Public sector banks roll out the red carpet for MBA

Public sector banks roll out the red carpet for MBA

Public sector banks roll out the red carpet for MBA

When he took over as the chairman of Union Bank, M V Nair was one of the youngest entrants to the corner office of a public sector bank. So it’s natural that Nair didn’t think twice before rewriting the rules of the recruitment game for his bank.

In his hunt for talent from the Indian Institutes of Management (IIMs), Nair offered a 12-year fast-forward for young graduates — direct appointment as a Scale III officer (at Rs 5 lakh plus other substantial benefits). That’s a game-changer for public sector banks which tend to set great store by seniority to move up the corporate ladder.

The other option was a three-year contract with annual market-linked salaries of Rs 9 lakh. Most of the 60-odd MBAs opted for the first option at a time when job stability was the key. In fact, Union Bank was the largest public sector bank recruiter from IIMs in the last season. That was the signal public sector banks gave MBAs to make them feel that they are a class apart from other generalists who join as probationary officers.

There is of course a differentiation within B-Schools. Typically, those from the IIMs, Xavier Labour Relations Institute and Indian School of Business joined at Scale III, but graduates from other B-schools were recruited in scale II.

But compensation was just the first entry point for these MBAs. Mentoring — a hitherto alien concept in public sector banks — was the second.

Most public sector banks have asked senior bank executives to take on the role of mentoring to guide the MBAs during the first year.

A public sector bank executive says existing managers also had to be mentally conditioned to deal with the B-School graduates. “Their expectations might be different, so they needed to be handled differently,” he says.

The biggest challenge was, of course, the cultural gap

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A mentor recalls how a recently-hired B-school graduate was reluctant to send Diwali greetings to key customers on behalf of the chairman. The mentor had to use his best persuasive skills to convince the employee that it was a vital part of the job and egos shouldn’t come in the way.

“They are brilliant, but they can also be ivory tower theoreticians. A mentor with the right kind of experience and knowledge can help the kids come down to earth,” a public sector bank chief says.

In order to make them feel special — HR experts refer to the practice as ego massage — several of these banks are also organising exclusive sessions with the chairmen. The job profile also differs from the generalists — the jobs offered to most management graduates need specialised skills such as risk management and treasury. This means they would not have to spend time at branches, which most probationary officers do.

A bank chief said the training module for the B-school graduates was also different though they also spend time at the in-house training academies. “They attended a two-week induction programme to understand their likes and dislikes, hobbies, and other personal aspects. We also take their view on the areas in which they want to work and allocate those departments to them,” said an executive at Bank of Baroda, which has hired 300 management graduates, including 18 from the IIMs.

The biggest carrot, of course, is the promise of a turbo-charged career. The MBAs stand a much better chance of rising to the top than probationary officer by virtue of their entry at Scale III. An ordinary probationary officer would take 10 to 12 years to reach that level.

But the jury is still out on whether the special treatment to the youngsters would work at a time when the job market is showing signs of opening up

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In fact, Union Bank was the largest public sector bank recruiter from IIMs in the last season. That was the signal public sector banks gave MBAs to make them feel that they are a class apart from other generalists who join as probationary officers.

There is of course a differentiation within B-Schools. Typically, those from the IIMs, Xavier Labour Relations Institute and Indian School of Business joined at Scale III, but graduates from other B-schools were recruited in scale II.

But compensation was just the first entry point for these MBAs. Mentoring — a hitherto alien concept in public sector banks — was the second.

Most public sector banks have asked senior bank executives to take on the role of mentoring to guide the MBAs during the first year.

A public sector bank executive says existing managers also had to be mentally conditioned to deal with the B-School graduates. “Their expectations might be different, so they needed to be handled differently,” he says.

The biggest challenge was, of course, the cultural gap. A mentor recalls how a recently-hired B-school graduate was reluctant to send Diwali greetings to key customers on behalf of the chairman. The mentor had to use his best persuasive skills to convince the employee that it was a vital part of the job and egos shouldn’t come in the way.

“They are brilliant, but they can also be ivory tower theoreticians. A mentor with the right kind of experience and knowledge can help the kids come down to earth,” a public sector bank chief says.

In order to make them feel special — HR experts refer to the practice as ego massage — several of these banks are also organising exclusive sessions with the chairmen. The job profile also differs from the generalists — the jobs offered to most management graduates need specialised skills such as risk management and treasury. This means they would not have to spend time at branches, which most probationary officers do.

