Banks to generate eight lakh jobs in six years: Assocham
The country's banking sector will create eight lakh jobs in the next six years, mainly due to expansion of branches, addition of new banks and retirement of experienced staff, says an Assocham study.india Updated: Sep 11, 2013 19:30 IST
The country's banking sector will create eight lakh jobs in the next six years, mainly due to expansion of branches, addition of new banks and retirement of experienced staff, says an Assocham study.
Twenty-six public sector banks are going to hire 50,000 employees in the current fiscal. Besides, 20 private sector banks, regional rural banks and foreign banks put together will hire more than 50,000 personnel during 2013-14, it said. "This trend is likely to continue in the years to come as business volume and growth will go up along with entry of new private banks in the sector," said Assocham Secretary General D S Rawat.
According to estimates, more than 1 lakh vacancies would be created due to superannuation of experienced public sector bank employees over the next six years, the study said.
Besides, expansion of delivery channels by opening new branches will also generate demand for human resources. PSU banks are going to add about 8,000 branches in their existing network during the current fiscal. Similarly, private sector banks, regional rural banks and foreign banks would expand their branch network creating requirement for human capital.
Moreover, if the Reserve Bank gives out new bank licences by the end of current fiscal, it will pave way for entry of new private sector banks in the next financial year.
This will create an additional demand for 1 lakh professionals across various segments, the study said. "Entry of new private sector banks would cause attrition as experienced employees would be poached by new players," Rawat said. During the last financial year (2012-13), public sector banks had hired around 63,000 persons.
The country's largest lender State Bank of India (SBI) alone recruited 20,000 clerical staff and 1,200 officer-level employees, while other PSU banks hired 22,000 officers and 20,000 clerical staff. Public sector banks had a sanctioned strength of about 8 lakh employees as on March 31, 2012.