State-run banks led by Union Bank of India and Punjab National Bank are picking up the slack in recruitment in financial services with plans to hire as many as 5 lakh in the next few years even as BNP Paribas, Nomura, Barclays and others cut jobs in India. In PSBs, expansion of branches and replacement of retired staff are driving significant increases in hiring. These hirings come amid a slash in high-paying jobs at multinational banks which are struggling to survive the European credit crisis by selling assets and improving their capital. These banks also suffer as deals collapse and trading, a key revenue earner, turns out to be a loss making proposition in a volatile environment.

In terms of package and cost to company, public sector bank salaries are now almost equivalent in the entry-level with that of a private or foreign bank.

Source: The Economic Times