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Dinesh Narayanan
Rukmani Vishwanath

MUMBAI, March 21

GOLDEN handshakes, freeze on recruitment and natural attrition have left empty chairs in key positions in several public sector banks. Many of them are now planning aggressive but selective recruitment campaigns and fast-track promotions to fill up critical vacancies.

"We are aware and concerned about the age problem in our (public sector) banks. In the long run, the issue could become serious," said an official who looks after human resources at a large public sector bank.

The average age of public sector bank employees has been rising for the past several years. For example, the average age of an officer of the State Bank of India is 51 years and that of Bank of India is near 45. In comparison, the average employee of ICICI Bank and HDFC Bank, the biggest players in the private sector, is 30 years old. The average age of employees at State-owned banks is anywhere between the early 40s and early 50s while that of private sector is near 30 years.

While SBI has already advertised for new recruits, Bank of India is understood to have plans to recruit young blood through agencies or even directly from campuses. Bank of Baroda is also understood to be scouring the job market for young specialists. After the Banking Service Recruitment Board was scrapped five years ago, banks have hardly done any recruitment.

"We are looking for people in the age group of 25-35 years who are experts in certain areas such as law, accounting and computer applications," said a personnel officer with one of the large PSBs.

Public sector bank jobs lost their sheen when the new private sector banks and foreign banks began luring young talent with fat pay cheques and performance-linked bonuses. These jobs encouraged youngsters to take risks and rewarded the winners.

An HRD manager with a large private sector bank said, "We recruit only young people. Pay is never an issue. It is drive and passion that matters. Even when we go for lateral recruitment, we are more inclined to take youngsters, the reason being they are passionate about their work. Besides, we can mould them the way we want."

But pay is arguably the biggest issue in the public sector. Banks have to abide by the common wage agreement that Indian Banks' Association signs with employee organisations. Now several banks, it is learnt, are devising ways to somehow compensate their employees. SBI is understood to have approached the Government with a financial package for its employees.

According to sources, the Government is likely to clear the proposal.

Most banks are, however, trying to create growth opportunities to motivate employees. Union Bank of India, for example, is planning to promote promising employees and groom them to handle bigger responsibilities.

SBI is planning fast-track promotions that would help quick learners to climb the rungs every two years.

A 31-year-old head of recruitment at a private sector bank says: "We have even 26-year-olds heading businesses. It gives them a sense of growth and achievement."

Public sector banks, it appears, have picked up the cue.

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