Académique Documents
Professionnel Documents
Culture Documents
Course Outline
Careers in Banking
Introduction to Banking Role in an economy,
developments etc.
Study of Bank financials
Asset Liability Management in banks
Risk Management
Treasury Management
Management of NPAs
Regulatory role of RBI and Monetary policy
Consolidation of the Indian Banking structure
Introduction to Insurance types, Role in India
Regulation, reforms, challenges, Fund
management in Insurance
Projects in various Banking related topics
Banking as a Whole
services including
corporate finance, cash
management, & credit
Comprises of five national
business segments:
Middle Market Banking,
Mid-Corporate Banking,
Commercial Real Estate,
Asset Based Lending and
Commercial Leasing
investment banks
Commercial
Banking Investment
Bank
Treasury and
Retail Clients
Securities
Financial
Services
Services
Consumer Banking,
Home Finance,
Insurance and Small
Business Banking
Provides mutual fund,
Global leader in
Asset
and
Card
wealth
Services
Management
management services to
institutional investors, high net
worth individuals & retail
customers
Provides personalized advice
transaction processing
and information
services to wholesale
clients
Three Businesses:
Institutional Trust
Services, Investor
Services(WSS) and
Treasury Services
Business segmentation
Organisation structure
Main functions
Retail banking
Corporate banking
Trade Finance
Correspondent Banking
Treasury
Government business
Rural development Banking
Banking needs of Small scale sector
Entry modes
Public Sector Through bank related
exams IBPS
SBI and RBI conduct their own exams
Entry level Probationary officers
Trained and posted to the various
departments and then make their way up
the organisational ladder
Private sector and Foreign Banks have
their own system of recruitment and they
generally have
Front office Relationship managers one
point contact for the customers
Mid office - IT, Risk management, Audit
Operations jobs- servicing of loans, deposits,
clearing, and other day to day jobs
7
Investment Banking
Investing
Investment Banking
Market Making
Trading
Cash Management
Mergers and Acquisitions
Other Service Functions
Investing
Involves managing pools of assets such as mutual funds
Compete with commercial banks, life insurance
companies, and pension funds
Manage funds either as agents for other investors or as
principals
Objective is to select asset portfolios to beat some
return-risk performance benchmark such as the S&P 500
Market Making
Involves the creation of a secondary market in an asset by a
securities firm or investment bank
Either agency or principal transactions
Agency transactions - two-way transactions on behalf of
customers
Principal transactions - the market maker seeks to profit on
the price movements of securities and takes long or short
inventory positions for its own account
Cash Management
Securities firms and investment banks offer bank
deposit-like cash management accounts (CMAs) to
individual investors
money market mutual fund sold by investment banks
that offer check-writing privileges
10
Trading
Closely related to market-making activities
Six types of trading
Position trading - purchases of large blocks on expectation of
favorable price move
Pure Arbitrage - buying an asset in one market and selling it
immediately in another market at a higher price
Risk Arbitrage - buying securities in anticipation of some
information release
Program Trading - simultaneous buying and selling using a
computer program to initiate such trades
Stock Brokerage - trading of securities on behalf of individuals
Electronic Brokerage - offered by major brokers, direct access via
internet to trading floor
11
Block trading
Program trading
Risk arbitrage
Securitization
Fixed income
Equities
Derivatives
Merchant banking and money management
12
Structure
Competition
Reorganizations
Trends
13
14
15
Careers in insurance
Insurance companies will have openings
in the following departments
Investing
Marketing
Distribution
Actuarial
Underwriting
16
Insurance Functions
Insurance companies will have openings
in the following functions
Accounts
Audit and risk management
Actuarial
Administration
Business research and planning
Channel Development
Customer service
Claims
Group sales
HR
IT
Legal and compliance
17
18
Job Description
Actuaries help design plans and evaluates
risks
Underwriters assess proposals and
determine terms and costs of a policy before
deciding whether to insure a customer
Claims staff settle claims
Loss assessors assess loss caused due to
burglaries, fire, car accidents and natural
calamities . They work out the loss covered
by the insurance policy and report the details
and circumstances to the insurer
Insurance agents work on behalf of the
insurance companies. They sell policies,
collect premiums and meet sales target on
commission basis
19
20
Policy Making
Policy Claims
Checking policy clauses and details
MIS ie. Filing various returns and statements
Development
Deal with
Marketing and procurement of business
Promoting policies
Getting contracts
Accounts
Manage funds including income and expenses
Development Officers
In charge of a territory for development of policies. They
handle
Recruitment of agents
Train them for procurement and servicing of policies
21
Channels of distribution
Direct sales reports to branch manager and
responsible for sales targets
Indirect or alternate Comprises of
distributors. Normally not part of branch sales
targets.
Actuarial
Underwriting
Marketing and distribution
Operations
Investments
22
23
24