Bank of Maharashtra has recently notified recruitment advertisement for probationary officers in the bank through the Post Graduate Diploma in Banking and Finance Programme. The candidates, thus selected, will have to undergo training programme in the Manipal School of Banking or NIIT School of Banking for a year and after that, these candidates will be absorbed in the branches of the bank as probationary officers. Candidates are of the opinion that this policy of the bank is basically for retaining employees since attrition rate is too high in banks these days since the vacancies are decreasing through the recruitment by IBPS PO and Clerks as these banks are gradually going for individual projects like this.
What is the PGDBF Programme: Let’s know in detail
In the programme advertised by the bank, you need to undergo training in banking and finance in a bank empanelled organization for one year once you are selected after qualifying in the written test and interview. The whole programme will consist of classroom training as well as internship programme in various branches of the bank. Once you successfully complete the programme, you will be absorbed as JMGS-I Officer in the bank. During internship, candidates will get Rs 20000 as stipend for 3 months whereas the total course fee is around Rs 3.5 lakhs which will be given as education loan by the bank to the candidates. The loan amount will be required to be paid in 60 EMIs by the candidates after joining the bank. Candidates need to also sign a bond to serve the bank for a minimum period of 2 years failing which they need to pay Rs 2 lakh along with the outstanding loan amount with interest.
Why PGDBF and not IBPS?
The PGDBF programmes offered by the banks are often criticized by the banks because banks can extend loans as well as can retain employees by making them sign bonds. Attrition in banks has reached an all-time high level these days and therefore, bank managements need to think about ways to have people on their rolls to ensure good customer service. So, is it wrong on the part of the bank to ensure that they do not lose? If not, why candidates are not happy with this opportunity? We shall try to look at both the aspects.
- Exorbitant Course Fee: This is the first thing that deters the candidates from joining these programmes. You need to pay a sum of Rs 3.5 lakhs even before receiving your first salary. Obviously, you need to take loan from the bank in case you can’t support yourself.
- Guarantee bond: You have to serve for a period of minimum 2 years failing which you will have to pay Rs 2 lakhs along with the loan outstanding amount. Now, this is obviously too much for somebody who has landed a better job and cannot leave because of this financial burden on him or her.
- Again training even after getting job: How many of us will like it if you are made to study regularly even after getting a job? But, here, you have no option but to study since you have to complete the course successfully before being eligible to be absorbed in the bank’s services. So, you have a job, obviously, but you still need to study regularly.
- Bank is getting trained candidates: Well, for the bank, this programme ensures that it is getting candidates who are well trained in the day to day operations of the bank since you are trained by professionals for one year followed by internship at various branches of the bank.
- Extending the credit portfolio: This must be the biggest advantage of the bank since they are getting a number of loans under their fold without doing anything and there is very minimum chance that these loans will ever go bad. Now, loans without any risk, that is like a dream for any bank in these days of bad loans and non-cooperating borrowers .
- Employee retention: By making you sign that bond, bank is ensuring that you do not even think of leaving the bank and once you complete those 5 years in the bank, you will be left with almost nil or little energy to do anything else other than focusing on extending the deposit and credit base of your bank. In other words, you career is most likely to come to a standstill.
- Too many unemployed youths: This is the biggest advantage for the bank. Banks know that people are dying for jobs these days and they are ready to do anything for a bank job. So, any opportunity that comes up will result in lakhs of applications from unemployed and helpless candidates. Banks are cashing in on that .
The Post Graduate Diploma in Banking and Finance course is good for candidates who are interested to be in banking for the whole life of their careers but for candidates who are entering the bank only as a stop-gap option, this course is of no use. It is better to try for IBPS PO or SBI or RBI or NABARD or SIDBI etc. The course will equip you with advanced banking skills but if you think that you will switch in a year or two, it is better not to go for it. As for this course, on the part of the bank, it is good as they are getting trained candidates and rate of attrition is going to decline. So, better get your priorities right and decide accordingly.
All the best!!