1. Nearly 4 lakh public sector bank AGMs, DGMs to retire in 4 years

Nearly 4 lakh public sector bank AGMs, DGMs to retire in 4 years

Banks have failed to get talent from the market as these professionals are used to working in an environment where they are not chained by corporate governance norms which public sector institutions demand

By: | Pune | Published: April 15, 2015 1:02 AM

In three to four years, most AGMs and DGMs in the country’s public sector banks will retire and there will be a vacuum at the senior level. The banks are still not able to make room for specialists and lateral entry for talent is a problem, says Achintan Bhattacharya, director, National Institute of Bank Management (NIBM). Recruitment of probationary offices is restricting banks from taking specialists directly and this needs to change, he says.

If the banks depend on PO level recruitment, there will be a vacuum for 20 years as there has been no recruitment since the 1980s and there won’t be enough talent available as it takes around 20 years to bring up people up to that level, says the NIBM director. Around 4,00,000 officer-level retirements are expected in three to four years with all of them in the 55-plus age group. GM levels posts are lying vacant in banks, says Bhattacharya.

Banks have failed to get talent from the market as these professionals are used to working in an environment where they are not chained by corporate governance norms which public sector institutions demand, there are no incentives for performance and the salary levels at the senior level at PSU banks are much lower compared to private sector bank, points out  Bhattacharya. Banks also do not have the option of  going down the ladder, he adds.

It was the human resource crunch in the PSU banks that led to the NIBM starting its post graduate programme in banking and finance in 2003-04 later rechristened as Post Graduate Diploma in Management Banking and Financial Services.  But they too are not getting the compensation they deserve and it takes 10 years to move to levels up. After graduating from NIBM, students enter at Grade II levels of PSU banks but they should get much better rewards, says Bhattacharya. This year 54 students graduated and there has been 100% placement record with some opting for the private sector. NIBM is doing its bit to expand the talent poll for banks. Bhattacharya said NIBM is planning to increase the intake of students. It is a building a 240-room hostel for the PGDM course as it is run as a residential programme and needs room to accommodate additional students.The institute has started work on creating additional infrastructure at the NIBM campus with investments of around Rs 60 crore to Rs 70 crore, Bhattacharya said.

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    Apr 16, 2015 at 2:06 am
    1. Dharmesh Tanna
      Apr 15, 2015 at 6:19 pm
      How is it possible?? Wrong data. Total bank employees are 10 lac approx. And 4 lac retirement?? And AGM DGM?? 4 lac agm dgm?? Plz make some homework.. plz dont spread rumours
      1. Danendra Jain
        Apr 15, 2015 at 5:24 am
        This refers to news items published today that 4 to 5 lac officers in the rank of AGM and DGM are likely to retire in coming three years to create vacuum in top management. Such lame excuses are furnished before government by clever management whenever there is talk of deteriorating quality of ets in banks compared to private banks. Even FM has suggested bank management to promote officers to scale II and III on merit. Banks have been recruiting staff on basis of merit and promoting officers to higher scale through so called merit oriented promotion policies. Still meritorious officers are usually rejected in all promotion processes and only blind Yes-man of bosses and perfect flatterers and bribe earners could be elevated to top posts during last two decades of freedom enjo by management of each Public sector bank. Media men blindly publish the news without verifying its correctness. There are hardly nine lac employees in public sector banks which comprises of not only executive level officers from AGM to GM but also includes cl IV employees like peon, clerical staff, offices in scale I , II and III and scale IV. It is beyond imagination that there are 4 lac officers in AGMs and DGMs in Public sector banks. There are hardly four thousand such officers who are in the rank of AGM and above. And if it is true that there are 4 to 5 lac officers in the rank of AGM and DGM, it is the greatest scam of the country because it cause monetary loss in many ways. Management of banks are indulged in large scale scam in recruitment and it is they who are causing loss to banks by recruiting officers directly in scale II and III or IV to oblige sons and daughters and kith and kin of top officials of banks and other VIP politicians, always in the name of merit only. It is these directly recruited officers who in lack of adequate experience and sufficient exposure in various activities related to banks are causing much losses to banks. There are lacs of senior officers who have not been promoted only because there are not perfect Yesman of top officials. Even now there is no scarcity of good and experienced officers in scale I , II or III in any of PS banks. There are many clerical staff who are undoubtedly better than even officers , but they do not like to accept promotion due to bad management or they are not promoted to officer grade because they are not perfect flatterer to their immediate bosses. There is no respect to merit or experience in banking and hence health of banks in general is moving from good to bad and bad to worse. Media men either do not understand the bitter truth of bank management or they are publishing news in lieu of money they get. They should try to get correct data of manpower In each grade and each scale before publishing such news . CMD of bigger banks are greater master in telling lie and in befooling government compared to smaller banks. This is why banks like SBI, PNB, BOB, IOB which were considered as top banks two decades ago are now considered as worst banks so far as et quality of bank is concerned. It is they who did not make even sufficient provision for bad ets and for terminal benefits payable to retiring staff. just to give a artificial boost to profit and earn incentive. "Gau markar Juta Dan". Profitability of PS bank , Return on ets and Return on equity of each bank has sharply come down during last two decades . But clever Chiefs of bank talk about per employee business which has gone up to some extent only because these banks have curtailed manpower to a great extent when bank became automated and started functioning without use of manpower. These banks doubled their branch network but kept their total manpower almost same or less than what it was a few years ago. Only due to exploitation of staff , these banks are able to increase profit . Still profit is not as it should be and as private banks are earning with same level of business. Average pay per employee in public sector bank is more than that of private banks. Because in private banks , pay package is fixed as per quality of work a staff perform. Whereas in PS banks, same type of work is done by clerk, officers in scale I or II or III or IV. In PS banks a staff become scale III after completing three decade long service whereas top officials directly recruit officer in scale III and make him scale IV or V . In this way they punish experienced officer and inculcate culture of bribery and flattery . Even RBI and Ministry of finance do not understand or do not like to understand the real reason behind worsening et quality of PS bank . They are misguided by gang of corrupt top officials and this is why instead of striking at root cause of sickness of banks, RBI officials or Ministers are suggesting recruiting ED and CMD from other bank or contemplating increasing incentive and pay packages of ED and CMD. I can say without and doubt and without any hesitation that health of PS banks cannot improve by changing only Chief of banks of by increase in pay package of Chief of banks. Need of the hour is to punish corrupt officials who in the name of merit promoting flattery and bribery and who are humiliating experienced and seniors by promoting extremely juniors to top posts.
        1. S
          Apr 15, 2015 at 6:30 pm
          Kudos for the brilliant post.
          1. S
            suresh Chandra
            Apr 15, 2015 at 11:42 pm
            Recently wage agreement MOU has been signed affecting nearly eight lac employees in pub and some private banks. If, as per your essment 4 lacs are AGM/DGMS, then 4 lacs is remaining staff inclusive of junior officers, clerks and sub-staff. How is it.
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