Why Banking as a career?
The graph below shows the growth in the total number of employees between 1972 and 1990 in all scheduled commercial banks. All recruitments almost stopped between 1990 and 2011. Now those who joined between 1970 and 1985 are retiring in bunches. It is expected that 75000 to 1, 00,000 bank employees will be retiring every year from 2012 onwards. The gap created by this mass exodus can be filled only by recruitment of more employees both as clerks and officers.
“In the next five years, banks will have to recruit almost 7.5 lakhs people”
-Mr. M. Balachandran, Director, Institute of banking and Personnel Selection (IBPS)
Those who join the bank now will grow fast in their career as many of the senior management positions are vacated because of retirement. This is a great opportunity for young men and women who want to make banking as their career.
The banking sector may create up to 20 lakh new jobs in the next 5-10 years, helped by issuance of new licences and efforts being made by the RBI and the Government to expand financial services into rural areas, according to experts.
Hiring trend may get a further boost from the public sector banks, as many of them would need to hire fresh talent in the wake of nearly half of their workforce scheduled to retire in the next few years.
According to HR services major Randstad India, banking sector will generate 7-10 lakh jobs in the coming decade and the sector would be the among top job creators in 2014.
Estimates are, however, much higher for Manipal Academy of Banking, which expects expansion in banking sector, including by the existing and new banks, to help create 18-20 lakh new employees over the next five years.