First posting at rural branches or offices after recruitment may become mandatory at public sector banks (PSBs). Banks might rework the compensation structure to make rural postings attractive. At present, the pay package has a definite tilt in favour of city and metropolitan areas.
These emerged from a brainstorming top managers – chairman and managing directors and executive directors – had over the weekend to position PSBs for today’s highly competitive business environment.
They also dwelt on expectation profile, talent building, succession planning, compensation packages, and information technology infrastructure. The two-day conclave was organised by Bank of India.
With a thrust on financial inclusion and huge funding for villages under various programme, business opportunities will grow manifold in the rural sector. The ground work for it has to be done now, said the CMD of Mumbai-based bank.
The proposal for mandatory first rural postings seems to have blessings from government. A top finance ministry official who participated in proceedings said “young people must work is rural areas. There should not be any exceptions.”
While serving growing business in rural hinterland is definitely a priority, sending newcomers has its own risks. A Senior official with Bank of Maharashtra said such a person may lack understanding and back-up to take decisions. It could hit business operations.
A compulsory rural stint for fresh doctors has met with limited success, pointed out a General manager with Delhi-based bank.
Those in top management, most of whom began their innings in banks at remote locations, see a rural posting at a young age as “career-wise” and have an enriching experience.
B A Prabhakar, chairman and managing director, Andhra Bank, said business growth was going to be much higher in rural areas. The assignments would give rich work experience.
With limited manpower at branches and varied customer base, clerical and officers would get chance to deal with retail, agriculture and small enterprises. The chance of getting such varied experience in short time span is much less at city or urban branches.
Coming to compensation package, the brass favoured review. of present structure. The cost of living may be low, but it is a hard life with limited infrastructure support.
For postings in cities, bank staff gets a city compensatory allowance. There is no provision for such allowances as an incentive for working in rural and remote areas. A government official strongly argued for correction in the inverted pay and reward structure.
Pratip Chaudhuri, chairman of State Bank of India, The rural branches are understaffed due to resistance and monetary disincentive.
There should be rural area allowance.
