Central Bank’s campus hiring illegal: HC Times Of India
http://timesofindia.indiatimes.com/city/mumbai/Central-Banks-campus-hiring-illegal-HC/articleshow/19353465.cms
My Comments
This refers to Mumbai
High court judgement pronounced Today in a case related to Central Bank of
India . The Bombay high court on Tuesday held that its ( bank’s ) recruitment
policy, which allows campus recruitment/interview method for appointment of
officers against permanent vacancies on regular basis, was illegal and
unconstitutional.
Bank management of almost
all public sector banks has resorted to campus hiring, not only in scale I but
in scale II and scale III too. During last ten years top ranked officers of
almost all banks have functioned in an arbitrary manner, recruited persons of
their choice, giving favours to kith and kins of high profile persons and
denying the talented unemployed youth. Recruitment of persons for some personal
gain or to give favour to sons and daughters of known dignitaries has damaged
work culture in banks and adversely affected the asset quality of almost all
banks.
Top management in public
sector banks picked up persons from campus of their choice and in the name of
merit they raped those who have been working in the bank for years and decades.
Not only in recruitment have they harmed the future of those existing employees
who were waiting for promotion to higher cadre and higher scale. There are
instances where bank management recruited officer directly in scale III whereas
hundreds and thousands of officers eligible for promotion to scale III are
denied their rights.
Further due to their
arbitrary and unjustified recruitment of officers from campus in scale III or
scale II management of bank had to pay double salary or more for the same work
which could be and which hitherto has been performed by junior officers and
clerks.
Is there anyone who can punish
such top ranked officers whose faulty action caused huge loss to the bank??
Why these responsible and
top ranked officers should not be personally punished and taken to task so that
in near future no one dares violating the rights of existing employees and
denying the opportunity to really talented youths.
I am unable to understand
why the courts have simply warned the bank to desist from campus hiring in
future and why not court thought it necessary to impose penalty of erring top
officials.
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.
Emphasising on acquiring the right people, the deputy governor questioned banks’ enthusiasm to recruit from major management institutes. “Is the mad rush to top campuses justified? Will the people recruited from top management institutes understand financial inclusion drives? Will these people have empathy towards the poorest of the poor?” Chakrabarty asked the bankers.
RBI now Questions HR Policies of Public Sector Banks
| RBI for overhaul of banks' HR practices |
| K C Chakrabarty questions wisdom in hiring from top B-schools |
Emphasising on acquiring the right people, the deputy governor questioned banks’ enthusiasm to recruit from major management institutes. “Is the mad rush to top campuses justified? Will the people recruited from top management institutes understand financial inclusion drives? Will these people have empathy towards the poorest of the poor?” Chakrabarty asked the bankers.
What about those management candidates from mba institutes who have been selected by the bank and are awaiting their call letters. Will this decision affect their job prospects too?
ReplyDeleteSome of viewers are afraid that if court restricts employment through campus hiring , the fate of unemployed youth will be jeopardised. Here I would like to make it clear that court has simply instructed bank to follow necessary guidelines and carry out entire recruitment process in a more transparent manner. If bank is allowed to resort to campus hiring, the top bankers will choose only those campuses where their sons and daughters are admitted or those campuses where some monetary gain is expected . It is seen in the past that banks recruited scale II and scale III officers as Credit processing officer and offered them the pay which existing employees get after serving bank for two three decades.. This has resulted in severe disparities in total emoluments payable to old employees . It is true that a few of these directly recruited officers have performed well , but it is also true that many of junior bust existing employees are processing credit proposals in a better way than those who were recruited in scale II and scale III.There are cases when even clerks are good processing persons. It is unfortunate that many banks are still in process of recruiting officers in scale II or scale III at the cost of promotion prospects of existing junior level officers.
ReplyDeleteYour reasons looks good to quite some extent but then why some of the genuine candidates who wants to start and make their career in Baking sector must suffer from this? I'm from one of IITs Bschools and I really wanted to get into a PSU bank not because the life is good or the perks are great but because I genuinely wanted to work for the upliftment of rural india. I even opted out of the placement process after I got placed in one of the PSU bank knowing that I could get a much better paying offer any day from campus. Now, that the placement season has ended and the MBA is over, the only thing which keeps me going is the wait for the offer/joining letter of the Bank.
DeleteSo, my point is if the recruitment has been done in a fair manner, I see no reason high court giving order against the process.
