Public sector banks set to pay more for talent
In a bid to draw talent to public sector banks, attractive pay packages for the entry level employees are on the cards, reports Mahua Venkatesh.india Updated: Oct 15, 2008 21:53 IST
While heads may be rolling in layoffs after a crisis in Wall Street banks, here in India, head-hunting of a different kind seems more likely.
Public sector banks, with a market share of over 80 per cent, are gripped with a severe talent crunch. PSU banks are not really hot with those with the right qualifications and the few that do are quick to jump ship, leaving the behemoth banks with an attrition problem. But things might change soon.
In a bid to draw talent, attractive pay packages for the entry level employees are on the cards. Industry sources say that the issue will be taken up once negotiations involving trade unions, government and the Indian Banks Association begin for wage revision, which is expected soon.
A banking source said that if the current trend continues, state-owned banks would have very few qualified people left to man the show by 2020. About 50 per cent of the officers currently employed with PSU banks are over the age of 40.
“Very few people also look at PSU banks as a lucrative career option but now we are looking at making the pay packages as attractive as possible to draw talent,” a source within the banking industry said
At present, an entry-level officer under Scale I, draws a monthly pay package of about Rs 25,000 while private and foreign banks pay four times that amount. PSU banks have about seven lakh employees. However, 5 to 10 per cent of them retire every year. “There is a shortage of qualified people and we must take all steps to attract and retain young talent to make the entire banking network stronger,” said CH Venkatachalam, secretary, All India Banks’ Employees Association.