Is attrition a big problem for banks?
The Reserve Bank of India (RBI) said
the banking system may increasingly face the problem of staff-attrition in the
period ahead and banks will have to gear up to tackle the issue.
"We are going to see rise in
the attrition rate. There is a need for adequate focus on HR management...
Banks need to take adequate care of their manpower," RBI Deputy Governor
KC Chakrabarty said at Bancon conference here today.
Banks are not putting adequate
attention to improve their HR talent, Chakrabarty said, adding for better
efficiency, they need to educate their staff to enhance their skills.
Earlier this fiscal, leading PSBs
like State Bank of India (SBI), Bank of Baroda, Indian Overseas Bank and Bank
of India among others had announced their plan to hire over 30,000 hands this
fiscal itself, undeterred by the economic downturn and lower sales volume.
The biggest lender SBI had started a
head-hunt to support its fast expanding network by planning to hire about
20,000 clerical staff and around 5,000 supervisory staff by the fiscal-end, the
bank said.
Bank of India (BoI) was planning to
hire around 1,737 this fiscal itself to man its expanding network. This
includes 500 officers, 500 clerical staff and 237 specialist officers in the
next three to four months a BoI official had said.
Indian Banks Association Chairman MV
Nair also shared a similar view saying nearly 58 per cent of the PSB employees
will retire by 2012. The IBA is understood to have appointed a committee to
study this matter in a comprehensive manner, Nair told reporters later.
Nair said rather than attrition,
retirement of a large chunk of bank employees over the next two years might
pose a bigger challenge. Union Bank plans to hire 2,000 staff and will also
conduct campus interviews to find the right talent, Nair, who is also the Union
Bank chairman and managing director said.
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