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GURU NANAK COLLEGE OF ARTS, SCIENCE & COMMERCE
G.T.B. NAGAR,
SION,
MUMBAI - 400037.
A PROJECT REPORT ON
“HUMAN RESOURCE MANAGEMENT IN PUBLIC
AND PRIVATE SECTOR BANKS
IN PRATIAL FULFILLMENT FOR
BACHELOR OF BANKING & INSURANCE
SUBMITED B!
PAVITRA DEVI SOKKALINGAM
ROLL NO. 04
T!BBI "SEMESTER # V$
SUBMITTED TO
UNIVERSIT! OF MUMBAI
ACADEMIC !EAR
%0' # %0(
UNDER THE GUIDANCE
OF
MISS. S.SUDHA
1
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ACKNO)LEDGEMENT
I would first thanks to Mumbai University for introducing the Bachelor of
Banking & Insurance course. There by giving us a platform to conduct this study
that has helped us to gain practical knowledge about the course.
I would like to extend my thanks to our rincipal !r. "i#ay !abolkar for
their constant efforts to conduct this course smoothly.
I would also like to extend my heartfelt thanks to course coordinator$ my
parents$ %ibrarian and friends for their constant support and encouragement
!ate
lace Mumbai 'ignature of 'tudent
2
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DECLARTION
I am avitra !evi 'okkalingam the student of (uru )anak *ollege of +rts$
'cience & *ommerce studying in T.,. -Bachelor of Banking & Insurance
'emester/". 0ereby declare that I have completed this ro#ect on “H*+
R/*12/ M+ 5 P*652 8 P159 S21 B:/ in the academic
year 1234/35.
This information submitted is the true & original to the best of my
knowledge.
!ate
lace Mumbai 'ignature of 'tudent
3
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CERTIFICATE
G*1* N: C ; A1/, S252 & C++12
This is to certify that avitra !evi 'okkalingam of T.,. -Bachelor of Banking and
Insurance 'emester/" -,ear 1234/35 has successfully completed the ro#ect on
“H*+ R/*12/ M+ 5 P*652 8 P159 S21 B:/ under
the guidance of Miss '. 'udha.
'ignature of ro#ect (uidance 'ignature of rincipal
'ignature of coordinator 'ignature of 6xternal 6xaminer
4
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INDE<
5
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S1. T=52 P
3. Introduction to Bank 27
1. The 'tructure of Banking 'ystem in India 28
9. :unctions of Banks 39
;. Introduction to 0uman
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19. *onclusions 79
1;. Bibliography 7;
I18*25 ; B:>
:inance is the life blood of trade$ commerce and industry. )ow/a/days$
banking sector acts as the backbone of modern business. !evelopment of any
country mainly depends upon the banking system.
The term bank is either derived from old Italian word banca or from a
:rench word banque both mean a B2? or +@ 2? 6. In olden days$
6uropean money lenders or money changers used to display coins of different
countries in big heaps -@uantity on benches or tables for the purpose of lending or
exchanging.
7
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+ bank is a financial institution which deals with deposits and advances
and other related services. It receives money from those who want to save in the
form of deposits and it lends money to those who need it.
C?1215/52/ F*1/ ; B:>
D5 5 M@>
Bank is a financial institution which deals with other peopleAs money i.e.
money given by depositors.
I85958* F51+ C+=@>
+ Bank may be a person$ firm or a company. + banking company means acompany which is in the business of banking.
A22=2 ; D=/5>
+ bank accepts money from the people in the form of deposits which are
usually repayable on demand or after the expiry of a fixed period. It gives safety
to the deposits of its customers. It also acts as custodians of funds of its
customers.
G595 892/>
+ bank lends out money in the form of loans for those who re@uire it for
different purposes.
P@+ 8 )5?81>
+ bank provides easy payment and withdrawal facility to its customers in the
form of che@ues and drafts. It also brings bank money in circulation. This
money is in the form of che@ues$ drafts$ etc.
A2@ 8 U55@ S1952/>
+ bank provides various banking facilities to its customers. They include
general utility services and agency services.
P1;5 8 S1952 O155>
+ bank is a profit seeking institution having service oriented approach.
E91 521/5 F*25/>
Banking is an evolutionary concept. There is a continuous expansion and
diversification as regards the functions$ services and activities of a bank.
C25 L5:>
8
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+ bank acts as a connecting link between borrowers and lenders of money.
Banks collect money from those who have surplus money and give the same to
those who are in need of money.
B:5 B*/5//>
+ bankAs main activity should be to do business of banking which should
not be subsidiary to any other business.
N+ I85@>
+ bank should always add the word bankC to its name to enable people
to know that it is a bank and that it is dealing in money.
E2152 6:5 8 E-6:5>
6lectronic banking is offering improved services to the customers are as
follows
• +TM *ards
• *redit *ards
• 6lectronic transfer of money
THE STRUCTURE OF BANKING S!STEM IN INDIA AND OTHER
DETAILS " )ITH DIAGRAMS $
The structure of banking system in India is significantly different from other
countries. It can be classified as given below
9
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. R/19 B: ; I85>
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These institutions run to make profit. They cater to the financial re@uirements of
industries and various sectors like agriculture$ rural development$ etc. it is a
profit making institution owned by government or private of both.
C++125 6: 52*8/ =*652 /21, =159 /21, ;15 6:/ 8
15 1*1 6:/>
. P*652 /21 6:/>
It includes 'BI$ seven -7 associate banks and nineteen -38 nationaliEed
banks. +ltogether there are 17 public sector banks. The public sector accounts for
82 percent of total banking business in India and 'tate Bank of India is the largest
commercial bank in terms of volume of all commercial banks.
6. P159 /21 6:/>
rivate sector banks are those whose e@uity is held by private shareholders.
:or example$ I*I*I$ 0!:* etc. rivate sector bank plays a ma#or role in the
development of Indian banking industry.
2. F15 B:/>
:oreign banks are those banks$ which have their head offices abroad. *ITI
bank$ 0'B*$ 'tandard *hartered etc. are the examples of foreign bank in India.
8. R5 R*1 B: "RRB$>
These are state sponsored regional rural oriented banks. They provide credit
for agricultural and rural development. The main ob#ective of
3. C-=159 B:>
*o/operative bank was set up by passing a co/operative act in 382;. They
are organiEed and managed on the principal of co/operation and mutual help. The
main ob#ective of co/operative bank is to provide rural credit.
11
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The cooperative banks in India play an important role even today in rural co/
operative financing. The enactment of *o/operative *redit 'ocieties +ct$ 382;$
however$ gave the real impetus to the movement. The *ooperative *redit 'ocieties
+ct$ 382; was amended in 3831$ with a view to broad basing it to enable
organiEation of non/credit societies.
T?1 51 /1*2*1/ 5/ 5 ? 2=159 6:5>
i. 'tate cooperative bank at the apex level.
ii. *entral cooperative banks at the district level.
iii. rimary cooperative banks and the base or local level.
