Ex-RBI governor advocates change in HR policies after revealing bank employee ordeals

Whether in India or across the world, the working conditions within the confines of banks have consistently raised concerns. Former RBI Governor Raghuram Rajan has drawn attention to this issue, emphasising the need for a shift in attitude, both from HR and senior management in banking sector. 

In a recent post on X (formerly known as Twitter), Rajan shared a resignation letter from a State Bank of India (SBI) employee and stated, “Time and again, the situation of bank officers going under immense deterioration.” 

The letter shared by the former governor highlighted the “extreme pressure and misconduct of senior management,” which had resulted in the deteriorating health of the Assistant General Manager (Branch Head) at the SBI-SME Branch in Jalandhar.

“Please accept this letter as my resignation from my duty with effect from 01.01.2024 from my position (Deputy Manager-RMSME) at your branch, which is 4 months prior notice as due to bad HR Transfer policy, extreme pressure and bad behaviour of higher management, my health situation deteriorates day by day in current bank service. Presently, I am suffering from High BP, Anxiety, and Depression

Recently, I have been transferred from the SBI-Malout Branch (01465) to SBI, SME Branch (04044) Jalandhar. Due to this my health, my family, and the education of my children are suffering very badly, and seems it will not improve in bank service my whole life. Moreover, the lack of an employee-friendly transfer policy, late sitting, threatening message from senior management, and phone calls & after working hour is impacting my health, my family, and my social life balance. Money is not everything in life.

An example of the harsh behaviour of the higher management is the meeting of RMSMEs held by Sh. Shanker Prashad P (GM Network -1) dated 22.08.2023 on MICROSOFT Teams App & Whatsapp Message in RMSME Group Ludhiana on dated 04.09.2023.in which behaviour of GM Sir is extremely bad and not possible to tolerate for anyone in the meeting. It makes me very depressed as an officer in SBI. So, accept my resignation and settle my dues in due course,” read the letter by the Assistant General Manager. 

In an address to the Union Finance Ministry, Raghuram Rajan emphasised the urgent need for proactive measures to enhance HR policies and foster a more positive senior management attitude toward their subordinates. He warned that failing to do so would result in customers bearing the brunt of the demoralised workforce.

“Timely action plan to improve HR policies & Senior management attitude towards their subordinates is the need of the hour otherwise customers will feel the wrath of demotivated employees," the Rajan wrote in his post.

The recent incident isn't the first instance of harsh working conditions in the banking sector coming to light. Previously, a video of an HDFC Bank executive berating colleagues over targets went viral, shedding light on the toxic work environment prevalent within the organisation under the leadership of senior vice president Pushpal Roy. 

The video, originally in Bengali, captured Roy's aggressive behaviour as he assessed his subordinates' work status and targets. In the footage, Roy can be heard sternly saying "Shut Up" to the employees multiple times. 

Following the video's widespread circulation, HDFC Bank took action by suspending the officer in Kolkata.