Banks Not Ready To Stop Campus Hiring

Public sector banks stop recruitment from B-schools after court order-Business Standard

Central Bank of India to appeal in SC against HC order restraining campus hiring

The Central Bank of India will appeal against a recent Bombay High Court order restricting campus recruitment for appointment of officers by the bank, said M V Tanksale, chairman and managing director of the Central Bank of India. Other public sector banks, which are also affected by the court order, are likely to join the appeal.

Tanksale added the bank is picking up management graduates from campuses for specialised jobs under autonomy granted by the government.

According to the top executive with a large public sector bank, while the high court verdict may be applicable a specific bank, it is going to have implications for other public sector banks as well. He added the issue will be taken up with the Indian Banks’ Association.

Management institutes are the most preferred destination to recruit talent for special posts in banks. With good talent available aplenty, banks prefer campus hiring. Students from the finance, marketing and strategy backgrounds are in demand.

“Being listed entities, there is expectation to work with private sector efficiency. Public sector entities tend to get the residual talent from management campuses. So, for us, it is quite challenge to do a balancing act,” said another public sector bank official.

While the court decision has been bank-specific, other banks have also followed the judgement. Shubhalakshmi Panse, chairperson and managing director of Allahabad Bank, said, “We were going to campuses till last year. But there has been some court cases because of which we are now not allowed to hire from campuses. That is why we are recruiting through IBPS (Institute of Banking Personnel Selection).” She added till the final judgement comes, her bank will be recruiting through IBPS. The institute not only helps identify talent to be sourced from the market through the recruitment process, but also helps identify employees within organisations with the necessary competencies to cope with various roles and responsibilities.

Although management institutes have mostly completed final placement process, they are worried this decision will affect their students in the coming period. “Given the slump in the job market, public sector banks were offering good positions with decent packages for students. Now, it is going to be further challenging for students to find a secure job,” said the placement head of a Mumbai-based business school.

Human resource consultants also explained management students hopeful of getting placed with public sector banks would have to find other options. The senior official of a New Delhi-based HR consultancy, who is involved in public sector recruitments, said that government banks are preferred by students as they offer job security. “While pay packages may not be very high, these candidates are comforted by the fact that these firms do not have a hire-and-fire policy. Especially when the job market is slow, these banks could have offered excellent career opportunities,” said the consultant.

http://www.business-standard.com/article/finance/public-sector-banks-stop-recruitment-from-b-schools-after-court-order-113050400416_1.html

Central Bank’s campus hiring illegal: HC       Times Of India 

 Prafulla Marpakwar, TNN | Apr 3, 2013, 03.44 AM IST

MUMBAI: In a major setback for Central Bank of India, the Bombay high court on Tuesday held that its recruitment policy, which allows campus recruitment/interview method for appointment of officers against permanent vacancies on regular basis, was illegal and unconstitutional. 

The HC directed the bank to refrain from making any appointments against permanent vacancies on regular basis via campus recruitment\interview mechanism, warning that if it did so, it would be non-est (not binding) in law. 

http://importantbankingnews.blogspot.in/2013/04/high-court-warns-bank-management.html

Officers selected and appointed in banks through All India Competitive examination in scale I are considered inferior by corrupt team of top bankers who prefer campus hiring. These corrupt bankers go to a campus where a few of their known children are admitted and give them job in higher scale II or scale III. Corrupt officers do not hesitate even in paying double the salary because they have been free hand by RBI and Ministry of Finance in the name of reformation.

( If Officers selected through All India test are really inferior , then entire team who took part in recruitment  process for recruitment of Probationary Officers in the bank may be treated as inefficient , corrupt and incapable and hence it is they who deserve immediate punishment and removal from bank's service)

To read detailed comment please click on following link

http://importantbankingnews.blogspot.in/2013/05/bankers-planning-to-move-supreme-court.html

http://dkjain4970901092007.blogspot.in/2013/05/why-campus-hiring-is-unconstitutional.html

http://dkjain4970901092007.blogspot.in/2013/04/campus-recruitment-by-banks-is.html

IN fact poor and middle class students cannot afford expenses required for higher education , it may be MBA or BE or medical. As such poor person even if more talented than a B school youth may not get chance for job any time any where if private as well as govt companies fill up their vacancies from a few high profile campus only. In my opinion even private companies should follow the principles of equal opportunity for all when they employ person more than 100 person