Gender Based Democracy in Financial Services Industries with special Reference to Banking Sector in India
Abstract
Indian Financial Sector is one of the best equal opportunity areas that provide wider opportunities for women to enter and succeed in this industry. Economic growth and development of any country depends upon a financial system. This Study is used to understand the influence of gender in financial industry. Financial industry has been classified in to various sub sections like banking, capital market, insurance etc., among these; we would like to take Banking industry. Banking in India originated in the last decades of the 18th century.
Most of the employments were provided by Agricultural and its allied sectors accounted for about 52.1% of the total workforce in 2009–10 then remaining 47.9% was shared by others sectors. This study has clearly shown that the male practices were mostly influenced in financial sector. So that women could enter into such work without any loss of identity or integrity. The actual situation is evaluated among the top 10 business banks in India. To illustrate the gender situation in Banking, one has to view ‘the women in technology approach’ and ‘the women and technology approach’. The former approach tries to involve more women via equal access to education and employment; while the latter has a broader focus on the nature of technological work.
Introduction
The banking system of India should not only be harassed free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process.
The General Bank of India was set up in the year 1786 then Bank of Hindustan and Bengal Bank were come. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. During those day’s public has lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders.
Future challenges of Banks in India
The Indian banks are hopeful of becoming a global brand as they are the major source of financial sector revenue and profit growth. The financial services penetration in India continues to be healthy, thus the banking industry is also not far behind. As a result of this, the profit for the Indian banking industry will surely surge ahead. The profit pool of the Indian banking industry is probable to augment from US$ 4.8 billion in 2005 to US$ 20 billion in 2010 and further to US$ 40 billion by 2015.This growth and expansion pace would be driven by the chunk of middle class population. The increase in the number of private banks, the domestic credit market of India is estimated to grow from US$ 0.4 trillion in 2004 to US$ 23 trillion by 2050. Third largest banking hub of the globe by 2040 - is that vision too far away?
India’s Top 10 Business Banks
Here we would like to give India’s top 10 Business Banks that have gained recognition for their innovative approach and technological brilliance towards offering skilled and convenient solutions to the customers.
1. State Bank of India – The Big Daddy of Indian banks
SBI is the largest bank in India with 2914 crore profits booked in the FQ2010. Established in 1955, SBI initiated many new strategic tie-ups with an objective to grow and sustain in the banking sector. Bringing new banking models and updating the rural customer base have been some of the prime goals of the bank. SBI has won the award of the ‘Best Bank’ in 2009.
2. ICICI Bank – An Indian Bank with global identity
Besides being the second-largest (private) bank in India, the ICICI Bank (Industrial Credit and Investment Corporation of India Limited) has succeeded in getting recognized as one of the well-managed universal banks. Strategic business approach in personal and investment banking divisions and excellent managerial assets are the driving forces behind the accelerating growth of the bank. The gigantic ICICI group has marked revenues worth 1,026 crore in the FQ10.
3. HDFC Bank – A private sector bank with huge capital structure
The HDFC bank received an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. HDFC owns an authorized capital of 550 crore and claims to hold 19.4% Foreign Institutional Investors FIIs. The HDFC group dreams to be known as the ‘world-class’ Indian bank.
4. Allahabad Bank – The oldest Joint Stock Bank of India
Founded in 1865, this Kolkata-based bank was established by a group of Europeans in Allahabad. After becoming nationalized in 1869, the bank listed its shares in an IPO registered in 2002. The bank’s profit figure is 347.14 crore in the first quarter. In 2007, Allahabad bank opened its first overseas branch in Hong Kong. The bank specializes in a Merchant Banking service called ‘All Bank Finance Ltd.’
5. The Bank of Baroda – A national bank with international standards
The Bank of Baroda marked its presence on the two underlining principles – corporate wisdom and financial prudence. With a net profit of 859.16 crore, the bank concentrates on providing Appraisal & Merchant Banking services.
6. Punjab National Bank – A leader in the small bank category
Punjab National Bank (PNB) is the first Indian bank to have been started solely with Indian capital in 1895. Besides being ranked as India’s top service brand, PNB is dedicated in spreading the buzz of ‘social banking’ on robust domestic profits (1,135 crore).
7. Canara Bank – The Farmers’ Bank
Headquarter in Bengaluru, the Canara bank is known for its ‘customer centricity’ phenomenon called ‘Good Banking’. Shri Pai pioneered the bank in 1906, prioritizing the welfare of local farmers; it offers agricultural consultation to the farmers. It is also the first bank to acquire an ISO certification. 1.031 crore net profit in FQ10.
8. Axis Bank – The Fastest growing Indian bank
Founded in 1994, the Axis bank (former UTI bank) is a new yet fast growing Indian bank with strengths in both retail and corporate banking. 741.88 Crore is the net profit figure of Axis in FQ10.
9. Union Bank of India – The king of rural banking
With worth $13.45-billion assets, the UBI has booked 601 crore revenue in the FQ10. The bank was inaugurated by Mahatma Gandhi in 1919. It has a ‘Village Knowledge Center’, exclusively developed for rural masses. The bank also offers the widest range of treasury products.
10. IDBI Bank - The Best Public Sector Bank
The Industrial Development Bank of India Limited was founded in 1964 with an objective to bring the IT banking platform and to provide capital market and asset management services. IDBI is known as the ‘Best Public Sector Bank’ with 251 crore net earnings.
