Campus Recruitment in Banks

          The Great Indian Folly of Campus Recruitment – BY

Pannvalan

I criticise the campus recruitment undertaken in India – be it by MNCs or Indian Companies or Public Sector Banks – because of the following strong reasons.

1. From the beginning, there is lack of transparency in the process followed for campus recruitment.
2. The ‘Placement Officers’ in majority of the educational institutions behave like brokers and agents of the recruiting companies or institutions, for whatever reasons.
3. There is no consistent and established procedure adopted for successive batches of selection and recruitment.  Each time, the tools and methodologies adopted undergo major changes, without prior notice to the candidates of the particular batch.
4. At the end of the process, many a time, it has been found that many sub-standard candidates have been selected on some unknown criteria, while real gems are left out.  This leads to great demoralization of the really meritorious candidates.

From my own observations made at some of these events, I wish to share these points.

1. Over-emphasis is laid on ‘problem solving ability’ at the time of selection.
2. Overall performance of a candidate – both inside and outside their college/university – is not considered for arriving at the final score of each student.
3. Many candidates selected and recruited are very weak in Language and Communication Skills, Public Relations Skills, Emotional Stability and Teamspirit.  
4. These candidates have been found too selfish to describe in words.
5. They do not have any kind of loyalty to the organization that has recruited them.  At the earliest available opportunity, they ditch it and jump to any rival organization in the same or related field.  They have no qualms in doing this.

I will narrate some of my own experiences in this regard.

1. A boy (Qualification: CA, but not a gold medalist or top ranker) was recruited as Deputy Manager (MMGS II) at the age of 25.   He was posted at the Head Office of the bank. Within 3 years of his joining, he was promoted as Senior Manager (MMGS III).  He was retained in the same place, Office and department.   He completed 31 years and applied for AGM post in UCO Bank.  He was selected and at the age of 32 years, he became AGM in UCo bank.  Thus, he used the bank that picked him up through campus selection as just a launching pad!

I am not writing this out of jealousy.  But consider these hard truths.  

1. Except Credit (that too theory only), he doesn’t know ‘a,b,c’ of banking.  
2. Exactly at 6 o’ Clock every day, he will leave the office.
3. He has not worked in branches.  He has not faced different types of problems faced by a Branch Manager/Officer.
4. He has not worked in villages or smaller towns.  So, he doesn’t know the needs and wants of small customers like farmers and traders.
5. He doesn’t know anything about Forex, Inter Bank Clearing, General Administration and Accounts.

2. One girl, having MBA was recruited as Deputy Manager and posted as Financial Analyst in a Zonal Office.  From the beginning, she was very rude to everybody – customers, other branch staff and colleagues at the same office.  She will not touch a job, if she is not interested in it.  This forced her Senior Manager to take up the work rejected by her and complete it.  The Zonal Manager also would ask only the Senior Manager and not her, regarding the work to be completed!

The joke here is, she didn’t know how to draft her transfer application and she approached me seeking my help.  And I drafted the whole letter for her.

3. Another girl, [Qualification: M.Sc. (Bio-Chemistry)] joined as a Clerk on 31-12-2012.   Luck smiled at her and she was posted to a branch that is close to her home.  She was given induction training for 6 days.  Then the very next month, she was deputed to forex training conducted by ‘FEDAI’.  She is now receiving ‘on the job training’ in forex, because the regular officer (a Deputy Manager) in the Forex Department has gone on ‘Maternity Leave’ for 6 months and the management hasn’t provided any substitute for the latter.  

In sharp contrast, many officers in the bank do not get an opportunity to work in forex department at all.  Because I was working at International Banking Division, Mumbai, I had the opportunity to go for FEDAI training, after I had completed 20 years in the bank.

4. Because these young officers recruited through campus selection method are considered too precious by the management, they are accorded VIP status, as if only because of them, the entire bank runs.  This has made these young staff very rude and arrogant in their outlook and behavior.  They do not respect anybody, except the top officials of the bank.

These are some excerpts of an article written by me 2 years ago on "HRD Policies & Practices in Public Sector Banks".   Please read.

YOUNG VERSUS OLD

It does not fit into any logic or rationale as to why young people with or without professional qualifications are given royal treatment in training, transfers, placements and promotions. They are given coveted positions in urban and metro centers and offered prestigious assignments. This makes them derive undue and unfair advantage over others with considerable experience in various spheres of banking. Moreover, young persons without any knowledge of banking – both at macro and micro levels – are directly absorbed at MMGS II level by means of campus recruitment or through routine recruitment process.

Unfortunately, candidates from less known or unknown institutions with lower pedagogic standards and popularity rating in their arena are also employed under this so called ‘professional’ category, without the banks verifying the value of their degrees in the market place.

In contrast, the experienced officers are given a raw deal in every aspect. While their services are requisitioned for all problem-solving activities and crisis management, they are always discriminated against. They are taken for granted and are made to sit late hours almost every day to complete all the routine and critical jobs. They are over-burdened with a lot of responsibilities but an impression is sought to be created in the minds of others that these senior officers are slow, inefficient and irresponsible.

At the same time, no one ever bothers to see youngsters who receive almost equal (many a time better) pay than their seniors, leaving the office early in the evenings. Similarly, no one ever questions the youngsters when they flatly refuse to work on Sundays and other holidays, whereas the seniors are compelled to work on Sundays and other holidays now and then without any reward or recognition for their extra services. In granting leave too, banks are very liberal to the younger generation, but behave very unfairly and harshly to the seniors. Many of these young officers go on leave as and when they want with total impunity. They don’t even intimate in advance about the duration of their leave/absence. On the other hand, senior officers are either denied leave for genuine reasons or their sanctioned leave is curtailed mercilessly.

