State-owned Bank of India has also received board approval to recruit 1,300 apprentices in phases. Photo: Wikimedia Commons
Several Public Sector Banks (PSB) are hiring apprentices for the first time through their apprenticeship programmes to strengthen customer relations in semi-urban and rural areas.
Recently, Union Bank of India, Canara Bank, and Indian Overseas Bank announced plans to recruit 500, 3,000, and 550 graduates, respectively, under a year-long apprenticeship programme, offering a stipend of up to Rs 15,000. According to officials from these banks, this is their first time hiring apprentices.
Click here to connect with us on WhatsApp
State-owned Bank of India has also received board approval to recruit 1,300 apprentices in phases, who will likely be deployed in customer relations. Customer relations have become increasingly important, especially for mobilising liabilities, a Bank of India executive said.
“The apprenticeship programme focuses on deploying apprentices in semi-urban and rural branches to enhance customer relations. They will work to understand customer needs and address issues, aiming to improve customer satisfaction,” said K Satyanarayana Raju, managing director and chief executive officer, Canara Bank.
While banks are not obligated to absorb apprentices at the end of the programme, the experience is expected to put them in a favourable position for future opportunities in the financial sector. A state-owned bank executive noted that banks could utilise apprentices in areas where there are employee shortages, particularly in addressing customer grievances, especially for senior citizens, thereby relieving some of the burden on regular employees.
Most apprentices will be recruited in regions where the local language is spoken, enabling them to provide better counter service, the executive added.
Another senior executive at a public sector bank noted that the recruitment of apprentices aligns with the Apprentice Act of the government. After some time in training, they may also be deployed in back-office functions of the banks.
Under the Apprentices Act of 1961, enterprises with a workforce of 30 or more are required to engage apprentices in a range of 2.5 per cent to 15 per cent of their total manpower, including contractual staff.
Dhriti Prasanna Mahanta, vice president and business head, TeamLease Degree Apprenticeship, explained: “Banks assign apprentices to roles on both the asset and liability sides, with a stronger focus on the asset side due to its lower risks, fewer compliance requirements, and a more practical learning curve.”
“Apprentices are also involved in various functions such as recovery, collection, operations, document verification, and loan processing, all in compliance with Reserve Bank of India regulations. These areas provide apprentices with hands-on experience, enabling them to develop essential skills while contributing to key operational aspects of the bank, including credit assessment, customer service, and risk management,” Mahanta added.
State-owned banks are recruiting apprentices at a time when their workforce is gradually shrinking each year. Since FY14, state-owned banks have seen a cumulative reduction of 96,134 employees, while the employee strength of private sector banks has grown 2.8 times.
According to the latest data from the Reserve Bank of India, at the end of FY24, state-owned banks had an employee strength of 764,679, while private sector banks employed 846,530 individuals. In FY14, state-owned banks had 842,813 employees, compared to 303,856 in private banks. During this period, the number of state-owned banks has decreased to 12 due to mergers, while the total number of private sector banks stands at 21.
First Published: Sep 29 2024 | 1:08 PM IST