With two new banks set to open in the coming months, and more to follow, thousands of jobs are likely to be generated over the next 3-4 years in India.
IDFC and Bandhan, which will start their banks in the next 18 months, will generate 20-25,000 new jobs in the next three to four years. In the immediate future, though, their focus would be on setting up basic infrastructure, and recruitments would be low on priority.
Several foreign banks are also learnt to be firming up plans to expand their workforce, despite the overall economic slowdown gripping the world.
Industry sources said the immediate focus of the to-be-launched banks would be to recruit top executives, at a time when the going is not very easy for the banking industry.
"Once that is done, the hiring for the next level will automatically start. The number would be around 5,000 a year, but that will be only after a few months," said one source.
Bandhan Financial Services, which will set up Bandhan Bank by next year, plans to upgrade the skills of its current 13,000 employees.
"We may require additional staff, but that will be decided at a later stage," said Chandra Shekhar Ghosh, CMD, Bandhan Financial Services.
The Reserve Bank of India is also likely to issue a few licences to some companies, allowing them to foray into differential banking. These banks will not provide full banking services and will specialise in certain areas, but even this would generate several thousand jobs.
"It’s difficult at this point to say anything on the job front. But the central bank has indicated that it would come up with fresh guidelines on that and once that happens it will naturally create jobs," said an industry analyst.
The main dampener is the fact that the RBI has issued only two new licences, while the industry saw at least five new banks coming up, which could have created 50,000 or more new jobs. "The number is almost half of what was earlier projected," said an industry source.