Why jobs in Banking Sector are set to decrease?
Dear Sehpaathians,
Banks have been hiring in very high numbers in the past few years but the number of hiring every year are decreasing.
A trend From IBPS PO 2013, IBPS PO 4, IBPS PO 5
Expected Number of Vacancies In IBPS Clerical 2016
Expected Number of Vacancies in IBPS PO 2016
1. In PO 2013 there were around 22000 vacancies which came down to 16000 in PO 2014 and now down to 12600 in PO 2015. This shows a fact that banks have already hired too much to manage the retiring work force. But a fact needs to be taken into consideration that over 1,50,000 of bank staff are set to retire by 2018. Following this fact banks need to recruit.
2. There is a development in banking industry. Banking board has been made by the government to govern and plan future functioning of 28 govt. owned Public Sector Banks. SBI associates will be merged with SBI in this financial Year. There is a speculation going since then that the banks are going to merge gradually. The reason cited behind this is
- lack of Middle management Officers
- Enormous NPA
- Weak Balancesheets
- No funds with Banks to Recapatalize Govt. Bank
- Making 6 banks will most of the above problems.
If that happens and 28 banks are merged in 6 banks, there wont be even a single vacancy.
The current strength of banks is 8.5Lacs of which around 2.00 lac employees will retire by 2020. If merger happens the 6.5 lac employees will be enough to manage banking. All young staff.
Sehpaathi predict that all vacancies will dry up if merger happens. There was a effect of Enormous NPA in PSB’s in recruitment this year. IOB and BOB were the 2 big recruiters previous years which were not allowed to recruit a single aspirant from IBPS 2015. Restrictions were enforced by RBI. Many other banks might follow the suit, as the NPA’s are growing at alarming rates and RBI wants bank to Tackle it.
