The staffing requirement of state-run banks is estimated at about five lakh personnel over the next 10 years, said a survey conducted by Boston Consulting Group.
According to the survey, conducted as a part of a three-day banking seminar to be organised by FICCI and Indian Banks' Association in Mumbai beginning September 7, the productivity of public sector banks has been stretched and they cannot grow without hiring new employees.
Starting this year, the average cost per employee of PSU banks is higher than private banks, said the survey.
The average employee cost for PSU banks is Rs 5.6 lakh a year, higher than the private sector's average of Rs 5.3 lakh.
“The sector (PSU banks) thus faces twin challenges - the need to induct talent in large numbers and the need to contain staff costs,'' the report said.
Mr Saurabh Tripathi of BCG said that when PSU banks start recruiting the average cost per employee will come down because newer employees would be hired at lower salaries.
Most of the new recruitment by PSU banks would be for the sales function, said Mr M.V. Nair, Chairman and Managing Director, Union Bank of India.
“The recruitment that takes place now will increasingly get committed to sales. To that extent revenue generating capability of PSU banks will be higher. Now that technology is in place, we should be able to ramp up productivity,” he said.
Mr M.D. Mallya, Deputy Chairman, Indian Banks' Association and CMD of Bank of Baroda, said that following the implementation of business process re-engineering, about 25 per cent of the staff would migrate to sales. Currently, about five-seven per cent of the staff is involved in sales for BoB, he added
Union Bank recruited about 1,500 last year and is looking to recruit 2,500 this year.
Similarly, Bank of Baroda is also looking to add about 3,500 staff this year. The bank had hired a similar number last year.
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