The Hindu Business Line : Evolving new products woo youngsters to bank jobs: Lakshmi Vilas MD

The environment should be conducive to encourage these young people to stay. It is important that they feel accepted and we are striving at it.
— Mr V.S. Reddy

L.N. Revathy

Coimbatore, Feb. 22 Four months after Mr R.M. Nayak’s exit, Mr Veera Subba Reddy took over the helm of the Karur-headquartered Lakshmi Vilas Bank as its Managing Director. The 59-year-old post-graduate in Economics started his career with Canara Bank as a Probationary Officer back in April 1972.

Recalling his early learning experience in man management and business management before taking other responsible assignments, including a brief stint at Canara Bank’s London branch, and later exiting as General Manager to join as Managing Director, Lakshmi Vilas Bank, Mr Reddy said “managing and retaining the talent pool” has been among the biggest challenges before him.

He decided to recruit young blood, depute each of his staff (by turns) for a short training so they feel more responsible and committed, and initiate efforts to motivate and retain the work force. Lakshmi Vilas Bank started the headhunt by picking management graduates from second and third rung B-Schools. Excerpts from an interview with Business Line.

Do you think youngsters are keen on a bank job? What is your strategy towards attracting young talent?

Yes, the expanding financial sector with ever-evolving new and complex products is what is attracting bright youngsters to the banking system. Challenges appropriately presented and rewards suitably structured, I feel, will motivate them.

How do you plan to motivate and retain the young talent pool?

Motivation will be a problem. The environment should be conducive to encourage these young people to stay. It is important that they feel accepted and we are striving at it.

How many have you recruited in 2007-08? What are your plans for the coming year?

Not much. We have sent offer letters to 100 management graduates. About 10 of them are now doing their project work here. The rest are expected to join in April/May. We will look at doubling this number the coming year.

What are your plans on the HR front as there is a general feeling that banks like yours offer training after which the young talents hop jobs to join new-generation private banks.

We have plans to satisfy the appetite of the young workforce for quick career progression. We are working to monetarily compensate them suitably and are hopeful that the technology platform we operate on, the new ambience that we are creating in the branches, business diversification plans we have drawn up, and the new products we propose to unveil will enthuse these youngsters to stay with us.

We are anticipating a considerable moderation in wage disparities. All such efforts are expected to bring down the attrition rates.

What is your attrition rate?

We have started to recruit only recently. So the question of attrition does not arise. But some people who were promoted very recently, have left us to join new private banks. Their number is negligible, just over 55.

Why are you keen on inducting B-School graduates?

For their analytical and communication skills and mobility. We also wish to draw on their creative faculties to plan forays into new areas of businesses.

Your training plans?

We will train the new recruits through exclusive and specialised courses offered by training institutions such as NIPM, Indian Bank Training College and Bankers Training College, among others. They will be trained in specialised areas like treasury management, derivates, risk management, etc.

What is the average employee age at your bank? How do you propose to improve this?

It is 47 at present. It is expected to improve to around 42 in 2008-09. The total strength is around 2,000.

More Stories on : Interview | Human Resources | Private Banks

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

Stories in this Section
Allahabad Bank's relief for poultry farmers

Forex reserves rise $2 b

Rupee dips against dollar

SKS Micro enters health insurance

No capital gains on transfer of ‘exchangeable bonds’ outside India

Vijaya Bank to open 5 branches

Lakshmi Vilas ups deposit rates

South Indian Bank exceeds annual recovery target

HDFC Bank, Centurion boards to consider merger

Bank conciliatory talks fail

Evolving new products woo youngsters to bank jobs: Lakshmi Vilas MD

Indian SMEs bullish on economy, says HSBC survey