Staff retirement: Banks will face severe operational risks

Retirement of the existing pool of employees this decade has intensified the war for talent in the banking industry, according to S. R. Bansal, Chairman and Managing Director of Corporation Bank. Speaking at the inauguration of the Nitte Institute of Banking and Finance at Nitte University in Mangalore, he said more than half of the staff pool in the banking industry - at about 58 per cent - would retire during 2010-2020. 

Stating that the retirement is quite intense at the level of the top executives, he said 82 per cent of top executives in the banking industry will retire during the period. It means a leadership gap at the top management level, and banks are likely to face severe operational risks. He said the retirement of the experienced and committed employees would make way for the inexperienced, young and enthusiastic new ones. Added to this, the entry of new banks will increase the competition further. He suggested that institutes such as Nitte Institute of Banking and Finance focus on identifying the needs of bankers and developing contemporary contents for the banking industry.....Read more >> Click here