What is MBA Degree?
An MBA degree is a specialised degree which is aimed at arming the students with the skills required to manage and run a business profitably and effectively. This is a qualification which is useful for individuals who are looking to be a part of a business or start a business. There are various specialisations in MBA degree like marketing, finance, human resource etc and participants are learned in the details of dealing with various issues in their area of specialisation.
What are the Functions of Banking Sector?
A bank is defined as a commercial institution which accepts deposits from the public and gives loans to the public in order to circulate the monetary resources available in the economy in the most effective manner. The various functions related to banking sector in India are:
- Accepting Deposits: A bank accepts deposits from the general public and in return give them interest for depositing the money with the bank.
- Giving Loans: This is the most important aspect of banking because income is generated from this source. A bank gives away loans to the needy sector of the economy and earns interest on those loans.
- Economic Development: This is an agendum of the banks in India since it is necessary to contribute to the economic development of the country .Therefore, banks are often directed to extend loans at concessional rates to the priority sectors of the society.
- Profit Maximization: After doing social banking as well as commercial banking, banks have to generate healthy profit.
Importance of MBA in Banking Functions
Now let us see how an MBA useful in banking sector:
- Profit Maximising: MBA degree holders can chalk a business strategy which will balance the social and commercial aspects of banking effectively so that there is no negative impact on profit of the bank.
- HR Policy: With competition being intense in banking sector, the MBA degree holders are very important to hold on to employees because retention of quality talent has been an issue in a fiercely competitive market where rivals are always ready to offer a higher and fatter package to an experienced employee of a bank.
- Marketing Policy: Marketing has emerged as the most important factor to hold on to the customer base of a bank because with a number of players, marketing of products along with quality customer service is necessary to attract and retain customers.