This refers to your editorial Missed opportunity!5/4/13). It is a fact
that with liberalisation and implementation of banking sector reforms,
the recruitment in banks has been on the decline and the attrition rate
has been on the increase in the public sector banks To get of rid of the
earlier legacy of handling union related issues, the banking system had
gone for a Voluntary Retirement Scheme and got rid of a good chunk of
experienced bankers who got into the then coming up new generation banks
which got the benefit of experienced man power with the proper blend of
state of the art technology. The public sector banks lost the man
power and the technology was not that developed to compete with the fast
aggressive new banks and there has always been a void both in terms of
technology and man power.
They are now facing the greatest risk of surviving in business for want
of adequate and talented man power. They do not attract the best of
human resources from the market because of several inhibiting factors
such as poor salary structure, the need to go in for massive financial
inclusion which is not being relished heart of heart, high expectations
on customer service and handling of highly complicated exotic products
like options features and other derivatives, The training system has
been virtually absent in relation to the expectations in the market. The
KYC norms has literally taken away the human touch and they are only
concerned with the documents which bring more risk to business.
Management of human capital is going to be the major challenge for the
banking system and it will be the greatest risk at least for he Public
sector banks in the near and distant future as well.
Dr.T.V.Gopalakrishnan
(This comment is in response to the Editorial Missed opportunity appeared in Business standard dated 15/4/13)
Dr.T.V.Gopalakrishnan
(This comment is in response to the Editorial Missed opportunity appeared in Business standard dated 15/4/13)
1 comment:
Banks used to do due diligence of entrepreneurs and enterprises and there used to be a norm at one time that a field executive can handle about 30-50 small enterprises and about 70-80 micro enterprises. He used to counsel the units as part of the field visits both onsite and offsite. Thanks to the technology introduction, the banks lost touch with both entrepreneurs and enterprises. There are unverified stocks and expired stocks taking credit from the banks. When the account becomes NPA these would get revealed when no remedy is possible. The real estate, car loans and home loans have taken a larger retail lending portfolio of banks causing injury to the growth of the manufacturing sector. Not that they are less important but that they provided scope for arm chair lending and less manpower and more returns (?). Assessment of human resources to handle the machines has become the way in banks. We have not reached still a point of no return and therefore banks will do well to go back to basics and protect, preserve and nurture the human resources consistent with the needs of economic growth in rural and semi-urban areas.
Post a Comment