A Public Sector bank is one in which, the Government of India holds a majority stake. It is as good
as the government running the bank.
Since the public decide on who runs the government, these banks that are fully/partially owned by
the government are called public sector banks.
For eg: Punjab national bank(pnb).
Punjab National Bank was registered on 19 May 1894 under the Indian Companies Act with its
office in Anarkali Bazaar Lahore. The founding board was drawn from different parts of India
professing different faiths and a varied back-ground with, however, the common objective of
providing country with a truly national bank which would further the economic interest of the
PNB has the distinction of being the first Indian bank to have been started solely with Indian capital
that has survived to the present. (The first entirely Indian bank, the Oudh Commercial Bank, was
established in 1881 in Faizabad, but failed in 1958.)
The recruitment and selection is the major function of the human resource department and
recruitment process is the first step towards creating the competitive strength and the recruitment
strategic advantage for the organisations. Recruitment process involves a systematic procedure from
sourcing the candidates to arranging and conducting the interviews and requires many Resources
MANAGERIAL USEFULNESS OF THE STUDY
The study provides a complete knowledge of various fundamental concept related to recruitment &
The study helps in finding the weaknesses, if any in the organization and the steps taken to avoid
The suggestions from the employees will help management to make changes in the desired field.
OBJECTIVES OF THE STUDY
To collect and maintain relevant information regarding recruitment & selection in public banks.
Familiarization with the recruitment policies of PNB.
To highlight the selection process.
To have knowledge and understanding of job specification and job description of different positions
in different grades.
To study the strengths and weaknesses of present recruitment and selection of the organization.
SCOPE OF THE STUDY
Scope of the study is to collect information regarding the recruitment & selection process of the
To analyze the level of satisfaction of the employees in respect of
the process followed in the
Research methodology is a way to systematically solve the problems. I may be understood as a
science of how research is done scientifically.
We studied the various steps that are generally adopted by a researcher in study his research
problem along with the logic behind them.
It is necessary for the researcher to know not only the research method or techniques but also
Research methodology is referring to a search for knowledge.
Research is thus an original contribution to the existing stock of knowledge making for its
advancement. It is the persuade of truth with the help of study.
Types of research:
It involves collecting data from its origin.
Using information that have already put together.
It is used in rigid which involves specific guidelines to reach the financial result data is collected on
ANALYSIS OF DATA
Data collected from various sources is edited, tabulated & analyzed using various tools like ratios &
My study is based on both primary and secondary data and explanatory in nature.
According to Edwin B. FLIPPO
“Recruitment is the process of searching the candidate for employment and stimulating them to
apply jobs in the organization”
* It locates people available for the job and invites them to apply for the job in the organisation.
* The process of requirement precedes the process of selection of a right candidate for the given
position in the organisation.
* Recruitment seeks to attract suitable applicants to apply for available jobs.
* The various activities involved with the process of recruitment include:
(a) Identification of different sources of recruitment (internal and external sources
(b) Assessment of their validity.
(c) Choosing the most suitable sources.
(d) Inviting applications from the prospective candidates for the Vacancies.
2.2 SOURCES OF RECRUITMENT
Before an organization actively begins security applicants, it should consider the most likely source of
the type of employee it needs. These sources may be termed as:
Internal sources include personal already on the pay roll of an organization i.e. its present working force.
Whenever any vacancy occurs, sanctioning from within the organization is upgraded, transferred,
promoted and some times demoted. This source also includes personal who where once on the pay roll
of the company but who plan to return or whom the company would like to retire, such as those on
leave or absence, those who exit volunteering or those on production lay.
This source is used by many organizations, but a surprisingly large number ignore this source. It is
not only reasonable but wise to use this source, if the vacancies to be filled out within the capacity of
the present employer.
These sources lie outside the organization. They usually include:
New entrants to the labour force, i.e. young mostly un-experienced potential employees the college
ii. The unemployed - with a wide range of skills and abilities.
COMPARISON OF INTERNAL AND EXTERNAL SOURCES
1. 1. Nature of Process Internal recruitment is a quick External
process. It involves search of lengthy process. It involves
candidates from within the finding
outside the organisation.
This process is cheaper. It does not
This process is costly as
involve any cost of contacting the vacancies have to be notified in
3. 3. Effect on Staff
The existing staff is motivated to
The existing staff feels dis-
improve their performance.
satisfied if external sources are
4. Quality of
Choice of candidates is limited. The business can hope for
The scope of fresh talent is
talented candidates from
outside. This means infusion of
new blood and new ideas into
5. 5. Time Involved
Internal sources help in saving External
time of officials responsible for recruitment
2.3 TECHNIQUES OF RECURITMENT
These include sending traveling recruiters to educational and professional institutions, employees'
contacts with public and manned exhibits. One of the widely used direct methods is that of
sending of recruiters to colleges and technical schools. Most college recruiting is done in cooperation with the placement office of a college. The placement office usually provides help in
attracting students, arranging interviews, furnishing space, and providing student resumes. For this
purpose, carefully prepared brochures, describing the organization and the jobs it offers, are
distributed among students, before the interviewer arrives. The DCM, TATAs, and other
enlightened firms maintain continuing contacts with institutions' placement officials with a view
to recruiting staff regularly for different responsible positions.
Sometimes, firms directly solicit information from the concerned professors about students with
an outstanding record. Many companies have found employees' contact with the public a
very effective method. Other direct methods include sending recruiters to conventions and
seminars, setting up exhibits at fairs, and using mobile offices to go to the desired centers.
Indirect methods involve mostly advertising in newspapers, on the radio, in trade and
professional journals, technical magazines and brochures.
Advertising in newspapers and/or trade journals and magazines in the most frequently used
method, when qualified or experienced personnel are not available from other sources.
Advertising is very useful for recruiting blue-collar and hourly workers. Such advertisements
enable prospective candidates to screen themselves in order to find out whether they are fit
for the job for which the advertisement has been issued.
According to Advertisement Tactics and Strategy in Personnel Recruitment, three points need
to be borne in mind before an advertisement is inserted. First, to visualize the type of
applicant one is trying to recruit. Second, to write out list of the advantages a company
offers; in other words, why the reader should work for the company. Third, to decide where to
run the advertisement, not only in the area but in which newspaper having a local, state or
THIRD PARTY METHODS:
1. Private employment agencies.
who bring employers and employees together.
2. Trade union
These also serve the recruitment needs of individual and organization. Their sense of co-operation
helps in developing better labour relations. In some of the skilled jobs the vacancies are filled
through the union placement services. This serves recruitment cost.
3. On campus recruitment
School, College, Universities and Technical Institutions, are very useful source of recruitment
for a full range of job. Recruitment from educational institution has been a well established
practice of many public and private organizations.
4. Recommendations by parent employees for friends and relatives:
Introduction by existing staff can be fruitful source since they are likely to recommend
who will live up to their recommendations. However the candidates should be
carefully screened as others.
5. Public/state employment agencies.
These are the main agencies of public employment. They provide a clearing house for jobs and job
information. Employers inform them of their personnel requirements, while job-seekers get
information for them about the types of jobs that are referred to by employers. These agencies
provide a wide range of services - counseling, assistance in getting jobs, information about
the labour market, labour and wage rates.
6. Recruitment on factory gates
By putting notice on the notice board of the enterprise, specifying the details of the job
available. The practice of direct recruitment is generally followed for filling casual vacancies,
especially unskilled labour; such workers are called Badli workers and paid remuneration on
daily paid basis.
7. Voluntary organizations.
Voluntary Organizations, such as private clubs, social organizations, might also provide
employees - handicaps, widowed women, old persons retired hands etc. in response to
8. Computer data base.
When a Company desires a particular type of employee, job specifications and requirements are
fed into a computer, where they are matched against the resume data stored therein. The
outputs are a set of resumes for individuals who meet the requirements. This method is very
useful for identifying candidates for hard-to fill positions which call for an unusual combination
9. Unconsolidated applications.
For positions in which large numbers of candidates are not available from other sources, the
companies may gain in keeping files of applications received from candidates who make direct
enquiries about possible vacancies on their own, or may send unconsolidated applications. The
information may be indexed and filed for future use when there are openings in these jobs. If
necessary, the candidates may be requested to keep the organization posted with any change in
their qualifications, experience or achievements made.
