Bank deposits and credit in metropolitan cities (Figures in Rs crore)

Bank deposits and credit in metropolitan cities (Figures in Rs crore)

According to AMFI, of the 29 mutual funds operating in the country, 90 per cent of the companies, i.e. 26 mutual fund companies are registered in Mumbai. As for Assets Under Management (AUM), 80 per cent of the mutual fund business in India is transacted in Mumbai alone. Over the last few years, mutual fund has captured a greater mind space in the investment horizon of big corporate houses. Presently, more than 70 per cent of the total investments in funds come from corporate houses and as most corporate investors are based in Mumbai mutual fund transaction is high in the city.

According to details provided by IBA, the ‘Voluntary Retirement Scheme (VRS)’ launched by several PSBs, beginning 2001, saw the total number of employees reduced from 8,73,569 in March 2000 to 7,52,627 in March 2004. Primarily due to a sizeable number of employees opting for VRS, during this period, the total number of employees in the banking sector (public, private and foreign banks) shrunk from 9,44,593 as of 31^st March 2000 to 8,49,179 as of 31^st March 2004. On the other hand, the total number employees in the private and foreign banks saw a steep rise in employment figures from 71,024 in March 2000 to 96,552 in March 2004, an increase of 35.9 per cent, as these banks strengthened their business network across the country.

According to State Bank of India (SBI), aggressive marketing on the part of banks, over the last decade, has resulted into creation of several dynamic product/service delivery channels, which in turn have created openings for skilled/efficient people. During this period, the sector witnessed a gradual switch over from manual to mechanised system of working, thus forcing banks to undertake massive re-skilling programmes for their existing employees and recruitment of ‘savvy frontline’ and ‘efficient backend’ personnel. Further, the 24x7x365 service approach taken by the bank resulted into increased competition for creation of efficient delivery channels. This led to the bank create newer squads of efficient and technology-savvy employees for maintaining their efficient customer service channels.