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Is it necessary to have an MBA Degree for handling banking operations?

Nov 27, 2015 16:29 IST

    What is an MBA Degree?

    MBA or Masters of Business Administration is a course aimed at making the candidates skilled at the art of managing things in various areas like human resource, finance, marketing etc. It is basically a course where a participant leans the nitty-gritty of running a business profitably and to the best of the interests of the business organisation.

    Various Roles in Banks

    As we know, the main objective of the banking sector is to channelize the money available in the economy from the surplus sectors to deficit sectors so that it can be used in economic development of a country. The basic functions of a bank can be divided into various areas and they are:

    • Operations Management: It is the day to day working of the bank starting from handling the cash management, alternate delivery channel, pension disbursal, cheque book, savings and term deposit accounts etc.
    • Credit Management: This is aimed at managing the credit portfolio of a bank as credit interest is the main source of income for banks. The individuals in this department take care of counseling people in taking loans from a bank, opening accounts, inspection, credit appraisal etc.
    • Human Resource: This department deals with managing the human resource available in the organization to the best of its abilities.
    • Marketing: In a competitive field like banking, it is very necessary to market aggressively to gain the market share from other banks in order to maximize profits and maintain brand value.
    • Regulatory and Compliance Aspects: This section deals with making it sure that a bank is abiding by all the rules and regulations laid down by the Reserve Bank of India and if there is any discrepancy, it is the responsibility of this department to make it right.
    • Information Technology: With more and more focus on technology these days, information technology department in banks has to take care of issues related to software used in the banks as well hardware related problems apart from being responsible for safekeeping of sensitive data.

    Present Hiring Scenario

    According to the present trend, public sector banks recruit MBA candidates for marketing and HR whereas for generalist officers, MBA is not a mandatory qualification, though, one with an MBA in a related field like finance can get challenging assignments compared to simple graduates.

    Necessity of MBA Degree in Banking Activities

    Banking activities are very logical and simplistic in nature and therefore, an MBA degree is not at all mandatory for managing day to day activities in banks. Moreover, the starting package offered by the banks may not be a good option for MBA degree holders from top rung colleges of the country.

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