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Banking – An Exciting Career Opportunity

for Young Chartered Accountants

Chartered Accountancy is a comprehensive programme in the financial discipline and opens up

a wide range of career options. Banking is one of the most sought after careers for enthusiasts
in the field of finance and accounts. It is an entry into a well paid, relatively secure and status
career. Though it may appear that the top jobs in banking are for management graduates from
premier institutions, the fact is that a large number of successful bankers are qualified Chartered
Accountants. Some of the CAs leading in banking are Deepak Parekh – Chairman of HDFC, Aditya
Puri - CEO of HDFC Bank, Naina Lal Kidwai - Country Head of HSBC and Amit Mimani, Director
M & A, Standard Chartered Bank. This article provides an insight into one of the most exciting and
rewarding careers opportunities and a platform for honing your skills. Read on to know more…

New Trends in Banking Sector

Supported by the latest technology, banks are
working to identify new business niches, to develop
customised services, to implement innovative
CA. Sanjay Agrawal strategies and to capture new market opportunities.
(The author is a member of the Institute and The modern banking industry has brought greater
winner of the ICAI’s ‘CA Professional Achiever’
(Financial Sector) Award, 2010.He can be reached business diversification. Some banks in the
at sagrawal78@rediffmail.com.) industrialised world are entering into investments,

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(1) Treasurer: Responsible for capital raising,

financial planning, cash and asset management.
Employers in the Banking fraternity value the
analytical skills and the training in the latest Impeccable analytical abilities as well as
financial methods and technology that the Chartered management and motivation skills are
Accountancy course provides. CAs can leverage essential in this upper level administrative
their knowledge and financial skills into lucrative position.
positions in the Banking sector. Banking provides (2) Payment Manager: Responsibilities consist of
the widest range of opportunities for practical establishing rules for credit collection as well as
implementation of all the aspects covered in the CA for the securitisation of receivables. Must be able
curriculum. to analyse accounting data and know a lot about
their customers.
(3) Investor Relations Officer: Responsible for
underwriting of securities, portfolio management publishing corporate financial information and
and the insurance businesses. Taken together, these events through press releases, coordinating
changes have made banks an even more important with investors and replying to investor
entity in the global business community. inquiries. You are in close contact with top
management officials and the job demands
Banking Careers and Job Information that you understand both finance as well as
Today's banking professionals assume a broad range public relations.
of responsibilities involving capital budgeting, risk (4) Controller: Responsibilities include accounting,
management, project analysis and evaluation, and cost analysis, financial planning and reporting,
short-term and long-term financial planning. creating costing systems, and transfer pricing
Employers in the banking fraternity value the issues. The requirement is of CA/Cost
analytical skills and the training in the latest financial Accountant with experience in the field.
methods and technology that the Chartered
Accountancy course provides. CAs can leverage Investment Banking
their knowledge and financial skills into lucrative Investment Banks help companies and governments
positions in the banking sector. issue securities, help investors purchase securities,
Banking provides the widest range of manage financial assets, trade securities and
opportunities for practical implementation of all the provide financial advice.
aspects covered in the CA curriculum. Some of the Syllabus: Capital Budgeting covers Evaluation
major career options for the CAs, particularly the of Risky Investment Proposals, Risk and Return
young, in banking include: analysis, Simulation and decision tree analysis,
Sensitivity analysis, Capital Rationing, Adjusted Net
Corporate Finance Present Value, Replacement decisions, Application
In Corporate finance you would work for a company of Real Options in capital budgeting, Impact of
to help it find various sources to raise finance, grow inflation on capital budgeting decisions.
the business, make acquisitions, plan for its financial Job Options: Initially, you may start as an
future, manage any cash in hand and ensure future analyst and be responsible for writing reports,
economic viability. maintaining spreadsheets, trading stock options,
Syllabus: Financial Reporting - analysing
financial statements including group companies and
In Investment Banking, initially, you may start as
financial reports of various entities thereby develops
an analyst and be responsible for writing reports,
skills to solve financial reporting and valuation cases. maintaining spreadsheets, trading stock options,
Also, some topics covered in Strategic Financial research, etc. You will need to involve yourself in an
Management provide insights to financial policy and intensive study to find out opportunities to invest in
Corporate Strategy come useful to the the banking profitable shares, debentures and other financial
industry. instruments. You need to have in-depth knowledge
Job Options: The following are just a few of the of money markets, the state of the economy and
job options available for professionals seeking a business and industry in general.
career in corporate finance:

