September 20, 2021

Human Resource
Management in
Banking Sector in
India
- A status report

Group 2, Section B
ANURIMA SHARMA 21068
ANUSHREE N HALYAL 21069
ARUNDHUTI ROY 21070
ASHLEY SILBESTER 21071
B. MANU 21072
CHAKKA VARUN 21073
COLLINS RONY GERGON A. 21074

Submitted to – Dr. Mousumi Sengupta

PGDM
2021-2023
 ACKNOWLEDGEMENT

We, the members of Group-2, 1st year PGDM Section B of SDMIMD have collectively put
in our efforts towards the completion of our Human Resource Management project report on
the topic “HRM in Banking Sector in India”. We are grateful to have been given this
opportunity to study this topic and have indeed gained valuable insights from the same.
However, this would not have been possible without the help, support, guidance, and
encouragement of certain individuals whom we would like to extend our sincere and heartfelt
thanks to.

We are indebted to our HRM faculty, Dr. Mousumi Sengupta, for her kindness, co-operation,
and motivation. Her valuable guidance and support have played a vital role in the completion
of this report.

We would also like to acknowledge and express our gratitude towards our parents and family
members, who have supported us emotionally, morally as well as economically.

Thanking you,
Group-2 (Section B).

Human Resource Management in Banking Sector in India

 ABSTRACT

Human resource management techniques have been a hot topic in management and
organisational performance during the last few years, particularly in the banking industry.
Human resource management (HRM) has risen to prominence as a critical role in businesses.
This study examines human resource management methods in India's banking sector, notably
in Public Sector Banks, with a focus on five key banking indicators: job analysis, recruiting
and selection, training and development, performance assessment, and pay. As a
consequence, the recommendations would help to ensure that human resource management
techniques are properly implemented in Indian public sector banks. In addition, data must be
categorised, tabulated, and analysed in order to produce relevant and appropriate findings.
Key words: Human Resource Management, organizational performance, performance
appraisal, recruitment, selection.

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Human Resource Management in Banking Sector in India

 Table of Contents
Contents
1. INTRODUCTION.......................................................................................................................1
2. LITERATURE REVIEW...........................................................................................................2
2.1 HRM IN GENERAL PERSPECTIVE...................................................................................2
2.2 HRM IN BANKING SECTOR..............................................................................................2
2.3 CHALLENGES FACED BY BANKING SECTOR..............................................................2
2.4 HRM PRACTICES IN PUBLIC AND PRIVATE SECTOR.................................................3
3. STATE BANK OF INDIA..........................................................................................................4
4. HDFC BANK...............................................................................................................................7
5. KARNATAKA BANK LIMITED............................................................................................10
6. CHALLENGES FACED BY HR’S IN PANDEMIC..............................................................13
7. CONCLUSION..........................................................................................................................14
8. REFERENCES..........................................................................................................................15

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Human Resource Management in Banking Sector in India

 1. INTRODUCTION
People are social creatures and barely ever live and work in disengagement. We generally
plan, create and deal with our relations both deliberately and unwittingly. The relations are
the result of our activities, furthermore, rely generally on our capacity to deal with our
activities. From youth, every single individual gain information and experience on getting on
with others and how to act in each and each circumstance in everyday life. Later on, we
convey forward this learning and comprehension in conveying and overseeing relations at our
working environment. The entire setting of Human Resource Management rotates around this
centre matter of overseeing relations at workplace.
Since mid-1980's Human Resource Management (HRM) has acquired acknowledgment in
both scholarly and business circle. HRM is a multidisciplinary authoritative capacity that
draws speculations and thoughts from different fields like administration, brain research,
humanism, and financial matters.
There is no most ideal approach to oversee individuals and no supervisor has planned how
individuals can be overseen adequately, on the grounds that individuals are mind boggling
creatures with complex requirements. Powerful HRM depends, without a doubt, on the
causes and conditions that a hierarchical setting would give. Any organization has three
essential parts, People, Purpose, and Structure.
In 1994, a prominent forerunner in the HR field mentioned the accompanying observable
fact: The organization with the entrance most to the capital or the most recent innovation
enjoyed the best aggressive benefit.
Today, organizations that offer items with the greatest are the ones with a major advantage
over the opposition. However, the main thing that will maintain an organization's benefit
tomorrow is the type of individuals in the association
That anticipated future is the present reality. Having equipped staff on the finance doesn't
ensure that an association's HR will be a wellspring of upper hand. Anyway, to stay cutthroat,
to develop, and enhance, an association should guarantee that its workers are qualified, put in
suitable positions, appropriately prepared, oversaw viably, and focused on the association's
prosperity. The objective of HRM is to augment representatives' commitments to accomplish
ideal usefulness and viability, while at the same time achieving individual goals (such as
having a difficult work and acquiring acknowledgment), and cultural targets (like lawful
consistence also, exhibiting social obligation).

