Hundreds of thousands of jobs are set to be created in state-controlled banks, with a third of the work-force of about 850,000 set to retire over the next two years.
State Bank of India, Bank of Baroda and Punjab National Bank are among the leading banks in the sector that had lost its charm as an employer over the past decade to glamorous foreign competitors, but are bouncing back with stronger balance sheets at a time when bankers care more about job security after the financial meltdown in the West.
However, the hiring may not be in direct proportion to the number retiring, as some jobs get eliminated as a result of improved technologies and processes while some others get outsourced to external partners, bankers told Hindustan Times.
SBI, the country’s largest lender, is likely to hire more than 10,000 people in the next one year alone. Mid-sized banks are also hiring big. Corporation Bank plans to hire about 1,400 in the current fiscal year, while Bank of Maharashtra has just finished the recruitment process, though details are not clear.
“While large number of employees are set to retire and we need to fill up those vacancies, we also need to intensify our hiring exercise as public sector banks are going in for major expansion drive,” said JM Garg, chairman and managing director, Corporation Bank.
Allen CA Pereira, CMD, Bank of Maharashtra, said his bank has gone in for “sizeable recruitment” adding, “We need people to facilitate the expansion plans.”
Recruitments peaked in the 1970s in the height of a frenetic wave of nationalisation of banks.
“All those employed around that time are set to retire and we would need manpower with business increasing,” Garg said.
Public sector bank staff are also set to get an 18 per cent salary hike based on previously agreed criteria between unions and managements. The Indian Banks’ Association and bank employees and unions are already discussing the issue. “We are open to offering a sizeable hike as our banks have done particularly well amid global slowdown. None of the banks has faced any threat or problem,” a Finance Ministry official told HT.