HomeBusinessdata | Automation crushes bank recruitment for clerical jobs, officials unaffected

data | Automation crushes bank recruitment for clerical jobs, officials unaffected

Recruitment has decreased due to ATM usage, mobile and online transactions, and fewer new bank branches

Recruitment has decreased due to ATM usage, mobile and online transactions, and fewer new bank branches

on Wednesday, business standard Told that the Union Finance Ministry had asked the heads of public sector banks (PSBs) for a plan to improve the workforce. a week ago, business Line It was informed that this year there has been a significant reduction in the vacancies announced for clerical posts. The report also shows that with the rapid reduction in the number of candidates registering for recruitment/selection programmes, interest in bank jobs is declining. Earlier this year, on March 28-29, All India Bank Employees Association Along with other demands, there was a strike for the demand to increase the recruitment of employees.

The strike and recent news reports together show that the problem of dwindling manpower has reached an inflection point. In fact, the reduction in recruitment is more pronounced among clerks and sub-staff, while the number of officers has remained stable. This trend was observed in both PSBs and Private Sector Banks (PVBs). However, it is worth noting that the number of officers in PVBs is three times more than in PSBs.

Click To subscribe to our data newsletter

due to a drop in strength

The data shows that increased use of ATMs, an increase in online and mobile transactions, and a decrease in the number of new bank branches have led to a reduction in the number of people in banks and a sharp decline in the number of clerical staff.

chart 1a Shows total employees in PSBs and PVBs. This brings out the contrast in the recruitment pattern. While employees in PVBs increased from 92,000 in FY05 to 5.7 lakh in FY21, the same number for PSBs has remained constant – 7.48 lakh in FY05 and 7.83 lakh in FY21.

Charts appear incomplete? Click To remove amp mode

chart 1b Each function of PSB shows the number of officers, clerks and sub-staff working in the office. In FY06, there were an average of 6.6 clerical workers in each work office, which more than doubled to 3 in FY2011. Similarly, the number of sub-staff per office declined from 3.3 to 1.1 in the observed period.

chart 1c The PVB also shows a similar declining trend among clerks and sub-staff. However, it is important to note that PVBs had significantly less clerks and sub-staff in earlier years as compared to their counterparts in PSBs.

Charts 1B and 1C both show that the number of officers has remained mostly constant. Interestingly, in FY2011, PVBs had 14.7 officers per office, while PSBs had only 4.3 officers per office. Such high officer ratio in PVBs meant that the disparity between clerical and officer positions was much wider than in public sector banks.

Chart 2A shows that the number of ATM withdrawals using debit cards in PSBs had more than doubled – from 31 crore to over 64 crore between 2012 and 2019. A similar but silent increase in PVB was recorded. After the pandemic outbreak in 2020, PSBs saw a sharp drop in ATM withdrawals. Interestingly, the evacuation did not reach pre-pandemic levels even in later years.

Chart 2B gives the reason behind this trend. This shows that both the volume and value of UPI transactions skyrocketed during the pandemic period. This, along with a similar increase in other online transactions, led to a sharp decline in ATM usage after 2020.

Chart 2c shows the number of new bank branches opened. In both PSBs and PVBs, this number has declined sharply after 2016.

The disruption in clerical recruitment due to the advent of machines and core banking solutions is here to stay. And hence, it will be interesting to see the reaction of banks on the latest move by the Finance Ministry for more hiring.

vignesh.r@thehindu.co.in and rebecca.varghese@thehindu.co.in

Source: RBI

Read also: Privatization could be a big bang for banks: RBI article

Hello Friends, My Name is Raushan Kumar. I am a Part-Time Blogger and Student. I am author of https://searchnews.in . We're dedicated to providing you the best of News, with a focus on Business, Health, Lifestyle, World, Tech, India, Gadget.


Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

- Advertisment -