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<b>Letters:</b> Issues in PSU banks

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Business Standard New Delhi
Last Updated : Apr 16 2013 | 9:17 PM IST
This refers to the editorial "A missed opportunity?" (April 15). With the implementation of banking sector reforms, hiring in banks has been declining. The attrition rate has especially increased in public sector banks (PSBs). To get rid of the earlier legacy of handling union-related issues, the banking system opted for voluntary retirement schemes, and laid off huge chunks of experienced bankers. They not only lost manpower, but their technology was not developed to compete with fast and aggressive new banks. PSBs today do not attract the best of human resources from the market because of several inhibiting factors, such as poor salary structure. Also, the training system is virtually absent in relation to market expectations. KYC norms have taken away the human touch, and banks are only concerned with the "required documents", bringing more risk to the business.
T V Gopalakrishnan Bangalore

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First Published: Apr 16 2013 | 9:01 PM IST

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