Human Resource Management in Banking Sector in India

 2. LITERATURE REVIEW

2.1 HRM IN GENERAL PERSPECTIVE

A research paper titled ‘Human Resource Management Practices and Organizational Commitment in
Different Organizations’ was published by M.G. Shahnawaz and Rakesh C. Juyal. This paper states
the HRM practices in different industries and the methodology of management. Human resources
management involves various decisions for the company and its stakeholders which directly impacts
on the performance. The study contributed to the HRM followed in two different industries and their
method of decision making. It also covers how much commitment both the industries give towards the
HRM practices. The major objective was to identify how employee commitment and organisation
commitment reflects on the organisation. In the past with the concept of personnel management,
humans were expected to work as machines and everything was manual, there was an option of
manipulating the human behaviour for the betterment of the organisation. He organisation were less
flexible and was more of centralised. But after the emergence of HR practices there was a proper
approach to work and human resources which brought in a proper method of functioning. The
conclusion drawn from this study was HRM is more of commitment rather than compliance. There is
no need for industry specific HRM policy and to rather focus on being competitive and to stay
committed to the workforce.

2.2 HRM IN BANKING SECTOR

A research paper was published by Esha Mehta on ‘Review on HR practice in banking sector. The
paper examines the various differences and practices followed by the private and public sector
banking and what suggestions could be given in order to improvise and gain maximum utility. The
main problem of not having proper human resource management in banking is that there is severe
shortage of manpower. Both qualitatively and quantitatively, there is shortage for the functioning. The
entire spectrum of HRM needs to be revolutionized according to the changing times and trends in
order to survive. HRM basically is the survival of the fittest, finest, and the fastest. The banking sector
being the backbone of the economy, it has to be the major driving force for the human resources.
In a study by Selvaraj (2009), reveals that private sector banks are more successful than public sector
in terms of implementing HRM practices, employee commitment and customer management.
Furthermore, both these sectors tend to differ in the practices and trends in the compensation sector,
working hours and environment, technology, manpower, and management structure. When it comes
to compensation management, private sector tends to have adopted a rational approach than public
sector.
Anuradha and Prasanth (2016) examined the employee perceptions of HRM practices among public
sector banks in Puducherry region in India. The results of which stated that HRD practices have
significant impact on the organisational performance of public sector banks.
Mittal, Gupta and Mottiani (2016) have examined the link between the HRM practices and customer
satisfaction among private sector banks. The outcome was that it has a significant positive impact on
their customers.

2.3 CHALLENGES FACED BY BANKING SECTOR

A study of HRM and Employees Performance in Banking Sector in India” was done by Dr. Manoj
Kumar Mishra in 2015. This article discusses the problems and numerous measures to increase the
performance of employees. In the light of the changing economic and commercial climate, the amount

Human Resource Management in Banking Sector in India

to which problems will be met depends on the banks leveraging their main assets, that is, HR. Internal
difficulties are preferred over a job experience in order to prevent young people from becoming more
skilled. Change in economy, technological development, globalisation, etc. are external obstacles. To
address these problems, staff are taught on the grounds of the staff meetings - monthly meetings of
staff for goals and team building, brain storming, study circles, inviting skilled staff to a guest lecture
and motivating the employees.

