Introduction

A Public Sector bank is one in which, the Government of India holds a majority stake. It is as good
as the g...
MANAGERIAL USEFULNESS OF THE STUDY
 The study provides a complete knowledge of various fundamental concept related to rec...
 Scope of the study is to collect information regarding the recruitment & selection process of the
PNB.
 To analyze the ...
Primary data:
It involves collecting data from its origin.

Secondary data:
Using information that have already put togeth...
DEFINITION

According to Edwin B. FLIPPO
“Recruitment is the process of searching the candidate for employment and stimula...
Internal sources include personal already on the pay roll of an organization i.e. its present working force.
Whenever any ...
2. Economy

This process is cheaper. It does not

This process is costly as

involve any cost of contacting the vacancies ...
Sometimes, firms directly solicit information from the concerned professors about students with
an outstanding record. Man...
2. Trade union
These also serve the recruitment needs of individual and organization. Their sense of co-operation
helps in...
available. The practice of direct recruitment is generally followed for filling casual vacancies,
especially unskilled lab...
2.4 IMPORTANCE OF RECRUITMENT
1. Qualified personnel: By using external sources of recruitment, the management can

make

...
to spend time and money on training and development.
8. Industrial peace: Industrial peace prevails in the enterprise beca...
3.2 METHODS OF SELECTION PROCEDURE
There is no shortcut to an accurate evaluation of a candidate. The hiring procedures ar...
the employment office. This interview is essentially a sorting process in which prospective applicants
are given the neces...
his transfer to other positions.

REFERENCE CHECKS
The use of references is common in most selection procedures, for it in...
4.1 RECRUITMENT v/s SELECTION

Basis
1. Meaning

Recruitment

Selection

It is the process of searching

It is the process...
5.1 PUNJAB NATIONAL BANK (PNB)
Established in 1895 at Lahore, undivided India, Punjab National Bank (PNB) has the distinct...
operations in India.The bank has been focusing on expanding its operations outside India and has
identified some of the em...
Vision
To evolve and position the bank as a world class progressive cost effective and customer friendly
institution provi...
The company received ISO 9002 certification from British Standard Institution, making it as the
first primary dealer in In...
Zonal offices
(18)

↓
Regional offices
(70)

↓
Branches
(4373)

5.6 HISTORY
Punjab National Bank (PNB) was established in ...
 1947: Partition of India and Pakistan at Independence. PNB lost its premises in Lahore, but continued
to operate in Paki...
 To ensure that right personnel are recruited at right time as per the requirement of the bank from time to
time in cost ...
• Who has entered into or contracted a marriage with a person having spouse living.
• Who having spouse living, has entere...
factory, Bhopal retrenched from
service(applicable to MP only)
Persons domicile d in the state of J&K

8

5 years

during ...
2

For

A pass in matriculation/SSC (old pattern) /SSLC/X

stenographers/

standard examination of (10+2+3) pattern or equ...
OFFICER CARDE
Not below 21 years and not above 30 years as on 1 st January, if the advertisement is
released between 1st J...
MINIMUM EDUCATION QUALIFICATION
Degree from a recognized university or any equivalent qualification recognized as such by ...
The direct recruitment of officers both in general as well as in specialist category and appointment
in clerical cadre wil...
Bank may appoint experts, specialists on contract basis for a maximum period not exceeding three
years. The contract appoi...
The vacancies shall be notified through a detailed advertisement, which shall be released
in the Employment News in biling...
*

