According to sources, the bankers sought leeway to allow them to do campus recruitment like the way it is done by private sector banks.
There are many issues in recruitment which need to change. Compensation structure is not good enough to attract good talent and it needs to be revised, sources cited the bankers as saying.
Besides, the bankers said there is a need to reduce charges on transactions done through credit/debit cards, the sources said, adding that the bankers also pitched for tax incentives for merchants on transactions done through mobile phones.
Currently, the recruitment in public sector banks is done through Institute of Banking Personnel Selection or IBPS twice in a year. Sources said that among other recommendations, the bankers are going to seek more autonomy in talent recruitment and management. There is a need to have a hire-and-fire policy if the government wants productivity and profitability in the public sector banks to increase.
Bankers say this is the right time to bring this reform and it is important for effective operations in the public sector banks. They would also seek more autonomy in talent management, the sources added.
Minister of State for Finance Jayant Sinha had on Friday told the bankers that they should provide bold and creative suggestions which could lead the economy to 7-8 per cent sustainable and non-inflationary growth in GDP.