The chances of landing yourself a job in the financial services sector are brighter in 2013 compared to last year, thanks to the impending entry of new players in banking following a liberalisation of licences.
With the Reserve Bank of India gearing up to finalise the guidelines for issuing banking licences to new entities, analysts and headhunters said the move could open up prospects of direct and indirect employment for about 50,000 people over the next couple of years.
There is a catch. The recruitment drive is expected to gain solid momentum only if new banks decide to focus on retail business and not remain confined to corporate banking. Business-to-business work involves fewer people doing larger deals.
“With new banks coming in, there will be expansion of branch network and there would be a big recruitment drive in case the new banking entities decide to focus on retail,” said Dev Bharat, director at recruiment firm Executive Access India.
Several business houses including the Aditya Birla Group, the Tatas and Anil Ambani-led Reliance Group have evinced interest in entering the banking space. Non-banking financial companies (NBFCs) can now convert themselves into full-fledged banks.
Existing banks including Axis Bank and Yes Bank have also firmed up plans to expand their retail networks and increase headcount. Yes Bank, which currently has a staff strength of 6,400, is planning to double its headcount in the next two years. “We have 6,400 employees at present but our plan is to go in for major retail expansion,” said Rana Kapoor, managing director, Yes Bank. “We are looking to have 12,750 people by 2015.”
The year 2012 was not particularly eventful for the industry, especially with several multinational ones such as HSBC and Citigroup announcing their plans to restructure and downsize.
“There has been uncertainty for most employees engaged in the financial services sector with the global slowdown hitting home,” said a senior executive at HSBC on the condition of anonymity. “There have been several who have lost their jobs but with hopes of new banks coming in finally, we are hoping that the job market will look up.