Postage Charges not exceeding Rs. 25/-for Officer Cadre

Fees once received will not be refunded except in case of appl...
The training will be free of cost at the Zonal Training Centers of the Bank. The candidates will make
their own arrangemen...
Assessment of vacancies of different cadres for various officers of the bank shall be undertaken on
annual basis. The asse...
basis.
3. The vacancies identified shall also clearly indicate the vacancies to be reserved to
different categories of per...
islands and regions like Ladakh, North Eastern region, Lahaul, Spiti, additional 14 days time be given for
receipt of appl...
* Making arrangement for forwarding the test material to the venue
* Effective and smooth conduct of examination
* Making ...
scrutiny and screening of applications need not be undertaken at the time of calling the candidates for written
examinatio...
CALL LETTERS
After the date of test and venues at different centers are finalized, the roll numbers of the candidates are
...
3) TEST OF QUANTITATIVE APTITUDE
This test is intended to measure candidate's facility to work with, and aptitude for numb...
6) DESCRIPTIVE PAPER (D.P)
The purpose of descriptive paper is to access wealth of ideas, higher order cognitive abilities...
Pre-recruitment training is imparted to applicants belonging to Scheduled caste/Scheduled tribes, exservicemen and minorit...
generate. The efficiency of the employees of a bank on this notion can be summarized by the ratio of the
deposits plus adv...
there are lower differentials between employees, long-term tenure is rewarded, and there is a high base pay.
In the privat...
employment exchange. For officers and clerical staff the number of vacancies are determined depending on
business growth, ...
induction, recruitment and promotion operates, it is a case of what has been labeled as an internal labour
market (Doe rin...
STRENGTHS
 The bank personnel would be able to readily embrace the use of IT.
 An existing pool of qualified knowledge-b...
its business within December 2000. The bank now has around 4.000 branches.
PNBIIT in collaboration with IIBF proposes to p...
CONCLUSIO

49
NIndia's banking sector is growing at a fast pace. India has become one of the most preferred banking
destinations in the ...
conducted across the country and even beyond, it is primarily due to rapid advancement in
technology. Over the last three ...
•

Representation of candidates belonging to minority class communities is included in the
selection committee, taking car...
o

http://blogs.mybandra.com/2010/01/20/wwwpnbindiacom-punjab-national-bank-pnb-recruitment-ofclerks-pnb

o

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recruitment n selection in public banks

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recruitment n selection in public banks

