Will Increase in Banks Create New Jobs?
RBI’s decision to allow new players in the banking sector has received a big thumbs up from Indian industry according to the article published in one of the leading newspaper. This will not only increase the employment opportunities in the banking sector but will also induct new processes and technology, improve efficiency, enlarge the capital base to meet the credit needs of the economy.
This decision of RBI comes out with a good news for bank jobs aspirants. But some questions are still unanswered.
- Will there be any role of IBPS in recruitment in these banks?; or
- Will the banks conduct there own separate exams?
But main thing is that more banking job opportunities is coming soon.
Major reason for RBI to allow corporate houses to form banks is to expand access to financial services in a country where only about half the population has a bank account.
Licence winners are expected to be announced by the first quarter of 2014.
Below is the list of 26 applicants who applied for licence from RBI:
- Aditya Birla Nuvo, part of the Aditya Birla conglomerate, which includes Idea Cellular and Hindalco Industries.
- Bajaj Finance, part of the Bajaj Group, which includes motorbike maker Bajaj Auto.
- Bandhan Financial Services, a microfinance lender.
- Edelweiss Financial Services, a diversified financial services firm.
- IDFC, a finance company which lends to the infrastructure sector and has investment banking, private equity, research and mutual fund operations.
- IFCI, a financial consultancy and advisory company.
- Indiabulls Housing Finance Ltd, part of the Indiabulls group conglomerate.
- India Post, part of the ministry of communications and information technology. Indian post offices offer savings schemes and sell insurance and mutual funds.
- India Infoline, part of the IIFL group, which has interests in brokerage, wealth management, insurance and consumer loans.
- INMACS Management Services Ltd, which provides management consultancy, corporate finance, audit, tax and legal advisory services.
- Janalakshmi Financial Services, a microfinance company.
- JM Financial. Former Citigroup CEO Vikram Pandit would become non-executive chairman of JM’s banking arm if it wins a license.
- LIC Housing Finance, a unit of Life Insurance Corp of India, the country’s largest insurer.
- L&T Finance Holdings, part of India’s largest engineering conglomerate, Larsen & Toubro.
- Magma Fincorp, a finance company that gives loans for vehicles, gold and small enterprises.
- Muthoot Finance gives loans against gold.
- Reliance Capital, controlled by billionaire Anil Ambani. Japan’s Sumitomo Mitsui Trust Bank and Nippon Life Insurance of Japan would each own stakes of between 4 and 5 percent in the proposed bank.
- Religare Enterprises, a financial services firm controlled by the Singh brothers who also control Fortis Healthcare. U.S.-based bank Customers Bancorp Inc will invest $51 million in the bank if the group gets a licence.
- Shriram Capital, part of the Shriram Group, which includes truck financier Shriram Transport.
- Smart Global Ventures.
- SREI Infrastructure Finance, which mainly finances infrastructure projects.
- Suryamani Financing Co Ltd, a financial services provider.
- *Tata Sons Ltd. Tata is the holding company for India’s largest conglomerate.
- Tourism Finance Corp of India, which provides financial services for tourism-related activities.
- UAE Exchange India, a remittance and foreign exchange services firm.
- Value Industries, affiliated with Videocon Industries, which has interests ranging from white goods to energy.
*Tata Sons Ltd, the holding company for India’s largest conglomerate, among those seeking to set up the first new Indian banks since 2004.
Benefits of allowing new players in banking sector:
- Encourage existing players to improve efficiency.
- New players with sound financial base will bring in the much needed capital that is required to support the credit needs of the economy.
- Generate huge employment opportunities.
- With the entry of new players there will be an expansion in banking services and hence help in increasing financial inclusion.
Read from here the article published in one of the leading newspapers relating to this news.