Staff retirement: Banks will face severe operational risks
Retirement of the existing
pool of employees this decade has intensified the war for talent in
the banking industry, according to S. R. Bansal, Chairman and
Managing Director of Corporation Bank.
Speaking at the inauguration
of the Nitte Institute of Banking and Finance at Nitte University in
Mangalore, he said more than half of the staff pool in the banking
industry - at about 58 per cent - would retire during 2010-2020.
Stating that the retirement
is quite intense at the level of the top executives, he said 82 per
cent of top executives in the banking industry will retire during the
period.
It means a leadership gap at
the top management level, and banks are likely to face severe
operational risks.
He said the retirement of the
experienced and committed employees would make way for the
inexperienced, young and enthusiastic new ones.
Added to this, the entry of
new banks will increase the competition further. He suggested that
institutes such as Nitte Institute of Banking and Finance focus on
identifying the needs of bankers and developing contemporary contents
for the banking industry.
The Nitte Institute of
Banking and Finance has trained 444 probationary officers of
Corporation Bank. It has also conducted one train-the-trainer
programme for the bank, he said.
N. Vinay Hegde, Chancellor of
Nitte University, and M.S. Moodithaya, Director of the Nitte
Institute of Banking and Finance, spoke on the occasion.
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