Page 32 - Banking Finance June 2021

ARTICLE

balance banks started conducting various programme in laid down, or own structures should be created so that one
order to attract and retain the talented employees. does not depend on these intermediaries. These are the
challenges being faced by Indian Banks now.
Talent Management in Banking
Almost all the literature recognizes that talent provides Conclusion
organizations with a competitive advantage, and it shares In the era of cut throat competition banks have started
a common concern that not only the talent is scarce, but paying attention towards attracting and retaining the new
also most of the companies are not doing enough to manage and existing talented employees by offering them various
and retain whatever they have. Human resources as the growth options attractive hikes in their career. They are
greatest source of competitive advantage for any designing various training and leadership programme for
organization, human resources deserves the attention and different managerial level in order to update the skills of
time of managers more than any other organizational employees. For this purpose various latest technologies is
resource or asset. being used to design training modules for employees in the
organization.
The banking sector in India has been largely resilient though
the crisis of 2008-09 and are ahead in terms of prudential Things have also started changing with the entry of
norms which enabled the Indian banks to weather the crisis. numerous non-banking financial companies as well as private
However of late, problems are creeping in-weak appraisals, and foreign banks. Similarly, the nature of business of the
poor asset quality, frauds, increase in customer grievances, banking sector has also undergone a lot of changes over a
poor risk management, inadequate understanding and period of time. As a result the demand for specialized
leveraging of IT resources, manpower shortages, etc. The manpower is also increasing. In a competitive environment
fallout of not having adequate talent/organization structure attracting and retaining right kind of talents are very crucial.
is that one creates a vast network of intermediaries - good, Banks are framing their strategies in order to manage the
bad or ugly. Either they can coexist or may need to be talent. As a result, Human Resource Management function
banished. If they are to coexist, codes of conduct should be of a bank becomes extremely significant. T

Banking Act amendment to be challenged by
Maharashtra in court

A day after the state government appointed a 13-member committee headed by cooperation minister BalasahebPatil
to study the impact of the amendment to the Banking Regulation Act on urban cooperative banks in the state, the
panel, in its first meeting itself, decided to challenge the amendment in court. "We fear the urban cooperative banking
sector will collapse following the amendment to the Banking Regulation Act," Patil said. "We have decided to challenge
it in court. Whether to move the high court or Supreme Court will be decided after seeking legal opinion of the advocate
general."

A fortnight ago, NCP president had asked the state government to study the adverse impact of the amendment on
urban cooperative banks in the state. Revenue minister Balasaheb Thorat, minister of , rural development minister
HasanMushrif, MSC Bank administrator VidyadharAnaskar, and banking expert Vishwas Thakur were present in the
meeting. Ansakar made a comprehensive presentation on the pros and cons of the amendment.

As per the presentation, the amendment gives massive powers to the RBI for regulating urban cooperative banks,
which have been directly or indirectly controlled by the NCP and Congress. Now, the NDA government has decided to
regulate recruitments, including the appointment of MDs, their salaries and eligibility, the RBI will decide the eligibility
of 50% of the directors and the director's tenure will not extend beyond eight years.
The amendment also aprovides for removal of directors who do not confirm to RBI norms and those removed will not
be eligible for appointment on any bank in any capacity. The new chairman will be appointed with RBI permission.

32 | 2021 | JUNE | BANKING FINANCE