Public sector lender Corporation Bank will rejig its organisation structure and undertake business process re-engineering at its 1,500- plus branch-wide network to stand up to competition from private banks and ensure aggressive expansion in rural markets.
Ajai Kumar, chairman and managing director of the Mangalore-based bank, said, “Banking sector dynamics is changing rapidly. The present structures have run out of steam. A fresh look is necessary.”
The intense competition from private banks is a major issue, especially in attracting young customers. The spurt in use of alternate channels like internet and mobile banking demands major change in skill-sets and organisation, the bank chief said.
The bank will rope in management consulting outfits to review the present operating model, structure and design. Consultants will help design and develop efficient operating models, fine-tune human resources strategy and spot new business opportunities.
Another senior official of Corporation Bank said the average age of employees is high and rising as compared to private sector banks. Skill levels need continuous updation. There is risk aversion among senior employees.
The bank is also facing the problem of reluctance for mobility. There are no people with adequate leadership to fill the middle management position in the short term.
The large number of skilled and experienced bankers at senior positions will retire over the next few years. This may create a gap at the higher levels, creating an urgent need for succession planning at the top and developing skill-sets, the official added.
The bank needs to build new capabilities to attract and retain talent. The challenge before the bank is to carry out transformation in human resources concurrently with business transformation. The bank had business of Rs 2,36,000 crore at the end of June.