2.4 IMPORTANCE OF RECRUITMENT
1. Qualified personnel: By using external sources of recruitment, the management can
qualified and trained people to apply for vacant jobs in the organisation.
2. Wider choice: External sources bring in a large number of applicants from outside. The management
has a wider choice while selecting the people for employment.
3. Fresh talent: The enterprise can expect to get fresh, talented candidates from outside. This means
infusion of new-blood and new ideas into the enterprise.
4. Competitive spirit: Internal candidates have to compete with outside candidates for the vacancies.
They will work harder to show better performance.
5. Morale boosters: Internal recruitment helps to improve the motivation and morale of employees.
They are happy because they get the opportunity of being promoted to higher positions.
6. Economical: No time and money has to be spent on advertising vacancies or on conducting tests
and interviews. Also, people recruited from within the organisation do not need induction training.
Thus, filling of jobs internally is cheaper as compared to getting candidates from external sources.
7. Familiarity: In an organisation employees are familiar with each other. Therefore, there is no need
to spend time and money on training and development.
8. Industrial peace: Industrial peace prevails in the enterprise because of promotional avenues.
9. Better selection and placement: Internal recruitment also simplifies the process of selection and
placement. The candidates who are already working in the enterprise can be evaluated more
accurately and economically.
The selection procedure is concerned with securing relevant information about an applicant. This
information is secured in a number of steps or stages. The objective of selection process is to
determine whether an applicant meets the qualifications for a specific job and to choose the applicant
who is most likely to perform well in that job.
According to Yoder,
"The hiring process is of one or many 'go, no-go' gauges. Candidates are screened by the application
of these tools. Qualified applicants go on to the next hurdle, while the unqualified are eliminated."
Thus, an effective selection programmed is a non-random process because those selected have been
chosen on the basis of the assumption that they are more likely to be "better" employees than those who
have been rejected.
Selection processes or activities typically follow a standard pattern, beginning with an initial
screening interview and concluding with the final employment decision. The traditional selection
process includes: preliminary screening interview; completion of application form, employment tests,
comprehensive interview; background investigations physical examination and final employment
decision to hire."
3.2 METHODS OF SELECTION PROCEDURE
There is no shortcut to an accurate evaluation of a candidate. The hiring procedures are, therefore,
generally long and complicated. Many employers make use of such techniques and pseudo-sciences as
phrenology, physiognomy, astrology, graphology, etc., while coming to hiring decision. However, in
modem times, these are considered to be unreliable measures.
The following is a popular though it may be modified to suit individual situation:
1. Reception or preliminary interview or screening.
2. Application blank - a fact-finder which helps one in learning about an applicant's background and
3. A well conducted interview to explore the facts and get at the attitudes of the applicant and his family
4. A physical examination-health and stamina' are vital factors in success.
5. Physiological testing to explore the surface area and get an objective look at a candidate's suitability for
6. A reference cheek.
7. Final selection approval by Manager and communication of the decision to the candidate.
RECEPTION, INITIAL OR PRELIMINARY INTERVIEW OR SCREENING
The initial screening is usually conducted by a special interviewer to a high caliber receptionist in
the employment office. This interview is essentially a sorting process in which prospective applicants
are given the necessary information about the nature of the jobs in the organization. The necessary
information, then, elicited from the candidates relating to their education, experience, skill, salary
demanded, the reasons for leaving their present jobs, their job interests and whether they are
available for the job, their physical appearance, age, "drive" and facility in speech. If a candidate
meets with the requirements of the organizational structure he is eliminated at the preliminary stage.
Such interviews are usually short and may be conducted at a desk, across a counter or railing and
they are known as stand-up interviews.
APPLICATION BLANK OR APPLICATION FORM
An application blank is a traditional, widely accepted device for getting information. Corn a
prospective applicant which will enable a management to make a proper selection. The blank provides
preliminary information as well as aid in the interview by indicating areas of interest and discussion.
It is a good means of quickly collecting verifiable (and therefore fairly accurate) basic historical data
from the candidate. The information required to be given in the applicant's own hand writing is
needed to identify him properly and to draw tentative inferences about his suitability for
employment. Many types of application forms - some times very long and comprehensive and
sometimes brief- are used. Information is generally called on the following items.
a. Biographical Data
b. Educational Attainment
c. Work Experience
e. Personal Items
f. Other Items: Names and addresses of previous employers, reference etc.
Certain jobs require unusual stamina, strength or tolerance of hard working conditions. A physical
examination -reveals whether or not a candidate possesses these qualities. It brings out deficiencies,
not as a basis of rejection but as a positive aid to selective placement and as indicating restrictions on
his transfer to other positions.
The use of references is common in most selection procedures, for it involves only a title time and
money and minimum of effort. The procedure places reliance on the evaluation of former employers,
friends and professional personnel. Checks on references are made by mail or by telephone, and
occasionally or by using a reference form, such as that given below, which requires specific answers.
As organizations become complex and the number of jobs they offer increases. Managers have
been receptive to the acceptance of any device which would improve their selection decisions.
Such decisions are usually arrived at with the help of psychological tests which are more objective
and less biased than others. Tests are the most misused, the least understood, yet the most valuable
sources of information about applicants.
A test has been defined both in a broad and narrow manner. Broadly, it has been defined as a
'systematic procedure for comparing the behavior of two or more persons'. In narrow sense, ‘it
is a ample of an aspect of an individuals’ behavior, performance or attitude.’ We may define it
as a systematic procedure for sampling human behaviour.
4.1 RECRUITMENT v/s SELECTION
It is the process of searching
It is the process of selection of
candidates for vacant jobs and
right types of candidates and
persuading them to apply for the
offering them jobs.
It is a positive and simple process
It is a negative and complex process
as candidates are not required to
as the candidates are required to
cross many hurdles.
cross several hurdles.
Its aim is to attract more and more
Its aim is to reject unsuitable
candidates for the vacant jobs.
candidates and select the most
suitable people for the vacant
It takes place prior to selection
It is done after the recruitment.
5. Contract of
No contractual relation is created.
Selection leads to a contract of
Recruitment implies communication
service between the employer and
of vacancies only.
No restriction on the number of
Only a limited number of
candidates are selected
5.1 PUNJAB NATIONAL BANK (PNB)
Established in 1895 at Lahore, undivided India, Punjab National Bank (PNB) has the distinction of
being the first bank to have been started solely with Indian capital. From its modest beginning, the bank has
grown in size and stature to become a front-line banking institution in India at present. During its
existence of over one-hundred years, Punjab National Bank has faced many a trials of strength
including the trauma of partition of India in 1947 at the time of independence. However, due to its
inherent strengths and
resilience, the bank not only withstood such adversities but established itself still firmly on the Indian
subcontinent. The bank was nationalized in July 1969 along with 13 other banks. The bank's strength lies in
its corporate belief of growth with stability.
With its presence in virtually in all the important centers of the country, Punjab National Bank offers a
wide variety of banking services which include corporate and personal banking, industrial finance,
agricultural finance, financing of trade and international banking. Among the clients of the bank are
multinational companies, Indian conglomerates, medium and small industrial units, exporters and nonresident Indians. The large presence and vast resource base have helped the bank to build strong links with
trade and industry.
At the same time, the bank has been conscious of its social responsibilities by financing agriculture and
allied activities and small scale industries (SSI). .Considering the importance of small scale
industries bank has established 16 specialized branches to finance exclusively such industries.
With its long tradition of sound banking and in-depth knowledge of Indian economy, the bank has been
able to help its clients in their projects. Punjab National Bank is ranked 416 among the biggest banks in
the world by Bankers' Almanac (July 2002) London.
