State-owned Bank of India also received board approval to hire 1,300 trainees in phases. Photo: Wikimedia Commons
Several public sector banks (PSBs) are hiring apprentices for the first time through their apprenticeship programs to strengthen customer relationships in semi-urban and rural areas.
Recently, Union Bank of India, Canara Bank and Indian Overseas Bank announced plans to hire 500, 3,000 and 550 graduates, respectively, under a year-long apprenticeship programme, offering a stipend of up to Rs 15,000. According to officials of these banks, this is the first time they have hired trainees.
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State-owned Bank of India has also received board approval to hire 1,300 trainees in phases, who are likely to be deployed in customer relations. Customer relationships have become increasingly important, especially for mobilizing liabilities, a Bank of India executive said.
“The apprenticeship program focuses on deploying apprentices in semi-urban and rural branches to improve customer relationships. They will work to understand customer needs and address issues, with an aim to improve customer satisfaction,” said K Satyanarayana Raju, MD & CEO, Canara Bank.
While banks are not required to absorb trainees at the end of the programme, the experience is expected to put them in a favorable position for future opportunities in the financial sector. A state bank executive noted that banks could use trainees in areas where there is a shortage of employees, particularly to address complaints from customers, especially the elderly, thus easing some of the burden on regular employees.
Most of the trainees will be recruited in regions where the local language is spoken, allowing them to provide better counter service, the executive added.
Another senior executive of a public sector bank said the hiring of apprentices is in line with the government’s Apprentices Act. After some time of training, they can also perform administrative functions of banks.
Under the Apprenticeships Act 1961, businesses with a workforce of 30 or more people must employ apprentices ranging from 2.5 per cent to 15 per cent of their total workforce, including contractual staff.
Dhriti Prasanna Mahanta, Vice President and Chief Business Officer, TeamLease Degree Apprenticeship, explained: “Banks assign apprentices roles on both the asset and liability side, with a greater focus on the asset side due to their “Lower risks, fewer compliance requirements, and a more hands-on learning curve.”
“The trainees are also involved in various functions such as recovery, collection, operations, document verification and loan processing, all in compliance with the regulations of the Reserve Bank of India. These areas provide trainees with practical experience, allowing them to develop essential skills while contributing to key operational aspects of the bank, including credit assessment, customer service and risk management,” Mahanta added.
State banks are hiring apprentices at a time when their workforce is gradually shrinking each year. Since fiscal year 2014, state-owned banks have seen a cumulative reduction of 96,134 employees, while the workforce of private sector banks has grown 2.8 times.
According to the latest data from the Reserve Bank of India, at the end of FY24, state-run banks had a workforce of 764,679, while private sector banks employed 846,530 people. In fiscal 2014, state-owned banks had 842,813 employees, compared to 303,856 at private banks. During this period, the number of state-owned banks decreased to 12 due to mergers, while the total number of private sector banks stands at 21.
First published: September 29, 2024 | 13:08 IS
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