How do you differentiate between your experience in public sector banks versus private sector banks? What differences do you observe in HR or TA practices across these segments?
In the public sector, the hiring process is highly structured and regulated, driven by compliance and standardized procedures. This ensures fairness and transparency but limits flexibility in hiring decisions. Unlike the private sector, where discretion often plays a role in recruitment, public sector hiring follows a rigorous process starting with advertisements and eligibility criteria, and all applications are routed through central services like IBPS.
The process involves massive applicant pools, such as the example of 7.5 lakh applications for 1500 positions, emphasizing the breadth of talent available. While the public sector offers job security and standardized compensation structures, it lacks the flexibility of individual salary adjustments or rapid hiring processes seen in the private sector. Despite these constraints, the public sector attracts talent with its stability, sense of purpose in national projects, and competitive entry-level compensation.
What cultural and financial factors cause people to stay and thrive in public sector bank jobs in India despite compensation limitations and potential attrition?
In the public sector, job security is a significant draw for employees, especially those who have experienced layoffs in the private sector. For instance, a former Infosys employee joined a public sector job at one-third of his previous salary for job stability until retirement. Public sector roles are also framed as nation-building projects, enhancing employees’ sense of purpose. Promotions in the public sector are assured for diligent and honest employees, offering a clear career path and prestige. Additionally, entry-level compensation in public sector banks is often significantly higher than in the private sector, sometimes up to four times more, although higher-level compensations may not match the private sector.
What challenges did you face in establishing India Post Payments Bank and Bhartiya Maila Bank, and what were some triumphs you experienced in this nation-building project?
When I joined, we had no office and only a company secretary on board. Working from a post office, our first challenge was interviewing and onboarding staff without proper facilities. We used a training college in Manesar for onboarding and created makeshift offices with plastic chairs. Developing a unique technology platform was crucial, as our model involved post offices and postmen with handheld devices.
We faced logistical hurdles in selecting a tech partner and distributing 200,000 smartphones to remote areas. Training postmen in banking compliance required creating content in 13 languages and conducting online certification. Monitoring the training of 300,000 people for compliance was complex.
We used master trainers from the postal department to facilitate training, implemented attractive incentives, and ensured continuous coordination with India Post. Gaining customer trust was essential, as rural customers were initially reluctant to use our services. We focused on training them for self-assisted transactions to build their confidence.
How do you handle challenges in rural banking in unbanked areas of rural India, including efforts for awareness, education, and customer anxieties about banking services?
In rural India, the challenges of banking in unbanked areas are significant, especially when it comes to awareness, education, and customer anxieties about banking services. The transition to paperless banking, which is widely accepted in urban areas, posed unique challenges in rural communities where the reliance on physical documentation remained prevalent. Converting these areas to Aadhaar-driven, completely paperless banking systems required overcoming skepticism from local postmen and convincing customers of its reliability.
During crises like the COVID-19 pandemic, however, the benefits of these advancements became clear. Migrant laborers, often stranded far from home, found it crucial to send money back to their families. The convenience of transacting through mobile phones with postmen, who were working tirelessly even during lockdowns, became indispensable. This accessibility not only facilitated millions of new account openings but also provided essential services to senior citizens reliant on pensions, ensuring they received their payments safely and conveniently at home.
While these advancements came with challenges and sacrifices, such as the loss of postmen, they underscored the transformative impact of technology in rural banking. It bridged gaps in financial inclusion, empowered communities, and highlighted the resilience and adaptability of banking services in even the most remote areas of India.
Can you shed a little light on your article ‘Navigating the Silence: A Leader’s Dilemma in Speaking Up’? What are your thoughts on the conflict leaders face between speaking up and staying silent, considering common challenges?
I’m a very people-driven person. I will not hesitate to say anything to anyone if it is for the benefit of my people. I make sure to speak up if someone does good work, even in front of top management. If someone is being wrongly implicated or criticized unfairly, I will also speak up, even if my CEO doesn’t like it. That’s my role as an HR person. I’ve been very open in discussions with my board, especially if they want to change a policy that I believe is not right. For example, if a policy change affects people who were hired under specific contract terms, I will vocalize my concerns. However, if my organization’s reputation is at stake, I will remain silent. It’s crucial to assess when to speak up and when to remain silent. If it’s for the benefit of my people, I will speak up. If it’s for the benefit of my organization, I will stay silent. This judgment has to come from within. Speaking up is essential, but knowing when and how to do so is equally important. Even with my own officers, I appreciate them liberally but also point out where they are wrong. They understand that my guidance is to help them improve. However, if their performance is lacking, I will address it and tell them to improve, or they will face consequences.