2.4 HRM PRACTICES IN PUBLIC AND PRIVATE SECTOR

“Job Descriptions in a Public Sector Banks” by V.T.Godse and R.Bandyopadhyay is a research paper
that focuses on the execution of a job description exercise at one of the top nationalised banks. It
identified the problems encountered by banks as a result of their expansion and diversification of
business activities, suggested solutions, and clearly depicted the procedure followed for job
description exercise at various levels of management, while also emphasising the use of interval
appraisal in identifying structural deficiencies. A Study on HRM Practices in Public Sector Banks in
Krishnagiri District by Dr.B.Mathivanan . The study based on the Performance Appraisal system,
Training system, Recruitment Process, Quality circles. main objective of the study was to determine
the effectiveness of HRM policies, motivation factor, effectiveness of training in public sector and the
suggestions and improvements for the public sector. Some recommendations include the use of a
Computer Based Management Information System (CBMIS), a handbook for computer auditing for
software access, a periodic visit by a competent person for a brainstorming session, and frequent
meetings of the Training Advisory Committee.
A new emerging technology in the private sector banks are the E-HRM. E-HRM, an innovative tool
for assisting HR managers' job, was discovered as a result of technological advancement. E-
recruitment for the online recruiting process and e-selection for the online selection method are terms
that are used interchangeably.
a variety of digital human resources It is now being applied at the middle management level. The
main benefit of this web-based application is its accessibility at all times and from any location. E-
HRM enables private banks to keep and create reports online, resulting in a more open atmosphere
within the bank.

Human Resource Management in Banking Sector in India

 3. STATE BANK OF INDIA

State bank of India is a public sector & a multinational bank, headquartered in Mumbai, Maharashtra.
SBI is the largest bank with 1/4 th of market share. The majority stakeholder of SBI is the Government
of India with 57.77% of its stake.

SBI was started 200 years ago on 2 nd June 1806 as Bank of Bengal. In 1959, GOI passed the
resolution State Bank of India act where banks of 8 princely states were made as a subsidiary of State
Bank. In 2018 finance minister merged 5 associate banks namely, State Bank of Mysore, State Bank
of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Patiala, State Bank of Travancore, and
Bhartiya Mahila Bank into State Bank of India. The rich legacy makes SBI one of the most trusted
financial institutions among Indians.

The bank has a strong branch network of 24,000 branches. SBI has the distinction of being one of the
biggest employers in the country’s banking sector. The bank has a total of 2,49,448 employees. SBI
Human resource policy promotes Gender diversity. It promotes female employees with an opportunity
to grow and challenge themselves. Special provision related to their transfer, posting, leaves, health &
medical requirements are made. Due to this women employee in SBI are making over 25.28% of
SBI’s total workforce.

T h e s u mm a r i s e d H R P r o fi l e o f t h e B an k as o n 3 1 s t M ar c h , 2 0 2 1

31.03.2020 31.03.2021
249,448

245,652
108,772
106,361

103,134

100,796

39,953

36,084

O ffi c e r s Asso c i at es S u b o r d i n a t e s t a ff & To t al

Ot h er s

SBI manages to actively recruit specialised talent on lateral/ contractual basis in the areas of Wealth
Management, IT, Information Security, Risk, Credit, and Audit, among other fields in order to meet
the demands of the fast-changing business landscape and also to meet the regulatory requirement.

THE RECRUITMENT & SELECTION PROCESS

 Vacancy of number of posts will be published online.
 Candidates need to apply online.

Human Resource Management in Banking Sector in India

  PO pre-examination test.
 SBI Po main examination test.
 Group exercise & Personal Interview.
 Document verification.

In the initial stage, the candidate needs to write a PO pre-examination test and wait for the results. If
he clears the exam, then he will be called to write the main exam. After clearing the main
examination, the candidate will go through group discussion or personal interview. In a personal
interview, the bank authorities ask a personal question, technical, and other questions depending on
the performance in the interview the candidate will be selected. The final selected candidates need to
verify their original documents.

TRAINING & DEVELOPMENT PROCESS

SBI Is having one of the best learning & development infrastructures in the banking sector of India. It
has forty-seven learning centres and five apex institutes across the country. SBI offers over 300 Elson
which includes 30 courses created by Harvard business school. SBI has tie-up with reputed global
management institute for specialized training and skill enhancement program.

For the probationary officer, they provide intensive training for 2years which includes classroom
training & on the job learning. After joining, the recruit undergoes a 1-week development program on
leadership with 6 weeks of intensive classroom program across various functional areas like General
Banking, Credit, Marketing, Investment Banking, Rural Banking, and IT. For a period of 1.5years
recruit undergoes cross-functional rotational programs across branches for holistic grooming for a
banking career.