4. S2?8*8 8 N-S2?8*8 6:/>
+ bank is said to be a scheduled bank when it has a paid up capital and
reserves as per the prescription of
Banks are those institutions which conduct the business purely on profit
motive. Banks receive surplus money from the people who are not using it and
lend to those who need it for productive purpose. Fhen we speak of a 6: $ we
generally mean a 2++125 6: . *ommercial banks are those institutions
which conduct the business purely on profit motive. *ommercial banks receive
surplus money from the people who are not using it and lend to those who need it
for productive purpose.
+ commercial bank is a dealer in short and medium/term credit. It borrows
money from a group of people at a lower rate of interest and lends to the other
12
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group of people at some higher rate of interest. The difference between the two
rates of interest is the profit of the bank.
. D;555 O; A C++125 B:>
'ome important definitions of commercial bank are given below.
.. P1;//1 G. C1?1>
G+ bank is a firm which collects money from those who have it spare. It lends to
those who re@uire it.G
.%. P1;//1 P1:5>
G+ bank is a firm that takes deposits from households and firms and makes loans to
other household and firms.
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FUNCTIONS OF BANKS - IMPORTANT BANKING FUNCTIONS AND
SERVICES
)? 1 ? F*25/ ; B:/ D51+ > The functions of banks are
briefly highlighted in following !iagram or *hart.
These functions of banks are explained in following paragraphs of this article.
A. P15+1@ F*25/ ; B:/>
The primary functions of a bank are also known as banking functions. They are the
main functions of a bank.
These primary functions of banks are explained below.
. A22=5 D=/5/>
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The bank collects deposits from the public. These deposits can be of
different types$ such as/
a. 'aving !eposits
b. :ixed !eposits
c. *urrent !eposits
d.
This type of deposits encourages saving habit among the public. The rate of
interest is low. +t present it is about ;H p.a. Fithdrawals of deposits are allowed
sub#ect to certain restrictions. This account is suitable to salary and wage earners.
This account can be opened in single name or in #oint names.
6. F58 D=/5/>
%ump sum amount is deposited at one time for a specific period. 0igher rate
of interest is paid$ which varies with the period of deposit. Fithdrawals are not
allowed before the expiry of the period. Those who have surplus funds go for fixed
deposit.
2. C*11 D=/5/>
This type of account is operated by businessmen. Fithdrawals are freely
allowed. )o interest is paid. In fact$ there are service charges. The account holders
can get the benefit of overdraft facility.
8. R2*115 D=/5/>
This type of account is operated by salaried persons and petty traders. +
certain sum of money is periodically deposited into the bank. Fithdrawals are
permitted only after the expiry of certain period. + higher rate of interest is paid.
15
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%. G15 ; L/ 8 A892/>
The bank advances loans to the business community and other members of
the public. The rate charged is higher than what it pays on deposits. The difference
in the interest rates -lending rate and the deposit rate is its profit.
The types of bank loans and advances are/
a. =verdraft
b. *ash *redits
c. %oans
d. !iscounting of Bill of 6xchange
. O9181;>
These types of advances are given to current account holders. )o separate
account is maintained. +ll entries are made in the current account. + certain
amount is sanctioned as overdraft which can be withdrawn within a certain period
of time say three months or so. Interest is charged on actual amount withdrawn. +n
overdraft facility is granted against a collateral security. It is sanctioned to businessman and firms.
6. C/? C185/>
The client is allowed cash credit upto a specific limit fixed in advance. It can
be given to current account holders as well as to others who do not have an account
16
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with bank. 'eparate cash credit account is maintained. Interest is charged on the
amount withdrawn in excess of limit. The cash credit is given against the security
of tangible assets and > or guarantees. The advance is given for a longer period and
a larger amount of loan is sanctioned than that of overdraft.
2. L/>
It is normally for short term say a period of one year or medium term say a
period of five years. )ow/a/days$ banks do lend money for long term.
The bank can advance money by discounting or by purchasing bills of
exchange both domestic and foreign bills. The bank pays the bill amount to the
drawer or the beneficiary of the bill by deducting usual discount charges. =n
maturity$ the bill is presented to the drawee or acceptor of the bill and the amount
is collected.
17
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B. S281@ F*25/ ; B:/>
The bank performs a number of secondary functions$ also called as non/
banking functions.
These important secondary functions of banks are explained below.
. A2@ F*25/>
The bank acts as an agent of its customers. The bank performs a number of
agency functions which includes/
a. Transfer of :unds
b. *ollection of *he@ues
c. eriodic ayments
d. ortfolio Management
e. eriodic *ollections
f. =ther +gency :unctions
. T1/;1 ; F*8/>
The bank transfer funds from one branch to another or from one place to
another.
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6. C25 ; C?*/>
The bank collects the money of the che@ues through clearing section of its
customers. The bank also collects money of the bills of exchange.
2. P15852 P@+/>
=n standing instructions of the client$ the bank makes periodic payments in
respect of electricity bills$ rent$ etc.
8. P1;5 M+>
The bank also undertakes to purchase and sell the shares and debentures on
behalf of the clients and accordingly debits or credits the account. This facility is
called portfolio management.
. P15852 C25/>
The bank collects salary$ pension$ dividend and such other periodic
collections on behalf of the client.
;. O?1 A2@ F*25/>
They act as trustees$ executors$ advisers and administrators on behalf of its
clients. They act as representatives of clients to deal with other banks and
institutions.
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%. G1 U55@ F*25/>
The bank also performs general utility functions$ such as/
a. Issue of !rafts$ %etter of *redits$ etc.
b. %ocker :acility
c. Underwriting of 'hares
d. !ealing in :oreign 6xchange
e. ro#ect
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6. L2:1 F255@>
The bank provides a locker facility for the safe custody of valuable
documents$ gold ornaments and other valuables.
2. U81155 ; S?1/>
The bank underwrites shares and debentures through its merchant banking
division.
8. D5 5 F15 E2?>
The commercial banks are allowed by
The bank may also undertake to prepare pro#ect reports on behalf of its
clients.
;. S25 );1 P11++/>
It undertakes social welfare programmes$ such as adult literacy programmes$
public welfare campaigns$ etc.
. O?1 U55@ F*25/>
It acts as a referee to financial standing of customers. It collects
creditworthiness information about clients of its customers. It provides market
information to its customers$ etc. It provides travellerAs che@ue facility.
21
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INTRODUCTION OF HUMAN RESOURCE MANAGEMENT>
H*+ 1/*12 ++ -HRM or simply HR is a function in
organiEations designed to maximiEe employee performance in service of an
employers strategic ob#ectives. 0< is primarily concerned with the management of
people within organiEations$ focusing on policies and on systems. 0< departments
and units in organiEations typically undertake a number of activities$ including
employee recruitment$ Gtraining and developmentG$ performance appraisal$ and
rewarding -e.g.$ managing pay and benefit systems. 0< also concerns itself
with industrial relations$ that is$ the balancing of organiEational practices with
re@uirements arising from collective bargaining and from governmental laws. 0
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In startup companies$ trained professionals may perform 0< duties. In larger
companies$ an entire functional group is typically dedicated to the discipline$ with
staff specialiEing in various 0< tasks and functional leadership engaging in
strategic decision/making across the business. To train practitioners for the
profession$ institutions of higher education$ professional associations$ and
companies themselves have established programs of study dedicated explicitly to
the duties of the function. +cademic and practitioner organiEations likewise seek to
engage and further the field of 0organiEational psychology$ with research articles
appearing in a number of academic #ournals$ including those mentioned later in this
article.
