Public sector banks to have a common admission test

Public sector banks (PSBs) will introduce a common banking entrance test.

The government today accepted the recommendation of the A K Khandelwal committee and the Indian Banks Association has agreed to a common recruitment programme for public sector banks that would be conducted by the Institute of Banking Personnel Selection (IBPS).

Business Standard had first reported in January that IBA was planning a common test for job aspirants in PSBs. The move is expected to address the issue of manpower shortage in state-owned banks, which are planning to recruit around 34,000 officers and 51,000 clerical staff over the next three years.

“Taking note of the fact that many PSBs are already utilising the services of IBPS for recruitment of clerks and officers, the government has decided to entrust IBPS the responsibility to conduct the Common Recruitment Examination for the PSBs,” the finance ministry said in a media statement.

The IBPS, established in 1984, is an autonomous body engaged in recruitment and internal promotions in banks and financial institutions. During 2009-10, IBPS conducted tests for around six million candidates at 125 centres across the country for recruitment in PSBs.

The Khandelwal committee, in its report presented to the government in June, had recommended, among other issues, that bankers could design the content of testing, methodology for conducting such tests and also review the existing arrangements. The full report is under consideration of the government.

The move was necessitated as banks were facing a huge problem in hiring talent. The common test is expected to bring down recruitment cost and the time taken. The proposed selection process may help jobseekers too as they will not be required to take separate tests for different banks.

About a decade earlier, the selection process of bank employees was handled by the Banking Services Recruitment Board. It came at a time when banks were going for massive expansion. It was done away with in 2002, after the Narasimham Committee recommended so in the light of banks rationalising their branches. It was also aimed at giving more autonomy to banks in choosing candidates.