‘Centre must intervene to tackle attrition in banking sector’

The Centre should immediately and effectively intervene to tackle the issue of attrition in public sector banks so that they can continue to deliver social banking and thus fulfil a major social obligation.

It is unfortunate that these banks are being directed to do more class banking than mass banking, says KS Bhat, Vice-President, Syndicate Bank Staff Association, an affiliate of the Bharatiya Mazdoor Sangh.

Campus recruitment

Syndicate Bank is itself still witnessing attrition from the cadres, Bhat said. Only half of the selected candidates are reporting for duty.

The problem of attrition can be attributed to the lack a scientific HR policy. The Syndicate Bank Staff Association has been demanding a paradigm shift in the HR policy of the bank.

Bhat suggested campus recruitment as an immediate remedy. As a one-time measure, it could help solve the manpower shortage in the bank, which is one reason for the runaway growth in bad loans.

“In earlier days, there was proper follow-up in each and every branch on the credit portfolio. Most branches find themselves now dealing with recoveries only.”

Bank Board Bureau

Bhat has urged the Centre to hold detailed discussions with trade unions before finalisation of the Bank Board Bureau. Adequate representation should be given to trade unions.

He doubted the future of newly sanctioned small banks/payment banks by drawing an analogy with Regional Rural Banks.

After being set up with an almost similar mandate, Regional Rural Banks find themselves competing with other commercial and public sector banks for business.

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