Nearly 40% of Bank of Baroda’s top management, from chairman to executive directors to chief general managers, will retire in the next nine months, creating a vacuum in the nation’s second biggest lender by total business. Its top brass is worried about how to fill the management gap – it does not have an answer in a set up where it does not have the freedom to hire and fire. It is not the only bank that’s staring at a human resources crisis. Almost all state-run banks are in a state where if the current practice of joint wage negotiations and prohibition of lateral hiring are not abandoned, they will end up handing over their entire future growth to private sector peers on a platter. State Bank of India, the biggest, will see as many as 35,000 to 40,000 of its staffers retire in the next four years.
Read the Economic Times news report here.