It is often noticed that these young officers argue with their seniors and superiors without any regard for their age, position and seniority. Even many legitimate instructions given by their immediate superiors are given scant regard and rejected outright by these youngsters. It is not uncommon to see the seniors taking up and successfully completing the jobs rejected and disowned by their juniors.  Yet, the young officers concerned are not put to shame and they are neither punished nor admonished. This emboldens such young officers to repeat what they did.

There is another mistaken notion about the experienced officers. They are viewed as obsolete by the management, whereas their juniors below the age of 32 years are presumed to be tech-savvy, but it is not true in all the cases. There are a good number of tech-savvy people amongst the senior officers, with professional qualifications like MBA, MCA, ACA, ICWA, CFA, LLB, ACS, CAIIB etc. and they possess rich and varied exposure in Credit, Foreign Exchange, Marketing, Public Relations and Branch Administration. No importance is being given to them and most of them are neglected when it comes to promotion. They remain a frustrated lot, cursing their fate, because they are on the wrong side of their age.

Here, one important point is to be emphasized. Most bank managements think that only because of frustration arising out of bad working atmosphere and lack of growth prospects, these young officers leave the bank service. (But the same conditions of senior officers are immaterial). Because of this fear, the managements treat the young officers with great respect and extend them all possible privileges comparable to those obtaining in I.T. or Infrastructure sectors.

Though the management is aware of the high rate of attrition among such young officers (direct recruits), it shuts its eyes and goes on to pamper them with quicker promotions. What such officers do in return for such favours received? They merrily enjoy all the privileges extended during their stay in the bank, accept quicker promotions and leave the bank after a short period say, 3 to 7 years, availing themselves of the offers they get from the market rivals. They never feel guilty of their behavior.

They do not realize the value of the promotions received without the much needed banking knowledge and requisite experience and they never undergo the travails of the whole promotion process, as compared to their seniors. The banks that went out of the way to give them speedy promotion are used as a ladder or a stepping stone or a launching pad by them. The managements are not put to shame by their sheer, unforgivable disloyalty and betrayal.

As a result of this management behavior, the promotional chances of senior chances are scuttled and they are greatly disappointed and get demoralized.

The thrust of the arguments put forward here is the managements must learn to recognize and accord proper weightage to those senior officers with rich and varied experience in different spheres of banking and also possessing good knowledge regarding the latest technological trends and developments and having hands on experience in the latest technological tools, systems and processes to a fair measure. Dynamism and lateral thinking are also not lacking in many senior officers. In fact, they are the people who are first sent to places of serious problems like frauds, burglary, customers’ complaints, public protests and any other serious problems. They have successfully faced any explosive situation and solved such organizational problems with their domain knowledge, rich experience, strong emotional stability and sharp acumen.

  

                                                                                                                                                         BY - Pannvalan

MY Opinion

The Great Indian Folly of Campus Recruitment--------Despite Adverse court verdict, many banks are still in process of campus recruitment in higher scales.

 They neither follow guidelines issued from MOF nor respect Court Order and always try to give wrong excuses for their wrong actions. Until guilty persons are punished for their past actions, one cannot dream of any reformation for future.

People sitting at top post in banks or in the government use their art of presentation to commit fraud and perpetuate their corrupt practice.

Scam after scam takes place but government always promises to make new laws and never tries to enforce existing laws.

This has been seen during last 65 years of freedom. One after committees are formed to conceal their misdeeds and to exonerate corrupt leaders. Even reports of such committees are not cared if the finding goes against them or their bosses.

Clever government has framed several laws against social evils like dowry, rape, corruption, extortion, terrorism etc but could not stop its rise day after day and year after year. This is only because their tendency to protect the guilty.

Until birds of same feather occupy the powerful posts once cannot imagine of any change. Person like Arvind Kejriwal can only dream of change because he has a vision for execution matching his ideas.

After all, what is justification for campus recruitment in higher scales in banks even after having hundreds and thousands of senior, experiences, skilled, honest, tested and attested officers in bank and waiting for promotion?

 

Banks are service oriented industry where experience is more valuable than educational degrees or good looking personalities. Best marketing officers can bring new businesses for their banks, but only able and experienced officers can sustain them. Quality of service is more important in banks than the degrees of serving employees. Once a person joins a bank, his educational qualification becomes insignificant. His ability to judge a loan seeker and comfort of depositors can only help in increasing business of a bank.

 

Officers who not have credit processing skill are made Branch head. This culture has resulted in bad lending and hence rises in bad assets. Quick mortality of assets in banks has gone beyond their control only because unskilled MBA graduates are sitting at top posts and seniors are working as subordinates in such branches. This mismatch has adversely affected the work culture in almost all banks which have resorted to campus hiring giving false excuses to Ministry of Finance or to give favour to kith and kin of powerful ministers.

 

It is therefore need of the hour to assess and ascertain the pros and cons of practice of campus hiring and punish CMD of banks who introduced this culture for their self interest and cause irreparable damage to banks.

Work culture is more important than any other thing for survival of banks. Officers who understand the value of money, character and creditworthiness of loan seekers and comfort level of their customers can only ensure safety and security of banks for future.

 

In response to court verdict against Central bank and its clear warning to bank not to repeat such campus hiring, Government of India should order CBI inquiry into all recruitment which took place during last ten years in public sector banks through campus hiring and whether those officers are really better than already working officers in banks and whether there was any corrupt dealing in such type of recruitment.

http://importantbankingnews.blogspot.in/2013/04/high-court-warns-bank-management.html

Click on following links to read more 

http://dkjain4970901092007.blogspot.in/2013/04/gain-of-campus-hiring-in-banks.html