In the current global work environment$ most companies focus on
lowering employee turnover and on retaining the talent and knowledge held by
their workforce. )ew hiring not only entails a high cost but also increases the risk
of a newcomer not being able to replace the person who worked in a position
before. 0< departments strive to offer benefits that will appeal to workers$ thus
reducing the risk of losing corporate knowledge.
M5>
H*+ R/*12 M+ is the process of recruitment$ selection of employee$ providing proper orientation and induction$ providing proper training
and the developing skills$ assessment of employee -performance of appraisal$
providing proper compensation and benefits$ motivating$ maintaining proper
relations with labour and with trade unions$ maintaining employeeAs safety$ welfare
and health by complying with labour laws of concern state or country.
)?@ + ?*+ 1/*12 ++
H*+> refer to the skilled workforce in the organiEation.
R/*12> refer to limited availability or scarce.
23
https://en.wikipedia.org/wiki/Startup_companyhttps://en.wikipedia.org/w/index.php?title=Functional_leadership&action=edit&redlink=1https://en.wikipedia.org/wiki/Businesshttps://en.wikipedia.org/wiki/Industrial/organizational_psychologyhttps://en.wikipedia.org/wiki/Employee_turnoverhttps://en.wikipedia.org/wiki/Startup_companyhttps://en.wikipedia.org/w/index.php?title=Functional_leadership&action=edit&redlink=1https://en.wikipedia.org/wiki/Businesshttps://en.wikipedia.org/wiki/Industrial/organizational_psychologyhttps://en.wikipedia.org/wiki/Employee_turnover
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M+> refer to maximiEe or proper utiliEation and make best use of
limited and a scarce resource.
+ltogether$ human resource management is the process of proper and maximiEe
utiliEation of available limited skilled workforce. The core purpose of the human
resource management is to make efficient use of existing human resource in the
organiEation. The Best example at present situation is$ construction industry has
been facing serious shortage of skilled workforce. It is expected to triple in the next
decade from the present 92 per cent$ will negatively impact the overall productivityof the sector$ warn industry experts.
6very organiEationAs desire is to have skilled and competent people to make their
organiEation more effective than their competitors. 0umans are very important
assets for the organiEation rather than land and buildings$ without employees
-humans no activity in the organiEation can be done. Machines are meant to
produce more goods with good @uality but they should get operated by the human
only.
G,ou must treat your employees with respect and dignity because in the most
automated factory in the world$ you need the power of human mind. That is what
brings in innovation. If you want high @uality minds to work for you$ then you
must protect the respect and dignity. G
///Mr. ).
The greatest tragedy in +merica is not the destruction of our natural resources$
though that tragedy is great. The truly great tragedy is the destruction of our human
resources by our failure to fully utiliEe our abilities$ which means that most men
and women go to their graves with their music still in them.C / =liver Fendell
0olmes.
24
http://www.infosys.com/http://www.infosys.com/http://www.infosys.com/
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The human mind is our fundamental resource.C / Kohn :. Dennedy.
HUMAN RESOURCE MANAGEMENT>
:or any organiEation to function effectively$ it must have resource of men
-0uman
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9. 'electing the right people for the #ob$
;. =rienting and training$
4. !etermining and managing wages and salaries$
5. roviding benefits and incentives$
7. +ppraising performance$
?.
Many great scholars had defined human resource management in different ways
and with different words$ but the core meaning of the human resource
management deals with how to manage people or employees in the
26
http://www.whatishumanresource.com/pre-employment-testshttp://www.whatishumanresource.com/orientation-of-employeehttp://www.whatishumanresource.com/Employee-Training-Introductionhttp://www.whatishumanresource.com/compensation-managementhttp://www.whatishumanresource.com/employee-benefits-introductionhttp://www.whatishumanresource.com/performance-appraisalhttp://www.whatishumanresource.com/pre-employment-testshttp://www.whatishumanresource.com/orientation-of-employeehttp://www.whatishumanresource.com/Employee-Training-Introductionhttp://www.whatishumanresource.com/compensation-managementhttp://www.whatishumanresource.com/employee-benefits-introductionhttp://www.whatishumanresource.com/performance-appraisal
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organiEation.
E85 F5== defines / 0 To maintain the departments contribution at a level
appropriate to the organiEationAs needs.
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more or less sophisticated than the organiEation demands. + departments level
of service must be appropriate for the organiEation it serves.
;. P1/ 6259> To assist employees in achieving their personal goals$ at
least insofar as these goals enhance the individuals contribution to the
organiEation. ersonal ob#ectives of employees must be met if workers are to be
maintained$ retained and motivated. =therwise$ employee performance and
satisfaction may decline$ and employees may leave the organiEation.
N*1 ; H*+ R/*12 M+
0uman
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O6259> 0uman
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SCOPE OF HUMAN RESOURCE MANAGEMENT
The scope of 0uman
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H*+ 1/*12/ =5> 0uman resource planning or 0uman +nother important area of 0uman Based on information collected from #ob
analysis the company prepares advertisements and publishes them in the
newspapers. This is recruitment. + number of applications are received after
the advertisement is published$ interviews are conducted and the right
31
http://www.whatishumanresource.com/human-resource-planninghttp://www.whatishumanresource.com/job-analysishttp://www.whatishumanresource.com/recruitmenthttp://www.whatishumanresource.com/human-resource-planninghttp://www.whatishumanresource.com/job-analysishttp://www.whatishumanresource.com/recruitment
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employee is selected thus recruitment and selection are yet another important
area of 0uman =nce the employees have been selected
an induction or orientation program is conducted. This is another important
area of 0uman 6very employee goes under training
program which helps him to put up a better performance on the #ob. Training
program is also conducted for existing staff that have a lot of experience.
This is called refresher training. Training and development is one area where
the company spends a huge amount.
P1;1+2 ==15/> =nce the employee has put in around 3 year of
service$ performance appraisal is conducted that is the 0uman There are various rules
regarding compensation and other benefits. It is the #ob of the 0uman
Motivation becomes important to
sustain the number of employees in the company. It is the #ob of the 0uman
+nother important area of 0uman
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T? H*+ R/*12 O;;521 is responsible for providing support in the various
human resource functions$ which include recruitment$ staffing$ training and
development$ performance monitoring and employee counseling.