  1. 1. Introduction 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 country 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 And time. 1
  2. 2. MANAGERIAL USEFULNESS OF THE STUDY  The study provides a complete knowledge of various fundamental concept related to recruitment & selection process.  The study helps in finding the weaknesses, if any in the organization and the steps taken to avoid them.  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 2
  3. 3.  Scope of the study is to collect information regarding the recruitment & selection process of the PNB.  To analyze the level of satisfaction of the employees in respect of the process followed in the organization RESEARCH METHODOLOGY 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 mathology. 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:  Descriptive  Explanatory  Exploratory Data collection:  Primary data  Secondary data 3
  4. 4. Primary data: It involves collecting data from its origin. Secondary data: Using information that have already put together. RESEARCH DESIGN It is used in rigid which involves specific guidelines to reach the financial result data is collected on specific parameters. ANALYSIS OF DATA Data collected from various sources is edited, tabulated & analyzed using various tools like ratios & financial analysis. My study is based on both primary and secondary data and explanatory in nature. 2.1 RECRUITMENT 4
  5. 5. DEFINITION 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 of recruitment (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 5
  6. 6. 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. EXTERNAL SOURCES These sources lie outside the organization. They usually include: i. New entrants to the labour force, i.e. young mostly un-experienced potential employees the college students ii. The unemployed - with a wide range of skills and abilities. COMPARISON OF INTERNAL AND EXTERNAL SOURCES Basis Internal Sources External Sources 1. 1. Nature of Process Internal recruitment is a quick External recruitment is a process. It involves search of lengthy process. It involves candidates from within the finding organisation. candidates from outside the organisation. 6
  7. 7. 2. Economy This process is cheaper. It does not This process is costly as involve any cost of contacting the vacancies have to be notified in external sources. 3. 3. Effect on Staff newspapers, etc. The existing staff is motivated to The existing staff feels dis- improve their performance. satisfied if external sources are used. 4. Quality of Choice of candidates is limited. The business can hope for Recruitment The scope of fresh talent is talented candidates from diminished. outside. This means infusion of new blood and new ideas into the enterprise. 5. 5. Time Involved Internal sources help in saving External sources time of officials responsible for recruitment recruitment. are of time consuming. 2.3 TECHNIQUES OF RECURITMENT DIRECT METHODS: 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. 7
  8. 8. 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: 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 nation-wide circulation. THIRD PARTY METHODS: 1. Private employment agencies. They charge occupations; computer a small general staff, fee from office help, engineers and an applicant. salesmen, executives. These They specialize technical workers private agencies in specific accountants, are brokers who bring employers and employees together. 8
  9. 9. 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 somebody 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 9
  10. 10. 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 advertisements. 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 of skills. 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. 10
  11. 11. 2.4 IMPORTANCE OF RECRUITMENT 1. Qualified personnel: By using external sources of recruitment, the management can make 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 11
  12. 12. 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. 3.1 SELECTION SELECTION PROCEDURE 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." 12
  13. 13. 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 life history. 3. A well conducted interview to explore the facts and get at the attitudes of the applicant and his family job. 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 a job. 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 13
  14. 14. 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 d. Salary e. Personal Items f. Other Items: Names and addresses of previous employers, reference etc. PHYSICAL EXAMINATION 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 14
  15. 15. his transfer to other positions. REFERENCE CHECKS 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. PHYCHOLOGICAL TESTING 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. 15
  16. 16. 4.1 RECRUITMENT v/s SELECTION Basis 1. Meaning Recruitment 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. same. 2. Nature/ It is a positive and simple process It is a negative and complex process 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 3. Purpose suitable people for the vacant jobs. 4. Sequence 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 Service Recruitment implies communication service between the employer and of vacancies only. the employee No restriction on the number of Only a limited number of candidates. candidates are selected 6. Number 16
  17. 17. 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 17
  18. 18. 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 the country * Strategic business area covers the large Indo-Gangetic belt and the metropolitan centres * Strong correspondent banking relationships with more than 217 international banks of the world. * More than 50 renowned international banks maintain their Rupee Accounts with PNB * Well equipped dealing rooms; 20 different foreign currency accounts are maintained at 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 18
  19. 19. Vision 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. Mission 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. 5.4 SUBSIDIARIES 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. 19
  20. 20. 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 Head Offices ↓ 20
  21. 21. Zonal offices (18) ↓ Regional offices (70) ↓ Branches (4373) 5.6 HISTORY 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. 21
  22. 22.  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).  September 1965: After the Indo-Pak war the government of Pakistan seized 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 Shanghai.  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 OBJECTIVES 22
  23. 23.  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 COVERAGE 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 India. Restrictions regarding plural marriage: No person: 23
  24. 24. • 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 Clerical cadre * 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: S. No. Categories Relaxation by number of years 1 2 3 4 SC'ST OBC Physically handicapped Ex servicemen 5 years 3 years 10 years 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 6 who are not married Village level workers applying for the post and SC/ST candidates 40 years 2 years 7 of agricultural clerks/assistants Regular employees of the union carbide 5 years 5 years for general 24
  25. 25. factory, Bhopal retrenched from service(applicable to MP only) Persons domicile d in the state of J&K 8 5 years during the period from 1.1.80 to 31.12.89 5.9 EDUCATIONAL QUALIFICATION S. No. Post of Qualification Employee 1 Clerk-cumcashier /Clerk cum- typist Degree in any discipline from a recognized university or any equivalent qualification recognized as such by the central government OR A pass with 50% marks in higher secondary examination of(10+2+3) pattern/11th standard of (11+1+3) pattern OR A pass with 60% marks in the aggregate in matriculation/SSC (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 25
