06 Oct 2018

Workshop on “Banking Operations” by Mr. S M Kaushik former Deputy General Manager, PNB

Workshop on “Banking Operations” by Mr. S M Kaushik former Deputy General Manager, PNB.

 31 August 2018

The School of Management organized a workshop on Banking Operations on 31 August 2018. Mr.S.M.Kaushik , former Deputy General Manager, Punjab National Bank was the Chief Guest  of the event. Mr.Kaushik  highlighted the Banking Operations through the experiences he has in  his career journey.

From Mr.Kaushik’s speech students became aware of the fact that for the past three decades India’s banking system has several outstanding achievements to its credit. The most striking is its extensive reach; it is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even the remote comers of the country. This is called nationalization of banks and this is one of the main reasons of India’s growth process.

Prathama Bank is the First Regional Rural Bank of India, established on 2nd October, 1975, with its Head Office at Moradabad.

He introduced to the students a new concept of Business Correspondent (BC) who are retail agents engaged by banks for providing banking service at a location other than the bank branch as per guidelines of RBI. BCs enable a bank to provide its limited range (2km) of banking service at low cost.

Banks provide a number of facilities, some of the lesser known facilities are:

  • Banks provide employment by some specialized financial institutions. For example MUDRA bank gives loan to micro industries
  • SIDBI furnishes loan to small industries, IDBI issues loan to medium scale industries, IFCI for heavy industries and NABARD allots loan for agriculture and rural development.
  • One of the most important areas of banking operations is priority sector lending. It is a set of rules given by RBI to banks in India which states that out of total lending by banks, 40% of loans should be given to priority sector which are agriculture, weaker section, education and housing.

The wonderful lecture was concluded by introducing the students to the concepts of  NRE and NRO accounts. NRE accounts are Non-Resident External Account while NRO stands for Non-Resident Ordinary Account. NRE is an account of an NRI to transfer foreign earnings to India while in NRO account, an NRI manages the income earned in India. In NRE account, interest earned is tax free whereas in NRO account, interest account is taxable.

Mr.Kaushik shared that some interesting job profiles in finance and banking sector, which MBA aspirants, can look forward to; are Financial Accountant, Business Analyst, Loan officers, Teller.

Mr. S.M. Kaushik’s informative lecture gave the audience an insight of banking industry. The lecture was not only beneficial for students who want jobs in the banking sector, but it also inclined many others towards this field. The Banking sector in India comprises nearly 90 percent of country’s total financial services with the potential to become the fifth largest banking industry in the world. This surely uplifted spur within many students, made them aware of what banking is not just theoretically but in a practical and honest manner.