HUMAN RESOURCE MANAGEMENT PRACTICES IN SELECTED
PUBLIC AND PRIVATE SECTOR BANKS
I. INTRODUCTION>
The study of human resource management practice has been an important and
critical area in management and organiEational performance from last several years
especially in the banking industry. Influence of 0uman
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organiEational performance. 0uman resource management -0
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IV. )H! HUMAN RESOURCE MANAGEMENT IS IMPORTANT FOR
BANKS>
0uman
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HUMAN RESOURCE MANAGEMENT IN PUBLIC SECTOR BANKS
In the recent times$ the contours of 0< function in public sector banks are slowly
but definitely changing. =ne could say that these banks are discovering the 0
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R/=/56555/>
To be the principal sponsor & guardianC of 0< policies in the Bank.
To propose and obtain agreement on changes to these policies which have been
agreed are being implemented throughout the Bank.
To contribute fully to the task of meeting the business challenges which the
bank has to face by supporting Branch > Unit Managers in continuously
developing the potential of employees and in creating conditions in which all
the employees are motivated to meet the ob#ectives of the Bank.
To continuously monitor the BankAs strategies to ensure that 0< policies are
appropriate and that employees numbers and skills are fully supportive of such
strategies.
To deliver a full range of personnel services in support of line management.
These services include manpower planning$ recruitment>transfer$ remuneration$
training and employee welfare. To support line management in their day/to/day management of the workforce
by providing advice and consultancy on personnel and performance
management issues.
CURRENT CHALLENGES FACED B! BANKS IN HUMAN
RESOURCE MANAGEMENT
E;;259 1: ;12>
+ time/consuming and hectic #ob is to hunt the right talent. 0igher the
professional value of the vacancy$ tougher is the search. Identifying the right
stuff followed by negotiation is the element which makes the #ob tough for the
37
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employee. Banks are keenly interested to fill up two types of breeds of
professionals.
=nes who are outstanding professionals with high #ob hopping attitude/// these
are those who come/in/work for some time and then leave for better prospects.
=thers are those who are keenly picked/up$ trained and area somehow retained
to be developed as future management within the bank.
Management trainees are a growing popular phenomenon where freshly
@ualified business graduates are engaged by banks and a certain percentage of
these well/e@uipped professionals stay back within the organiEation to grow
into the footsteps of senior managers.
Banking #obs being apparently lucrative for many$ attract a large number of
candidates against advertised vacancies in media creating a large database
management problem. This has been facilitated by specialiEed hiring agencies
who may take up the #ob of hiring in case of large number of vacancies.
R5? P=>
The most difficult agenda of 0
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The situation is not the same anymore. +n increment of
6verybody in the bank wants to work in the professional department$
preferential location$ city of his own choice and boss of his liking. +n
administrative deviation from any of these results in lowered #ob satisfaction.
+lthough hiring is normally based on regional re@uirement matching the area of
activity with that of employeeAs nativity yet other elements like appointment in
the department of choice and preference makes the #ob of 0< manager @uite
challenging.
Fhat the 0< manager cannot afford is the dissatisfied employee who not only
disrupts the smooth working himself$ but also spreads the negativity to others
by his de/motivated attitude.
M1 B/5>
Fhat has long been overlooked is the morale boosting of the employees by the
organiEation. 0uman beings even if satisfied of material wellbeing need to be
appraised and encouraged constantly.
39
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'mart banks have realiEed this need and have taken steps to keep their work
force motivated through proper encouragement like man of the mouth awards$
repeat get/togethers$ conferences$ sports events$ dinners$ company sponsored
travel$ reunions$ etc. This is the way employees create a feeling of
belongingness.
C?/ F28 B@ B:5 I8*/1@
0ere are the ten challenges that the 0< function in India faces
40
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3 The first and foremost challenge that 0< function in India faces is to convert
the abundant population pool into useful human resource.
1 Training and development of human resource to match ever changing industry
demands re/@uires 0< to develop new and innovative ideas that suit individual
as well as industry criteria.
9 6mployee motivation and satisfaction is another area of concern for the 0
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8 (lobaliEation poses 0< with challenges such as expatriation and repatriation.
0< needs to train employees that leave their nation for fulfilling a foreign
assignment. It also needs to pro/vide such employees with ade@uate moral support
and assure them of #ob security on their return.
32 Fith multinational organiEations on the rise$ 0< needs to focus on issues such
as cross/cultural training so that problems that can arise because of differences in
international professional values can be diminished.
M5 HR C?/>
The banking sector has been growing at a very fast pace in India not only in the
terms of its siEe but also in terms of the services being provided. Fith banks
reaching the remote areas in the country one can anticipate positive things like
financial aid to farmers and increased financial awareness. 0owever$ with the
increase in siEe and activities of banks$ the number of banks in private sectors has
also increased thereby posing challenges like cost/efficiency$ technological
advancement$ and credibility related issues. The task before the 0< is to develop
strategies that help banks in gaining competitive advantage and encourage
innovation in its products and services.
M5 H*+ R/*12>
*onsidering the above 0< challenges which our Indian banking industry is facing$
we can manage the human resources by proper lanning like
0iring the right person for the right #ob
conducting exit interviews
H515 ? R5? P1/ ;1 ? R5? J6>
In assessing whether the Gright personG has been selected for the Gright #obG$ the
most prominent theoretical concept that emerges is the concept of GfitG. !ifferent
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writers emphasiEe different types of fit. 'ekiguchi -122; 378 in a review of
literature on person/environment fit discusses two types of fit that emerge as the
most prominent types of fit person #ob fit and person/organiEation fit. In pursuing
person/#ob fit$ companies seek to match the #ob holders knowledge$ skills and
abilities to the re@uirements of the #ob. *ompanies can ascertain person/
organiEation fit by focusing on how well the individual fits with the culture or
values of the company and the individuals capacity to work well with other
company employees.
Banks have to plan for the following
+ steady$ carefully calibrated recruitment programme.
+s rapid technological changes transform business L continuous skill up/
gradation.
+ new generation of the workforce working alongside an older generation as a
team. Banking$ it is a team work and these new situations re@uire cultural
ad#ustments and therefore$ change management.
R55 8 D9=5 E+=@/>
Fe may be able to get the most suited people for our work but then the challenge is
to retain these people and to develop them. There are several dimensions to this
issue such as training> re/skilling of employees$ performance measurement$ promotion policy$ transfer policy$ talent management$ communication$ etc. In this
study some of them for discussion
T155 8 D9=+>
Fith drastic growth of banks it calls for efficient and well trained staff members to
handle>deal with the consumer needs. Banks are shaping up as financial hub for
their clients to grow in siEe and well recogniEed in the world market. To pull
consumers banks are offering traditional with advance services like 'M' banking$
+TM$ internet banking$ priority banking$ demat. 'o we can say that it caters to the
need of the bottom to the highest class of society providing something to everyone.
Universal banks have become modern dayAs supermarket extending almost every
facility of banking under one roof.
