The Hindu Business Line : <I>Public sector banks go for contract hiring </I>

Chennai April 1 Public sector banks have started going in for short contractual appointments. Earlier, private and foreign banks offered these kinds of jobs - to reduce their wage bill and also remove the unpleasantness of firing someone after they had outlived their purpose.

State Bank of India (SBI) and IDBI are among those that have decided to appoint executives for a short tenure.

SBI is recruiting about 1,000 customer relationship executives, while IDBI is recruiting about 450 executives on a contract basis.

Most of these new executives will be based in the metros and top urban centres, to sell banking services to small and medium enterprises (SME) and personal banking segments.

Mr O.V. Bundellu, Deputy Managing Director, IDBI, said the contractual appointments in his bank were at the base level. Jobs that would normally be done by "document executives" such as checking and verification were being contracted out, he said.

SBI is offering a two-year contract while IDBI is offering a one-year contract that would be renewable on an annual basis for a maximum period of four years. There is a possibility of absorption later on in the Assistant Manager grade at IDBI.

SBI is offering a remuneration of Rs 3-Rs 3.5 lakh per annum (on a cost-to-company basis).

Of this 70 per cent is going to be fixed pay while 30 per cent is to be variable pay depending on performance. IDBI is offering a consolidated pay of Rs 1.44 lakh per annum.

Asked for his reaction to these contractual appointments, Mr C.H. Venkatachallam, General Secretary, All-India Bank Employees Association, said, "We are opposed to these contractual appointments and we are going to take this up with the Government. As per the agreement entered into with bank managements, outsourcing can be done only when in-house capability is not available."

More Stories on : Public Sector Banks | Human Resources | State Bank of India

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
52 sugar cos offer 1,061 m litres of ethanol to oil firms

DoT may slap penalty on Hutch

Index funds - nothing beyond Sensex, Nifty

Oil India, IOC plan entity for overseas buys

Indian drugs find new markets

PFC seeks clarification from Lanco-Globeleq

States buying high-cost power to tide over summer crisis

Intel inside India in the sixties!

MFs, insurers fancy 91-day T-bills

Sentiment turns uneasy

Gains for gold, crude on geo-political fears

Public sector banks go for contract hiring