Banking on banking

by SUBEKSHA POUDEL

FROM ISSUE # 171 (March 2010) | IN THIS ISSUE
	REFER TO FRIEND		PRINT THIS ARTICLE

Whatever your talents, interests, and educational background, there is a career in banking for you.

How Banking Started
Banking in Nepal was pioneered by Nepal Bank Ltd with only 10 share holders—both from the government and private individuals. The bank, entirely by itself, reined our markets for 20 more years until in 1957, Nepal Rastra Bank started operating as the central bank and the regulator.

In 1986, the government opened up the banking sector to joint ventures, and there was an explosion of private banks after that and today there are 26 'A' grade banks in Nepal with hundreds more cooperatives and credit institutions.

Considering a Career in Banking
"Compared  to  the  other  business  sectors  in  the  country,  banking  industry  sure  looks  a  better place to work, and it indeed is,"  says Brinda Singh of the Bank of Kathmandu. Also, with the fast changing financial needs and market dynamics, the banking sector has more challenges than other industries.

There are numerous jobs within the bank itself:  you could be a computer programmer or a lawyer, a public relations specialist or an accountant. Currently, there are more than two dozen banks competing,  four  to  come  into  operation soon  and  many  other  financial  institutions  in  place. So there will be no shortage of jobs if you are qualified.

So what do banks do anyway?
Banking is essentially a service business. Bankers identify the financial needs of each segment of society (business, government, and consumers) and then develop banking services to meet those needs.
 
Some of the familiar services include checking and savings accounts and certificates of deposit. Banks also provide their customers with loans to start new business, to expand an existing commercial venture and even to purchase homes and cars.
 
Qualifications for a Career in Banking
"Common sense and communicating skills," says Ajaya B Shah of Laxmi Bank, are the two prerequisites to be a good banker. "We do not look at the grades so much," he adds, "because banking in a true sense depends on how you perform, more than anything else."

A degree in finance or economics though certainly helps. "It enhances your skills to an extent," says Bandana Pathak of NCC Bank, "but you can still progress even if you have a different background if you've got the will and the grasping power."

"Nonetheless," says Abhaya Raj Sharma of Bank of Asia Nepal, "choosing different courses for different departments in the bank is important as the concept matters rather than the clerical knowledge that can be achieved during on-the-job-training."

How good is the Pay?
Bankers are paid considerably better than other professions. After all, they deal with money. Says Bal Kumar Pandey of Kist Bank, "The banking sector is not just the most transparent but is also one of the top ten taxpaying sectors of Nepal."

Here's an insight into the salaries for specific posts:  

There are other benefits of being a banker besides the big pay cheque. Shubha Poudel of Nepal Bank says, "If you're an employee in a bank, you get numerous fringe benefits like medical allowance, religious allowance along with bank loans and auto loans in a much subsidised rate."

And most importantly bankers get exuberant bonuses. As per the policy, 10 per cent of the bank's profit is distributed amongst its employees. So when one is supposed to earn a salary worth of 13 months a year, (that is including Dasain), bankers depending on their profits earn salaries worth of 17 months a year. And if the profit is tremendous, it could even go up to a salary worth of 72 months a year.

How's the Job?
The job of a banker may seem monotonous with the 10-5 working hours, crisp suits, the accordion styled bag and desk work, pretty much the same for everyone. In reality though, their job's anything but monotonous.

The risk factor is rather high in banking. Dealing with money itself isn't an easy task, and on top of that one needs to be careful about fake documents, signature verification and other frauds. Unlike in other fields of work, the risk of being fired is comparatively lesser in banking sector. Nevertheless, you cannot get very comfortable. If you don't perform, you're a goner.

And the working hour isn't limited from 10 to 5, this is just a part of it. "A banker has to work 24/7/365," says Ajaya B Shah of Laxmi Bank, "I am not implying that a person completely abandon his social life."

How to Apply?
Normally the banks publish vacancy ads and one can just apply. If not, each and every bank has a site where one can easily download the forms and apply online.

But in cases of employing people in the higher posts, the bank may resolve to 'head-hunting' that is the process of finding and attracting the best experienced person with the required skills by convincing them to join their organisation.