A bank chief said the training module for the B-school graduates was also different though they also spend time at the in-house training academies. “They attended a two-week induction programme to understand their likes and dislikes, hobbies, and other personal aspects. We also take their view on the areas in which they want to work and allocate those departments to them,” said an executive at Bank of Baroda, which has hired 300 management graduates, including 18 from the IIMs.

The biggest carrot, of course, is the promise of a turbo-charged career. The MBAs stand a much better chance of rising to the top than probationary officer by virtue of their entry at Scale III. An ordinary probationary officer would take 10 to 12 years to reach that level.

But the jury is still out on whether the special treatment to the youngsters would work at a time when the job market is showing signs of opening up. A senior bank executive says the canteen conversation of the MBAs, specially from the premier schools, is generally over the next job opportunity.

But most public sector bankers think a 20 to 30 per cent attrition rate shouldn’t be that big a problem (it’s in single digits now) . “We understand that some of them will leave us in two or three years. But even the short stint will help us learn,” said the HR head of a public sector bank.

 


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Comments

0 # Aayush 2018-10-06
I am from Jind, I have scored 82 percentile in CAT this year. Please let me know the colleges where i can get admission
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0 # Shruti 2018-10-07
Hii, for finding it you can go through mock counselling , please visit here- mock counselling, you can also get good college in Jind.
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0 # Vivaan 2018-09-08
I am from Senapati, I am looking forward to make career in engineering, Please tell me about the eligibility criteria for best engineering colleges.
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0 # Shruti 2018-09-09
hello, if you want to take admission in best engineering college in Senapati, you should clear JEE Main exam, or I fyou want to get admission in IITs you should clear JEE Advanced and for admission you should have Physics, chemistry and maths in your 12th or equivalent
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0 # Lakshay 2018-09-01
Hello, i want to get admission in best B.tech college in Tonk, Also suggest me about the Various streams of B.tech
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0 # Pallavi 2018-09-02
Hello Sir, Thankyou for your comment. Please visit Engineering in Tonk for best B.tech colleges in Tonk, Hope you will get best college from the list, Also various major streams in B.tech are Electrical, Electronics, Mechanical, Civil, Computer Science etc.
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0 # Priyansh 2018-07-28
Hii, What are the career opportunities of Bachelor of Education course after my degree, also suggest some b.ed colleges in East Godavari?
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0 # Jagan 2018-07-29
The B. Ed course is an excellent choice for making career in teaching profession, it is very respective profession for candidates, find some good colleges for it-Montessori College of Education ; GBR Elementary Teacher Education Institute ; Aadi Lakshmi College of Education ; Smt. Addepalli Mahalakshmi Devi College of Education for Women
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0 # Priyansh Older than three months
Hii, plz suggest me What higher studies options are available after completion of MBBS in Navsari?
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0 # Pallavi Older than three months
On completion of MBBS, for being specialised in a specific field, candidate will have to take up MD or MS course in Navsari with appropriate specialization.
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0 # Vivaan Older than three months
Hello, I have done B.Sc Honors in Mathematice, am I eligible for MBA, if yes plz suggest MBA colleges in Nashik
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0 # Pallavi Older than three months
Yes, you are eligible for MBA, any graduate can do MBA if one have maths in 12th, find the list of MBA colleges in Nashik here- MBA in Nashik
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0 # Jayesh Older than three months
I am from Theni, plz tell me the time duration of MBBS course in India
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0 # Pallavi Older than three months
In India, the present duration of MBBS course is 5.5 years, The actual course period is 4.5 years and one year of rotating internship should be completed, you can find some good MBBS colleges in Theni-Theni Government Medical College
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0 # Harikiran Older than three months
Hello, I am from Cochin plz tell me admission to B. Ed to IGNOU is made through entrance test?
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0 # Pallavi Older than three months
hii, good to know that you are from Cochin, Yes, Admission to B. Ed in IGNOU is made through B. Ed Entrance Test, which is generally conducted during the month of October/September each year.
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0 # Aarav Older than three months
Hello. I am from East Kameng, plz tell me What are the points to consider for selecting a B. Ed college?
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0 # Pallavi Older than three months
You should consider the fee structure and if you consider doing this course from other place except East Kameng, you should consider hostel facilities, you shouldalso consider whether the subject in which you wish to continue this course is available in the college.
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0 # Rohan Older than three months
Hello Sir, May I know the specialisation in MBA and also suggest some good B-Schools in Hisar ?
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0 # Mukesh Older than three months
There are various specialisation in MBA i.e. Marketing, Finance, Human Resource, etc, find some good MBA colleges Department Of Business Management-Hisar ; Guru Jambheswar University ; Chaudhary Charan Singh Haryana Agricultural University ; Guru Jambheshwar University of Science and Technology
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