Are Incapable Staff, a Reason to Public Sector Banks Failure ?

Almost all the Public Sector Banks in India including State Bank of India are reeling under higher Non performing assets, bad loans and detoriating growth book. Many of the public sector banks are not able to move out of the bloom, even conducting many approachable growth in recent times. There are many reason behind so called failure of Public Sector Banks, whether external, internal, government,slower growth etc. 

The success of any organization is purely depend on the human resource beside other factors but excellent workforce makes a difference especially in service Industry. Banks are categorize under service industry and the quality of workforce decide the growth. Public sector banks have captured roughly the 75% market share of banking industry, still their growth are sluggish where as the private banks with lower presence are showing a good sign of progress. Why ? it’s the smart workforce, which makes a difference.

Public sector banks recruit their officers & clerks through all India recruitment test conducted by independent body IBPS. They collect the demand of workforce from each of the public sector bank except SBI and conduct the all India exam. Successful candidates of IBPS recruitment exam are allotted the banks as per ranking. In case of SBI, they recruit through SBI recruitment board and follow the process as like IBPS.

Public sector banks and SBI are dealing in the complex financial market which requires the specialized domain knowledge. Dealing in the financial market requires professional or at least the average analytical skills but the exam conducted by IBPS or SBI doesn’t mandate any such specialization at entry level other than specialized category (which is also basic type ).

10 Reasons Why Not To Join Bank as Probationary Officers (PO) ?

Demerit of Selection through common entrance exam 

There are major demerits in recruiting the candidates through entrance exams, majorily 

  1. Any individual with graduation degree can take the exam. There is no check on minimum marks. Candidate who is having degree in home science or history or anthropology can take the exam and join the bank.
  2. Subject wise final cutoff for IBPS exam are as low as 5 marks in English, 10 marks in math and similar marks in other paper. Banks are accepting these merits for taking complicated financial decisions.
  3. Why would bank settle with low rank candidates ? There are 19 banks allotted through IBPS and based on the choice of candidates, ranking are decided. If the final cutoff range is between 27 to 41 marks, candidates will be allotted by IBPS as per the ranking to different banks. Bank doesn’t have choice, they have to settle with candidates with low merit.
  4. No specialized training, rather two weeks general ineraction.
  5. No qualification based posting in the public sector bank. Candidates with home science degree may be posted as credit officers in the branch, who will start processing the MSME loan of millions.
  6. Processing a corporate loan or MSME loan require a basic knowledge and skill in finance or accounting or analytical. This is the reason why majority of the loan are falling under NPA ? 
  7. Improper promotion on generalist manner rather than on specialized basis. I believe that professional degree makes a difference in the thinking of individual. But in public sector bank, there is no such provision, an individual with basic educational qualification can be promoted to top level. It is very commonly found in the public sector bank.
  8. A highly professional engineer with MBA degree working under the history gradute. Such placemements demotivate the staff and kills their efficiency. 

Beside these there are many other core level issues which have to improve in order to improvise the Public Sector Bank. They will have to improve the quality of workforce, which is very much needed in current phase.

We welcome the healthy discusion on this.

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4 thoughts on “Are Incapable Staff, a Reason to Public Sector Banks Failure ?

  1. I know the writer have the zero knowledge about the banking. Writer should have collect the fact before writing this article. Writer should know that after the exams of civil services the 2nd toughest exam is SBI/IBPS/RRB now days. Atleast writer should attempt the mock test of any of the exams.

  2. Dear Writer,
    You should have properly researched before vomiting shit against the PSB’s employees.It is clearly visible that your article is solely based upon statement given by Mr. Piyush Goyal.

  3. The writer of this article has very little knowledge about working in a indian bank. Most of the people recruited has to perform clerical jobs even though they are designated as po for that ibps is tough enough no need for a mba degree and the salary bank pays wont buy them a person from a premiere institution. And please stop focusing on mba becoz nowadays anyone can have one. The real problem lies in training facilities that the public sector banks have, these training centres are obsolete, the newly recruited po s should be trained specifically in the areas of their work. Lastly for the kind information of the writer private banks also recruit officers by conducting a general ability test like ibps.

  4. this article is written with too limited research

    Jo mai samjha wo ye hai PSB is failing means NPA is rising

    Pahla to jo big corporate ko loan mila hai wo PO se aage jana wale to karte nhi hai wo karte hai ED or CMD jo govt direct recruit karti hai. Aur ye log banking ke kisi na kisi field me expert hote hai.

    Pahle point me aapne likha hai min marks for eligibilty nhi hai jo ki aadha sach hai and subject specification nhi hai
    Koi badi baat nhi UPSC me bhi nhi hai jo india ka sabse bada exam hai
    Aur bank me sirf loan processing hi kaam naam dusre kaam ke liye bhi log chahiye

    Bank specialist bhi recruit karti hai

    2nd point low cut off
    Ye to pura exam ke question ke level pe depend karta hai aur ese kami ko pura karne ke liye to PT. MAINS personal interview jaise step rakhe gaye hai
    Aur cutoff min ka hai aur selection highest marks wale se suru hota hai aisa nhi 5 ka cutoff hai to pahle 5 number wale ko select karege. Aap ese percentile ke term me dekhege to achha dikhega

    3rd pe mai jyada nhi janta so no comments

    4th specific training hoti hai aur aajkal bank kafi dhyaan bhi deti hai

    5th ye to hai bhai sahab esme koi 2 rai nhi hai lekin jaha specilist chahiye waha to use rakhte he hai agar available rahe to

    Ye to myth hai sir kabhi study karo proposal ko large sme or corporate wale loan ko data analysis mining hoti hai
    Economy hi recession me hai bank have to lend to sme or corporate to boost economy ab karo sir analysis its govt pressure

    Degree pe kafi joor hai aapka, agreed
    I hope so, it will make a difference
    Provision to nhi hai lekin prefer karte hai

    8th number baseless hai sir
    Ya to aap mante ho ki banking sirf MBA se chalegi to baseless baat hai
    Credit appraisal banking ka part pura banking nhi hai

    Aapko pata hona chahiye sir ki board meetin me bhi jab 1000cr ke loan sanctioned hote hai waha pe scholer, journalist ko panel me rakha jata hai ab batao kyu

    Aur last me sir jitne log milke ek PSB ka branch chalate hai na same business portfolio wale pvt bank ki branch me kitne staff hai dekh lena sir kal samjh me aa jayega kon kitna capable hai

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