MBA BANKER

 Many discussions are on by many persons whose life will be impacted by the banking industry. Many who do not have any knowledge about the banking operations are also jumped to give his/ her opinions. This is particularly happen in INDIA. But Graduates join Banking industry through either IBPS or Walk-in. So both pattern has their uniqueness. One makes graduate guarantee basic plus da. But other form does not guarantee any pay structure rather showcase rosy pictures like ESOP, INCENTIVE. So both are having Pros & Cons. Now put HR things aside. Come straight to Customers. Customers for PSBs are all. But Elites are thinking Private Sector Banks are giving value. But it is actually illusion. As all banks are technology driven and also provide Credit cards. So basically there is no difference.           So, customers need to be trapped so that they will stick to an individual bank. It is the philosophy of every bank irrespective of bank types. But on o...

 I wish my readers Very Very Happy New Year. I am hopeful writing good articles for the readers and also wish to get good articles from all of you.

This article will definitely help all the bankers worked in any banks as well as the students preparing to enter the banking industry space.  Banking is very simple but many claim it to be very difficult. But Banking is in simple terms- DEPOSIT-ADVANCE-RECOVERY . But in the name of universal banking banks are trying to become omnichannel through which banks try to cater all types of facilities to customers so that customers hook to them. It's the simple strategy used by all leading private sector banks as well as public sector banks in India.  CUSTOMER is the main component of the banking ecosystem. This is not clearly understood by the bankers working in many PSBs. If we look very very carefully, we will discover that many are not having any interest to do the business. Before entering the banking sector they might have rosy pictures in their mind for which they feel dissatisfied when they join banks. Here the main skill which every bankers need to have that is communication...

Hi, Everybody                         Do you believe in having big balance sheet to be the criteria for success of the banks? If you are convinced because of the theories put forth in front of you then I must say this notion is very much hypothetical. Rather vision is the important criteria which will drive you to the spot of success. Many try to bring all customer segments into their fold. In this process they not only hurt almost all customers, but also loose many customers. But they don't think it is the primary reason for the loss they suffer in the banking business. But they try to push for their own fancy products to the customers which are profitable in the form one time commission, but customers who are the main ingredient for their profitability get hurt financially in the process. As customer’s requirement is not the main agenda to study by the so called relatio...

  ·          DER measures the ratio of long term or total debt to shareholder’s equity. ·          The relationship between borrowed funds and the owner’s capital is a measure of the long term financial solvency of the firm. ·          The relationship is shown by the DEBT: EQUITY ratio. ·          The DER is a financial ratio indicating the relative proportion of entity’s equity and debt used to finance an entity’s assets. ·          This is also known as financial leverage . ·          This ratio is used as a standard for judging a company’s financial standing. ·          It is also a measure of a company’s ability to repay its obligations. ·         ...

  The Acid Test ratio is a more stringent measure of Liquidity than the CR (Current Ratio). It is expressed as a ratio of all the current assets excluding inventory to the Current Liabilities. The term quick assets refers to CA which can be converted into cash immediately or at a short notice without decreasing of value. CA included in the category as (i)                 Cash & bank balances (ii)   Short term marketable securities (iii)            Debtors/ receivables CA excluded   Inventory ATR (Acid Test Ratio) is more superior to CR (Current Ratio) The ratio is computed as:- (Cash+ receivables + investments)/ (Current Liabilities) OR (Current Assets –Inventory) / (Current Liabilities –Short Term Bank Borrowings) Receivables are considered to be more easily realisable and so the ratio is supposed to give a better...

  First we need to understand Money comes from owners are termed as Equity and money comes from outsiders are known as Liability . When money comes from outsiders comes with obligations to be repaid within one year or after one year. When it comes with obligation to be repaid within one year is called short term Liability . Taking advance in the form of Cash Credit, Overdraft, and advance from customers, you have the commitment either to repay them or deliver the goods. Using this money, generally one creates Short Term Assets .   If you look at the proportion here, Short term assets are greater than Short term Liabilities. If one business is having Short term assets are greater than Short term liabilities, then the business is in comfortable position. So one can say Liquidity position is comfortable. Let’s have an example, suppose a firm is having Short term assets of 15 Cr and is having Short term liabilities of 10 Cr. This means the company is in comfortable position or ...