lend them out to businesses or even back to the same customers for that odd car loan and you are in business. If you want to add further value, provide other services like credit cards, cash management and custodial services.
The Indian commercial banking industry, for long dominated by nationalised banks and a few large foreign banks is now coming of age, with new aggressive private banks entering the market and relaxed regulations providing a favorable atmosphere for launching new products and services.

Trends

Deregulation

Over the past ten years, commercial banking activity has witnessed a fair amount of deregulation. The Reserve Bank of India no longer dictates the day to day working of the banks and prefers to play the part of a watchdog. The easing of controls has led to increased competition in the industry, with banks vying with each other to provide new products and better service to their customers. .

This has implications on the nature of jobs that banks now offer and the kind of people they recruit. The days of comfortable 9 to 5 jobs in foreign banks with assured promotions are over. From being conservative and risk-averse, banks now aim at quick market entry and aggressive pricing. New products being launched and are being promoted in a more organized manner with increased importance being placed on banks’ perception in the marketplace.

New Players and Mergers

A number of private banks have entered the fray and are providing stiff competition to foreign banks who have enjoyed premium pricing because of superior service. The recent acquisition of TimesBank by HDFC Bank and the buzz on impending mergers is will lead to consolidation in the industry, and lead to the formation of large banks. This change in structure of the industry will increase the level of competition, and banking should be an exciting place to be in.

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Introduction | Sweet - The Pros | N' Sour - The Cons |  
Employment Tips | Corporate Recruiters