PS: I would also like to hear your opinion if this verdict only against the hiring by Central Bank of India or would it also affect the hiring done by other banks namely BOI, UBI and UCO across other B schools of India.
Dear Sir,
DeleteI appreciate your efforts on this forum. I would like to know your view in the following regard. I have been recruited by a PSU Bank (not Central Bank of India) this year i.e 2013-14 and I was awaiting call letter from the bank. However this judgement by Mumbai High Court has adversely affected my career prospects. I am a Management Graduate from Top Government Institute of the Country. I had been recruited in Scale - II. Do have recourse in this case. Or will my employment become null and void subject to the court's order ?
It is still not clear what the learned High Court has said.If the banks have issued call letter or selected anyone for any post, banks are supposed to honour its decision.
ReplyDeleteOne person has pointed out that when campus hiring has resulted in growth of private banks, why state run banks will not benefit from it?
I would like to say here that management of private banks works for the growth of and for the gain in favour of promoters of the bank. They are loyal to their organisation in 90 percent of the cases. On the contrary leaders of public sector banks are only 10 to 20 percent a honest and devoted for their organisation. Officials of these government banks will go to campus where sons and daughters of their relatives and their Godfathers are admitted.They will pick a few talented candidate to show the common men , but they will pick some of their relatives, they will sell some post taking some money, they will oblige some seniors to get early promotions and choice posting etc. This is why there is always possibility of power of picking unemployed youth from campus. Hence court has rightly directed to carry out recruitment in more transparent manner giving all unemployed youth equal opportunity. It is one of the key reasons why public sector banks are not growing as private banks have grown in a span of only two decades.It will not be an exaggeration say here that majority of top ranked officials in government banks have bad history and they perpetuate corrupt culture only. This is why bad assets is increasing year after year in public sector banks whereas in private banks it is coming down.
It is also true that any method of recruitment is not full-proof, Still public sector undertakings which are accountable to public and which functions on the power of public fund have to be more legal, more constitutional , more transparent and leave lesser scope for doubt and manipulation.
ReplyDeleteIf campus hiring is allowed in PSUs , it is possible that the recruiter goes to a college where his relatives are admitted and picks up his relatives without caring for the quality. Such possibility may not only endanger the future of unemployed youth but may also further eliminate the enthusiasm in youth to make effort for gaining excellence in study as students do for getting selected for the post of IAS officer.
By the way , will the government allow Minister to pick up IAS and IPS officers from campus of their choice or from any campus ? None will perhaps like.
It is also true to say that assets BECOME BAD even if the caretaker is honest and sincere. Efforts are however to be made in the direction of keeping assets safe as much as possible. Assets may be human asset or loan asset.A government company cannot be and should not allowed to function based on whims and fancies of the persons who sit on top post.
sir firstly a big thanks to for your effort on getting us know abt the banking sector .
Deletesir recently the govt of india had directed the IBPS (ins of banking and personnel selection) to reduce the age of general candidate to 28 for po exams and to make the criteria 60% in graduation .sir will it be followed because in that case candidates like us 28+ will be in deep trouble and may remain unemployed .looking for ward for your kind reply
As of now age is 30 as far as I know. However 28 age is enough, If it the age is 30 now persons above 30 , say 31 or 32 are facing the same problem.Normally by the age of 22 o 23 education is complete and five years are enough to search the job. If even after that job is not available , one should explore the possibility of doing business or a service in locally available small companies.
DeleteBut i think post of IAS and IPS are administrative post. They are not for profit. PSU Banks are for profit too sustain itself and also with social responsibility, both. Government doesn't have 100% stake in most of the PSUs. Most of the PSUs are publically traded now. So there are private investors in the bank also who totally rely on Board of Directors who works for the benefit of shareholders. So if they think that some percentage of hiring should be done through campus then there is no problem with that. The only question is that how this 12.27% (reserved for campus hiring) be done. So there should be guideline that they can hire only form premiere institution. They should make a list of institution form which campus hiring can be done. Why should a bank not hire from IITs, IIMs and NITs. Because it is better if skill of these students are used for the PSUs rather then for the private company. See where ICICI has reached in just short span of time and see the other PSUs where they stands even after so many years of existent.
ReplyDeleteSir can you please tell me how the decision will affect to the students who were hired in 2012-13 (Feb 2013 specifically)and looking for joining after completion of course in April 2013.
