Bank Hired 3 Lac Employees and More Than This Perhaps Gone

IBA has given a news in newspapers of the country ( given below ) that from August 2009 to August 2013 , public sector banks added  three lac employees in bank out of which 97000 as officer and 173000 as clerk .

IBA has not given the figure of new branches opened during the above mentioned  period of four years, did not give the figure of number of employees left banks due to retirement , resignation or dismissal or natural death and finally did not give the volume of  the  business which was added and volume of non banking business added in aggregate volume of public sector bank during the aforesaid period.

I am fully confident that that overall manpower of every bank has almost remain stagnant or even if there is increase in manpower , it is almost negligible compared to rise in number of branches and that of business.

This is why per employee business of each bank has gone up but number of employee per branch has sharply come down.

This is no doubt to any prudent experienced banker, that bank has completely failed to increase per employee and per branch profit though they have increased per employee business by reckless branch expansion and business growth achieved under pressure or in the name of achieving target or with malicious intention behind it.Bank has increased overall volume of business but failed to do the business rise per branch .If we remove bulk business of top 100 companies from every bank , I think entire story of growth narrated by bankers will perish and vanish.

It is very easy to increase bulk business but very difficult to maintain good level of customer service and very very difficult to maintain quality of assets of the bank under staff shortage, or that of quality in majority of staff.. This is certainly one of key the reasons behind all types of crisis banks are facing.Bank may book bulk business but not easy to garner retail  business. 

There is sharp rise in per employee value of Non Performing Assets in public sector banks compared to that in private banks. There is sharp fall in profit equity ratio and sharp rise in Gross and Net NPA ratio. There is fall in CASA of government banks but sharp rise in volume of frauds taking place and volume of money lost by banks due to frauds .

The most painful is sharp downfall and erosion  in staff  happiness with bank job .And hence it is easy to bring business by marketing but difficult to sustain them.

I am not giving statistics on above parameters and to substantiate my conclusions only because all above points are well open to all bankers and customers and to public . However it anyone is not in favour of believing above facts he or she may refer the statistics published by RBI on its website.

Finance Ministers of India  during last ten years have built immense pressure on public sector banks for branch expansion and for credit growth to gain political advantage but have done nothing to maintain quality and quantity of bank staff which has caused and contributed all types of crisis in public sector banks

It is very much disheartening and painful that FM  do not hesitate in putting entire blame on bank staff for such crisis and denying  banks staff a respectful wage hike .

Banks hired 3 lakh employees in last 4 years: IBA-The Hindu Business Line 17.02.2014

MUMBAI, FEB 16:  

State-run banks hired nearly 3 lakh personnel, including over 94,000 officers, in the last four years, according to data released by industry lobby IBA.

The public sector banks hired 2,97,896 staff between April, 2009 and August, 2013, the Indian Banks Association (IBA) said, while refuting the reports that banks have gone slow or are not hiring at all.

“Banks are periodically making manpower assessment and recruiting personnel based on vacancies caused by superannuation, attrition, expansion of branches etc,” IBA Deputy Chief Executive K Unnikrishnan said.

He said the 73,258 employees were hired in FY 2013, while for the period between April and August 2013, the state—run banks hired 52,348 people, indicating a surge in hiring activity.

A bulk of the hiring was at the clerical level, with 1,74,786 people being recruited during the four years and five months period, the IBA said, adding there were 28,467 hirings in the “sub-staff’ category as well.

The National Organisation of Bank Workers had earlier this month alleged that the recruitment process in the banking sector has almost come to a standstill.

The data comes in the backdrop of a slew of estimates about the growth in banking sector, and the demand for additional manpower thereof.

According to a study done by trade lobby Assocham in September 2013, banks will need up to 8 lakh personnel in the next six years. It estimated that state-run lenders will alone hire 50,000 personnel in FY 2014.