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research, etc. You will need to involve yourself in an

intensive study to find out opportunities to invest in
The opportunities at commercial banks are more
profitable shares, debentures and other financial numerous today than they have ever been. With
instruments. You need to have in-depth knowledge entry-level tellers, leasing agents, international
of money markets, the state of the economy and finance officers, trade credit specialists, and
business and industry in general. Moreover, you will credit card banking specialists, the options in
need to continuously involve yourself in extensive commercial banking are seemingly endless. As a
research on these subjects, and be up-to-date with mortgage banker, the responsibility is to supply
the latest information. potential homeowners and businesses with loan
opportunities.
Commercial Banking
Commercial banks serve large corporations, small Syllabus: Foreign Exchange Exposure and
businesses, as well as the general public. Despite Risk Management covers foreign currency
the recent consolidation in commercial banking, market, Forex derivatives-Forwards, futures,
the industry continues to provide more career Swaps, Options, Management of transaction,
opportunities in finance than any other sector in the translation and economic exposures and Hedging
financial services industry. currency risk.
Syllabus: Advances Management Accounting Job Options: The Forex Treasury division in banks
covers various management accounting techniques offers a full range of vanilla and derivative products
to all types of organisations for planning, decision in forex, interest rates and commodities. These
making and control purposes in practical situations include spot, forward, swaps, currency options,
and ability to apply quantitative techniques to interest rate derivatives, commodity futures and
business problems. options in addition to high yield structured deposits
Job Options: The opportunities at commercial linked to currencies, interest rates and
banks are more numerous today than they have commodities. Several companies are looking
ever been. With entry-level tellers, leasing agents, for professionals who understand the nuances
international finance officers, trade credit specialists, of international finance, international capital
and credit card banking specialists, the options markets and risk management. CAs may seek
in commercial banking are seemingly endless. As careers in the following areas: overseas fund
a mortgage banker, the responsibility is to supply mobilisation, risk management, forex dealing or
potential homeowners and businesses with loan forex consultancy.
opportunities.
Financial Planning
Forex Management Financial planning helps people make advance
Indian Companies have been increasingly attracting provision for financial needs that may arise in the
foreign capital either through listing on the future. You can draw parallels between the family
international stock exchanges or through private doctor and a financial planner. The family doctor
equity placements. Companies that wish to access takes care of your physical health and the financial
markets for capital or that wish to become the leading planner takes care of your financial health, ensuring
global suppliers to corporations in the developed orderly and systematic achievement of your
markets have to hedge forex exposure. financial goals.
Syllabus: Topics such as insurance creation,
budgeting, cash flow management, debt management
and financial plan construction come in useful in
managing this portfolio.
Job Options: The job options in this important
area of banking include:
(1) Financial Planner: On the technical side,
strong attention to detail is required as you
analyse all types of financial options, including
their tax implications and legal restrictions.

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Generally, banks look for candidates with good

communication skills, sound interpersonal skills,
working computer knowledge, ability to deal with
customers, and basic knowledge on economic
environment and industry. However, in order to join
foreign or private sector banks at a higher than entry
level, expertise in specific areas such as project
analysis, credit appraisal skills, managing large loan
portfolios, and dealing in foreign exchange could be
really helpful.

Financial computing skills are recommended

for performing mathematical calculations
quickly and accurately. You must also have the
ability to communicate somewhat complex
financial concepts and strategies to clients provides support to the company's anti-fraud
in a non-technical, easy-to-understand programmes.
terms.
(2) Audit & Compliance: Audit & Compliance Team Job Requirement
evaluates and provides reasonable assurance Generally, banks look for candidates with good
that risk management, control, and governance communication skills, sound interpersonal skills,
systems are functioning as intended and working computer knowledge, ability to deal with
will enable the organisation’s objectives and goals customers, and basic knowledge on economic
to be met. environment and industry. However, in order to
join foreign or private sector banks at a higher than
Auditing and Assurance entry level, expertise in specific areas such as project
Syllabus: Auditing and Assurance helps to gain analysis, credit appraisal skills, managing large loan
working knowledge of generally accepted auditing portfolios, and dealing in foreign exchange could be
procedures and of techniques and skills needed really helpful.
to apply them in audit. Business Laws, Ethics &
Communication help to test the working knowledge How to Get Entry to Banking
of business laws and company law and their practical The hiring in foreign/private banks is undertaken
application in commercial situations. through campus placement in premier institutes,
Job Options: The job options in this realm of online job portals, consultants and references. These
banking include: banks have their own aptitude tests and interview
(1) Compliance Officer: Reports risk management process to recruit at the entry level.
issues and internal controls deficiencies that Public sector banks in India recruit at entry-level
are identified directly to the audit committee through a selection process. A total of 19 public
and provides recommendations for improving sector banks have come together to participate in
the organisation’s operations, in terms of both the Common Written Exam (CWE) conducted by
efficient and effective performance, evaluates the Institute of Banking Personnel Selection (IBPS).
information security and associated risk Banks use CWE scores to shortlist candidates for
exposures, evaluates regulatory compliance Clerical Cadre, Probationary Officers (PO) and
programme with consultation from legal Specialist Officers. Shortlisted candidates are called
counsel, evaluates the organisation’s readiness for a group discussions and personal interviews
in case of business interruption, maintains open and the final selection is done on the basis of the
communication with management and the combined scores of both the stages. The State Bank
audit committee, teams with other appropriate of India and its associates conduct written test and
internal and external resources and engages in interview separately for their recruitment of the
continuous education and staff development and Clerical Cadre and PO posts. 

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