Mr Danendra Jain
ReplyDeleteI read all your views but i want to know the source of tour blog as i found no such judgement regarding this on Mumbai high court site.
link to the only document which was found is given below
http://bombayhighcourt.nic.in/generatenew.php?path=./data/judgements/2013/&fname=OSWP100812.pdf&smflag=N
Plz check as it clearly says that banks can follow its own recruitment policy.
If you have a link to the final verdict regarding campus hiring plz give us the link
Here's the link
Deletehttp://bit.ly/158Uxva
www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&cad=rja&ved=0CFMQFjAD&url=http://bombayhighcourt.nic.in/generatenew.php?path=./data/judgements/2013/&fname=OSWP282512.pdf&smflag=N&ei=er1nUbewFIe0rAfFnoCoCw&usg=AFQjCNEHS4zzUeOagH5mrxnru-AJXpiJXA&sig2=RwKdRhc6OVvMx9bTLVEEMA&bvm=bv.45175338,d.bmk
ReplyDeletehttp://bombayhighcourt.nic.in/generatenew.php?path=./data/judgements/2013/&fname=OSWP100812.pdf&smflag=N
ReplyDeleteThank you Sir
DeleteDear sir,
ReplyDeleteI have been selected by Uco bank on 28th december 2013 and still not received any offer letter....Moreover our placement session is just near to stop.... i m also not eligible to sit for any other company as i have been selected by UCO. so i want to know whether the verdict of Bombay High Court will affect my career???? as still we dont receive any confirmation from Uco... Please reply
Ask your Placement chairperson to call the HR of the UCO Bank. We all are doing the same from our side.
Deleteeven i got placed in UCO bank, and i dono whether tis appeal ll affect mine too, atleast they should allow the people who ve been recruited by them, i mean this year 2012-13
Deletemy 3 frds are facing the same situation...
Deleteif u guyzzz are doin somethin...
mail me braveheart.san@gmail.com
This comment has been removed by the author.
DeleteYes he has done that.if any news is there plzz tell me
ReplyDeleteI have also been placed in uco bank and no offer letters yet.
DeleteI have heard that uco bank has canceled placement at some campuses.
which b school do you belong? and have you got any other information? please let me know...
offer has been cancelled by UCO bank !!!
Deleteso better start trying outside ...All the best
Dear sir,
ReplyDeleteCan u please tell clearly whether court has banned the banks form campus recruits??because i myself went through the judgement ,but nothing of that sort is mentioned there..
I Went through this judgement copy-->
http://bombayhighcourt.nic.in/generatenew.php?path=.%2Fdata%2Fjudgements%2F2013%2F&fname=OSWP100812.pdf&smflag=N
Kindly guide
Thanks and regards,
Prakhar Gupta
An officer who has worked for two or three decades successfully in a bank without facing any charges of irregularities or lapses is not found fit by Interview board for promotion of officer from one scale to other but the same team of interview panel pick up entirely fresh candidate or an officer of other banks of two or three year experience is found fit when they go to a campus for selection or call candidate from other bank or FI for the post in scale II or scale III.
ReplyDeleteIBPS also work in nexus with bank officials in picking up officers in sclae II and scale iii in the name of specialist officer and pay them two or three times of normal salary payable to a fresher or a probationary officer .
Is there any one to investigate such scam which causes not only loss of money but also gives frustration to hundreds and thousands of officers who are waiting for promotion for years together.
The most astonishing is that an officers with two to three decades is not promoted to scale III or scale IV or Scale V but an outsider is directly recruited in sclae III and promoted to sclae IV and V within a span of four to five years .
How far is it justified ?
Will it not spoil the work culture?
Who are responsible and punishable for such improper way of recruitment?
Or the reign of injustice will continue as it has been going on for last three four decades?
Officers who are aggrieved with bank management file case in local civil court or file writ in High Court or Supreme Court but the case is not decided even in two or three decades due to ill motivated actions of advocates representing banks .And bank in general continue to pick up officers as per their whims and fancies for higher scale and for higher post.
I have been recruited by UCO bank in this January. Suddenly after three months I was told that my recruitment got cancelled. Due to my selection I was unable to sit for other companies. Now the placements are over at our college. After two years of MBA I'm now jobless with no mistake of mine. There are hundreds of people who are facing similar problem as that of mine. What was our mistake? Performing well in the interview and getting selected?
