number of branches across the country
over the past few years but it is the private
sector where most of the hirings have
happened, according to latest data released
by the Reserve Bank of India. According
to the data released last week, one in every
four bank employees works with a private
bank today — a sharp rise from one in 10
in 2005.
Significantly, Prime Minister Narendra Modi on Saturday promised greater autonomy to public sector banks, and emphasised the need for them to be run professionally. The Finance Ministry today issued directions asking PSBs to act without “fear or favour” and to ignore “extraneous considerations” in their commercial decisions.
Although public sector banks still lead with a combined employee strength of 8.3 lakh out of the total 11.51 lakh bank employees across the country, the interesting part is the number of hirings since March 2005. Between 2004-05 and 2013-14, the number of employees in private banks — both domestic and foreign — went up three times from 1.09 lakh to 3.2 lakh while public sector banks added a comparatively low 81,445 employees.
Of the total 292,639 hirings by all scheduled commercial banks (SCBs) over the nine-year period, more than 72 per cent or 211,194 employees were recruited by the private sector, mostly by Indian private banks. Foreign banks had only 24,834 employees as on March 31, 2014.
Although public sector banks still lead with a combined employee strength of 8.3 lakh out of the total 11.51 lakh bank employees across the country, the interesting part is the number of hirings since March 2005. Between 2004-05 and 2013-14, the number of employees in private banks — both domestic and foreign — went up three times from 1.09 lakh to 3.2 lakh while public sector banks added a comparatively low 81,445 employees.
Of the total 292,639 hirings by all scheduled commercial banks (SCBs) over the nine-year period, more than 72 per cent or 211,194 employees were recruited by the private sector, mostly by Indian private banks. Foreign banks had only 24,834 employees as on March 31, 2014.
As a result of the hirings, the share of Indian private bank employees in the industry has gone up from 10.76 per cent in March 2005 to 25.7 per cent at the end of March 2014, with the addition of 203,696 employees during this period.
Top officials with private banks said the rise in the number of hirings was a result of both increase in the number of branches and reduction in the outsourced sales staff. “All private banks had strong outsourced sales staff but now most of us are getting our dedicated sales force to go out to sell,” said the HR head of a private sector bank. He said the outsourced sales staff, that accounted for two-thirds of the sales team earlier, has now come down to a quarter.
On the other hand, with the posts of four chairmen and 14 executive directors currently lying vacant in PSBs, hirings at government-owned banks has been dismal across all levels. While the government has announced its decision to split the post of chairman and MD at PSBs, there have been talks to consider individuals from the private sector for the top job at PSBs.
The All India Bank Employees Association (AIBEA) said there is a huge shortage of employees in the sector. “Looking at the present need, there are around two lakh vacancies now and another three lakh vacancies will come up over the next three or four years on account of retirements,” said C H Venkatachalam, general secretary, AIBEA.
Top officials with private banks said the rise in the number of hirings was a result of both increase in the number of branches and reduction in the outsourced sales staff. “All private banks had strong outsourced sales staff but now most of us are getting our dedicated sales force to go out to sell,” said the HR head of a private sector bank. He said the outsourced sales staff, that accounted for two-thirds of the sales team earlier, has now come down to a quarter.
On the other hand, with the posts of four chairmen and 14 executive directors currently lying vacant in PSBs, hirings at government-owned banks has been dismal across all levels. While the government has announced its decision to split the post of chairman and MD at PSBs, there have been talks to consider individuals from the private sector for the top job at PSBs.
The All India Bank Employees Association (AIBEA) said there is a huge shortage of employees in the sector. “Looking at the present need, there are around two lakh vacancies now and another three lakh vacancies will come up over the next three or four years on account of retirements,” said C H Venkatachalam, general secretary, AIBEA.
(the indian express 6-1-2014)