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 # Vaibhav 2019-07-13
Hello sir, I have just completed my B.Arch.from Upper Siang Can i take admission in MBA, Please tell me the procedure
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0 # Pallavi 2019-07-14
Hii, yes you can take admission in MBA, but for getting good MBA college in Upper Siang, you have to clear entrance exam i.e. CAT, MAT
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0 # Aayush 2019-07-01
Hello, i have completed 12th with 92% marks, now i want to take admission in best engineering college in Nawanshahr, plz share the list
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0 # Shruti 2019-07-02
Hii, You secured very good percentage, you can get best engineering college, plz check here Engineering in Nawanshahr
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0 # Vaibhav 2019-06-29
Hello. I am from Munger, plz tell me What are the points to consider for selecting a B. Ed college?
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0 # Shruti 2019-06-30
You should consider the fee structure and if you consider doing this course from other place except Munger, 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 # Nishith 2019-06-22
Hello, I am from Porbandar, want to get admission in BITS pilani, My rank in JEE is 40,000, please suggest me that i am eligible to get admission in BITS or not.
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0 # Pallavi 2019-06-23
Hii, for finding it you can go through mock counselling , please visit here- mock counselling, you can also get good college in Porbandar.
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0 # Aayush 2019-05-25
I belong to Bhubaneswar, plz tell me As per 2016 ranking, which is the best MBBS college in India
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0 # Mukesh 2019-05-26
The first position is held by Delhi AIIMS, followed by Vellore’s Christian Medical College, AFMC, Pune, Maulana Azad Medical College, Delhi and the fifth position is held by the GGMC & SIR J.J. Hospital in Mumbai, you can also find some good colleges in Bhubaneswar- KIIT University ; All India Institute of Medical Sciences Bhubaneswar ; Utkal University
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0 # Harikiran 2019-05-18
I am from , 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 # Pallavi 2019-05-19
Hii, for finding it you can go through mock counselling , please visit here- mock counselling, you can also get good college in .
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0 # Vivaan 2019-05-13
Hii, I am from Chennai let me know, What is the need of NEET Phase II?
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0 # Pallavi 2019-05-14
If a phase I test taker of Chennai oe other places is not satisfied his/her performance in the test or if a candidate has missed out to apply for NEET, he/she can apply for phase 2 exam, It is a second chance provided to aspiring candidates.
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0 # Rohan 2019-04-27
Hello, I want to know about the entrance exam for MBA, also suggest some MBA colleges in Kannur
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0 # Pallavi 2019-04-28
There are various exams for MBA i.e. CAT, MAT, XAT, SNAP, etc, you can give CAT for IIMs, find MBA colleges in Kannur here-Chinmaya Institute of Technology
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0 # Aayush Older than three months
Hello sir, I am 3rd year B.com student, I want to pursue MBA from Bhor,Please suggest top B-School over there.
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0 # Jagan Older than three months
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
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0 # Vivaan Older than three months
Hello, I am from Supaul, tell me How can I check whether a B.Ed college is approved by NCTE or not?
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0 # Jagan Older than three months
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
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