Strong correspondent banking relationship which Punjab National Bank maintains with 200 leading
international banks all over the world enhances its capabilities to handle transactions world-wide.
Besides, bank has Rupee Drawing Arrangements with exchange companies in the Gulf. Bank is a member of
the SWIFT and 85 branches of the bank are connected through its computer-based terminal at Bombay.
With its state-of-art dealing rooms and well-trained dealers, the bank offers efficient forex dealing
operations in India.The bank has been focusing on expanding its operations outside India and has
identified some of the emerging economies which offer large business potential. Bank has set up a
representative office at Almaty, Kazakhstan w.e.f. 23rd October 1998.
Keeping with its tradition of excellence in customer service PNB has adopted a quality movement
"Alliance with Quality". Under this as many as 364 offices of the bank have been awarded the
coveted ISO 9002 certification. The bank is committed to maintaining the highest standards of
service and will be covering more offices under this quality movement.
5.2 COMPANY HERITAGE
Exchange Established in 1895 at Lahore, undivided India, Punjab National Bank (PNB) has the
distinction of being the first Indian bank to have been started solely with Indian capital. The bank
was nationalized in July 1969 along with 13 other banks. From its modest beginning, the bank has
grown in size and stature to become a front-line banking institution in India at present.
* A professionally managed bank with a successful track record of over 108 years
* Largest branch network in India - 4038 branches and 426 Extension Counters spread throughout
* Strategic business area covers the large Indo-Gangetic belt and the metropolitan
* Strong correspondent banking relationships with more than 217 international
banks of the world.
* More than 50 renowned international banks maintain their Rupee Accounts with
* Well equipped dealing rooms; 20 different foreign currency accounts are
major centres all over the globe
* Rupee drawing arrangements with M/s UAE Exchange Centre, UAE, M/s Al
Fardan Exchange Co. Doha, Qatar,M/s Bahrain Exchange Co, Kuwait, M/s Bahrain Finance Co,
Bahrain,M/s Thomas Cook Al Rostamani Co.
5.3 CORPORATE MISSION
To evolve and position the bank as a world class progressive cost effective and customer friendly
institution providing comprehensive financial and related services; integrating frontiers of
technology and serving various segments of society especially the weaker sections; committed to
excellence in serving the public arid also excellence in corporate values.
To provide excellent professional services and improve its position as leader in the field of
financial and related services; build and maintain a team of motivated and committed workforce
with high work ethos; use latest technology aimed at customer satisfaction and act as an
effective catalyst for socio-economic development.
PNB Gilts Ltd A subsidiary of Punjab National Bank which was amongst the first ones to get the
licence for undertaking activities in the Government Security market, as a primary dealer in 1996.
The company received ISO 9002 certification from British Standard Institution, making it as the
first primary dealer in India to achieve this certification for its quality systems and procedures.
PNB Housing Finance Ltd This is a wholly owned subsidiary of Punjab National Bank, is engaged in
providing housing loans for purchase, construction and up gradation of a dueling unit. The company
offers Loans for construction or for purchase of' house/flat from development authorities and also from
private builders/ group housing societies as well as for renovation/ repairs. Company also provides
finance for construction of residential projects. Loans to NRIs are also provided for purchase/
construction of house/ flat along with a resident/ non-resident co-borrower.
PNB Capital Services Limited Depositors of PNB CAPs to contact Chief Manager Bhikaiji Cama
Place for further queries regarding Fixed deposits.
PNB Asset Management Company Ltd. A wholly owned subsidiary of Punjab National Bank is the
Investment Manager to PNB Mutual Fund. As per the terms of trust deed, it has assumed day-to-day
investment management of the Fund and, in that capacity float schemes, raises subscription, makes
investment decisions and manages the Mutual Fund in accordance with the fund’s policies, scheme
objectives, Trust Deed and Investment management agreement.
5.5 ORGANISATION STRUCTURE
Punjab National Bank (PNB) was established in 1895 at Lahore. PNB has the distinction of being the
first Indian bank to have been started solely w i th I n d i a n capital. In 1969, Punjab National Bank
was nationalized along with 13 other banks.
1895: PNB established in Lahore.
1904: PNB established branches in Karachi and Peshawar.
1939: PNB acquired Bhagwandas Bank.
1947: Partition of India and Pakistan at Independence. PNB lost its premises in Lahore, but continued
to operate in Pakistan.
1961: PNB acquired Universal Bank of India.
1963: The Government of Burma nationalized PNB's branch in Rangoon (Yangon).
all the offices in Pakistan of Indian banks, including PNB's head office, which may have moved to
Karachi. PNB also had one or more branches in East Pakistan (Bangladesh)
1960s: PNB amalgamated Indo Commercial Bank (cst. 1933) in a rescue. 1969: The Government of
India (GOI) nationalized PNB and 13 other major commercial banks, on July 19, 1969.
1976 or 1978: PNB opened a branch in London.
1986 The Reserve Bank of India required PNB to transfer its London branch to State Bank of India
after the branch was involved in a fraud scandal.
1986: PNB acquired Hindustan Commercial Bank in a rescue.
1993: PNB acquired New Bank of India, which the GOI had nationalized in 1980.
1998: PNB set up a representative office in Almaty, Kazakhstan.
2003: PNB took over Nedungadi Bank, the oldest private sector bank in Kerala. Rao Bahadur T.M.
Appu Nedungadi, author of Kundalatha, one of the earliest novels in Malayalam, had established the
bank in 1899. It was incorporated in 1913, and in 1965 had acquired selected assets and deposits of the
Coimbatore National Bank. At the time of the merger with PNB, Nedungadi Bank's shares had zero
value, with the result that its shareholders received no payment for their shares. PNB also
opnened a representative office in London.
2004: PNB established a branch in Kabul, Afghanistan. PNB also opened a representative office in
2005: PNB opened a representative office in Dubai.
2007: PNB established PNBIL - Punjab National Bank (International) - in the UK, with two offices,
one in London, and one in South Hall, Middlesex.
2008: PNB opened a branch in Hong Kong.
5.7 RECRUITMENT POLICY
To ensure that right personnel are recruited at right time as per the requirement of the bank from time to
time in cost effective manner.
To ensure that selection process is fair, just, objective and unbiased in all aspects and to provide equal
opportunities to all eligible candidates, including the candidates with rural background and/or weaker
sections of the society.
To ensure that reservation in appointments is uniformly implemented in accordance with the norms
laid down by the government of India from time to time in respect of the posts reserved for SC/ST,
OBC, EX-servicemen, and Disabled etc
The policy shall govern the recruitment to clerical cadre as well as officer cadre up to senior
management grade scale - IV. The recruitment in clerical cadre be undertaken state wise and
recruitment to officer cadre be made on all India basis. The eligibility criteria including educational
qualifications, age, concessions available to reserved categories are given in the succeeding paragraphs.
Eligibility criteria for appointment in clerical & officer
A candidate must be either
* Indian citizen
* Nepal, Bhutan, Tibetan refugees (migrated before 1/1/62)
* A person of Indian origin who has migrated from Pakistan ,Burma ,Sri Lanka, East African countries
of Kenya, Uganda, United Republic Of Tanzania, Zambia, Malawi, Zaire ,Ethiopia and Vietnam, with the
intention of permanently settling in India and who has been issued eligibility certificates by government of
Restrictions regarding plural marriage: No person:
• Who has entered into or contracted a marriage with a person having spouse living.
• Who having spouse living, has entered into or contracted a marriage with any person shall be
eligible for appointment to service.
Provided that the bank, if satisfied that such marriage is permissible under the personnel law applicable to
such person and the other party to the marriage and there are other grounds for doing so, exempt any
person from the operation of this condition.
5.8 AGE CRITERIA
* Above 18 years and below 28 years as on 1 st January of the year if advertisement is released within 30 th
June and as on 1st July if advertisement is released in the second half of the year.