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B:/ 5: B: ; B18 are conducting (rooming and eti@uettes programmes
for front line employees and also for employees selected for overseas posting in
order to improve their service levels and @ualitative interaction with customers andvarious stakeholders better. '66! -'elf efficiency and effectiveness development
programme being run for frontline staff of the Bank in order to improve their
service skills and servicing efficiency.
I P*6 N5 B:, in the light of the large scale human resources gaps
that Bank is likely to face in the next few years need for 'uccession olicy has
been felt. The olicy envisages mapping of the existing pool against the future
re@uirement from the pro#ected business figure to ensure that ade@uate number of
officials are available in the pool and also to foresee the surplus > deficit in the pool
for ascertaining the re@uirement of succession in a particular vertical. Bank has a
three tier training set up comprising of *entral 'taff *ollege -*'* at !elhi at
apex level catering to training needs of Top > 'enior > Middle Management (rade
officers$ three
Banking service is one sector where a great degree of attention is being paid to
performance appraisal system. 'everal of the nationaliEed banks have changed
their performance appraisal system or are in the process of changing them. In most
of the banks that follows the traditional system$ their officers are being assessed on
the following characteristics
(eneral Intelligence
Kob Dnowledge
Initiative and resourcefulness
'upervision
Business *apacity
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+bility to assess sound
Business propositions
!ependability
0!:* Bank provides for gratuity to all employees. The benefit is in the form of
lump sum payments to vested employees on resignation$ retirement$ death while in
employment or on termination of employment of an amount e@uivalent to 34 days
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basic salary payable for each completed year of service. "esting occurs upon
completion of five years of service.
S*=1*5>
6mployees of the Bank$ above a prescribed grade$ are entitled to receive retirement
benefits under the BankAs 'uperannuation :und. The Bank contributes a sum
e@uivalent to 39H of the employeeAs eligible annual basic salary -34H for the
Managing !irector$ 6xecutive !irectors and for certain eligible erstwhile
*enturion Bank of un#ab -Qe*Bo staff to insurance companies$ which‟
administer the fund. The Bank has no liability for future superannuation fund
benefits other than its contribution$ and recogniEes such contributions as an
expense in the year incurred$ as such contribution is in the nature of defined
contribution.
S?1 T1+ E+=@ B;5/>
In 'tate Bank of India the undiscounted amount of short/term employee benefits$
such as medical benefits$ casual leave etc. which are expected to be paid in
exchange for the services rendered by employees are recogniEed during the period
when the employee renders the service.
The Bank operates a rovident :und scheme. +ll eligible employees are entitled to
receive benefits under the BankAs rovident :und scheme. The Bank contributes
monthly at determined rate -currently 32H of employeeAs basic pay plus eligible
allowance. These contributions are remitted to a trust established for this purpose
and are charged to rofit and %oss +ccount. The Bank provides for pension to all
eligible employees. The benefit is in the form of monthly payments as per rules
and regular payments to vested employees on retirement$ on death while inemployment$ or on termination of employment. "esting occurs at different stages
as per rules.
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SUGGESTIONS
The banking sector has grown from a few institutions primarily involved in deposit
acceptance and trade finance into a complex multi/player markets where large
number of commercial banks$ financial institutions and specialiEed banks are
operating with various product activities. %ike many other organiEed sectors$
banking re@uires multi/layer manpower for its various re@uirements of
professionals and support staff. The range may re@uire reasonably educated
security guards on the one hand and a highly educated and trained professional as
head of corporate finance. Fith liberaliEation of activities within the bankingsector$ for example$ more emphasis on consumer and house finance and personal
loans$ etc. Banking has turned itself into a more market based business where
banks have expanded their reach more to customerAs door step in a big way making
banking more practical. This has further highlighted the need for proper
development of man power to run banks efficiently. 'mart banks have realiEed this
need and have taken steps to keep their workforce motivated through proper
encouragement like man of the month award$ repeat get/together$ conferences$
sports events$ dinners$ company sponsored travel$ reunions$ etc.
In spite of all these facilitations there still exist several lacunas in the 0
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; 6nthusiastic and pleasant behaviour of staff to the customer is necessary.
4 There must be a clearly defined system of succession planning and career
growth planning in banks.
5 +ttitudinal changes are re@uired at the top level.
7 0uman resource Balance 'heet should accompany financial statements.
? In order to become 0
etc.
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HUMAN RESOURCES MANAGEMENT IN PUBLIC AND PRIVATE
SECTOR BANKS
I18*25>
+t present$ Indian banking sector is facing wide variety of opportunities and the
bright future scenario. The changing economic scenario$ represented by rapid
process of globaliEation has brought out all the nations of the world together$
without geographical boundaries for trade and commerce but with great amount of
employment opportunities for individuals. !ue to rapid advancement in
information technology and telecommunication in the recent years$ the banking
industry has been undergoing rapid changes$ reflecting a number of ongoing
reform processes. 0owever$ there are certain problems in the Indian Banking
system$ which re@uire great attention.
S+ ; ? +1 =16+/ 1>
*ontinuous accumulation of morass$ which hampers the profitability of the
banks.
+ccumulation of )on/erforming +ssets -)+s$ which threatens capital
ade@uacy and continuous stability of banks.
'ome of the public sector banks are facing heavy over staffing$ which reduces productivity of the banks.
+bove all these re@uire a drastic change in the recruitment$ training$ placement
and promotion policies of the banks. Thus$ the main concern is how to remove
legacies of the past and meet the demands and challenges of the new era.
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HUMAN RESOURCES MANAGEMENT PRACTICES
0uman resources management practices play a very vital role in achieving the
organiEationAs goals and maintain the competitive advantage.
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R21*5+ 8 /25>
ublic 'ector Banks follows systematic procedure in recruitment and selection
activities. :or executive positions are
filled up through promotions and transfers i.e.$ for higher positions the internal
market is usually relied upon. In some of the 'Bs in India$ the practice of
recruiting specialists such as technical employees$ management trainees etc.
directly from the reputed institutions through campus interviews have been started.
'ome banks are also utiliEing the services of consultants and employment on
contract basis.
T155 8 D9=+>
0
training programmes are essential considerations to enrich their careers and excel
their development. Banking activities and knowledge is ever changing. In order to
cope up with these changes and to develop employeesA careers all banks
established their own training institute. Those institutes organiEed different types of
training and development programmes based on the employees need.
Those needs are identified by need assessment activities."olume/9$ Issue/31$ !ec/
Training is more in I'Bs because the training system in the banking industry has
a strong structural base$ and has capabilities to handle training in large numbers.
The system has also developed several innovative activities in the training area
such as on/location training$ manager to messenger programmes. :urther the
I'Bs have a good support to training efforts from apex level training institutions
such as )ational Institute of Bank Management -)IBM$ Bankers Training *ollege
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-BT*$ and *ollege of +gricultural Banking -*+B. The I'Bs have more than
three hundred individual bank level training colleges and training centers.
Training is given emphasis by all banks$ although not much systematic training
need analysis is carried out. The training colleges conduct training programmes for
relatively #unior level bank staff. :or most of the senior level training$ banks
depend on external agencies$ especially foreign training organiEations. Training
establishments of some of the bigger banks complain of under utiliEation.
