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

Would you like to know more about MBA Entrance Exams, Read the below:
Read the important Details about MBA Entrance Exams
Gather complete details for CAT Exam like exam pattern, Dates
Find here the Information of MAT Exam
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

Do you want to know more about MBA, click on the link given below:
Read the significant information about MBA
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.

 


What next after MBA?
How to prepare a CV after MBA
How Personality Development is Important for Successful MBA career

Ask our Counsellors


Comments

0 # Aayush 2019-03-30
Hello sir, I am 3rd year B.com student, I want to pursue MBA from Bhor,Please suggest top B-School over there.
Reply | Reply with quote | Quote
0 # Jagan 2019-03-31
Hello, after b.com, MBA will be the right career option, you can find here the list of good B-Schools in Bhor- MBA in Bhor
Reply | Reply with quote | Quote
0 # Vivaan 2019-02-23
Hello, I am from Supaul, tell me How can I check whether a B.Ed college is approved by NCTE or not?
Reply | Reply with quote | Quote
0 # Jagan 2019-02-24
Once you have decided to do your B. Ed from a particular college, you can visit the website of NCTE and can check whether the institution is under the list of approved institution,you can find here find list of NCTE approved b.ed colleges in Supaul- B.Ed in Supaul
Reply | Reply with quote | Quote
0 # Harikiran 2019-02-16
Hii, I am from Rajnandgaon, plz tell me What is the difference between NEET and AIPMT for MBBS Admission?
Reply | Reply with quote | Quote
0 # Mukesh 2019-02-17
Both NEET and AIPMT are conducted for admission to MBBS and BDS Courses, NEET is national level test, while AIPMT is conducted by CBSE for admission to these courses in government medical and dental colleges of all places including Rajnandgaon
Reply | Reply with quote | Quote
0 # Lakshay 2019-02-09
hii, I am from Kamarajar, plz tell me what are the graduation options I can do in "medical field"
Reply | Reply with quote | Quote
0 # Mukesh 2019-02-10
Hello, good to see that you are from Kamarajar, in medical field, you can do MBBS, BDS, BHMS, BAMS, etc.
Reply | Reply with quote | Quote
0 # Aayush Older than three months
Hii, What are the career opportunities of Bachelor of Education course after my degree, also suggest some b.ed colleges in Ratnagiri?
Reply | Reply with quote | Quote
0 # Shruti Older than three months
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-Mandar Education Societys Lt Shashikant Gawde College Of Education At & Post Pedhambe (bharde) Taluka Chiplun Dist. Ratnagiri
Reply | Reply with quote | Quote
0 # Himmat Older than three months
Hii, I am from Yavatmal, please tell me the duration of B.Ed course
Reply | Reply with quote | Quote
0 # Jagan Older than three months
Hello, Good to see that you are from Yavatmal, the duration of B.Ed course is 2 years
Reply | Reply with quote | Quote
0 # Aayush Older than three months
I am from Jind, I have scored 82 percentile in CAT this year. Please let me know the colleges where i can get admission
Reply | Reply with quote | Quote
0 # Shruti Older than three months
Hii, for finding it you can go through mock counselling , please visit here- mock counselling, you can also get good college in Jind.
Reply | Reply with quote | Quote
0 # Vivaan Older than three months
I am from Senapati, I am looking forward to make career in engineering, Please tell me about the eligibility criteria for best engineering colleges.
Reply | Reply with quote | Quote
0 # Shruti Older than three months
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
Reply | Reply with quote | Quote
0 # Lakshay Older than three months
Hello, i want to get admission in best B.tech college in Tonk, Also suggest me about the Various streams of B.tech
Reply | Reply with quote | Quote
0 # Pallavi Older than three months
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.
Reply | Reply with quote | Quote
0 # Priyansh Older than three months
Hii, What are the career opportunities of Bachelor of Education course after my degree, also suggest some b.ed colleges in East Godavari?
Reply | Reply with quote | Quote
0 # Jagan Older than three months
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
Reply | Reply with quote | Quote