BANKS LOOK TO YOUNG TALENT AS RETIREMENTS BUNCH UP

For young, talented bank employees with a passion for work, there is opportunity to move up the ladder.

To fill the leadership vacuum likely to be created in the middle-to-upper rungs of management due to retirement, many banks are now drawing up strategies to deal with the situation.

In fact, this is one of the key recommendations of Dr Anil Khandelwal Committee, which looked into the human resources function of bank.

Some of the suggestions of the panel are now being implemented by the Government in a phased manner.

MANY TO RETIRE

It is estimated that nearly half of the senior managers in banks would begin to retire in next 3-5 years and the trend would continue for some more years.

This will open up new avenues for the younger employees to grow even as the lateral movement will create fresh vacancies at the entry level.

“On an average, about 50 per cent of officers above AGM level are set to retire in 3-5 years in the banking sector, which calls for some measures,” Mr M. Narendra, Chairman and Managing Director, Indian Overseas Bank, toldBusiness Line.

In Indian Overseas Bank, however, this is only at 21 per cent. “We have now undertaken talent-mapping and even obtained approvals to laterally hire experts in departments like cash-management,” Mr Narendra said.

‘2020 CLUB'

Andhra Bank has formed an exclusive ‘2020 Club', where select employees will be trained in some specialist functions, according to a top official who did not want to be identified.

The option to specialise in areas such as treasury, marketing and risk assessment is also being provided.

There has been greater focus on the mentoring. “This is important for preparing young officers for the next level as well as retaining them,” Mr Nagesh Pydah, CMD, Oriental Bank of Commence, said.

The leadership vacuum is definitely a concern but not as big a problem as is being made out to be. This can be effectively dealt with, he added.

There are about three lakh employees working for the 27 public sector banks in the country.

SOURCE: http://www.thehindubusinessline.com/industry-and-economy/banking/article2577473.ece