Some of the training offered to the employees of the bank:

 Spearheading Government Initiatives: Apprenticeship, Customized programs for BFSI

professionals
 Capacity Building for Middle Management: Role-relevant certifications, Mandatory e-
lessons, Supplementary certification.
 Theme-specific Training: Nayi Disha, Astitva.
 Reinforcement of Learning: Just-in-time learning - ask SBI, Social learning – Online case
study discussion board.
 Gamification of learning: Daily quiz capsule – My Quest Today, Play2Learn app

COMPENSATION STRUCTURE
Compensation refers to the amount provided by the bank with certain benefits to the employees and
their family. The employees can reimburse the amount for various expenses that include,

 Provident Fund: The employees get the benefits of the “Defined Contributory Provident
Funds Scheme” in which the bank will pay a share of the amount to the PF account of the
employee.
 Medical Benefits: SBI provides a medical benefits scheme to its employees where 100%
reimbursement for self-treatment will be provided and 75% of reimbursed for the treatment
done for dependent of the employee. Bank has tie-ups with the best hospitals for cashless
treatment.

Human Resource Management in Banking Sector in India

  Home Travel / Leave Fare Concession: The officers will be provided leave fare concession
or leave travel concession and it can be once in 2 years or 4 years as per the choice of the
employee.

 Concession on ROI for loans : Employees can take loans under the staff schemes in a
concessional rate of interest. SBI staff will be given a 1% more interest rate compared to
customers.

 Leaves: employees get the benefits of leaves which include privileged leave of 33 days casual
leave of 12 days with leaves like sick leave, maternity leave. Women & single men
employees can take leave for a period of two years for purposes like children’s education or
aged parents under sabbatical leave.

 Furniture allowance: this benefit is especially for officers where they get a one-time grant to
furnish their residence & annual maintenance charge.

 Care for Retired Employees: SBI has launched a new scheme named as "e-Pharmacy" for
providing domiciliary facility under SBI Health Assist Group Mediclaim Policy for retirees.
The bank has collaborated with Lifetime Wellness RX International Limited, popularly
known as M/S Apollo Life for providing pharmacy services to the members of the benefit
group.

PERFORMANCE MANAGEMENT
To have a culture of change in the bank, a half-yearly (of the financial year) feedback process has
been launched for officers, this will help in aligning to achieve the goals of the remaining half
financial year & facilitates the mapping of skill sets of the officers

PROMOTIONS IN STATE BANK FOLLOW THE BELOW PATH:

 Probationary officer (Assistant Manager, JMGS – I)

 Deputy Manager (Middle management with Grade scale - II)
 Manager (Middle management with Grade scale III)
 Chief Manager (Senior management with Grade scale IV)
 AGM (Senior management with Grade scale V)
 DGM (Top executive with Grade scale VI)
 Chief general manager (Top executive with Grade scale VI)
 General manager (Top executive with Grade Scale VII)
 Executive Director
 Chairman and Managing director

The promotion policy of the bank gives an opportunity to good performing employees reach up to the
top-level management grade in a short span. Bank also provides offers to some officers for foreign
posting to its 190 foreign offices in 36 countries looking into the performance of the officer.

Human Resource Management in Banking Sector in India

 4. HDFC BANK

Housing Development Finance Corporation Ltd. (HDFC Bank Limited) is an Indian banking and cash
related associations’ affiliation, with headquarter in Mumbai, Maharashtra. It was set up in august
1994. HDFC Bank is India's one of the most noteworthy private district banks by resources and by
market capitalisation as of March 2021. It is the 3 rd most noteworthy relationship in terms of market
capitalisation. Besides, it is the fifteenth most prominent business in India with practically 120,000
workers.
HDFC Bank works in an especially mechanized environment constrained by information development
and correspondence structures. All branches have online accessibility which enables quick funds
move for customers. Multi-branch access is in like manner given to retail customers through the
branch association and Automated Teller Machines (ATMs). With a total of 5,600 plus branches
spread across the country and precisely 16,291 ATMs, HDFC Bank Limited is touching 6.18 Crore
lives in India.
HDFC bank has made interests in acquiring the best development practices universally to build the
establishment for a tip top bank.

