Indian banks hire, at lower pay | india | Hindustan Times
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Indian banks hire, at lower pay

india Updated: Jan 26, 2012 01:13 IST
Mahua Venkatesh

First the good news: Indian banks, unlike their global peers, are hiring. So, if you are an executive in a multi-national bank looking for a job following a retrenchment exercise, there could be similar assignments on offer from domestic banks.

Now the bad news: The new jobs will come with significantly lower salaries. In some instances, a new recruit may have to settle for three-quarters of her current remuneration at a global bank.

As many global investment banking firms finalise plans to reduce headcounts to slash their wage bills in a shaky world economy hit by sovereign debt worries in Europe, their Indian peers, on the other hand, plan to add more employees on their rolls.

An Axis Bank official said that the bank would focus on the retail side and about 250 new branches would be added which would need additional staff. "Our expansion plans are on track and we would naturally hire," the official said.

HDFC and ICICI Bank also plan to hire more executives over the next few months, although the official spokespersons of both banks refused to comment.

"The pay packages of the new recruits could be lighter than by 20-25%," said a director of large private sector bank, who did not wish to be identified.

Foreign banks such as HSBC, Citibank and BNP Paribas are looking to cut jobs to contain wage costs.

"Sentiments are very low and the focus in no more on increments and raises this time, most executives are worried about the safety of their jobs," a senior vice president engaged in a multi national firm providing financial services told HT.