P1;1+2 A==15/>
erformance appraisal is the systematic$ periodic and an impartial rating of the
employeeAs excellence in matters pertaining to his present #ob and of his
potentialities for a better #ob.-6dwin B. :lipp.
ublic 'ector Banks in India give more attention towards performance appraisal in
the organiEations. erformance appraisal based on @uality of output$ potential of
the employee within the organiEation etc. need to be incorporated across all grade$
cadres and levels. This will not only ensure maximiEing productivity$ but also go a
long way in motivating star performers aligning with the long/term mission and
vision of banks.
C+=/5>
In general$ the compensation in ublic 'ector banks is mostly based on seniority or work experience. The Indian public sector banks should reward their professionally
@ualified employees by scale up/gradation and special increments besides
motivating and encouraging them to ac@uire new knowledge. *ommon pay
structures based on number of years of service with the bank put in etc need to be
phased out in a planned manner.
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SUGGESTIONS
=n the basis of review of this study the following suggestions are made for better
0scholarship for
higher studies and learn new technology in order to attain competence at global
level.
Banks should organiEe seminars$ workshops$ conferences$ different short
courses$ and training programmes on financial matters$ current issues$ software
up gradation on regular basis that would definitely help to develop
knowledgeable manpower$ create awareness and change mental attitudes among
the professionals.
+ll banks should allocate sufficient budget and sends competent employees to
international conferences and seminars to prepare them for the competitive
knowledge global market.
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0uman
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'tate Bank of India is the nations largest and oldest bank. Tracing its roots
back some 122 years to the British 6ast India *ompany -and initially established as
the Bank of *alcutta in 3?25$ the bank operates more than 34$222 branches within
India$ where it also owns ma#ority stakes in six associate banks. 'tate Bank
of India -'BI has more than ?2 offices in nearly 94 other countries$ including
multiple locations in the U'$ *anada$ and )igeria. The bank has other units
devoted to capital markets$ fund management$ factoring and commercial services$
credit cards$ and brokerage services. The
clerks$ and 19.5H were subordinate staff. The composition of staff was the same
for the nationaliEed banks with 17.8H of staff being officers$ 42.7H being clerks$
and 13.;H being subordinate staff.
erformance and otential +ppraisal The promotion to a higher management level
is best thought of through the lens of a tournament model -%aEar and grade not because he is good$ but because he is
better than everybody else at the current level>grade.
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lacement romotion and *areer rogression$ =ut of Turn romotion> Increment
to 'ports erson industrial 'econdment.
Interface with other institutions$ government$ central banks$ etc. on 0
To maintain up to date database on human resources in the Bank and undertake
analytical studies and ongoing research on different manpower related issue. To
make ongoing review of the appraisal system in order to make it ineffective tool for
0
system. To design career and succession plans. To review and revitaliEe
the training functions$ 'ummer lacement$ :ormulate and administer the 'taff
'uggestion 'cheme$ ublication of 0ouse Kournal$ Fithout
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C/ D5/>
*ase *ode 0
'tate Bank of India$ "
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was in response to :ederation of Indian *hambers of *ommerce and Industrys
-:I**I3 report on the banking industry. The report stated that the Indian banking
industry was overstaffed by 94H. In order to trim the workforce and reduce staff
cost$ the (overnment announced that it would be reducing its manpower.
:ollowing this$ the Indian Banks +ssociation -IB+1 formulated a "
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S 'tate Bank of 0yderabad
S 'tate Bank of Indore
S 'tate Bank of Mysore
S 'tate Bank of atiala
S 'tate Bank of 'aurashtra
S 'tate Bank of Travancore
S 'tate Bank of Bikaner & Kaipur.
The 'BI was the largest bank in India in terms of network of branches$ revenues
and workforce. It offered a wide range of services for both personal and corporate
banking. The personal banking services included credit cards$ housing loans$
consumer loans$ and insurance. :or corporate banking$ 'BI offered infrastructure
finance$ cash management and loan syndication...
T? P1//>
The 'BI was shocked to see the unprecedented outcry against the "
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after they attained the retirement age by the end of 1223. +nalysts felt that this
would lead to a tremendous increase in the workload on the existing workforce
HUMAN RESOURCES MANAGEMENT IN ICICI BANK>
The achievement of an organiEation is the result of the combined efforts of each
and every employee. +ll individuals want to do a good #ob$ and if they are provided with
the proper environment$ they will do so. eople rarely succeed at anything unless
they en#oy doing it. The Bank has always viewed 0uman
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building and gives an impetus to the effort put in achieving business goals more
efficiently. + seminar was conducted in Kanuary 3888 which enabled the Bank to
establish clearly the link between businesses strategy and human resource strategy.
+ccordingly$ different kinds of mindsets were worked out to ascertain there
re@uirement in the staff in the three main lines of business corporate banking$ retail
banking and treasury operations. In the foreign banks and private sector banks$
however$ there has been growing recruitment amongst the officers cadre with a
decline in the recruitment of clerical and subordinate staff. rivate Banks started
the decade with 1;.4H of staff as officers$ 4;.?H as clerical$ and 12.7H as
subordinate staff. By the end of the decade 95.1H of the staff were officers$
;4.8Hwere clerical$ and 37.8H were subordinate staff. + new organiEational
structure effective +pril 3$ 3888 was implemented successfully with the change
agent role played by the 0< !epartment. Three different #ob profiles viE.$
customer service and cross selling of products$ back office operations and
marketing and sales emerged after the new organiEational structure was put in place.
The recruitment process has been fine/tuned through specially devised processes
that identify an individualAs degree of customer orientation the principal trait
needed in the banking business. )ew recruits have been provided training in skill
up gradation and team building and development of an appropriate mindset
for better conduct of banking business. Training programs of shorter duration
were designed for the existing staff$ with specific focus on product information$
customer service$ cross selling of products and operational excellence. The
promotion process has been designed on the principles of openness and
transparency. *areer progression is based on performance of employees being
above an acceptable level with emphasiEe on those with high business drive
and potential. These exercises are carried out by the *areer !evelopment *entre$
which offers a comprehensive competency building program. This process has
been followed for the last 4 years and has been perceived as being fair and credible by the
employee.+ high level of performance is rewarded by a system of performance bonus. The
ratio of variable bonus to fixed salary is fairly high to attract and retain the best talent in
the Bank. In the private and foreign banks there are larger pay differentials$ fewer
rewards for tenure$ and individual incentives are high. :urther$ to ensure that the
Bank does not lose high performers and to increase the motivation levels and instil a
feeling of ownership$ the Bank has introduced an 6mployee 'tock =ption 'cheme -the
'cheme. The first grant of stock options under the 'cheme was made during the
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year. The total number of staff of the Bank increased from ?83 as on March 93$
3888 to3$ 9;; as on March 93$ 1222. =n an average$ an employee received 97
hours of
training during the year. The Bank conducted 9; internal and 57 external
training programs involving 54? and 38? employees respectively. :urther$ 11
employees were a part of overseas training programs.
