 "Public sector banks stop recruitment from B-schools after court order")
The Central Bank of India will appeal against a recent Bombay High Court order restricting campus recruitment for appointment of officers by the bank, said M V Tanksale, chairman and managing director of the Central Bank of India. Other public sector banks, which are also affected by the court order, are likely to join the appeal.
Tanksale added the bank is picking up management graduates from campuses for specialised jobs under autonomy granted by the government.
According to the top executive with a large public sector bank, while the high court verdict may be applicable a specific bank, it is going to have implications for other public sector banks as well. He added the issue will be taken up with the Indian Banks’ Association.
“Being listed entities, there is expectation to work with private sector efficiency. Public sector entities tend to get the residual talent from management campuses. So, for us, it is quite challenge to do a balancing act,” said another public sector bank official.
While the court decision has been bank-specific, other banks have also followed the judgement. Shubhalakshmi Panse, chairperson and managing director of Allahabad Bank, said, “We were going to campuses till last year. But there has been some court cases because of which we are now not allowed to hire from campuses. That is why we are recruiting through IBPS (Institute of Banking Personnel Selection).” She added till the final judgement comes, her bank will be recruiting through IBPS. The institute not only helps identify talent to be sourced from the market through the recruitment process, but also helps identify employees within organisations with the necessary competencies to cope with various roles and responsibilities.
Although management institutes have mostly completed final placement process, they are worried this decision will affect their students in the coming period. “Given the slump in the job market, public sector banks were offering good positions with decent packages for students. Now, it is going to be further challenging for students to find a secure job,” said the placement head of a Mumbai-based business school.
Human resource consultants also explained management students hopeful of getting placed with public sector banks would have to find other options. The senior official of a New Delhi-based HR consultancy, who is involved in public sector recruitments, said that government banks are preferred by students as they offer job security. “While pay packages may not be very high, these candidates are comforted by the fact that these firms do not have a hire-and-fire policy. Especially when the job market is slow, these banks could have offered excellent career opportunities,” said the consultant.
Tanksale added the bank is picking up management graduates from campuses for specialised jobs under autonomy granted by the government.
According to the top executive with a large public sector bank, while the high court verdict may be applicable a specific bank, it is going to have implications for other public sector banks as well. He added the issue will be taken up with the Indian Banks’ Association.
More From This Section
Management institutes are the most preferred destination to recruit talent for special posts in banks. With good talent available aplenty, banks prefer campus hiring. Students from the finance, marketing and strategy backgrounds are in demand.
“Being listed entities, there is expectation to work with private sector efficiency. Public sector entities tend to get the residual talent from management campuses. So, for us, it is quite challenge to do a balancing act,” said another public sector bank official.
While the court decision has been bank-specific, other banks have also followed the judgement. Shubhalakshmi Panse, chairperson and managing director of Allahabad Bank, said, “We were going to campuses till last year. But there has been some court cases because of which we are now not allowed to hire from campuses. That is why we are recruiting through IBPS (Institute of Banking Personnel Selection).” She added till the final judgement comes, her bank will be recruiting through IBPS. The institute not only helps identify talent to be sourced from the market through the recruitment process, but also helps identify employees within organisations with the necessary competencies to cope with various roles and responsibilities.
Although management institutes have mostly completed final placement process, they are worried this decision will affect their students in the coming period. “Given the slump in the job market, public sector banks were offering good positions with decent packages for students. Now, it is going to be further challenging for students to find a secure job,” said the placement head of a Mumbai-based business school.
Human resource consultants also explained management students hopeful of getting placed with public sector banks would have to find other options. The senior official of a New Delhi-based HR consultancy, who is involved in public sector recruitments, said that government banks are preferred by students as they offer job security. “While pay packages may not be very high, these candidates are comforted by the fact that these firms do not have a hire-and-fire policy. Especially when the job market is slow, these banks could have offered excellent career opportunities,” said the consultant.