  26. 26. 2 For A pass in matriculation/SSC (old pattern) /SSLC/X stenographers/ standard examination of (10+2+3) pattern or equivalent Telephone examination operators 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 board RELAXATION IN EDUCATIONAL QUALIFICATIONS For schedule castes/ schedule tribes/ pattern /11th standard examination Ex-servicemen/ physically of 11+1+3 pattern/pre university or handicapped intermediate or equivalent examination OR Pass in diploma recognized by in banking central/state government OR A pass with 50% marks in pattern) / aggregate in the matriculation/SSC(old SSLC / X standard in 10+2+3 pattern or equivalent examination 26
  27. 27. OFFICER CARDE 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: 1 2 3 4 Schedule caste/Schedule tribe Other backward classes Physically handicapped 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 5 c) On invalid basis Officers in the RRBs who have put in a minimum of 5 By the number years of service of years of service put in as an officer in an RRB subject to a maximum of 5 6 years Persons domiciled in Kashmir division of the state of By 5 years jammu & kashmir during the period from 01.01.1980 to 31.12.1989 27
  28. 28. MINIMUM EDUCATION QUALIFICATION Degree from a recognized university or any equivalent qualification recognized as such by the government of India Technical officers Specialist officers may generally be appointed in the following disciplines: 1 Law 2 Industry 3 Economics 4 Agriculture 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 28
  29. 29. 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. CAMPUS RECRUITMENT 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) CONTRACTUAL APPOINTMENT 29
  30. 30. 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 30
  31. 31. 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. FEE STRUCTURE CLERICAL CADRE A. The application fee for candidates, under General category and other Backward Class (including dependents of defence personnel killed in action /disturbed areas) Rs.507- (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 A. For SC/ST/PH category candidates NIL (Only postages charges) B. For all others Rs. 100.00 31
  32. 32. * 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. APPOINTING AUTHORITY 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 Regulations. 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 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. 32
  33. 33. 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 recruitment. 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. RECRUITMENT PROCEDURE ASSESMENT OF VACANCIES 33
  34. 34. 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. 5. 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. S.No. Zone States 1 Bihar Bihar and Jharkhahd 2 Delhi Delhi, including HO Divisions 3 Eastern West Bengal, Orissa, North eastern states 4 MP Madhya Pradesh & Chhattisgarh 5 Northern Chandigarh (ut), Haryana, Jammu & 6 Punjab Kashmir, Himachal Pradesh Punjab 7 Rajasthan Rajasthan 8 Southern Andhra Pradesh, Tamilnadu, Kerala, 9 UP Karnatka & Pondicherry Utter Pradesh &Uttaranchal 10 Western Maharashtra, Gujarat &Goa 1. In respect of officer's cadre, zones shall make assessment of vacancies for the zone as whole. 2. The vacancies of specialist viz, IT, Credit, Foreign exchanges, Treasury management, Marketing etc. Shall also be accessed along with the manpower exercise. These vacancies shall be filled up on all India 34
  35. 35. basis. 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 requirements and projections may be placed before the board for the approval. COMPETENT AUTHORITY FOR INITIATION OF RECRUITMENT PROCESS 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 35
  36. 36. 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 news. Besides release of the advertisement in the newspapers, a copy may be sent to the following institutions/organizations: 1) Local employment exchanges for clerical recruitment arising in different states. 2) Directorate general of resettlement, New Delhi and zilla sainik boards 3) Local special employment exchange for physically handicapped in different states. 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 * Processing applications * Allotment of roll numbers & printing of call letters * Making 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 36
  37. 37. * 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. POST EXAMINATION * Making arrangements for auditing and evaluating the post examination test material * 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 board. 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 37
  38. 38. 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 categories are exempted from payment of the application fee excepting postage charges of RS.25. In the absence of competent discharge authority certificate from from candidates Ex-servicemen belonging to category PH and category, PH certificate applications may from be returned to the respective candidates. All those candidates who have applied in time and remitted the stipulated fees, caste certificate/Ex-servicemen discharge certificate/medical 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 venue. 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). 38
  39. 39. CALL LETTERS 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 effects on various international political aspects events, of interest. The test changing economic includes trends and questions their on national and global implications in 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. 39
  40. 40. 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. 40
  41. 41. 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 For 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 descriptive papers. 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: TRAINING SCHEDULE 41
  42. 42. 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 42
  43. 43. 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 decade. 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 43
  44. 44. 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, etc. 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 44
  45. 45. 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 45
  46. 46. 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. 46
  47. 47. STRENGTHS  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 initiatives.  The bank wasn't bound to too much legacy systems and equipment. WEAKNESSES  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 vendors.  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 47
  48. 48. 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. 48
  49. 49. CONCLUSIO 49
  50. 50. 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
  51. 51. 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 operational efficiency. 8.1 FINDINGS • 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 year.
  52. 52. • Representation of candidates belonging to minority class communities is included in the selection committee, taking care of interest of minorities. 8.2 RECOMMENDATIONS  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. BIBLIOGRAPHY o MAMORIA, C.B. Personnel management, Himalaya publishing house Mumbai, 1982. o T.N CHHABRA, Principles & practices of management, Dhanpat Rai and co. (p) Ltd, Delhi, 2000. o Annexure from bank. o Manuals, reports from the bank. o https://www.pnbindia.in/en/ui/Recruitment.aspx
  53. 53. o http://blogs.mybandra.com/2010/01/20/wwwpnbindiacom-punjab-national-bank-pnb-recruitment-ofclerks-pnb o http://blogs.mybandra.com/2010/01/20/wwwpnbindiacom-punjab-national-bank-pnb-recruitment-ofclerks-pnb o http://hrmba.blogspot.com/2009/10/recruitment-selection-process-project.html NEWSPAPERS o HINDUSTAN TIMES. o TIMES OF INDIA.

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