Retirements will create 1.8 lakh vacancies in public sector banks

The banking industry will need to hire 9-11 lakh employees over the next five years, according to a report by Boston Consulting Group.

The report, which includes a survey of about 14,000 customers, 50,000 bank employees and analysis of data obtained from about 35 banks in the country, said about half of the hiring will be due to attrition.

The banking sector is expected to grow at approximately 20 per cent over the next decade and will need major induction of talent, a significant part of which is to replace vacancies arising due to retirements in public sector banks. At the current rate of attrition, the industry will need to hire over four lakh more people.

“We will hire around 6,000 this year,” said Pratip Chaudhari, Chairman, State Bank of India.

Retirements in public sector banks will continue to increase and peak by 2017. In total, 1.8 lakh employees will retire and will be replaced. Depending upon the productivity growth, the industry will need 2.5-4.5 lakh additional people for growth in business.

Saurabh Tripathi, Partner & Director, BCG, said: “Public sector banks will have to double the current intake of employees to meet the talent needs of future.”

SBI chairman presses for abolition of CRR

Mumbai, August 27 (PTI) Making a strong case for abolition of cash reserve ratio, country's largest lender, the State Bank of India (SBI) chairman today said the banks were unable to use the resources more productively, which is lying with the central bank without any interest earning. Though CRR, the amount of capital that banks park with the RBI, doesn't pay any interest to banks, RBI views it as a cushion against any liquidity crisis in the system.
Earlier in the day, the deputy governor of RBI K C Chakrabarty had said that banks had to work in the regulatory environment of the country. "If the SBI chairman is not able to do business as per our regulatory environment, he has to find some other place," RBI Deputy Governor K C Chakrabarty said in a sharp reaction to Chaudhuri's recent comment that CRR does not help anybody and it was unfairly put on banks.
However, Pratip Chaudhari, chirman of SBI also defended his views on CRR saying that when the deputy governor was a bank chairman, he was asking for the same. Chaudhari also said that when the CRR rate was high and GDP was low, there was a strong inverse co- relationship. He also said if CRR is a inflation tool, then other sectors like insurance and NBFC should also have such norm.