Importance of banks Banks have become an essential part of the lives of individual .Being the backbone of a country's economy, banks touch every sector of a nation's economy .In the present day when the exchange of value is money, we cannot live without using the services of a bank directly or indirectly. Even if we have come to the days of digital payments and e-transfers from our mobiles, beneath everything is a bank as hub, fulcrum and facilitator. A strong banking system is needed for a strong economy. It was the inner strength and integrity and efficiency of Indian banking and financial sector that helped the country's economy to stand stable when there was a global financial turmoil during and around 2008 . Banking sector in India is still growing and throws a lot of opportunities.
It is in such a context that the importance and significance of a Bank Manager has to be seen.
Importance and significance of a Bank Manager A bank Manager is the head of a bank branch. Bank Managers were called Bank at that place. A bank Manager is responsible for the smooth running of a bank's(branch) day to day operations, administration, marketing, managing, coordinating and supporting the staff, liaisoning with customers and public, ensuring systems and statutory regulations are properly complied , the bank's head office guidelines and instructions are followed properly, in the branch under his control.
To say it in one word, a bank manager is responsible for all aspects of the bank branch functioning.
How can one become a bank manager A position of such significance and responsibility of a Bank Manager naturally needs a person who possesses the attitude, ability and knowledge to conduct and perform the duties expected of him in the best manner with maximum efficiency and result.
In India, generally a bank manager post is not an entry post. One has to enter at a lower level post and after gaining on the job experience and in-house training and putting in some minimum years of service at various lower levels the bank entrusts the managerial responsibility to a suitable person after evaluating the relevant parameters by test and /or interview.
At present there are generally two ways of becoming a Bank Manager:
1. Entering bank as an Assistant or clerical cadre employee and then progressing with internal promotions.
2. Entering as a direct recruit bank officer or Probationary Officer (PO) or Management Trainees(MT)and then progressing to become manager after some years of service, or progressing to various scales of officer post and progressing towards various Managerial scales.
We shall discuss on the PO recruitment and internal promotion route as to become manager; one has to first become a bank officer.
Recruitment of Bank Probationary Officers After undergoing various changes in recruiting procedures, at present there are two main streams for Probationary Officers recruitment.
1. Recruitment by selection from IBPS examination conducted by Institute of Bank Personnel Selection.
(a)Common IBPS exam is conducted for many participating banks.
(b) IBPS conducts PO examination for a particular bank as per requirement of that bank.
Most of the public sector banks follow either (a), and State Bank of India recruits by (b).
(c) Banks tie up with certain universities who train the selected candidates in PG diploma or MBA in Banking and then absorb the successful candidates at officer level. Banks like Indian Overseas Bank, Bank Of Baroda,Syndicate Bank, Kotak Bank,ICICI bank have u done that way.
2. Mostly the new generation private sector banks follow direct recruitment process. They enable candidates to register their profile with bank's websites. Then, as and when the vacancies arise they call these candidates for test or interview and recruit them.
Minimum eligible academic qualifications to get recruited as bank officer Graduation is the present basic academic qualification for applying for a Bank Probationary Officer. Some banks recruiting directly ask for MBA in Banking and Finance also.
The IBPS PO/MT tests are on the following:
General Awareness with focus on Banking
You may get more details on IBPS tests and interview for PO/MT recruitment from Common Recruitment Process for Recruitment of Probationary Officers/ Management Trainees
The advertisements are announced in all major newspapers and employment newspapers, apart from IBPS web site and in concerned bank web sites, Many job portals also display the links .
How to become Bank Manager after joining as Officer In most banks PO s are given on the job training at various centres and various departments to make them thorough with general aspects of banking. They are then entrusted with independent functioning of a section or department as Assistant managers in the Junior Management Scale I. Some banks conduct a test at the end of the training cum probation period as pre-confirmation test and promotion test. Then after the test as per performance they are promoted to Junior Management Scale II or retained at Scale I.
