Need a job? Managers of public banks to exit

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Need a job? Managers of public banks to exit
New Delhi: Around 70-80 percent of the senior managers in public sector banks (PSBs) will be exiting or retiring in the next 3-5 years, since most of the recruitment had taken place in the 1970s and 1980s. Therefore a committee, headed by the former Bank of Baroda Chairman, A.K. Khandelwal, has been asked to come out with strategies on planning of recruitment and succession as well as retention of best performers through performance-linked incentives and grooming such officials for leadership roles. The government appointed committee, to firm up plans for the upgradation of human resource (HR) management practices in PSBs, will submit its report by March 2010. The committee's report would highlight the huge shortage of skilled professionals in PSBs - in complex treasury businesses, risk management, IT infrastructure management, Initial Public Offering (IPO)-related transactions and marketing of financial products, official sources told Business Line. According to industry estimates, currently only a fifth of the seven lakh PSB employees are managing specialized areas of banking. This means around 5-6 lakh employees are handling routine processing activities that are becoming increasingly outmoded, thanks to the advanced software and IT infrastructure. The committee can also seek the help of international banking and HR consultants and may also look into some global findings including a report by research firm McKinsey. This is to ensure that its final recommendations enable PSBs to scale-up their HR practices so that they can compete with the best among the private and foreign banks, sources said.

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