State Bank of India is planning to offer employee share options, encourage changes, and recruit specialists to remedy the humungous amounts of debts. The state banks in India have an agenda of increasing the profitability. The banks are also under the pressure of recovering the bad loans to make the economy financial agile for growth. These issues have obvious brought the focus on the money in the public sector banking units.
Jayant Sinha, minister of state explained that the improving the talent and performance in the banking sector are a topmost priority. He further added that this has made the search for talent far more important than gathering the much-needed capital to deal with international rules.
SBI chairman Arundhati Bhattacharya stated, though the bank has enjoyed huge autonomy as compared to its rivals, it continues to battle a wide array of problems. Some of the toughest challenges for SBI are poor pay scales which dissuades talent, hiring freeze of 1990s, which created a vacuum of senior managers. The trouble doubled when the decade of 2010-2020 brought around the “retirement decade”. The state banks in India hire through a central exam system, which brings in entry-level staff who rises through experience and ranks.
Bhattacharya also works in a bank that cannot hire from campus interviews and hence has to source talent through consulting services. However, the latest assurance from the government to work on recruiting from campuses for the banks from public sectors comes as a much-needed relief.