SBI plans to incentivise staff to work in villages

The bank had also hired about 4,000 relationship managers/relationship officers on a contract basis

After limited success in recruiting rural probationary officers (POs), State Bank of India (SBI) is considering providing non-monetary incentives to motivate its staff to work in rural areas. While the bank’s experience with POs in rural areas wasn’t satisfactory, its initiative to appoint relationship managers in these regions on a contract basis and later, absorb them in the bank, had clicked.

J N Misra, deputy managing director and corporate development officer, SBI, said those working in rural areas might be given additional points during annual appraisals or promotions.

In 2010, SBI had recruited about 1,000 people as rural POs. Senior bank executives said after securing adequate training at the bank, many of these employees moved to other banks that offered better positions and salaries.

POs are required to serve 10 years in rural areas, after which they may be posted in a location of their choice.

The bank had also hired about 4,000 relationship managers/relationship officers (RM/RO) on a contract basis. In 2010, these employees were absorbed in posts such as specialist banking officers.

“Several officers in the RM/RO category were absorbed into the bank and are still working with us. Therefore, this stream of recruitment has been a success,” said Misra. “Rural branches are important for SBI. Most of our bank branches are in rural areas; so, it is imperative we have employees serving in those regions.”

The bank is also betting on alternative channels and plans to record 60 per cent of its transactions through these channels by 2018, compared with the current 36 per cent. This, Misra said, would reduce the requirement of manpower.

Till 2018, SBI plans to have a constant staff-strength of 223,000. “This is taking into consideration the natural attrition of 10,000-12,000 people annually, owing to retirement. However, there is no hiring freeze and there will be constant new hires to reduce the average age of employees,” Misra said.

He added despite the fact that the bank planned to increase direct business through alternate channels, hiring for rural areas would continue.

The concept of POs for rural areas was floated at the bank during the chairmanship of O P Bhatt. This was aimed at ensuring the bank’s rural branches had adequate manpower.

SBI also has a concept through which the head office in each circle identifies difficult areas there. Here, the tenures of officers are fixed and special allowances are provided.