Bank branches are also categorised as Scale I, Scale Ii, Scale II etc. The confirmed officers of relevant scale can be then posted as Bank Managers at relevant grade branches.
Remuneration of Bank Managers In public sector banks and the old private sector banks, there is a well established salary structure and other benefits. They are till now as per the wage settlement mechanism called Bi-partite settlements in which the member banks and member trade unions of Officers negotiate with the Indian Banks Association and the Government of India, Banking department, Ministry of finance guides and accepts and approves.
There are not much extra benefits for being a Bank Manager. A Bank Manager gets the same compensation as per the salary structure of his grade in that bank. A few benefits like certain re-imbursements are given in some banks. There is a system of cash incentives in many banks based on business performance of the branch in a financial year, which can be a percentage of the annual salary.
From the advertisements publicised by IBPS, a Scale I(entry level) Manager in SBI can get a compensation package near to 60000 Rupees per month depending on the place of posting. An average middle level manager can get a salary of about 7 to 8 lakhs rupees annually with some additional other benefits also.
Being a branch Manager is a criterion for further elevations and promotions. New generation Private Banks gives more salary and incentives to branch managers depending on their business performances.
Career path of Bank Managers There is a well defined career path in most banks. The top executives of banks today had joined as scale I officers. They course through Junior Management Scales, Middle management scales and Top Management scales. The designations with which bank managers are called in Public sector banks are Manger, Senior Manager, Chief Manager, and Assistant General Manager. Then they progress to Regional Managers in the designations Senior Regional Manager, Chief Regional Manager. In the Top Management scales they are Deputy General Manager, General Manager. After becoming General Managers, Bank Managers may get lateral posting as chairmen of Regional Rural Banks, as Executive directors of other Banks and Managing Directors of banks. From there there is opportunity for various other appointments including deputy Governors of Reserve Bank of India.
Synchronising with changing times and environmental factors, banks have also changed their promotion policies after periodical reviews. Unlike the earlier time scale movements, now bright and hardworking officers with potential and performance get 'fast track promotions' to higher grades and higher designations within short time. Hence we can now see DGM s and GMs who are in their forties and even late thirties.
Performing and potential Managers are also given posting at bank's Overseas centres after an evaluation test.
Skills expected of a Bank Manager Bank Manager Job is a good job. Like in other fields also it is not for everybody. To be a successful bank manager one needs to have skills in person skills and financial and systems knowledge. This combined with performance and promising potential is a success potion.
One should also complete and pass the various examinations and courses conducted by Indian Banks Association, Institute of Bank Personnel Management(IBPM) , specific courses and training conducted by chambers of commerce , export councils, and the various in-house trainings.
A bank manager should also have a professional network with other bank managers in the area and in the same bank. He should actively participate in the Management Associations and Managers Clubs. These will help him in the professional progress and help in achieving his given targets and increase his bank's growth.
Conclusion: Bank Manager – a self satisfying job In the earlier days and even now a bank manager is seen as a friend, philosopher and guide by the customers of the branch. Many customers approach the bank manager not just for solutions of their financial needs, but for help and guidance in even personal matters.
A bank manager can feel satisfied in being part of delivering and implementing the various financial schemes by the government towards poverty eradication, employment generation empowerment of women and socially vulnerable sections.
The satisfaction comes when a bank manager sees how the people and business that he financed develop and become successful and independent financially. Helping someone needy to have a house, helping in some essential social need are all satisfaction giving opportunities.
Following the rules and regulations and keeping the integrity and honesty, a Bank Manager gets there ample opportunities to help a fellow human being and derive satisfaction from that apart from getting a reasonably paid and respected job and career.
While I do agree with the author's perception on how to become a Bank Manager in India. what I feel that it is not that easy to get that coveted job. In any bank there are seniors who are eagerly waiting to sit on that seat. Those who come on deputation from other branches are always given the additional or managerial post. In that case how can a new entrant get the chance to be on the seat of manager? Moreover the banks are having association to safeguard the interest of regular employees and those seniors wont leave any chance for the new entrants to occupy the post.