* In terms of extent government guidelines, the upper age limit may be relaxed as under:
Relaxation by number
3 years in addition to the actual
period of service rendered in
defence services subject to a
Widows, divorced women & women
maximum age of 30 years
9 years subject to maximum age
judicially separated from their husbands &
limit of 35
who are not married
Village level workers applying for the post
and SC/ST candidates 40 years
of agricultural clerks/assistants
Regular employees of the union carbide
factory, Bhopal retrenched from
service(applicable to MP only)
Persons domicile d in the state of J&K
during the period from 1.1.80 to 31.12.89
5.9 EDUCATIONAL QUALIFICATION
Clerk-cumcashier /Clerk cum- typist
Degree in any discipline from a recognized university or
any equivalent qualification recognized as
such by the
A pass with 50% marks in higher secondary examination
of(10+2+3) pattern/11th standard of (11+1+3) pattern
(old pattern)/SSLC/X standard examination of (10+2+3)
pattern or equivalent examination
Persons applying for the post of typist-clerk in English
should posses a minimum typing speed of 30 w.p.m in
English typing and those applying for the posts of typistclerk in Hindi should posses a minimum typing speed of
25 w.p.m in Hindi typing
A pass in matriculation/SSC (old pattern) /SSLC/X
standard examination of (10+2+3) pattern or equivalent
Candidates applying for the post of English stenographers
should posses a minimum typing speed of w.p.m and a
minimum shorthand speed of 80 w.p.m in English and
those applying for the post of Hindi stenographers should
posses a minimum typing speed of 25 w.p.m and a
minimum shorthand speed of 60 w.p.m in Hindi
.Candidates applying for the post of telephone operators
should have proficiency in the operation of PABX/PBX
RELAXATION IN EDUCATIONAL QUALIFICATIONS
For schedule castes/ schedule tribes/
pattern /11th standard examination
of 11+1+3 pattern/pre university or
intermediate or equivalent examination
aggregate in the
SSLC / X standard in 10+2+3
pattern or equivalent examination
Not below 21 years and not above 30 years as on 1 st January, if the advertisement is
released between 1st January and 30th June, and as on 1st July if the advertisement is
released between 1st July and 31st December.
In terms of extent government guidelines the upper age limit may be relaxed as under:
Schedule caste/Schedule tribe
Other backward classes
Ex-service Commissioned officers, including ECO/SSCOs
By 5 years
By 3 years
By 10 years
By 5 years
who have rendered at least 5
years military service and have been released
a) On completion of assignment (including those whose
assignment is due to be completed within 12 months from
the date of application)otherwise than by way of dismissal
or discharge on account of misconduct or inefficiency
b) On account of physical disability attributable to
military service or
c) On invalid basis
Officers in the RRBs who have put in a minimum of 5 By the number
years of service
service put in as
an officer in an
RRB subject to a
maximum of 5
Persons domiciled in Kashmir division of the state of By 5 years
jammu & kashmir during the period from 01.01.1980
MINIMUM EDUCATION QUALIFICATION
Degree from a recognized university or any equivalent qualification recognized as such by the
government of India
Specialist officers may generally be appointed in the following disciplines:
5 Financial analyst
6 Security officer
7 Personnel officers
8 Hindi officer
9 Technical officer
The above is only illustrative and not exhaustive. Under the specialist officers' category,
recruitment of posts likes Financial Analysts, Law Officers, Security Officer etc, are made only up
to MMG Scale - II and recruitments beyond MMG Scale II are only exceptional. The eligibility
criteria in relation to the aforesaid Specialist Officer posts are given in Annexure II. The post
qualification experience may suitably vary, depending upon the grade and scale to which
recruitment is to be made. However, for appointment in specialist posts in Scale IV and above,
specific approval is obtained from the Board, detailing the eligibility criteria and job specifications.
MODE OF RECURITMENT
The direct recruitment of officers both in general as well as in specialist category and appointment
in clerical cadre will be made from open market by way of notifying the vacancies in the leading
newspapers and Employment News. Further the recruitment to officer and clerical posts will be on
the basis of written test and interview. In respect of specialist officer, CMD may decide as to
whether the written test and interviews be held or only a process of interview may be prescribed
depending upon the nature of post, qualification, experience prescribed and also the response
received for each posts.
Each recruitment will be separate project and be carried out accordingly.
Depending upon the requirement of officers, bank may recruit officers by way of campus
recruitment from professional institutions / universities. The number to be recruited &
grade/scales in which they are to be recruited and the qualifications of the professional
institutions/universities from which the campus recruitment could be made may be placed
before the Board for approval. The upper age limit for recruitment of officers through
Campus recruitment shall be the same as in the case of Officer Grade posts i.e. not below
21 years and not above 30 years, subject to relaxation in age limit applicable to Reserved
Categories in terms of Government guidelines.
RECRUITMENT OF OUTSTANDING SPORTS PERSONS
Bank may recruit outstanding sports persons in subordinate, clerical and officer cadre.
Such recruitments would be made in accordance with the 'Scheme for recruitment of outstanding
sports person in the bank' as approved by the Board of Directors (Annexure-III)
Bank may appoint experts, specialists on contract basis for a maximum period not exceeding three
years. The contract appointment be made in the area of marketing, IT, HRD, Legal, Security, Civil
Engineering, Architect etc.,
Terms and conditions, including remuneration of such contractual appointees be got approved by the
Board, before engaging such personnel
APPOINTMENT ON COMPASSIONATE GROUNDS
The appointment on compassionate grounds would be made as per the policy laid down by the Board in
this regard. (Annexure -IV)
RESERVATIONS FOR DIFFERENT CATEGORIES
The reservations and other concessions to be provided for SC/ST & other special category of
persons will be in accordance with the orders issued by the Central Govt from time to time.
BUDGET FOR RECRUITMENT
The budget for the recruitment project be estimated in advance and got approved from the
CMD. The expenses thereof shall be within the budget prescribed. If for any reason the
expenditure is likely to exceed the budget, further sanction shall be obtained from the
Chairman & Managing Director with proper justification and after furnishing the full
details as to how the estimated budget was spent and reasons for shortfall in respect of
each recruitment project.
RELEASE OF ADVERTISEMENT
The vacancies shall be notified through a detailed advertisement, which shall be released
in the Employment News in bilingual.
Further, a brief advertisement may also be released in the national/regional and local newspaper to ensure
cost effectiveness in release of advertisement.
A. The application fee for candidates, under General category and other Backward
Class (including dependents of defence personnel killed in action /disturbed areas)
(Rupees Fifty only) through Bank draft
B. Candidates applying for more than one post will have to pay Rs. 251- (Rupees Twenty
Five only) extra for each additional post.
C. For candidates under SC/ST/XS/PH categories, there are no application fees except
postage charges. For all others, including OBC and dependents of serviceman killed in
Action, application fee is payable.
Fees once paid will not be refunded except in cases of applications not entertained at all as
having been received late.
MANAGEMENT TRAINEES AND OTHER OFFICERS
For SC/ST/PH category candidates
(Only postages charges)
For all others
Postage Charges not exceeding Rs. 25/-for Officer Cadre
Fees once received will not be refunded except in case of applications not entertained at all
as having been received late.
The Appointing Authority in respect of clerical cadre will be the respective Regional Manager after
the panel is approved by the General Manager (HRD) at Head Office.
In respect of officer cadre, the Appointing Authority shall be as specified in Regulation 3
(d) of PNB Officers (Service) Regulations 1979 read with Regulation 14 of the said
MEDICAL EXAMINATION ON APPOINTMENT
All new recruited persons irrespective of cadre and required to submit a medical certificate of
fitness issued by a Medical Officer not below the rank of a Civil Surgeon of District Hospital or by the
Bank's Medical Officer, in the format prescribed by the Bank from time to time. Those who are
physically handicapped, besides production of general medical fitness certificate, shall also furnish a
medical certificate clearly indicating the nature and extent of disability.
