Banks will pip software sector as top job creator

T. E. Raja Simhan | | Updated on: Mar 12, 2018


A decade ago, Ananth, a commerce graduate, took a diploma in computer science from NIIT to enter the IT industry. He then moved to the US to work for an American company.

Today, it’s a different scenario. Mahesh, an engineering graduate, is working hard to get through a banking recruitment examination for the post of “specialist officer.” Mahesh feels his job will be more secure in a bank than in a software company.

This reversal in trend of an engineering graduate looking at a bank, and not a software company, for a job is an indication of what lies ahead. The banking sector will create more jobs than the IT industry.

Nationalised banks will add 5-7 lakh people in the next five years, which means the sector needs to add about 1.25 lakh people every year, Going by the current trend, the IT sector will struggle to add one lakh, said Santanu Paul, CEO and Managing Director, TalentSprint, a skill development training company.

India has 6.40 lakh villages but only 32,000 bank branches. Less than 20 per cent of the Indian population has a bank account. The government in its financial inclusion drive will increasingly use banks and ‘business correspondents’ to reach out to the rural population. Also banks, especially in the public sector, will create more jobs as a bulk of their lower and middle level employees will retire in the next five years, said E. Balaji, CEO,Randstad India, an HR firm.

The banking sector will soon match the IT industry in salary. A specialist officer in a bank is today paid Rs 3.6 lakh a year, which is more than the Rs 3 lakh paid to an engineering graduate on campus recruitment by most companies, said Balaji. In the next five years, the banking sector will change dramatically.

Sunil Goel, Managing Director, GlobalHunt, an executive search firm, said that formalising banking transactions and making it mandatory in the villages with a low population and integration of transaction with all the banks will create the demand for people across the functions, including core /technology/mobile/Internet banking.

Availability of technology and mobile telecom networks are giving a boost and accessibility to the banking industry, he said.

Published on February 06, 2013
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