Objectives of the Study
1. The Study is used to identify position of gender based democracy in banking sector in India. 2. The gender situation in Banking is measured by adopting various common indicators like Share of Woman Employees in Banking Sector, Geographical Distribution of Employees (Schedule Commercial Banks) According to Category.
Influence of Gender in Banking Industry
Banking jobs are high salary paying jobs in India. So Woman employees are willing to work in banks. The following table shows the share of Woman employee’s in banking Sector.
Share of Woman Employees in Banking Sector
S.No | Name of the bank | Total Employees | Female Employees | % of Woman |
1 | State Bank of India and its Associates | 3,07,289(33.8%) | 39,967 | 11.05% |
2 | Other Public Sector Banks | 5,65,087(62.2%) | 81,913 | 14.49% |
3 | Indian Private Sector Bank | 27,569 (3.03%) | 4,338 | 15.91% |
4 | Foreign Banks | 8,055 (0.88%) | 2,700 | 33.51% |
Source: Indian Banking Year Book
The above table indicates that, State Bank and its Associate banks and Other Public sector Banks are providing more than 25% of the employment to Women’s. This is a welcoming feature in banking industry. But most of the woman employees are choosing voluntary retirement due to restructuring the policies of the bank.
Distribution of Employees (Schedule Commercial Banks) According to Category
Rural | Officers | Clerks | Sub-Ordinates | Total |
Total Employees | 59,475 | 31,881 | 53,029 | 1,94,385 |
Females | 1,239 | 5,742 | 2,871 | 9,852 |
% of Woman in Total | 2.08% | 18.01% | 5.41% | 5.06% |
Semi-Urban | Officers | Clerks | Sub-Ordinates | Total |
Total Employees | 57,139 | 1,13,358 | 52,883 | 2,23,380 |
Females | 2,347 | 17,884 | 4,605 | 24,836 |
% of Women in Total | 4.10% | 15.77% | 8.70% | 11.11% |
Urban | Officers | Clerks | Sub-Ordinates | Total |
Total Employees | 1,74,775 | 2,98,842 | 1,15,249 | 5,88,866 |
Females | 15,347 | 77,251 | 10,256 | 1,03,124 |
% of Women in Total | 8.78% | 25.85% | 9.13% | 17.51% |
All India | Officers | Clerks | Sub-Ordinates | Total |
Total Employees | 2,91,389 | 4,94,081 | 2,21,161 | 10,06,631 |
Females | 18,933 | 1,00,877 | 18,002 | 1,37,812 |
% of Women in Total | 6.49% | 20.41% | 8.13% | 13.69% |
Source: Banking Statistics 2000 RBI
The above table indicates that highest percentages of women are in the clerical in all rural, semi-urban, urban and all India level followed by sub-ordinate category. At the decision making level of officers their representation is 2.08%. At the urban level it is 8.78% and this is help to raise All-India average 6.49%. There is a need for higher representation at this level. If we are going to increase the women employability. This would helpful for women customers to feel free to discuss their proposals for credit with women officers than men officers. In foreign banks the percentage of women officers are 54% whereas in the public sector national banks it is only 13.7%.
Trend in Average Daily Earnings by Sex in Service Sector
S.No | Industry | * - Average Daily Earnings in Rs | ||
Men | Women | Overall Earnings | ||
1 | Elct. Generation | 309.83 | 239.83 | 308.89 |
2 | Railways | 266.82 | 190.15 | 264.29 |
3 | Public Motor Transportation | 249.75 | 160.02 | 249.21 |
4 | Ports and Docks | 389.81 | 265.88 | 389.12 |
Source: Occupational Wage Survey from Ministry of Labour and Employment
( * - Earnings refers to the cash payments received by the workers and include remuneration paid to workers regularly for each pay period for normal working hours, overtime, bonus (production, incentive and attendance), dearness allowances and other cash allowances of regular nature. Payments of irregular nature such as profit sharing bonus, ex-gratia payments, free laundry and any other benefits or concessions in kind, etc. are excluded)
The above table shows that the pay gap between men and women employees in service sector. This is also making a controversy between Women and Men employees.
Conclusion
We would like to present our results as the conclusion i.e. influence of women employees in banking sector is relatively low. This is due to restructuring the policies of the bank, pay gap between men and woman employees, cultural factors and less high level education in rural areas too. Their prospects of getting prospect of getting productive jobs in banking sector is uncertain in view of the tight labour market and competition from men. India's labour force is growing by 2.5% every year, but employment is growing only at 2.3% a year. This can rectify by empowerment of women. It can be achieved only if the countries and states implement some adequate policies and establish more organisations to provide financial supports to women’s like FWWB (Friends of women’ world banking).
References
Books and Journals
Ø D.M.Mithani- Money, Banking, International Trade and Public Finance, Himalaya Publishing House, New Delhi, 2002
Ø Balaka Baruah Aggarwal, “ IT Women Come to the Fore”, DATAQUEST, Tuesday, April 22, 2003
Ø Elango.R (2003), Empowering women in Information Technology. In: The International Conference on women in the digital era: opportunities and challenges, December 10-12, Annamalai University, India
Ø Gender and ICTs: What difference does it make? Apc.org Manjiri Kalghatgi and Rishiseth (2003).
Websites
