Ex-bankers get million-dollar offers

Job on offer to these ex-bankers is of consultants. Headhunters say contracts are for up to five years

Former heads of Indian banks and retired Reserve Bank of India governors and deputy governors have never had it so good. For, companies aspiring to set up banks are offering salaries up to $1 million (Rs 5.4 crore) a year to these bankers to get help on bank licence applications and, if successful, with setting up the bank.

Among the banking aspirants are the Tatas, the Aditya Birla Group, Reliance Industries, Shriram group, the Mahindra Group and Videocon, among others. According to headhunters, these former bankers will be hired as consultants on contracts of up to five years. Many bankers are insisting on a five-year term even if the company is denied a licence by the banking regulator, the Reserve Bank of India (RBI).

“Companies have begun identifying personnel for key roles. Given that hiring is a six-to-nine month process, most institutions have paid headhunters to identify available talent. While the packages offered by the new players might not be drastically different, stock options will make their offers financially attractive,” says the CEO of a head-hunting firm, recruiting for some companies interested in a banking foray.

There is a reason why old hands are in demand. According to banking aspirants, the application process is so cumbersome that every application is expected to be backed by documents of up to 20,000 pages.

With the government expecting more than 50 applications including from professionals who have joined hands with private equities, RBI will not be able to clear all the applications even in one year.

It has set a deadline of July 1 for the aspirants to submit their applications, backed with documents, including director/investors’ profiles, past and present litigation, pending cases with other investigating agencies, etc. There are job offers for other positions as well and companies have begun drafting a blueprint. “There are 100-150 professionals available in the market who can take up the key roles of CEO, head of retail banking, head of corporate banking, head of operations, head of technology and head of HR. Candidates who figure high on the recruitment list have already been approached,” said a head hunter.

Many aspirants have started the ground work. “We have received feelers from industry people who are looking at large turnkey assignments and hiring as well,” said Sangeeta Lala, co-founder & vice-president at TeamLease Services.

A BIG DRAW

• Former heads of Indian banks and retired Reserve Bank of India governors and deputy governors have never had it so good
• Firms are offering salaries up to $1 mn a year to these bankers to get help on bank licence applications and setting up the bank
• According to headhunters, these former bankers will be hired as consultants on contracts of up to five years
• Given that hiring is a six-to-nine month process, most institutions have paid headhunters to identify available talent