Citi, StanChart & Barclays on a hiring spree in India

Written by Sitanshu Swain | Mumbai | Updated: Aug 25 2011, 06:59am hrs
Foreign banks may be still pruning their workforce globally, but two largest foreign bank Citi and Standard Chartered Bank in India are now on a hiring spree .

Citi India after lying low for a couple of years is now expanding its manpower base in the country.

The global banking major which is on the recovery path post the global financial crisis with a massive restructuring of its operations, is planning to add over 1,500 recruits in 2011-12 to boost its India operations.

Similarly, Standard Charted Bank is also recruiting around 1,500 employees which would also include filling up the vacant posts where staffers have retired during the year, said Neeraj Swaroop, chief executive officer for South Asia, Standard Chartered.

We have already hired over 800 people this year including about 240 from the various graduate and management campuses, said Stephen Cronin, managing director, HR, Citi India. In 2009-10 the bank had added over 1,000 recruits including 135 from the campuses.

The current recruitment in Citi India is taking place across operations like consumer banking and finance, corporate and investment banking, securities brokerage, operations and technology, but wouldnt include its consumer finance NBFC Citi Financial which was put under the non-core category in 2009 as part of global restructuring and is since being managed for value.

Cronin said the bank has experienced higher wage packages during the year. We have seen wages tracking inflation rates-around 10% this year, commented Cronin.

Swaroop also said that his bank seen wages going up during the year.

The banks total headcount had fallen couple of years back after it had sold its unit e-Serve, the business processing outsourcing services for banking and financial services sector to TCS. The total number of employees of the bank in India has since grown and is currently at around 7,500.

With capital invested of over $4 billion, Citi is the single largest foreign direct investor in the financial services industry in India and offers consumers and institutions a broad range of financial products and services.

Citi Indias profit after tax increased 78% from R1,046 crore to R1,859 crore in FY 2010-11. Banks total assets grew 17% year-on-year(y-o-y) to R1,11,586 crore at March 31, 2011 from R95,489 crore at March 31, 2010. This growth arose primarily as a consequence of increases in advances to corporate clients and small and medium enterprises by 33% and 35% respectively.

Standard Chartereds profit before tax from Indian business in the first half of 2011 fell as its income had fallen due to rise in bad loans in the second half.

Banks profit before tax in January-June at R1,678 crore was 39% lower than what the UK-based bank earned in the same period last year $ 624 million.

Meanwhile, the agencies reported that UK-based Barclays Bank will hire about 20 people for its newly launched equities business in India over the next couple of months, three sources with direct knowledge of the matter said on Tuesday.

The bank will hire staff for equities sales, research and trading jobs as part of its plan to build up its equities business in the economy, said the sources.

A spokesman for Barclays in India declined to comment.

Barclays Capital, the investment banking unit of Barclays, said last month it had appointed Bhavtosh Vajpayee from CLSA as the head of its Indian equities business. The bank said it would hire more staff in the coming months as part of the rollout.