The Cabinet’s decision to let PSBs consolidate themselves may have the unintended consequence of limiting and delaying banking recruitments.
Going by the data of the Institute of Banking Personnel Selection (IBPS), which is a common recruiting agency for officers in the 20 participating banks, the probationary officer/management trainee recruitment for vacancies to be filled in 2018-19 has already been impacted.
In the recruitment to be conducted this year, seven banks have indicated zero hiring. Four others have not reported any intention to recruit yet. These include Punjab National Bank, Oriental Bank of Commerce, Punjab and Sind Bank, United Bank of India, Indian Overseas Bank, Syndicate Bank, Indian Bank, IDBI Bank, UCO Bank and Vijaya Bank.
It is feared that the next two years could see up to a 50 percent fall in fresh recruitment as banks may undertake reconciliation of headcount and rationalization of branches.
In the last two years, 68,000 to 70,000 vacancies have been filled up in PSBs, including SBI.