Slowdown in recruitments in late 1980s to 1990s had caused a mid level crisis in the public sector banks (PSBs). This has pressurized banks such as United Bank of India (UBI) to go for lateral entries even for top positions.
Banks normally avoid lateral recruitment in top positions as they encounter problems in merging the new recruits with the current employees. Moreover there is some variation in compensation packages which makes the process of integration more difficult.
But now the condition for UBI has become so bad that it has to hire top officials from other banks in order to fill up the vacancies in senior positions. UBI was one of the banks that had shied away from lateral recruitments previously.
Bhaskar Sen, chairman and MD of UBI said, “We are preparing a contingency plan”.
To fill the vacant positions at GM level, the bank might also go for experienced bankers from other banks to work with the bank in deputation. UBI has obtained approval from the finance ministry in this respect.
With increasing business, the bank should normally have 20 GMs but it has just 13.