Pre-Recruitment Training will be imparted to applicants belonging to Scheduled Caste / Scheduled
Tribes, Ex-servicemen and Minority categories in terms of Government Notification No. F.5/1/94SCT (B) dt.20.5.94 for minimum period of six days. This training is aimed at for familiarizing the
applicants with the written examination.
The training will be free of cost at the Zonal Training Centers of the Bank. The candidates will make
their own arrangements for stay and meet their expenses. As the training will not confer any right to the
applicant to be called for the examination or for recruitment in the Bank's service, the applicants who
desire to avail such training may request for the training while submitting their applications for
POST APPOINTMENT TRAINING
Induction training will be imparted to all new appointees in clerical cadre at the
respective Training Centers. The induction programme shall be generally for two weeks.
Each newly recruited appointee clerk my also be given induction programme in I.T. for a
period of one week or more depending upon the requirement of the bank and IT training
be completed as a part of induction programme. In that case the induction programme
shall be for three weeks. Alternatively, they may be given training in IT within a period
of 6 months.
The Management Trainees in Scale-1 shall undergo training programme as prescribed by the bank from
time; to time for a period of one year.
Technical Officers shall be given induction training either at Central Staff College/Regional Staff
College or a Training Centers depending upon the requirement of each post.
VERIFICATION OF CHARACTER & ANTECEDEN
T The Appointing Authority should satisfy itself that the Character and antecedents of the ID he appointed
are such as do not render him unsuitable for appointment of Bank service. The verification of character and
antecedents is to be done at the time of appointment and till receipt of the antecedents report, the
employee is not entitled to be confirmed in the service.
ASSESMENT OF VACANCIES
Assessment of vacancies of different cadres for various officers of the bank shall be undertaken on
annual basis. The assessment of vacancies should be completed by end of august every year by each zone.
While assessing the vacancies, the zones shall take into consideration the following:
1. Retirement in each cadre.
2. The vacancies arising on account of internal promotions.
3. Vacancies arising on account of inter state/inter zone transfers.
4. Vacancies arising on account of business expansion.
Vacancies arising on account of other natural means of separation viz. resignations, deaths etc. while
determining the vacancies in these categories, the past data in respect of the same shall be the guiding factor.
6. Net vacancies are determined after proper adjustment of available staff.
3.1.2 Each zone shall make assessment of vacancies in clerical cadre state wise and notify accordingly to
facilitate state wise requisition to eligible categories.
Bihar and Jharkhahd
Delhi, including HO Divisions
West Bengal, Orissa, North eastern states
Madhya Pradesh & Chhattisgarh
Chandigarh (ut), Haryana, Jammu &
Kashmir, Himachal Pradesh
Andhra Pradesh, Tamilnadu, Kerala,
Karnatka & Pondicherry
Utter Pradesh &Uttaranchal
Maharashtra, Gujarat &Goa
1. In respect of officer's cadre, zones shall make assessment of vacancies for the zone
2. The vacancies of specialist viz, IT, Credit, Foreign exchanges, Treasury management,
Shall also be accessed along with the manpower exercise. These vacancies shall be filled up on all India
3. The vacancies identified shall also clearly indicate the vacancies to be reserved to
different categories of persons like SC/ST/OBC/Ex serviceman/Physically handicapped
etc. State wise appointment will be made in clerical cadre and on all India basis in
relation to officers.
4. Manpower plan generally be completed in the month of October each year and
projections may be placed before the board for the approval.
COMPETENT AUTHORITY FOR INITIATION OF RECRUITMENT
Once the manpower requirement is accessed and approved by the board, Chairman and managing director
may authorize the recruitment as per the requirements. The recruitment process for appointment in officer
cadre may be taken up on all India basis and in respect of clerical staff it may be taken up on statewide or
zone wise basis. Action is initiated in such a manner to ensure economy in recruitment process. To
illustrate southern zone has five states including union territory of Pondicherry. Only one advertisement
will be released giving vacancies in clerical cadre for all the states.
MODE OF RECRUITMENT
All vacancies which are to be filled up by direct recruitment (except campus recruitment) shall be filled up
through an open advertisement. The advertisement may be bilingual in Hindi speaking areas and in respect of
other centers; bank may also consider releasing in the local language to cover rural areas also.
The advertisement will contain particulars such as number of vacancies, the minimum educational
qualification prescribed for the posts, age limits, percentage of reservations, emoluments, probation,
application fees, test centers, date of written examination, the last date for receipt of application be fixed so as
to allow a minimum period of thirty days from the date of first appearance of advertisement.
For candidates staying abroad and living in Andaman & Nicobar islands and Lakshadweep and Minicoy
islands and regions like Ladakh, North Eastern region, Lahaul, Spiti, additional 14 days time be given for
receipt of applications.
(Standard format for advertisement is placed at annexure-v)
A brief advertisement may be released in the leading newspaper but advertisement along
with all relevant details be published in Employment news. Advertisements are released
first in Employment news and, thereafter, brief advertisement in leading newspaper be
given indicating therein the date on which the advertisement appeared in Employment
Besides release of the advertisement in the newspapers, a copy may be sent to the following
Local employment exchanges for clerical recruitment arising in different states.
Directorate general of resettlement, New Delhi and zilla sainik boards
Local special employment exchange for physically handicapped in different
4) SC/ST/OBC Welfare associations, recognized for the purpose of notifying vacancies as per list in
the "Brochure on Recruitment of SC/ST/OBC in services" issued by the government of India
CONDUCT OF EXAMINATION
PRE EXAMINATION ACTIVITIES
* Receiving of applications from eligible candidates
* Allotment of roll numbers & printing of call letters
arrangements for conducting the examinations at different locations like hiring venues, appointing
testing personnel etc
* Dispatch of call letters
* Developing suitable selection tools i.e. objective
and/or descriptive tests, answer sheets, etc.
* Printing and
packing of test material separately for each venue
* Making arrangements for dispatch of test material to the test venues
ON THE DAY OF EXAMINATION
* Making arrangement for forwarding the test material to the venue
* Effective and smooth conduct of examination
* Making arrangement for forwarding/bringing back the sealed cover examination material from
each venue and sending the same top the designated authority.
Making arrangements for auditing and evaluating the post examination test
* Short listing candidates on the basis of the performance on these tests
Making arrangement for conducting the skill test for the skilled jobs
Making arrangements for conducting the skill test for the skilled jobs
*Making arrangements for conducting interviews
Finalization of selection list
All the above activities may be entrusted to the Institute of Banking Personnel Selection (IBPS) as they
have necessary expertise and experience besides equipments for doing the work of setting up of test
papers, printing, packing and evaluation of test papers. Services of IBPS, Mumbai will be continued till
an alternate selection agency that has expertise and relevant experience is identified and approved by the
Bank shall specify the test centers and the same shall be indicated in the advertisement. The applications will
be separated center wise and within center category wise and post wise. IBPS Mumbai or any other
agency entrusted will list out the details of each applicant Applications received after the last date will
not ordinarily be accepted or entertained on any account. Such applications, if tendered by the post office
for delivery after the last date will not be ordinarily be accepted. If however, for any reason, it is not possible
to refuse to accept applications received after the last date by ordinary post such applications will be returned
under certificate of posting to the candidates concerned unopened along with the remittance received. It
may however, be noted that under some special, extra ordinary and unforeseen circumstances such as civil
disturbances, postal strike, etc, applications may be received late from some areas. In such cases, the bank
may exercise its discretion, as a very special case, .and accept late applications determining the date of
receipt according to the circumstances. The draft for fees will be listed and credited to account opened for this
purpose. For each process of recruitment, a separate account will be opened. The proceeds will be utilized
to defray the expenses related to the selection for payments to agencies, conduct of tests and others. The
scrutiny and screening of applications need not be undertaken at the time of calling the candidates for written
examination. However in view of waiving the application fee for candidates belonging to SC/ST categories,
it is essential to screen these applications to ensure that the caste certificate issued by the competent
authorities/acceptable certificate is enclosedand in the absence of such certificates, applications are to be
returned to the respective applicant. Similarly, candidates belonging to Ex-servicemen and PH
exempted from payment of the application fee excepting postage charges of RS.25. In the
returned to the respective candidates. All those candidates who have applied in time and
certificate issued by competent authority should be called for the written examination.
