United Bank of India faces crisis at top deck
Public sector bank, United Bank of India is in a dire state-all thanks to a severe human resource gap at the top deck followed by the government's denial in relaxing promotion rules. The bank's plan to reach the milestone of Rs 1.5 lakh crore business by March next year faces stiff challenges since it is forced to run the show with just about six general managers who are burdened with three or more departments. The crisis is expected to deepen further as in January 2012 half of them will retire, thereby leaving just about three senior GMs to manage critical verticals like credit, risk management, marketing, priority sector, audit, finance and treasury between them.
With none of the 50-odd deputy GMs eligible for a promotion at present due to a gap in succession planning earlier years, the situation will continue to be difficult for the next three to four quarters. The ministry of finance feels that promoting people quickly can be counter-productive. The ministry is in fact going to bring about some changes in public sector banks HR policies.
Source: The Economic Times