BSRB alternatives being worked out

BSRB alternatives being worked out
HARJEET AHLUWALIA

NEW DELHI, MAR 25: The finance ministry is examining a number of ‘cost-effective’ alternatives to the banking services recruitment boards (BSRBs), that the recent Budget proposes should be scrapped. These options include laying down broad parameters for direct recruitment by public sector banks, centralised recruitment of officers through the National Institute of Banking Management and/or some other existing institutions, uniform norms for campus recruitments etc.

Officials in the finance ministry pointed out that the Budget proposal would have no immediate impact. Banks were still in the process of re-engineering their staff and systems in the wake of the VRS put on offer since November. Lack of recruitment boards would not hamper human resource development activities either (HRD), since the guidelines on VRS had stipulated clearly that the gaps left behind by those exiting the ranks would in no way be considered as vacancies to be filled by recruitment of fresh cadres. They said it was part of the scheme, in which even promotions to posts falling vacant would be made only as per the manpower plans drawn up by the banks when they decided to offer VRS. Each bank was expected to stick to the numbers indicated for the various grades of staff delineated in the manpower plans.

As for promotions per se, they stressed that there could be no violation of laid down rules pertaining to promotion, which must be made with due regard to eligibility and capability, availability of headroom etc. Moreover, the scrapping of the BSRBs was aimed at giving banks more freedom to choose the talent most suited to their respective needs. While banks went about restructuring, they would hardly be recruiting simultaneously, thus giving the ministry time to evolve alternatives mechanisms, they added.

Industry officials said there are 15 BSRBs that have been catering to the clerical staff requirements of all public sector banks and regional rural banks, and the officer cadres for the nationalised banks and RRBs. The State Bank of India and its seven subsidiaries have been sourcing their officers through the Central Banking Services Recruitment Board.

The boards were set up after nationalisation, and there was heavy and almost indiscriminate HRD intake uptil 1985. Thereafter a period of consolidation began and recruitments slowed down. In 1990, the apex bank decided to clamp down on fresh jobs, directing that no bank would take in more than 1-1.5 per cent of its existing workforce in any given year. Recruitment of specialists like financial analysts, IT professionals, etc., however, continued to take place through the boards. Even vacancies in banks that were perceived as critical were being filled up through this route, and in all the numbers have been around 5,000-6,000 per annum only.

Ministry officials said the costs of maintaining so many boards would be saved straightaway. The boards are manned by officials from various banks on deputation. Moreover, the departure of one lakh employees out of a total 8.5 lakh would impart the much-needed leanness to the banking industry. Industry sources said the banking sector would be trying to get over the “overwhelming response” to VRS by delayering of administration and consolidation of branches.

While this could be seen as a threat to the reach of the public sector bank network, decisions like scrapping or pruning the number of zonal offices, merging of branches in close proximity, etc., would enhance the viability of the banks. The real effects of VRS on the bottomlines of the banks would be visible only three-four years as amortisation of the VRS outgo draws to a close.