HR mgmt most daunting task facing banks: FM

Union Finance Minister Pranab Mukherjee today described human resource management as the most "daunting" task facing banks in the coming years.

"The market is seeing growth, driven by new products and services both on the retail as well as the wholesale banking side. These require new skills in sales and marketing, credit and operations," Mukherjee said while addressing the 63rd AGM of the Indian Banks Association (IBA).

The demographic shift resulting from changes in the age profile and household income will increase consumer demand and there will be a need for enhanced institutional capabilities and service levels.

Mukherjee also had a word of advice for public sector banks, which will witness a large number of retirements shortly.

"(You) need to fundamentally strengthen institutional skill levels, especially in sales and marketing, service operations, risk management and overall organisational performance ethics," he said.

Stating that better initiatives for employee retention need to be worked out, the minister also advocated a more effective performance appraisal system in PSBs.

Earlier, SBI Chairman and newly-elected IBA Chairman O P Bhatt said, "Lakhs are going to retire and we have to hire replacements. Plus, there are many others we need to hire as the banking sector grows in India. Also, training of existing employees is an issue."