RBI warns banks of high attrition

February 20, 2015 10:47 pm | Updated April 02, 2016 05:29 am IST - MUMBAI

Attrition is going to be the norm in the banking industry in the days to come, and banks should be prepared for the future, Reserve Bank of India Deputy Governor R. Gandhi said here on Friday.

“As the banking sector requires more expertise, knowledge or specialisation, it is going to be in high demand, and people will be moving from institution to institutions. Attrition is going to be the norm,” said Mr. Gandhi, while speaking at the Financial Markets Conclave, organised by National Institute of Securities Markets (NISM).

“We have been telling banks that they should now expect people to be hopping from one institution to another. The old method of developing a cadre, expecting them to continue with you for the life, is going to change,” he added.

Mr. Gandhi said that as the economy grew, investor would be expecting more and more return. They would have to turn to capital markets and various other financial instruments, products and services. “Certainly, there is going to be a big demand for people who are well versed and well experienced,” he pointed out.

On stressed assets, Mr. Gandhi said that “we have been paying attention not just on the declared non-performing assets (NPAs) but the whole stressed accounts. We have been warning the banks that they should be looking at the entire stressed assets and not just NPAs.”

Talking on the use of leaked information from the Petroleum Ministry for trading on stock markets, the SEBI Chairman U.K. Sinha said that “We have an integrated surveillance department. If whatever you say, and if there is an iota of truth in that... my people are already working on that.....stern action will be taken.”

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.