Union Bank puts promotion on fast track

Mumbai-based Union Bank of India has decided to put in place a fast track promotion policy up to the rank of assistant general managers (AGMs) to ensure that senior executives have a sufficient tenure with the bank.

A newly recruited officer could be elevated to the post of AGM in only 11 years, against the current stipulation of 20 years. The officers promoted under the fast track process would have at least 20-25 years of tenure in the bank after reaching the post of AGM.

"Officers reaching the rank of AGM in a short span of 11 years get the benefit of exposure to higher assignments, thus preparing them to assume top positions in the bank. They are able to reach senior positions with sufficient residual tenure to implement long-term projects," the bank said in a press release.

At present, the senior executives in most public sector banks occupy their positions only for a few years before either moving to other banks on higher assignments or retiring from service on attaining superannuation.

"This move would address the issue of large scale natural attrition in the bank's executive cadre," said the bank.

With one in every eight public sector bank officials set to retire in the next three years, the public sector banks would soon be hard-pressed to fill the vacuum in their senior managements.

The 27 public sector banks had a combined workforce of 7.2 lakh employees at the end of March 2007, with 2.5 lakh employees belonging to the officer cadre and 4.7 lakh clerks and sub-staff. Of the 74,596 public sector bank employees to retire by March 2010, 44 per cent are officers, 35 per cent clerks and the remaining belong to the sub-staff.

While 13 per cent of the 2.5 lakh officers currently employed would retire in the next three years, only 8.7 per cent of the 4.7 lakh clerks and sub-staff would reach the end of service by then.

The departure of a large number of officers for greener pastures, has only added to the woes.

The fast track promotion process would act as an incentive in retaining talent by giving due recognition to skills, initiative and performance.

The public sector banks follow an industry-wide norm brokered by the IBA, while salaries offered by the private and foreign banks include a significant variable component linked to performance. The resulting salary differential is as high as 200-400 per cent.