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Pros and Cons of Diploma in Banking

Many Indian Banks are tieing up with educational institutions like Manipal Academy and NIIT for training the candidates who are selected as probationary officers. These institutions offer either MBA or Certificate or Diploma in Banking and Finance. In this article, we try to understand the overall programme and its impact on one career.

In a collaborative type of learning where academia and banks come together, banks have the final say and the syllabus and structure of the programme is fixed by them.

It is a very comprehensive programme where candidates get an opportunity to experience the banking in a more practical way even before taking up job assignment. The programme is expected to be a mix of on-the-class and on-the-job training. Once students complete the programme they will be awarded Certificate or Diploma in Banking and absorbed as Deputy Manager/Asst Managers in respective banks.

Though the programme costs around Rs. 3.5~4.0 lakh for either 1 year or 2 year programme, in terms of learning and knowledge this can be termed as one of the best programmes in Banking. Banks provide education loans to those who are undergoing training and later absorb them as probationary officer or at Junior Manager level.

Coming to the “Other side“, though Diploma or Certificate in Banking is offered by the relevant institution, the concept is fairly new. As on date, Manipal academy boasts of tie-up with 25 Banks and Financial institutions related to their programmes and prima facie it appears that banks are open to this idea. Only time will tell how the programme will be lapped by other banks or whether industry recognizes the same or not.

It looks like though loan will be given for education, there will be a lock-in period for 3 years post completion of the programme. Bank’s policy is justifiable as they are spending lot of time in grooming the candidates and hence expect in return the candidates to work for a lock-in period.

The main problem comes in terms of final placement where based upon candidate’s performance in the program and other parameters he/she will be placed in different verticals, as per bank needs, and they may or may not get department of their choice. Interested candidates are advised to contact previous batch pass-outs to understand how they got placed before embarking on this journey. All the Best.