BANKING NEEDS COMPLETE PROFESSIONALISATION

Late SMT INDIRA Gandhi the then Prime Minister of Indiawhile speaking to the chief executives of public sector banks in June 1975 observed''banking is a staid and conservative profession .Even so when the aspirations of people are rising bankers should rise to meet the heightened expectations.I know that the people at the top have the commitment but it is the people at the grass root level who should change''
She had thus given expression to the need for professionalisation and professionalism in banking .Subsequently in a conference of bankers the view emerged that bankers must grow out of their institutional loyalties and adopt a code of ethics.It was suggested that there should be separate university courses to produce bankers with appropriate knowledge and skills .The Banking Commission headed by R.G.Saraiya,veteran co-operative banker also suggested professionalisation of banking and the commission laid lot of accent on banking education and research.
Now even after 37 years we find that no concrete steps have been taken in India either to start university courses to produce bankers with needed skills ,knowledge and prfessional orientation or to establish institutions of higher learning in banking.
The National Institute of Bank Management [NIBM]has started a new post graduate programme in banking a few years ago for preparing bankers for tomorrow.But the NIBM alone can not produce required number of banking professionals for Indian banks.By 2012 most of the senior bankers who entered banks in the seventies will go out of their respective banks on attaining the age of superannuation.By that time we need large number of banking professionals with specialisation in various areas of banking .Hence there is urgent need for diversification of MBA and M.COM programmes with specialisation in banking and bank management.Such courses must be launched in all univesities and management institutes.We find that MBAs with specialisation in finance do not have skills specifically required for handling banking operations .Banks which hire MBAs with specialisation in finance have to provide training to them after recruiting them.Hence it is absolutely essential to design MBA courses specifically tailored to meet the requirements of banks.In the new ,diversified MBA programme adequate attention must be paid to development of talents of candidates.Talents refer to the ability to do right things depending upon situation.India must have future bankers with such talents.
In India now again there is stress on mass banking ,that is banking by inclusion.Financial inclusion is now given lot of emphasis by the government and RBI.In the bankers conference held at Kolkata a few years ago there was lot of strees laid on going to the bottom of the pyramid for business expansion.All these will bring about dilution in banking standards unlessthere is professionalisation at all levels in banks.Economic reforms,higher market dynamics,and large scale globalisation demand more professionalismand robust risk mangement system in banks.
With the implementation of Basel-II norms there will be increased accent on good corporate governnance and creation and constant enhancement of share-holder value.In this new scenario we may require banking experts and professionals in such areas as risk management,strategic planning,corporate governance,,strategic credit management,corporate planning,wealth mangement,risk-weighted appraisals,investment banking,treasury operations etc.
All management institutes and universities must give attention to the task of preparing such banking professionals for tomorrow.Both M.Com and MBA programmes must be diversified and M.com[banking]and MBA[bank management]corses must be introduced in all management institutes and uninversities.Banking-specific skills must be included as inputs in these courses..Banks can have tie-ups with management institutes and universities to design courses specific to banking .Banking research must also be given adequate attention in the days ahead.With these steps it will be surely possible to ensure availability of adequate number of banking professionals for tomorrow.With availability of such banking professionals upgradation and professionalisation of banking is possible.To survive,perform and grow Indian banks have to ensure complete professionalisation of their opeartions and functioning in the years ahead.