Effect of RBI’s prompt Corrective Action on IBPS hiring
Bad Loans i.e. NPA in the Banking industry has been looming large on the position of Indian banking system. In Quantitative numbers Gross NPA of a few Banks have already crossed 15% and Some oven above 20%, with little signs of a recovery.
At such times RBI comes up with Corrective actions over such banks who have broken thresholds. The conditions for imposing of RBI Prompt Corrective Actions are given here
One point which matter to us in RBI Prompt Corrective Actions is the “Restriction on staff Expansion, which makes all the banks coming in RBI prompt Corrective action unable to recruit.
Right now in the Country 4 Banks are under RBI Prompt Corrective actions namely Indian overseas Bank, Dena bank, IDBI, UCO Bank. Of these Indian Overseas Bank is in the most critical bank (This bank recruited 2200 PO each in year 2014 and 2015)
RBI has also warned 7 other Banks that could be brought under the RBI Prompt Corrective Actions.
All these happenings doesn’t sound very promising for IBPS PO / Clerical Aspirants. The above 4 banks wont be able to recruit a single staff member in the exercise and if RBI clamps down restrictions on more PSB’s they wont be able to recruit any.
We predict Vacancies for IBPS PO /Clerical This year would go down as compared to last year.