If the banks depend on PO level recruitment, there will be a vacuum for 20 years as there has been no recruitment since the 1980s and there won’t be enough talent available as it takes around 20 years to bring up people up to that level, says the NIBM director. Around 4,00,000 officer-level retirements are expected in three to four years with all of them in the 55-plus age group. GM levels posts are lying vacant in banks, says Bhattacharya.
Banks have failed to get talent from the market as these professionals are used to working in an environment where they are not chained by corporate governance norms which public sector institutions demand, there are no incentives for performance and the salary levels at the senior level at PSU banks are much lower compared to private sector bank, points out Bhattacharya. Banks also do not have the option of going down the ladder, he adds.
It was the human resource crunch in the PSU banks that led to the NIBM starting its post graduate programme in banking and finance in 2003-04 later rechristened as Post Graduate Diploma in Management Banking and Financial Services. But they too are not getting the compensation they deserve and it takes 10 years to move to levels up. After graduating from NIBM, students enter at Grade II levels of PSU banks but they should get much better rewards, says Bhattacharya. This year 54 students graduated and there has been 100% placement record with some opting for the private sector. NIBM is doing its bit to expand the talent poll for banks. Bhattacharya said NIBM is planning to increase the intake of students. It is a building a 240-room hostel for the PGDM course as it is run as a residential programme and needs room to accommodate additional students.The institute has started work on creating additional infrastructure at the NIBM campus with investments of around Rs 60 crore to Rs 70 crore, Bhattacharya said.
SBI to introduce assessment system to identify non-performers among its senior age group
KOLKATA: State Bank of India is set to introduce an assessment system that will identify chronic non-performers among its senior age group employees and stop offering them the now-guaranteed two-year extension, which allows every staff to work until 60 years of age. The new human resources policy also seeks to reward high performance with cash incentives, three people familiar with the matter said. The new system will be IT-based and evaluate employees based on how they conduct everyday tasks, such as account opening. Boston Consulting Group has advised SBI on this. SBI, the country's largest lender, employs about 2.30 lakh people at present and a good chunk of them are on the verge of retirement. In a note to all regional offices, the SBI management said the project is to identify efficient people and build competitive environment among employees, and not meant to identify low performers.
SBI may also link transfers to productivity, another first in the lender's history. Currently transfers and placements are mutually decided between the management and the employee federation. Employees up to general manager may be assessed under the new system. "The project has not been rolled out as yet. Discussions are going on at various levels. We have also given our suggestions. So, at this stage, we don't like to comment," said Y Sudarshan, general secretary of the All India State Bank Officers' Federation. The policy will be effective from this fiscal year but some nuances are still still being worked out, a senior official said. BCG suggested that SBI measure performances or productivity based on how much time one takes to conduct a particular transaction. For example, it suggested that account opening should not take more than 2.9 minutes. A monthly view will be taken on all budgetary and measurable roles.