Screening of applications should however, be done in respect of candidates who are
successful in written examination before calling them for interview and/or at the time of
interview. If however, the number of applications for written examination for recruitment
of special categories or posts is small, preliminary scrutiny and screening of applications
may be taken.
Chief test administrator shall be appointed for each center as per the advice of the bank or any other
agency specified by the bank for conducting the test. The total officers of the bank shall fix the venue
for conducting the examination. The venue should be fixed in such a way that it is conveniently
accessible to the candidates and a reasonable rent may also be paid, if required by the authorities of the
In the event test is conducted by an outside agency, Bank will intimate to the agency the name of the
Sr. officers in scale-IV and above who will coordinating the test and bank shall also advise the name of
the other bank officials who will be in charge of the venues of each examination.
C.T.A shall appoint invigilators etc. The invigilators, so appointed, should be those who
could be relied upon for supervising the examination in proper manner The remuneration to the test personnel
may be disbursed as per the rates specified in the Annexure -VI. However, these rates may be revised
having regard to the rates prescribed by bank or any other agency specified by the bank conducting the
test. However, if the rates payable are over and above what have been specified in the annexure, it shall
be got approved from the general manager(HRD).
After the date of test and venues at different centers are finalized, the roll numbers of the candidates are
allotted; call letters will be issued as per specimen attached as Annexure - VII.
The test indicated above would generally cover the following topics:1) Test of general awareness
This test will only be used for selection of probationary officers (management trainees) in
banks. The test of general awareness is intended to measure candidate's knowledge of
current affairs, his sensitivity to environmental changes and his ability to analyze their
of interest. The test
on national and
general and on Indian economy in particular, who's who, major awards of significance,
sports events, famous books, their authors etc.
2) Test of English language
This test be used for both -clerical and officers levels. However, difficulty level of the test is suitably
adjusted. The test of English language is to measure candidate's proficiency in English language.
The test has questions based on three major aspects of language viz. comprehension, functional
grammar and lexical skills i.e. vocabulary and appropriate use words and phrases, etc. It is important to
note here that the test does not have questions based on English literature, nor does it have questions on
grammatical rules and intricacies. It has question based on functional grammar, comprehension and
vocabulary commonly used in day to day business correspondence etc. This test is only qualifying and
its marks are not reckoned for merit ranking.
3) TEST OF QUANTITATIVE APTITUDE
This test is intended to measure candidate's facility to work with, and aptitude for numbers, quantitative
calculations, arithmetic reasoning and ability to analyze and interpret data represented in the form of graphs
and tables etc. The emphasizes this test is less on actual calculations and more on reasoning and mental
applications with quantitative stimuli. The test does not include problems, which require memorizing
intricate formulae of mensuration, trigonometry, geometry etc. This test is used for both -clerical and officers
levels. However, difficulty level of the test is suitably adjusted.
4) TEST OF REASONING
This test is used for clerical and officer's levels with the difficulty level of the test suitably adjusted.
Commonly known as intelligence test, it attempts to measure higher level cognitive abilities such as quick
and accurate grasping, analytical ability, following direction, problem solving, synthesizing and ability to
think critically. This test has the largest number of questions i.e. 75 of which, generally 15 questions are of
non verbal type i.e. the stimulus material (i.e. questions and answers) is presented in the form of
diagrams and not using any language. For clerical level, out of a total of 50 questions, normally 25
questions are of non verbal type. The diagrams depict a particular sequence of elements or units in problem
figures. The candidate is required to find out, taking into account the sequential changes in number, position,
and form etc. of the elements or units in the problem figures which of the given five answers figures would be
the next in the sequence. The solution to such questions does not assume any knowledge of or familiarity
with science subjects. Other types of non verbal questions include analogies, classifications, etc. in which
similarity/differences are to be spotted with accuracy. The information handout sent to the candidates
well in advance of the date of examination gives elaborate details on the method of solving questions
with illustrations of many types used in the actual tests.
5) TEST OF CLERICAL APTITUDE
As the same indicates, the test is used only for clerical cadre selection. It is a test of perceptual speed
and accuracy. It has questions based on some comparison of name number combinations, classifications
of items in different categories given, arrangement of words in alphabetical order, coding and decoding of
alpha numeric combinations etc.
6) DESCRIPTIVE PAPER (D.P)
The purpose of descriptive paper is to access wealth of ideas, higher order cognitive abilities,
organization of ideas in a logical coherent manner, written communication skill, etc. in a concise manner.
Language composition, clarity of thoughts and brevity are also matters of consideration in descriptive paper.
There will be four questions given of which the candidates are supposed to answer any three. Besides, the
candidates have an option to write the answers in Hindi or English for officer's cadre and Hindi/English or
official language of the state for clerical cadre. All questions shall be answered in one of the languages
only. The status of descriptive paper is 'only qualifying' i.e. the marks obtained in the descriptive paper
are not reckoned for merit ranking.
7) SKILL TEST
specialized positions in clerical cadre such as typists/stenographers, telephone operators, computer
operators, etc. Skill tests will be conducted only for those candidates who qualify in the objective as well as
8) PERSONEL INTERVIEWS
The candidates who qualify in objective and descriptive papers and skill tests (for specified jobs) and
also are sufficiently high in merit rank will be called for personnel interview, generally to the extent of 34 times the number of vacancies. Personnel interviews be conducted by the bank or any other agency
specified by the bank through panels, the composition of which will be as per the Govt. guidelines. The
interviews are supposed to bring out personality characteristics of the candidate. The marks of interview are
added to the objective type total weighted scores and final merit list is prepared on the basis of aggregate. There
is no separate minimum passing marks prescribed for personnel interviews.
The characteristics assessed through written tests & personnel interviews are given below:
Pre-recruitment training is imparted to applicants belonging to Scheduled caste/Scheduled tribes, exservicemen and minority categories in terms of government notification NO.F.5/1/94-SCT (B) dt.20.5.94.
This training is given to familiarize the applicants with the test in the written examination, a prerecruitment training for a minimum period of 6 days duration has to be arranged. The training will be free of
cost at the zonal training centers of the bank. The candidates will make their own arrangements for stay and
meet their expenses. The training will not confer any right to the applicant to be called for the examination or
for recruitment in the bank service. The applicants who desire to avail such training may request in the
prescribed format while submitting their applications for recruitment.
6.1 A COMPARISON OF PNB AND HDFC
The public sector banks constitute two sets of banks. The State Bank of India (SBI) and its seven associate
banks were the only public sector banks from 1955 to 1969 when the Nationalization Act nationalized the 14
largest private sector banks and another 6 banks were nationalized in 1980. The 27 public sector banks
dominate the commercial banking sector with a share of 87.2% of assets in 1992-93 and 79.7% in 19992000. 91.3% of the bank branches in the country in 1992-93 and 89.8% of the branches in 1999-00 belonged
to the public sector banks. About 65.8% of these branches of the public sector were in rural and semi-urban
areas whereas foreign banks had no presence at all in these areas with all their branches located in urban and
metropolitan areas. The expansion of private sector and foreign banks was strictly regulated and only since
1993 have new private and foreign banks been allowed to enter the market. Currently there are 32 private
sector banks (8 of them having set up since April 1994) and 42 foreign banks operating in India.
Banking by its nature is an information (intensive) and human capital intensive industry. One of the surrogate
measures of output of a bank is the net interest income which gets captured in the data on profitability.
