Manoj has been watching the business papers closely ever since the Reserve Bank of India announced giving out licences for new banks. A junior officer with State Bank of India, he sees the entry of new entities into banking will not only energise the sector but also get him a lucrative job. And, he is not alone. Many among the over seven lakh public sector bank employees are hoping to switch to new private banks.
But why do existing staff want to move out, especially when there is a headlong rush to get into public sector banks? SBI, for instance, received 17 lakh applications for just 1,500 officer’s posts this year.
“A job in a pubic sector bank is not as rosy at it appears. There is lot of work pressure and little room for career growth,” says Manoj.
Data support this. According to the RBI, in 2011-12, business per employee in public sector banks was 115 per cent against 99 per cent in private sector banks.
According to M. Harshavardhan, General-Secretary, Associate Bank Officers’ Association, some “ambitious” young employees in cadres above Deputy Manager (Scale II) and those who are nearing retirement are looking for greener pastures in private banks.
“Till recently, there was no recruitment in banks, which resulted in a lot of work pressure,” he said.
When it comes to pay, perks and promotion, he expects new private banks to offer a “better deal” especially to experienced hands.
Apparently, big corporate entities such as L&T, Mahindra & Mahindra, Bajaj, and Shriram have evinced interest in setting up banks.
Banks that have come under some pressure due to attrition at the level of clerks and junior officers are aware of the possibility of further migration of their employees to new private banks.
Says K. Subrahmanyam, Executive Director, Union Bank of India: “When new banks came up a decade ago, employees of public sector banks did move there. This will happen this time too.”