Deletesir which officers u r talking about those doesnot want to work...just working with banks for time pass....the kind of service which is provided by the public banks officers very one knows....these officers are making the banks into heavy NPA,s ....no confidence,no punctuality, no attitude towards work ....these officers are only lethargic people ....see the administrative cost of the employees in the financials of the banks....if today a exam is conducted to test thr knowledge & caliber all will be thrown out of the banks....u r talking about promotions.....because of the thinking of the people like u who doesn,t wants to build a workholic environment in the banks ....but only to disturb the country on the names of strikes........ our youth & country are suffering.....
DeleteI have been recruited by UCO bank in this January. Suddenly after three months I was told that my recruitment got cancelled. Due to my selection I was unable to sit for other companies. Now the placements are over at our college.
ReplyDeleteAfter two years of MBA I'm now jobless with no mistake of mine. There are hundreds of people who are facing similar problem as that of mine. What was our mistake? Performing well in the interview and getting selected?
I hope God will give you justice . It is the fault of bank management who first wrongly picked up for job and then again wrongly cancelled your job.Officers of the bank who selected and then cancelled your job are punishable and must be taken to task for their ill-motivated actions.There are many such officers who got the job through campus by paying handsome amount to middlemen or to directly interview takers.. If campus hiring is permitted , these corrupt bank officers may pick up their sons and daughters even from school campus or college campus even if these individuals have got no merit. Nepotism and bribery will slowly become the tool to get the entry in a government bank . Private banks and private companies recruit persons on the recommendation of their relatives and friends only .
DeleteSir is there anything that I can do right now regarding this?
ReplyDeletei also got selected in UCO this jan. I think we should do some thing regarding this.
ReplyDeleteI think if some people like us can get together we can request court that at least those selected prior to this verdict should get the job.
you can contact me on bhrt.singh007@gmail.com
Court opton may be looked into, our judiciary is too weak to deliver justice before you grow old.Bankers can buy favourable order there
Deletei have already recevied the letter from the uco bank that they have cancelled all the selected students. so whats next to do . our life has become hell.................
ReplyDeleteSir,
ReplyDeleteI have been recruited by UCO bank in the month of December, 12. Suddenly after 4 months I was told that my recruitment got cancelled. Due to my selection I was unable to sit for other companies. Now the placements are over at our college and my career is at stake.
where many other PSUs have offered joining, UCO decided to play safe. So my question is that is there any meager chance even that UCO will reconsider the whole situation and give us joining?
I am pretty traumatized to see that people are so much against campus recruitment by PSUs and PSBs. All talking about equality and recruitment of sons n daughters and other things as well. My stand point is that no single recruitment policies are free from corruption. Have anyone paid attention to the fact that the common exam that is being held to recruit officers(IBPS) is creating a gap between the performance of diff banks? The high scorers are being allotted to the banks that have already been doing well and have secured a better position in the market and on the other hand the poor scorers are moving the banks that are still struggling to be in the race, this is increasing the gap even more. Moreover talking about recruitment of sons and daughters, exactly how many sons n daughters can be there? Let say max 100 out of 1000 recruited. Lets say this 100s are undeserving, still this 900 will make a strike for betterment only and this 100s as well are not useless, they fought against lakhs to secure their positions in a B- School.
Talking about students losing chances for not being MBAs, MTECHs etc..There can be two prominent reason: (1) lack of merit (2) lack of money. Lets don't talk about lack of merit. Lack of money? A general candidate needs to pay Rs 500 to sit for a single govt exam. I am doing MBA for just Rs. 16000 for two years and am pretty sure many would have spend more than this amount on filling up govt job forms.
Talking about employees who have served the organisation for more than 2 decades and were expecting promotion. Particularly for banking sector, does it actually takes 2 decades to move from scale 1 to scale 2 or scale 3? The answer is known to all.The reason behind this being sheer lack of enthusiasm and the fear of taking responsibility.Irregularities and lapses just don't define ability and capability.
and the argument continues...
Its is such a bad job-scenario outside, that finding a job off-campus is very difficult at present. UCO bank has simple declined to offer jobs, even though they were confident of their legal team, who have taken all the precautions for hiring from campus. Now after 2 years of my MBA I am still looking for jobs outside. This is not correct & court must give justice to all the affected candidates.
ReplyDeletehave u not taken any step yet against the court order????
DeleteI also got selected in January but nw they have rejected my job....:(
ReplyDeleteAm hoping to hear something from Mr. Dharmendra Jain, as central bank has now decided to move to supreme court against this bombay high court verdict.what will be its consequences?
ReplyDeleteGreat information provided on your blog. Very appreciating. This will definitely help users who are always looking for such kind of information. Keep on updating. Thanks...
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