Bankers Will Ask PM Modi for Recruitment Revamp

In the two-day bankers' retreat, the government clearly asked the bankers to be free in expressing their views and ideas. I learns that one of the reforms the bankers are asking for is in the human resources.

According to sources, the bankers will likely to ask PM Narendra Modi to allow them to do campus recruitment like it is done in private sector banks.

There are many issues in the recruitment which need to change. Compensation structure is not good enough to attract good talent and it needs to be revised, sources cited the bankers as saying.

Besides, the bankers said there is a need to reduce charges on transactions done through credit/debit cards, the sources said, adding that the bankers also pitched for tax incentives for merchants on transactions done through the mobile phones.

Currently, the recruitment in public sector banks is done through Institute of Banking Personnel Selection or IBPS twice in a year. Sources said that among other recommendations, the bankers are going to seek more autonomy in talent recruitment and management. There is a need to have a hire-and-fire policy if the government wants productivity and profitability in the public sector banks to increase.

Bankers say this is the right time to bring this reform and it is important for effective operations in the public sector banks. They would also seek more autonomy in talent management, the sources added.

Minister of State for Finance Jayant Sinha had on Friday told the bankers that they should provide bold and creative suggestions which could lead the economy to 7 - 8 per cent sustainable and non-inflationary growth in GDP.

On Day 2 of the bankers' retreat, the bankers are first going to give presentations to Finance Minister Arun Jaitley and RBI Governor Raghuram Rajan and then a compressed version will be presented to PM Narendra Modi.

The bankers' group will give presentations on three different issues to PM Modi later on Saturday. Mr Modi will announce in the evening the final blue print of the reforms in the banking sector.