Another surrogate measure of the output of a bank is the value of deposits and loans that the bank is able to
generate. The efficiency of the employees of a bank on this notion can be summarized by the ratio of the
deposits plus advances (the turnover) per employee.
There are two dimensions to their employment practices which is indicative of the way human resources are
managed in these banks. First, the ratio of establishment costs to total expenditure has been declining in
these. In fact, the most drastic decline in the ratio of establishment expenditure to total expenditure has been
in the private banks with the ratio reducing from a high of 26.01% in 1990-91 to 9.61% in 1999-00. The
establishment expenditures of the private and foreign banks have declined at a faster pace in the latter half of
the decade whereas for the SBI group and the nationalized banks there was an increase in their expenditure
on establishment in the latter half of the nineties. The establishment expenses as a percentage of total costs of
the public sector banks in the latter half of the decade were 19.81% and this was 2.1 times the 9.5% figure for
the private and foreign banks combined. The private and foreign banks have thus been able to contain their
wages and salaries expenditures compared to the public sector banks despite their higher growth in
employment - the productivity of each employee being much higher has contributed to this outcome.
The second distinguishing feature of employment practices in the private and foreign banks is the structural
composition of the workforce. Data on employment in commercial banking is given by three categories of
employment - officers, clerical staff, and subordinate staff. Amongst commercial banks the employment
growth rate from 1990-91 to 1994-95 was 1.21% and this declined to -0.27% during 1995-96 to 1999-00 as
they have sought to downsize. The decline in employment growth was sharpest amongst the clerical staff
followed by the subordinate staff. For the officers the growth in employment was 1.81% in the first half of
the decade and this declined to 0.89% in the latter half of the decade. For the clerical staff, the growth in
employment was 0.80% in the first half of the decade and this slipped to —0.89% in the second half of the
The increasing pace at which private and foreign banks are reducing their workforce composition away from
clerical and subordinate staff and the relative rigidity in the composition of the workforce in public sector
banks points to an important distinction between the organization of the private and foreign banks on the one
hand and the public sector banks on the other which definitely has an impact on their performance.
The practices of managing human resources at the officers' 1-evel are different in the public sector banks and
the other banks. The practices regarding compensation, i.e., rules governing pay and pay raises, benefit
structures and the practices that centre on training, staffing, hiring and selection, and job design differ
substantially. To mention a few differences, public sector banks, structure compensation in such a way tint
there are lower differentials between employees, long-term tenure is rewarded, and there is a high base pay.
In the private and foreign banks there are larger pay differentials, fewer rewards for tenure, and individual
incentives are high. Public sector banks place a lot of emphasis on training whereas in the private and foreign
banks training is emphasized according to necessity. In terms of staffing the public sector banks are
committed to employment security and have a full time workforce whereas in the non public sector banks the
staffing policy is a hire and fire at will dictated one with a part time workforce. As regards the practice of
hiring and selection public sector banks invest heavily in screening whereas the practices in other banks are
more market based. Finally, in terms of the practice of work organization public sector banks have relatively
narrow jobs with a steep hierarchy whereas the other banks have broader jobs and a relatively flat hierarchy.
The industrial relations structure in the banking industry is such that the management of both the public and
private sector banks are organized into one body called the Indian Banks' Association (IBA). There are five
major industry level trade unions in banks representing clerical and subordinate staff employees and four
associations for officers-see Table VI. Collective bargaining is usually carried out at the industry level
between the IBA and mainly the All India Bank Employees Association (AIBEA), the National
Confederation of. Bank Employees (NCBE) and the Bank Employees Federation of India (BEFI) for issues
relating to clerical employees and between the IBA and All India Bank Officers' Confederation (AIBOC) for
issues of relevance to officers. In addition, it must be mentioned that the Reserve Bank of India intervenes in
human resource practices by issuing various guidelines and instructions keeping in mind government policy
as the principal employer of public sector banks and as a continuation of the recommendations of various
working groups and committees. RBI instructions have included the setting up of the National Institute of
Bank Management in 1968 as an apex institute for training and research, constituting the Banking Service
Recruitment Board for recruitment, standardizing performance appraisals for public sector banks from 199394, etc. The government is also empowered to issue directives to public sector banks under Section 8 of the
banking Companies (Acquisitions & Transfer of Undertakings) Act 1970/1980 with regard to policy matters
involving public interest such as constitutional provisions regarding reservations for socially deprived classes,
The recruitment in public sector banks was standardized with the introduction of the Banking Service
Recruitment Boards in 1978-79 by the government. The Narasimham Committee had urged in 1991 to allow
banks to make their own officer recruitment more so where special skills were required and to allow clerical
recruitment to continue to take place through the Board. The subordinate staff is selected through the local
employment exchange. For officers and clerical staff the number of vacancies are determined depending on
business growth, branch expansion, existing pattern of staffing and wastages. However, the RBI in February
1990, following up on an earlier Ministry of Finance directive to restrict intake so as to improve productivity,
has instructed public sector banks to restrict annual staff growth to 0.75%/1% depending on productivity
levels. At lower levels of the job hierarchy banks have the freedom to create additional vacancies, but for
additional scale IV and above officer positions prior clearance from the Ministry of Finance is required. The
promotion of workers in nationalized banks from subordinate staff to clerk and from clerk to officer is at the
discretion of individual banks that have entered into settlements with workers unions. With regard to the
intake of employees at the officer level the public sector banks follow a closed system where promotion from
within is encouraged. There are mainly two ports of entry into the profession. At the clerical level 75-100 per
cent of the vacancies are filled via screening by the Banking Service Recruitment Board and at the Junior
Management level 20-25 per cent of vacancies are filled via outside recruitment. In July 1973 the
government had appointed a committee to standardize the pay scales, allowances, and perks of officers. This
committee, known as the Pillai Committee, submitted its report in May 1974. The government then
appointed a Study Group of Bankers to make suggestions for the implementation of the report which
submitted its report in 1977. The Pillai Committee report with the modifications suggested was adopted in
1979 and the Officers' Service Regulation was introduced. The Pillai Committee noted that young recruits
tend to get frustrated due to the prevalence of long time scales and the absence of accelerated promotions for
the meritorious. The Pillai Committee accordingly suggested seven scales in four grades, i.e. Top
Management (2 scales), Senior Management (2 scales), Middle Management (2 scales) and Junior
Management (1 scale). The Pillai Committee recommendation of not less than 25% of vacancies in middle
and senior management positions to be kept open for merit promotions to enable talented people to reach top
positions in the prime of their lives was modified by the Study Group of Bankers who argued that since the
executive pyramid is wide based and fairly narrow at the top in banking, the promotion to senior and middle
positions should be solely on merit with the years of service required for promotion as suggested by the Pillai
Committee being an eligibility criterion on the basis of which selection is to be made with weight ages given
to objective criteria such as service record, professional qualifications, etc. The Merit Rule thus replaced the
Seniority Rule for promotions in middle and senior positions. From the viewpoint of the needs of the bank as
opposed to the needs of the individual with regard to non-stagnation, four grades were identified on the basis
of differences in levels of responsibility. The Top Management level is conceived as the policy making level.