RECRUITMENT & SELECTION PROCESS

 Recruitment is the process of locating potential candidates for a specific position in the
sector.
HDFC believes it’s critical to have efficient and effective staffs who are available whenever
they are needed, with the appropriate quality, at the right time, and in the right place.

Sources of recruitment:
o Data base maintained by the HR Department
o Campus Drives
o References
o Advertisements in paper
o Own Website

 Selection is the process of selecting persons with the necessary credentials and competence to
fill positions in an organisation from a pool of candidates. It is defined as the process of
separating applicants in order to discover and hire individuals who have a greater chance of
succeeding in a position.
The selection process at HDFC is based on probation; experienced candidates are given a six-
month probation period, while newcomers are given a one-year probation period.

Human Resource Management in Banking Sector in India

TRAINING & DEVELOPMENT PROCESS
The HDFC Bank has invariably prioritised employee training, both, on-the job and through training
programmes are conducted with the help of internal and external instructors. One of the bank's stated
core values is human resources, which it lists and recognises.
o In-house programmes consist of the Orientation Programs for the trainees, as well as the
Credit and Foreign Exchange Programs to establish a pool of specialists in the applicable
disciplines.
o External Programmes include value-addition programmes in team building and leadership,
organisational development, management development, and people management. All of these
are offered by esteemed institutions such as the Indian Institute of Management,
Administrative Staff College of India and ISB Hyderabad. Higher level officials have also
been sent abroad to participate in specialist training programmes.
o Moreover, the bank offers an extensive e-learning module that was designed and is managed
via the intranet.

COMPENSATION STRUCTURE
The compensation policy document at HDFC is based on the Bank's sound compensation principles
and practises, as well as RBI instructions published in a circular dated November 4, 2019.
The ultimate goal is to create a fair and transparent system that will assist it in retaining and acquiring
the talent pool necessary for competitive advantage and brand equity.

The following components will make up the compensation structure in general.

A. Fixed Pay consisting of Base Salary, Allowances, Perquisites, Benefits, and Retirement
Benefits.
B. Variable Pay will be in the form of employee stock ownership plans (ESOPs) or a
combination of cash and ESOPs.
The Bank shall guarantee that Fixed Pay and Variable Pay are properly balanced. If the use of
share-linked instruments is prohibited by law or regulation, the entire variable pay will be paid in
cash.

EMPLOYEE BENEFITS
HDFC Bank considers ‘people’ as one of its core values. It believes in empowering its employees
and the society. Development programs are proactively designed by the HR department at HDFC.
These programs mainly focus on developing Leadership Competency and Functional Capability
among the future leaders.
 EMPLOYEE ENGAGEMENT: To help employees display their talent and interests, HDFC
conducts various events relating to art, music, sports, and culture. The aim is to help
employees connect with each other and create a happy and rejuvenated workspace, which will
in turn help in organizational growth. For instance, “Wanderers”, an in-house initiative of the
Bank was arranged for the employees who love to trek. 1,000 plus employees were a part of

Human Resource Management in Banking Sector in India

 this initiative. “Hunar” (2015) and “Josh Limited” (2020) were two other very successful in-
house initiatives.

 HDFC CARES: Aimed at supporting the employees and their family members physically,
mentally, and financially, under this scheme, employees get to choose a range of wellness
offerings.
Under this initiative, employees get to attend regular counselling session and are encouraged
to adopt healthy lifestyle- “You are what you eat”. HDFC has partnered with Apollo
Healthcare for it. Employees can get personal diet plans, nutritional plans for themselves and
their family as well. According to HDFC, 83,000+ employees have benefited from these
wellness plans.

 FINANCIAL SECURITY: HDFC works hard to ensure that their staff are financially
secure. Employees receive attractively discounted loans from the bank based on their grades,
they can also avail experts recommendations regarding their investment plans, Bimonthly
newsletters keep them abreast with the latest developments in the finance and economic
domain.

