Photo: Reuters
Photo: Reuters

SBI, Bank of Baroda to laterally hire 500 people

  • While SBI will hire 477 candidates for information technology roles, Bank of Baroda will hire 15 sector specialists to market its MSME products
  • According to the SBI, the proposed lateral hires are in the grades of assistant manager, deputy manager, manager and chief manager

MUMBAI : Public sector lenders State Bank of India (SBI) and Bank of Baroda (BoB) are looking outside their ranks to hire nearly 500 people for specialist roles, ranging from information technology to managing the small business segment.

While SBI will hire 477 candidates for information technology roles, Bank of Baroda will hire 15 sector specialists to market its MSME products, two separate newspaper advertisements on Tuesday showed. According to the SBI, the proposed lateral hires are in the grades of assistant manager, deputy manager, manager and chief manager. These include developer, database administrator, cloud administrator, infrastructure engineer, IT security expert, cyber security - threat hunting and cyber security - and digital forensic, among others.

Of the 477 vacancies in SBI, 248 are for candidates belonging to the general category, while the rest are reserved. The highest number of vacancies is for developers (181), followed by IT security expert (94) and 47 system or server administrator. At present, SBI hires a mix of probationary officers, junior associates, lateral hires and management trainees.

According to the bank’s website, lateral hires typically include chartered accountants, analysts, statisticians, risk raters, economists, lawyers, engineers and system engineers.

Meanwhile, Bank of Baroda said in its notice that it is looking to support small businesses under the Uttar Pradesh government’s One District One Product scheme, and will create separate verticals for products. The scheme is an initiative of the UP government to promote micro, small and medium enterprise (MSME)-based manufacturing through organized support in the areas of finance, marketing, production, policy and technology.

“The bank is creating separate verticals for some of the key products under the scheme and to support this key initiative for furthering the growth of the MSME sector," it said, adding that it was looking for 15 experienced sector specialists to market its MSME products.

Lateral hiring is the process of recruiting an expert for a specific role from another organization.

Last month, while announcing the merger of 10 public sector banks (PSBs) into four, finance minister Nirmala Sitharaman had said the banks will also recruit a chief risk officer at market-linked compensation to attract talent.

Employees hired laterally are typically remunerated at prevailing market rates, higher than that in public sector banks. Mint reported on 26 August that the gap between the remuneration of chief executives of state-run banks and their private counterparts has widened in the last two years. The average daily remuneration of a public sector bank chief was 8,541 in FY19, while a private bank chief executive officer (CEO) earned 2.48 lakh per day in the same period.

A major component of the remuneration in private banks is through stock options for senior executives. Public sector banks have also been toying with the idea of employee stock option schemes to bring in a performance-linked incentive structure.

The idea was mooted by the Banks Board Bureau (BBB), a government body tasked with looking into the performance of public sector banks. It also received the finance ministry’s nod in March 2017 and some banks such as Allahabad Bank, United Bank of India and Union Bank of India are implementing this scheme.

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