In the year 2000 they were talking of surplus manpower affecting profitability of banks and this is why , public sector banks offered voluntary retirement scheme to bank officers in the year 2001 to curtail manpower and to boost up profitability of banks. Now when they talk of shortage of experienced seniors I simply laugh at cleverness of Chiefs of Banks.
Again during the period 2005 to 2010 each of PS bank was busy in reducing manual work culture by adopting Core Banking Solution . Majority of bank works were automated during this period and some banks are still bus in reducing manual work and focusing only on online and technology oriented banking transactions .This has resulted in making manpower surplus in banks. Management of each PS banks during last years has added many non banking works such as insurance, demat services, share trading , portfolio management etc in their work profile to use surplus manpower available in their banks. Now when they talk of shortage of manpower at senior level, it is unbelievable and nothing but lame excuse to hide their inefficiency, dishonesty , lack of vision , lack of capability to use manpower in more effective way etc.
Even Finance Minister has many times suggested bank management during last few months to promote officers to scale II and III on merit to cope with shortage of senior officers in banks. It is nothing but ridiculous and dangerous advice given to corrupt bank management. Even before 1991 (reformation era beginning), management of banks used to talk of shortage of good officers and they used to give a plea that they were bound to give promotions based on seniority .In fact the culture of promotion based on seniority during seventies and eighties was much better, much judicious and efficiency booster.
Banks have been recruiting staff on the basis of merit and promoting officers to higher scale through so called merit oriented promotion policies only for last two decades and more. Still they talk of shortage of meritorious officers .It means there is large scale corruption even in process of recruitment. And if meritorious persons are recruited, how they become inefficient and unskilled after passage of time . It means 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 enjoyed by management of each Public sector bank.
In fact merit was never respected during last two decades of freedom given to bank management .Bank management have failed to create motivation in workforce. Now they make false excuses of shortage of good officers. And to add fuel to fire , bank management has started promoting even unskilled and inexperienced officers to higher scales in two to three years which will cause further loss to bank in coming days.
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 class 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.
Banking is a service oriented industry and Banks need experienced officers who are well versed in banking and who understand the risk factors of lending and various types of operational works. Such offices may not be found in IIM or other campuses. Bank management like campus recruitment only to give higher pay packages to fresher as per their sweet will , not to improve banking service. It is proved during last ten to twenty years of freedom they enjoyed in recruitment and in promotions.
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. This is why many scale III or IV officers are performing the work of clerks and many clerical staff and junior officers are performing work of executives. More often than not , executives are unskilled but good speakers only.
In last month only SBI chief told that they will come out with a policy to weed out seniors and the same CMD of SBI is now talking of shortage of seniors .
In the year 2000- 2001 thousands of meritorious officers in senior rank opted for voluntary retirement scheme only because they were totally unhappy with treatment given to them by their bosses.
And it is important to point out here that the same officers who joined private banks after resigning from PS banks in the era of 1991 banking reform are now earning huge profits for private banks. Officers become meritorious as soon as they join private banks after resigning from PS Bank. Why?
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 asset quality of bank is concerned. It is they who did not make even sufficient provision for bad assets and for terminal benefits payable to retiring staff. just to give a artificial boost to profit and earn incentive. "Gau markar Juta Dan". Everyone remember , how few years ago , RBI allowed banks to amortise accumulated provision for five years to avoid loss in a particular Financial year.
Profitability of PS bank , Return on assets 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 asset 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. MOF is suggesting various frameworks for recruitment of ED and CMDs of banks but not ready to peep into lower level recruitment and promotions.
I can say without any doubt and without any hesitation that health of PS banks cannot improve by changing only Chief of banks or 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.
I submit bellows the copy of news published today in Financial express:
Nearly 4 lakh public sector bank AGMs, DGMs to retire in 4 years-Financial Express 15th April 2015
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.
http://www.financialexpress.com/article/industry/banking-finance/nearly-4-lakh-public-sector-bank-agms-dgms-to-retire-in-4-years/63764/
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.
http://www.financialexpress.com/article/industry/banking-finance/nearly-4-lakh-public-sector-bank-agms-dgms-to-retire-in-4-years/63764/
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