Job Opportunities In Banking

5-7 lakh banking jobs in the offing

BEENA PARMAR

With half the workforce in public sector banks set to retire, lenders gear up for challenges

MUMBAI, JUNE 30:  

With close to 50 per cent of the workforce in public sector banks set to retire in the next few years, the banking industry will soon be among the top employers offering five-seven lakh jobs.

India’s largest lender, State Bank of India, will recruit over 7,200 employees in this fiscal. “We intend to hire about 1,837 probationary officers and 5,400 assistant officers in FY15,” said JN Misra, corporate development officer at SBI.

About 40,000 staff will be retiring in the next four years and the bank expects to recruit about 35,000- 40,000 employees during the period. Similarly, in Bank of Baroda, 16 of the 32 top management personnel will retire by March FY15. The third largest public sector bank will hire 7,500 probationary officers and clerks this financial year, with about 2,500 employees due to retire.

“We have a good succession plan in place and have completed our promotion exercise in the first month. The people who will be replacing the seniors were groomed and trained as well. While the challenges of senior management retiring will remain, we are better prepared this year,” said SS Mundra, Chairman and Managing Director of the bank.

The banking industry needs to match the capabilities to bridge the talent gap in public and private sector banks, according to Anil Khandelwal, former CMD, Bank of Baroda. According to him, regulators always talk of financial assets but not about those who create those assets. He added that PSB boards today spend less than one per cent of human resources to train and make their employees competitive.

“Barring three banks, no PSBs have set up a committee on HR within the bank. Succession in key positions is not being discussed. The rigour that private banks display in developing key leadership positions is not visible in PSBs,” said Khandelwal, who was chairman of the committee to look into the HR issues of public sector banks.

About 75 per cent of the general manager level posts will be vacant by 2020, according to Akash Lal, Partner, McKinsey and Co.

Aditya Mishra, President - Staffing, Randstad India, said: “Apart from core banking jobs, there will be an increase in backend jobs, including those in processing and outsourcing to third parties.”

Link Hindu Business Line

Slippage of farm loans into NPAs high, say bankers

Naidu appealed to the bankers to reschedule the farm loans even though the RBI had not yet accepted its request-    1st July Business Standard

Andhra Pradesh chief minister N Chandrababu Naidu on Monday informed the State-level Bankers' Committee (SLBC) that his government would come up with a concrete plan for the loan waiver scheme soon.

Naidu said he spoke with Prime Minister Narendra Modi requesting the Centre's helping hand with regard to the debt waiver scheme in the state. The chief minister said he would get back to the Prime Minister with a concrete plan in this regard.

Naidu appealed to the bankers to reschedule the farm loans even though the Reserve Bank of India had not yet accepted its request.

Meanwhile, SLBC president and chairman and managing director of Andhra Bank C V R Rajendran said the crop loan disbursements during the current season had almost come to a halt as banks were unable to recycle the funds owing to non repayment of loans and mounting overdues.

The slippages of April loans into NPAs are on a very high side resulting in higher provisioning ultimately affecting the credit rating of the banks, according to him.

"The need of the hour is to bring clarity on the proposed debt waiver with due publicity...I also request the government to put in place an effective and undisputable recovery mechanism, which can tackle the issue effectively," he said.

Link Business Standard

SBI To Open Digital banks In Malls

SBI to open digital bank in malls, will offer instant loans-Times of India 1st July 2014
MUMBAI: The 208-year-old State Bank of India (SBI) is creating a digital bank within the institution in a bid to stay relevant to a generation that's grown on social networks and demands instant gratification. The new electronic banking outlets will be situated in malls and will open accounts, issue cards and sanction loans across the counter. 

With a network of 13,000 branches, the country's largest bank has held on to market share as it continued to grow its network. But new private banks are gaining valuations disproportionate to their size as investors expect them to grow more efficiently than public sector banks. "To continue to remain the market leader we have to periodically reinvent ourselves. 

Banking today has to be sold, which is why we have decided to be in the malls," said Arundhati Bhattacharya, chairman, SBI. 

She added that the bank had looked at successful models across the world, including a Portuguese bank and an Irish bank. SBI's digital banking initiative is an outcome of SBI's mandate to Accenture four months ago. The consultancy firm was roped in to create a sub-brand that would provide new-age consumers a completely different banking experience. 

