PREPARED BY: Team 2: Group Beta
Murali Krishna M
HRM in Banking Sector
TABLE OF CONTENTS
1. Overview of Banking Sector.......................................................................4 2. Challenges faced by Human Resource Managers in banking sector...........8 3. Study of prominent banks in Indian Banking Sector..................................13 4. Comparison Of Policies In Public Sector and Private Sector Banks............36
1.Overview of Banking Sector:
A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets. A bank connects customers that have capital deficits to customers with capital surpluses.
Banking sector is the back bone for growth of any economy. Banks have seen over the world a huge change scenario in all facets of business and technology over the past few decades. From a cheque based banking system to internet banking in today's world, the banks have broadened their way of business to survive and prevail by accepting and implementing challenges and changes from the core.
In the recent past , with the advent of Euro Zone crisis and debt crisis in major world economies, the global banking institutions are facing survival, growth and development issues.
Overview of Global Banking Sector
Worldwide assets of the largest 1,000 banks grew 16.3% in 2006/2007 to reach a record $74.2 trillion. This follows a 5.4% increase in the previous year. EU bank have the largest share, 53%, up from 43% a decade earlier. The growth in Europe’s share was mostly at the expense of Japanese banks whose share more than halved during this period from 21% to 10%. The share of US banks remained relatively stable at around 14%. Most of the remainder was from other Asian and European countries.
World Banks ranking for 2010 are based on the definition of Tier 1 capital as set out by Basel’s Bank for International Settlements (BIS). The definition is stricter than total stockholders’ equity and covers only the core of the bank’s strength.
No| Banks| Country| Tier 1 Capital (USD million)|
1| Bank of America Corp| US| 160387.8|
2| JP Morgan Chase & Co| US| 132971.0|
3| Citigroup| US| 127034.0|
4| Royal Bank of Scotland| UK| 123859.0|
5| HSBC Holdings| UK| 122157.0|
Overview of Indian Banking Sector
Indian Banking history
Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1770; The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806. Reserve Bank of India Act was passed in 1934 & Reserve Bank of India (RBI) was constituted as an apex body without major government ownership. Banking Regulations Act was passed in 1949 bringing RBI under government control and giving RBI wide ranging powers for supervision & control of banks. The Act also vested licensing powers & the authority to conduct inspections in RBI.
In 1955, RBI acquired control of the Imperial Bank of India, which was renamed as State Bank of India.
Nationalisation of banks was to make them play the role of catalytic agents for economic growth. The First Narasimham Committee of Banking Sector Reforms report('91) suggested wide ranging reforms for the banking sector in 1992 to introduce internationally accepted banking practices. The amendment of Banking Regulation Act in 1993 saw the entry of new private sector banks.
Following the liberalization in early '90s and other reforms later on, private sector banks have forayed in the Indian banking sector changing the ways and means of business many folds ushering new outlook ,...