Need a job? Managers of public banks to exit
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Need a job? Managers of public banks to exit

By SiliconIndia   |    3 Comments
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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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Reader's comments(3)
1: When I was working as a Manager in RBI,we had predicted this state of affairs & National Bank Officers Organisation of which I was an EC member,had suggested the setting up of an Indian Banking Service Cadre of officers to be recruited directly & through snority basis to this cadre on the lines of IAS,IPS,IFS & other All India services to be posted in PSBs & other Banks whereever necessary through a Banking service commission headed by the Governor of RBI.This go a long way in streamlining the Banking Services in the country.
Posted by:T.C.Shivaswamy - 01 Dec, 2009
2: Hope the services in these banks will also improve post the retirement of these managers..
Posted by:bhaskar - 01 Dec, 2009
3:
The peanut salaries and the perks the executives and the senior level Managers of PSB are getting visa vis the level of Risk they are taking in the name of Business Development is worth Quitting any time before it is late.

These proffessionals are a cursed cadre many stories are in the history.At east it is time to think in real terms the Perquisite values of these executives and senior managers visa vis the Risk perceptions in the proffession. Even when the Business Decison appriciated once are viewed in suspicions and serious accountability dmages are inflicted. Decades of unblemished service at the fag end of servioce will send all the experience and the expertise just a toss as a thrash. Barrower even when defaults intentioanlly or fails un intentioanlly the Executive/Sr managment fellow who processed the praposal is finished.

I have seen such executive becoming a rotten vegetable discarded just before his retirement.

This is reality for many many Bank officials whose stories goes with out much of hype. Most of the executives and Midddle management Managerial cadre are waiting for the pension option and revision in salaries just to exit and there after the real Bankers/youngsters who can take the risk as was taken in US and West with their own Business models will enter the slots in PSBs to give the nobel proffession the required TOSS and get the Bonus and salaries as was given by the financial sector of the west.
Devram Replied to: bhaskar - 01 Dec, 2009