Banks to strengthen risk operations, new jobs seen
Most banks in India — foreign, private or government-owned — are gearing up to expand and strengthen their risk management work after the global financial crisis. This is poised to spin a new set of jobs.india Updated: Jun 07, 2011 22:42 IST
Most banks in India — foreign, private or government-owned — are gearing up to expand and strengthen their risk management work after the global financial crisis. This is poised to spin a new set of jobs.
Besides, the financial crisis, a spate of scams in the banking sector in the recent times has also forced banks to strengthen their risk operations.
Banks' operational risks include loss resulting from inadequate or failed internal processes, people and systems or from external events.
Citibank and Standard Chartered are among those, which are seriously looking at expanding the risk operations.
"Most banks are planning to go in for expansions in their risk operations especially after the global financial crisis and in the wake of intensified competition expected in the future with new banks coming into the domestic market," an industry expert, who did not wish to be identified told Hindustan Times.The Indian Banks' Association (IBA) has also proposed to chalk out a new way to verify the authenticity of documents provided by loan applicants. The IBA has also written to the Institute of Chartered Accountants of India (ICAI) seeking suggestions on the same.
Just a few months ago, the alleged Rs 300 crore fraud in Citibank and the housing loan scam, involving the state-owned banks caused serious embarrassment to the country's banking industry, which had even managed to withstand the brunt of the global financial crisis.
The Central Vigilance Commission (CVC) is also likely to increase its vigilance on the public sector banks with a view to ensuring that frauds do not recur in these banks.
Banks are expected to increase headcounts for the risk operations as well.
Headhunters tracking the banking sector said that large number of jobs would be available in this area in the next few months.