CASE STUD! OF HUMAN RESOURCE MANAGEMENT IN ICICI
BANK
C/ D5/>
*ase *ode 0
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Teaching )ote )ot +vailable*ountries IndiaIndustry Banking and :inance
T?+/>
0uman %eadership !evelopment> Mentoring
I//*/>
*ritically analyEe talent management strategies at I*I*I Bank.
Understand the mentoring process adopted by Damath to groom young
employees at the bank.Understand the need to set up a formal leadership development process at the
bank.Understand the issues and challenges faced by the mentors while mentoring
employees.
K@ )18/>
I*I*I Bank$ Talent management$ %eadership talent$ Mentoring$ )urturing talent$
%eadership development$ erformance appraisal$ 0uman capital$ Talent
assessment$ %eadership pipeline$ 6ntrepreneur model$ Talent screening$ 952/degree
performance management process$ I*I*I !)+$ Talent retention
"*ea)e&h#! #& he ab#(#y o han)(e he +ob a he ne, (e-e( #h co'fo. Be#ng
ab(e o !efo' you fuue o(e #n he !e&en. I #& e&!ec#a((y #'!oan #n an
#n)u&y (#ke ou& hee !eo!(e ae ou 'o& #'!oan a&&e/ an) e )e!en) on
63
http://www.icmrindia.org/casestudies/Case_Studies_Concept_Wise.asp?cat=Talent%20Managementhttp://www.icmrindia.org/casestudies/Case_Studies_Concept_Wise.asp?cat=Leadership%20Developmenthttp://www.icmrindia.org/casestudies/Case_Studies_Concept_Wise.asp?cat=Mentoringhttp://www.icmrindia.org/casestudies/Case_Studies_Concept_Wise.asp?cat=Talent%20Managementhttp://www.icmrindia.org/casestudies/Case_Studies_Concept_Wise.asp?cat=Leadership%20Developmenthttp://www.icmrindia.org/casestudies/Case_Studies_Concept_Wise.asp?cat=Mentoring
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!eo!(e fo goh. 0hen you bune&& focu&e& on goh/ goo'#ng a(en #&
cuc#a(".
- C?8 K2??1, C?51+ 8 MD, ICICI B: L8., 5 %00.
"The bank& (ea)e&h#! #n he #n)u&y #& e,e'!(ay. Bu noh#ng o co'!ae #&
ab#(#y o &!o/ goo'/ an) )e!(oy (ea)e& #n2hou&e".
- I815 G*=, 851, F16/ I85 & G1 S+5? A81,
1=11 B+61, 5 %00.
I18*25>
I*I*I Bank %td. -I*I*I Bank$ the India/based financial banking institution$ began
a process of identifying and nurturing talent in the 38?2s. This practice paid rich
dividends$ with I*I*I Bank becoming known as a powerhouse of leadership talent.
6ver since ) "aghul -"aghul became the chairman and M! of Industrial *redit
and Investment *orporation of India %imited -I*I*I in 38?4$ the bank had
fostered a culture of nurturing young talent. "aghul brought in a fresh and different
approach to working in the organiEation. 0e involved younger people at the bank
in big pro#ects unlike *6=s of other organiEations who preferred to pick senior
level managers.
This was a bid to develop a talent pool at the bank. "aghulAs way of empowering
young people$ nurturing talent$ and developing a leadership pipeline became part
of the bankAs culture and was carried forward by former *6= and M!$ D"Damath -Damath and present *6= and M!$ *handa Dochhar -Dochhar.
Damath who #oined I*I*I Bank as *6= and M! in 3885$ created an incredible
talent for spotting employees with leadership potential. 0e was instrumental in
grooming several people who later took up key positions at the bank. Damath
nurtured people with potential leadership at the bank by moving them from one
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assignment to another and making them take up different leadership roles and
serving the bank. *ommenting on DamathAs ability to nurture talent$ Dalpana
Morparia -Morparia$ former #oint managing director$ I*I*I Bank$ said$ GMr
Damath has an amaEing ability to pick a leader and identify potential way beyond
what the people believed in. %ess than 12/14H of us had any clue where we were
headed in our careers.G
DamathAs vision was to enable I*I*I Bank to surge ahead and capture a vital share
of the market. 0e planned to create leaders within the organiEation who could
foresee opportunities ahead of others.
The mentoring process started with picking young employees who had #oined the
bank as management trainees and giving them hard/to/achieve targets to test their
potential. 6mployees passing the test were promoted to lead senior/level positions.
The success of the mentoring process led to the bank institutionaliEing a formal
leadership development process that identified talented employees through a
performance appraisal system after which they were assessed for future leadership
roles.
6xperts felt that the banks successful transformation from a lending financial
institution to a retail powerhouse could be attributed to its mentoring and
leadership development process.
B2:1*8 N>
I*I*I Bank was founded in 388; as a subsidiary of an Indian financial institution$
the Industrial *redit and Investment *orporation of India %imited -I*I*I. I*I*I
through its subsidiary$ I*I*I Bank$ transformed itself from a developmental
financial institution offering services such as pro#ect finance into a diversified
financial services group offering an array of products and services directly as well
as through subsidiaries and affiliates such as I*I*I Bank. In 3888$ I*I*I became
the first bank or financial institution from +sia barring Kapan to be listed on the
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)ew ,ork 'tock 6xchange. In 1222$ I*I*I and I*I*I Bank merged to benefit the
shareholders of I*I*I Bank through a large capital base and scale of operations.
In =ctober 1223$ the Board of !irectors at I*I*I and I*I*I Bank approved the
merger of I*I*I with I*I*I Bank and two of I*I*Is wholly/owned retail finance
subsidiaries L I*I*I ersonal :inancial 'ervices %imited and I*I*I *apital
'ervices %imited.
I*I*I Bank made phenomenal progress in a short period under the leadership of
Damath$ who #oined I*I*I %td. as its managing director and *6= in its embryonic
stage in 3885. It was at this time that the preliminary results of the liberaliEation
efforts that India had initiated in 3883 began to show.
In the changing environment$ I*I*I transformed itself from a traditional
development finance institution to a customer/centric private/sector bank. It was
not #ust merely a growth story of a corporate but the success of a clearly envisaged
leadership strategy adopted by Damath for the growth and development of the
bank leveraging human capital and technology. In Kanuary 1221$ the merger was
approved by shareholders of I*I*I and I*I*I Bank. In March 1221$ the merger
was approved by the (u#arat 0igh *ourt and in +pril 1221 by the 0igh *ourt of
Kudicature at Mumbai and the
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In 1227$ I*I*I Bank created history by raising U'V 4 billion in the largest/ever
public offering in India and emerged as a valuable financial organiEation. In 1228$
Damath stepped down from the post of *6= and M! of I*I*I Bank in favor of
Dochhar.