The turnkey contract included everything from conception to design as well as staff training. 

The consultancy firm has roped in designers from UK to suggest the look for the branches as well as staff uniforms. 

The first lot comprising of seven pilot digital branches will be opened largely in high street malls in various cities on Tuesday. The banking stores are supported by self-service touch devices, which enable instant account opening with an instant debit card. Customers will have access to remote experts through high definition videos. 

According to Mudeita Patrao, MD (financial services), Accenture, to deliver its mandate within 16 weeks, the firm brought in experts around the globe and at one point of time there were parallel teams across UK, France, US and multiple centers in India. 
Link Times Of India

Per Employee Business Goes Up But Per Employee Profit Down

SBI business per employee surges on large-scale hiring -Hindu Business Line

Mumbai, June 24:  

The State Bank of India’s business per employee has seen a 51 per cent jump in the last four years on the back of large-scale recruitment.

 

Staff productivity or business per employee increased to ₹10.64 crore as at March-end 2014 against ₹7.04 crore as at March-end 2011.

 

Though profit per employee increased to ₹6.45 lakh in 2012-13 from ₹3.85 lakh in 2010-11, it declined to ₹4.85 lakh in 2013-14 primarily due to higher provisioning, increase in overheads and staff cost during the year, the bank said in its annual report.

 

The large-scale recruitment of Generation Next employees in the Officers and Assistant grade over the last three to four years has brought about a far-reaching attitudinal change among staff in their customer interface and services across the branches, the bank said.

Business growth

Further, recruitment has also become a catalyst in enhancing/improving the productivity and efficiency of employees, resulting in an increase in business growth. Many of the new Assistants hold good academic qualifications, including computer engineering and MBA.

 

In FY2014, SBI saw its employee additions and retirement/attrition aggregating 8,021 (22,393 in FY2013) and 14,284 (9,578), respectively. The bank has been recruiting in a big way since 2009 as each year thousands of employees, who were recruited in the mid-1970s, are retiring.

 

As on March-end 2014, SBI had 2,22,033 employees (2,28,296 as on March-end 2013) on its rolls. Of this, 36 per cent are officers; 46 per cent are clerical staff; and the remaining sub-staff. Women accounted for about 20 per cent of the total employee strength.

 

Link Business LIne

SBI average salary at Rs 10 lakh exceeds ICICI Bank’s by 67 per cent-

State Bank of India (SBI) has raised salaries by 47% from fiscal 2011 to December quarter FY14

State Bank of India (SBI) has raised salaries by 47% from fiscal 2011 to December quarter FY14. In fact, SBI’s average salary per employee at Rs 10 lakh is 67% more than Rs 6 lakh paid by ICICI Bank.

 In a report, IDFC Institutional Securities said SBI’s average employee salary has risen 47% over FY11 (after the impact of pay hikes), while its better performing private sector peer ICICI Bank’s average salary has declined 22% over the same period.

 The report added that most of the sharp increase in employee costs for PSU banks has come after a hike in compensation levels in FY11 and also because part of employee compensation for PSU banks is directly linked to inflation indices.

 For the three months ended December 31, 2013, SBI’s total payment to employees at Rs 4,512 crore was up 25.05% from R3,608 crore in the same period last year. SBI had reported net profit of Rs 2,234.34 crore for the quarter ended December 31, down 34% from a year ago, on higher bad loans and increased provisioning. The bank saw provisions worth Rs 3,429 crore for non-performing assets (NPAs) during the quarter, up 24% from a year ago.

“While ICICI has clearly been tightening its belt, SBI’s salaries are to some extent indirectly linked to inflation in the domestic economy, preserving the employee’s purchasing power over the longer term,” the report said.

 A part of SBI’s salaries are in the form of long-term retiral benefits and, therefore, are not a part of take-home salaries. Retiral benefits were close to 22% of SBI’s employee costs in April-January period of fiscal 2014.

http://indianexpress.com/article/business/banking-and-finance/sbi-average-salary-at-rs-10-lakh-exceeds-icici-banks-by-67-per-cent/