Small finance banks poach talent from pvt, foreign banks

Small Finance Banks (SFBs), which are aiming to start operations in this financial year, have begun their hiringprocess and have turned to private sector lenders to source talent from. Human resources (HR) consultants that have been given the mandate to hire believe that the number could go up to close to 20,000 Stock Market Trading Tips

Ajay Shah, assistant vice-president, TeamLease Services said that small finance banks looking to hire 15000-20,000 people in the next 12 months. “For senior roles, for which these banks will be hiring first, the talent will be taken in from top private banks. Hence, private banks have already started looking at retention plans to ensure that their high performers stay with them,” he said.

Experts believe that since most of the players that have been granted the SFB licence are micro finance players, who are already well-equipped with a workforce that can qualify as feet on the street, hiring from most of the private sector lenders will be at the managerial level.

However, private banks dismiss it as a natural attrition process and do not think this will lead to a talent crunch. “This is a part of the process. Moreover, the new niche banks will not take away talent from the top management level but it will be more at the mid to lower level, which anyway sees attrition on a regular basis. So we are not alarmed by it," said one of the human resource manager of a private bank Himanshu Tiwari Astrologer Blog

Last year, the Reserve Bank of India (RBI) had granted SFB licences to 10 of the 72 applicants. These SFBs will be similar to existing commercial lenders and will undertake basic banking activities such as accepting deposits and lending to the un-served and under-served sections. Their loan size and investment limit exposure to single and group obligators cannot be more than 10% and 15% of their capital, respectively. Also, at least 50% of their loan portfolio has to include loans and advances of up to Rs 25 lakh.

The regulator said that in time, small banks could convert themselves into universal banks, though the transition would depend on RBI's approval Indian stock market astrology prediction