:or the :, ended March 93$ 1231$ I*I*I Bank had assets worth U'V ?9.5 billion$
which made it the second largest bank in India.
N*1*15 T 5 5/ I55 !1/>
I*I*I had a history of identifying and nurturing young talent right from the time
'' )adkarni -)adkarni was chairman of I*I*I. Damath himself was picked by
)adkarni soon after he #oined I*I*I in 3873 after completing his post/graduation
from the Indian Institute of Management$ +hmedabad. *ommenting on )adkarnis
way of nurturing talent$ Damath$ said$ G0e taught me initial skills he had this
ability to test you by giving increasingly complex assignments. If you had any
intelligence you @uickly made out that he was actually testing you to see if you are
fit enough to go on to the next rung.G...
M15 - T? K+? )@>
=ne of the first things Damath felt he had to do on returning to I*I*I after an
eight/year stint with the +sian !evelopment Bank in 3884 was to create a talent
pool in a bid to transform the government promoted pro#ect finance institution into
a universal bank. !uring this time$ the bank also faced the problem of young
employees leaving the bank for better options. This prompted Damath to devise the
parking lot theory...
A F1+ L81/?5= D9=+ P12//>
'oon after I*I*IAs merger with I*I*I Bank in 1222$ Morparia and I*I*I 0< head
D
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genius. This$ they felt$ was re@uired as the bank was scaling up from a 3$222
member organiEation to a strong team of 7222 employees. Moreover$ they felt that
the previous process of grooming leaders which had been heavily dependent on the
board memberAs contribution had started looking obsolete...
T S215 8 A////+>
+s a first step of the formal leadership development process$ the bank
institutionaliEed a talent screening process. Fith the number of employees rising
and the bank expanding to various national and international markets$ a talent
screening had to be put in place$ the bank felt. 'ince the selection of potential
leaders was done by the bank$ the process started with creating a list of talent
which was empanelled as leadership talent. :or instance$ out of 34222 odd/
mangers$ the bank chose 1222 people as leadership talent...
G1+5 S*22//1/>
The bank also used the leadership development process to groom successors at the
bank. Moreover$ succession planning was essential as all the topnotch people such
as %alita (upte and Morparia were retiring in =ctober 1225 and in 1227$
respectively...
O?1 I5559/>
Fhile the formal leadership development system identified and nurtured young
professionals at the bank$ I*I*I Bank also took some initiatives to nurture leaders
at the senior management levels. :or instance$ in 1229$ I*I*I Bank came up with a
new leadership program called OMentoring the MentorsA for professionals at the
senior management level. The program aimed to hone the mentoring abilities of
professionals. The bank also identified some corporate professionals from
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companies across other sectors for this initiative. These professionals conducted
sessions on effective mentoring for the senior management level at the bank...
R/*/>
+ccording to experts$ I*I*I BankAs focus on nurturing young leaders helped the
bank move ahead of others in the Indian banking sector. Moreover$ they felt that
the leadership development process had also helped the bank survive through the
crisis. :or instance$ in mid/122?$ the global economic environment became very
challenging due to the global financial crisis. I*I*I Bank also faced the heat due to
its heavy global exposure. Moreover$ a rumor that began in (u#arat that I*I*I
Bank would go bankrupt spread like wildfire...
L:5 A?8>
6xperts felt that though I*I*I Bank had a depth of talent$ it also faced the risk of
becoming a poacherAs paradise. +ccording to Dochhar$ GFhen an organiEation
grows at 94/;2 per cent per annum for 32 years and adds 32 new businesses during
that period$ young professionals get the kind of exposure they would not have got
anywhere else. Fe have groomed people to build and run businesses like
insurance$ securities$ and retail. 'o if other players are looking to grow who would
they pickW The best person would be someone who has already run the business.G...
E?565/>
6xhibit I I*I*Is rofit and %oss 'tatement
6xhibit II -+
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6xhibit " I*I*I !)+ +nchors
6xhibit "I Dochhars *areer ath to the *6=
C+=159 A@/5/>
I*I*I is private global bank its 0< practices are totally different 'BI no.3 public
sector bank of India. ackage given by I*I*I is more enough than
salaries provided by 'BI. Incentives and benefit policies of I*I*I and 'BI is
totally different. 'election process of I*I*I is very lengthy and cost consuming.
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'election process of 'BI is two levels
= level
+dministrative =fficers. The training and development policies of I*I*I are
much better than 'BI. There is not much emphasis on training anddevelopment at 'BI.
RECOMMENDATIONS>
R2++85/ ;1 ICICI>
'implify its recruitment and selection process.
*ompetition in banking sector increases due to private banks. rivate
sector banks giving higher salaries to attract the talent. Thus it is necessary
for 'BI to increase its salaries. (ive more emphasis on training and development of employees.
Increase motivation by giving extra benefits.
SUGGESTIONS>
Based on findings emerged from the analysis of the data collected through
@uestionnaires and interacting with the management officials of the public sector banks$ the following suggestions are offered to improve the 0
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1. Banks should establish a high power 0
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facilities at branches need reexamination and whenever feasible$ these and other
such welfare measures may be suitably modified for the benefit of staff.
8. More important personnal policies like transfer and promotion are to be viewed
periodically transfer placement policy should be implemented in fairness with
minimum adhocism and undue favouritism from either side. This will instill
confidence amongst all.
32. The system of reward and punishment should be made more clear and
transparent while there should be an institutionaliEed system for calling periodicalinformation$ good work done by staff for prompt appreciations of their deeds and
punishment to the erring employees should be @uick and proper to serve as a
deterrent to others.
33. + thorough and scientific screening of the participants should be done before
selecting employees for training so that the right type of personnel are selected for
the right type of training.
31. The development oriented +' should be integrated with the entire 0
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that of computeriEed branches serve the purpose of an audit and does not become a
routine.
CONCLUSION>
The face of banking is changing rapidly.
*ompetition is going to be tough and with human resources management of
public and sector private banks.
Banks in India will have to benchmark themselves against the best in the world.
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These are some of the issues that need to be addressed if banks are to succeed$
not #ust survive$ in the changing milieu.
Taking the banking industry to the heights of international excellence will
re@uire a combination of new technologies$ better processes of credit and risk
appraisal$ treasury management$ product diversification$ internal control and
external regulations and not the least$ human resources.
+ high level of performance is rewarded by a system of performance bonus.
The ratio of variable bonus to fixed salary is finally high to attract and retain the
best talent in the bank.
The scope of public sector and private bank have great human resource
management is different but the competition which have various system.
'pecialiEing in various human resource management tasks and functional
leadership engaging in strategic decision/making across the business.
To train practitioners for the profession$ institutions of higher education$
professional associations$ and companies themselves have established programs
of study dedicated explicitly to the duties of the function.
BIBLIOGRAPH!
REFERENCE BOOKS>
0uman
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rinciples of Banking L Macmillum.
Koy$ =.M. Introduction to :inancial Management -Madras Institute for
:inancial Management and
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