GMAT model finds favour with banks

Youths aspiring for a job in a public sector bank may soon need a qualifying score like GMAT, which is required for admission to universities abroad.

The banking industry is planning a common entrance test to recruit employees, unlike now where an individual bank directly recruits its personnel.

The Indian Banks' Association recently mooted a proposal for a centralised admission test for commercial banks in the country.

The idea has been backed by banks as well as the Institute of Banking Personnel and Selection, which manages the selection process for most banks.

According to the proposal, a bank will be able to recruit personnel from the pool of successful candidates that the Indian Banks' Association will create, bankers familiar with the development told Business Standard.

"People take multiple offers from more than one bank. This leads to waste of resources, time and money. We are discussing with IBA on how banks can make use of a common pool for recruitment. A common test will bring down the recruitment cost as well as time for banks," chief of a public sector bank said.

According to bankers, the proposed selection process would help jobseekers, too, as they would not be required to take separate tests. A candidate would clear the common entrance test and, on the basis of the score obtained, he would be considered by the banks.

"Banks themselves cannot handle the huge number of applications that is generated for just one post. The job might go to an autonomous body like IBPS as it has a history of managing recruitments," said chief of another bank.

About 50,000 employees were recruited by IBPS in 2008-09, out of over 70 lakh (7 million) applications it received. This year, it has already screened 80 lakh (8 million)applications.

The selection of bank employees was earlier handled by Banking Service Recruitment Board. The board, which was created when banks were on a massive expansion drive, was abolished in 2002 following the Narsimham Committee recommendations in the light of banks rationalising their branches.

The move was also aimed at giving autonomy and more power to the banks to choose 'quality' candidates.

Banks are again on expansion mode and need people to meet their business targets. About 40,000 posts are lying vacant in state-run banks due to retirements, resignations and expansion.