At Senior Management level there is total responsibility for an entire functional area in the bank such as
advances or personnel. The Middle Management level is a support level for higher level managers and a tier
for ensuring smooth career progression from an operational jot to semi-policy making areas. The Junior
Management level would be involved with operational tasks of a supervisory nature. As the system of
induction, recruitment and promotion operates, it is a case of what has been labeled as an internal labour
market (Doe ringer and Piore, 1971). In the internal labour market the system provides low skill, entry level
jobs and the opportunity to learn skills on-the-job along with job ladders for promotion. Given minimally
acceptable performance, managerial jobs are till retirement and pay is on the basis of job titles and seniority
rather than dependent on individual attributes and is not strictly tied to performance. Internal labour markets
are organized around long term employment relationships so as to enable the capturing of the benefits of the
development of skills, especially when they are specific to the firm, as well as allowing the identification of
abilities and worker performance in order to fill promotions. The characteristics of an internal labour market
can be identified with the following practices - (1) providing own, firm-specific training, (2) an attempt to
adhere to the objective of making staff permanent, (3) using internal promotion and job ladders. (4) Elaborate
and systematic screening and recruitment of employees, and (5) setting wages and salaries according to
internal administrative procedures rather than market forces. The underlying premise of the internal labour
market approach is that employees differ in ability — one more unit of effort by different employees implies
different productivity for the organization - and there is an information asymmetry in that supervisors have
imperfect information about the abilities of the employees. As the ability of the employee is initially
unknown, it is only the experience in the employment relationship that allows the employer to learn about
such abilities, and as this learning takes place, the employee is placed in more productive jobs. In managerial
employment, job changes often imply movements along the hierarchical structure of the firm and are
associated with important changes in total salary and remuneration. Current performance is used to evaluate
an employee's ability and to decide on future promotions and so current performance affects the rewards
earned by the employee.
The bank personnel would be able to readily embrace the use of IT.
An existing pool of qualified knowledge-based personnel would contribute largely to the IT initiatives.
The financial position of the bank was very sound. There would not be any constraint of funds to facilitate IT
The bank wasn't bound to too much legacy systems and equipment.
Different unix OS flavors in different branches.
Different standalone financial applications on PCs at different branches.
Lack of interoperability due to disparity in systems.
Limited expertise on the software packages currently deployed. This increased dependence on
Systems audits were pending.
Most branches did not have a proper LAN in place.
There was almost no WAN connectivity.
The bank realized that there was a lot of opportunity to create a stable IT infrastructure which would fu
future growth. But there was also need to honor the CVC deadline to computerize at least 70 percent
its business within December 2000. The bank now has around 4.000 branches.
PNBIIT in collaboration with IIBF proposes to play a pivotal role, by introducing the course named
ADVANCED DIPLOMA IN BANKING TECHNOLOGY (ADBT). This course will form a bridge betwee
academia and industry by producing next generation quality Techno-Bankers and IT professionals for Bankin
and IT sectors. ADBT will focus on industry relevant core IT areas with knowledge of banking. The ADB
envisages generating all round professionals of the highest caliber with spotlight on following:
To facilitate study of theory and practice of banking and finance.
To facilitate to attainment of technical competence in the prospective techno-bankers.
To collect, analyze and provide current technical information desired by professionals in banking and finance
To promote continuous professional development.
To encourage innovation and creativity among finance professionals so that they may face competitions an
also keep themselves abreast of latest information in banking technology.
Risk Management is the revolution-taking place in the financial markets. Bank and Financial institutions a
grappling with the challenges of proactively managing risk across markets and the globe. For each institutio
the actual solution to this problem is entailing different philosophies towards risk policies, procedures an
technologies. Visualizing the risk, combating the adverse effects on profitability through proactive planning an
ensuring the implementation of risk management process has assumed pivotal signification currently, the ne
benchmark of risk management has two important tenets - risk quantification and evolving control system
Adherence to the international capital standards has given further fillip to the concept to the risk, the ne
BASEL accord (BASEL-II) assigns utmost importance for risk management systems in banks and directs the
institutions to adopt risk capital allocation on the basic of quantification of risk. according to RBI, "Capit
adequacy in relation to risk profile calls for adoption of sophisticated tools for management of risk, bank
would therefore have to pay even greater attention to risk management systems, selection and training o
personnel", to meet the demand of banks in enriching their knowledge in risk management, PNBIIT, Luckno
has announced this programme as their key training programme and to make the institute as a hub for th
training. This programme is intended to'cover all generic risks- credit risk, market risk, and operational ris
These risks are highly interdependent and of events that affect one area of risk can have ramifications for
range of other risk categories. It aims to improve the competence of managers in selection and application
modern techniques of risk management.
NIndia's banking sector is growing at a fast pace. India has become one of the most preferred banking
destinations in the world. The reasons are numerous: the economy is growing at a rate of 8%, Bank
credit is growing at 30% per annum and there is an ever-expanding middle class of between 250 and
300 million people (larger than the population of the US) in need of financial services. All this enables
double-digit returns on most asset classes which is not so in a majority of other countries. Foreign
banks in India achieving a return on assets (ROA) of 3%, their keen interest in expanding their
businesses is understandable - even more so when compared with the measly 1 % average ROA for
the Top 1000 banks in the world.
Indian markets provide growth opportunities, which are unlikely to be matched by the mature
banking markets around the world. Some of the high growth potential areas to be looked at are:
the market for consumer finance stands at about 2%-3% of GDP, compared with 25% in some
European markets, the real estate market in India is growing at 30% annually and is projected to
touch $ 50 billion by 2008, the retail credit is expected to cross Rs 5,70,000 crore by 2010 from
the current level of Rs 1,89,000 crore in 2004-05 and huge SME sector which contributes
significantly to India's GDP.
The core function of HRD in the banking industry is to facilitate performance improvement,
measured not only in terms of financial indicators of operational efficiency but also in terms of
the quality of financial services provided. Factors like skills, attitudes and knowledge of the
human capital play a crucial role in determining the competitiveness of the financial sector. The
quality of human resources indicates the ability of banks to deliver value to customers. Capital
and technology are replicable but not the human capital which needs to be valued as a highly
valuable resource for achieving that competitive edge. The primary emphasis needs to be on
integrating human resource management strategies with the business strategy. HRM strategies
include managing change, creating commitment, achieving flexibility and improving teamwork.
The other processes representing the overt aspects of HRM, viz. recruitment, placement,
performance management are complementary.
Recruitment and selection is a sub-system of the organization because the departments such as,
marketing & sales, HR, production, finance, etc depends on this for its survival. Right from the
start, HDFC Bank's mission has been to provide service levels one typically associates with the
savvy foreign banks at an affordable price, the target customer groups being the middle- and
lower-middle class. The high level of competition in the market, increased awareness and quality
consciousness of the people, changing social values, increasing emphasis on good corporate
governance, etc. have influenced the changes in the environment in a significant way. Yet, today,
if there has been a sea change in the way banking business, both retail and otherwise, is
conducted across the country and even beyond, it is primarily due to rapid advancement in
technology. Over the last three decades or so, there has been a remarkable increase in the size,
spread and activities of banks in India. The number of bank branches rose considerably during
this period. The business profile of banks has transformed dramatically to include non-traditional
activities like merchant banking, mutual funds, new financial services and products, personal
investment counseling, etc. The entry of new banks intensified the competition to attract and
retain customers. Computerization was inevitable both in the interest of customer service and
Bank follow manpower planning in a very systematic way but being systematic they have
to follow various steps & it is found to be very time consuming.
• Bank has been successful in removing the surplus manpower
Job specification and job description are well defined to all employees and they know what
is expected of them. Everything is properly documented and gives in black and white.
There is no fix percentage of employees that are to be recruited for each source every
Representation of candidates belonging to minority class communities is included in the
selection committee, taking care of interest of minorities.
PNB should continue using redeployment, retrenchment and instruments like VRS in order
to reduce effectively its staff in areas of surplus.
Recruitment activities in PNB could be combined with other such PSUs for the purpose of
cutting on advertisement costs and cost involved in holding of interviews plus outside help
could taken for organizing interviews.
Summer trainees should be allowed to avail various welfare facilities like travel free in
company buses, subsidized food etc. so as to attract them to apply for job in PNB.
The internal candidates though given relaxation during the selection procedure are
not given preference over external candidates since PNB adopts 50:50 formula. I
think it should get away with this formula and encourage the present employees to
opt for higher levels within PNB.
MAMORIA, C.B. Personnel management, Himalaya publishing house Mumbai,
o T.N CHHABRA, Principles & practices of management, Dhanpat Rai and co. (p) Ltd, Delhi,
Annexure from bank.
Manuals, reports from the bank.
TIMES OF INDIA.