Human Resource Management in Banking Sector in India

 5. KARNATAKA BANK LIMITED

Karnataka Bank Limited is the twelfth largest, private sector bank in India. It is a Scheduled
Commercial Bank of the 'A' Class situated in Mangalore, Karnataka, India. With its operations in 22
states and two union territories, Karnataka Bank Limited has 858 branches with 1 Extension Counter,
1,001 ATMs, and 462 e-lobbies/mini e-lobbies. It employs 8,421 people and serves over 11 million
customers across the country. Over 1,46,000 owners possess the company's shares. The bank's tagline
is "Your Family Bank Across India." The Karnataka Bank Limited has implemented features like
Internet Banking, Core Banking, and its MoneyPlant system throughout the state. The Karnataka
Bank Limited in August 2008 launched Quick Remit, a service that allows non-resident Indians living
in the United States, Canada, and the United Kingdom to send money easily.  MoneyClick, the bank's
24-hour internet banking service, is also available.

COMMENDATION FOR THE FIRM

Karnataka bank owns an award for its achievement under social banking, export performance and for
technology initiatives. Recruitment and onboarding are one of their areas of excellence in HR.
 ASSOCHAM Social Banking Excellence Awards – 2018
 IBA banking technology Awards – 2019
 Award in Atal Pension Yojana “Lead to Leap Award” Campaign, conducted by PFRDA
 A Shama Rao Memorial Outstanding Achievement Award 2021

Karnataka bank have achieved a lot of milestones because of business tactics and ethics incorporated
by HR team and higher management.

RECRUITMENT PROCESS
Karnataka Bank recruits people only via formal process such as newspaper advertisements or by
publishing the announcement in official website followed by a written test and interview. As on 31 st
March 2021 Bank has 8421 employees of which 29.7% is women. Job Description will be published
by the HR team which includes education qualification, cut-off score, age limit and previous work
experience. In their official websites candidates are also allowed to send job application.
Selected candidates will be having probationer period for a certain period with specific salary. Online
examination includes English language skill, general awareness, computer knowledge and special
awareness about banking sector. Once the online assessment is successfully completed the next step
will be undergoing an interview which will be conducted at Mangalore headquarters. Prior to the
interview all documents will be verified by bank officials. Interview panel consists of two members
who will be more focused on candidate’s technological knowledge on banking sector.

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Human Resource Management in Banking Sector in India

Once the candidate clears both online assessment and interview successfully the selection process is
completed. Selected candidates will receive their offer letter and they are expected to accept the offer
letter before deadline. Post joining 4 days of induction will be conducted to ensure that associates are
comfortable with the new work environment
Observation from above:
Recruitment is centralized for all branches.
End to end process is very transparent hence the confusions will be avoided

TRAINING & DEVELOPMENT PROCESS

Karnataka Bank deputes their employees to various trainings and development programs to upskill
their knowledge towards the growth of the bank. To have a focused training for their staffs they have
done high investment by establishing staff training college who are expertise in conducting training
programs. Apart from the regular upskilling trainings they have also implemented specific training for
associates to specialize in certain roles. Implementation of eLearning modules also opened a way for
digital transmission in talent development.
Observation from above:
The bank is very particular in investing in training and development.
The bank is having a high strategic plan for upskilling their employees with current technologies.

COMPENSATION PROCESS
Compensation means the additional amount provided by the bank to their employees in addition to
their basic pay. This at times, also extends to the immediate family of the employee.
Given below is the exhaustive list of benefits the employees enjoy:

 Health insurance
 Job training
 Soft skill training
 Free food & Cafeteria
 Education assistance
 Free transport
 Childcare

Karnataka Bank owns an overall rating of 3.6 with respect to HR function as per 2020 ‘ Ambitionbox’
a survey taken from existing employees.

Karnataka Bank
Salary and Human Resource Department
Benefits 3.6 2020 employee
ratings Career Growth 3.7
Work life Balance 3.4
Skill Development 3.6

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Human Resource Management in Banking Sector in India

REWARD MANAGEMENT
The employees are evaluated using a systematic evaluation with respect to their job performance. This
is a very important HRD process. Like all other organizations, the Karnataka Bank Limited also use
performance appraisal to the benefits of the process. Even though the performance appraisal is like a
double-edged sword and involves stereotypes, prejudice and halo effect the process of appraisal is still
employed within organizations. The morale boosting ability of appraisal process is always seen as an
attraction.
Karnataka Bank attaches the greatest importance to employee satisfaction and human resource
development activities. Bank also has a Chief Learning Officer to oversee HR Department aspects.
Bank has also introduced ECDS (Employee Career and Development System) by operationalizing the
PMS (Performance Management System).
EMPLOYEE STOCK OPTIONS (ESOP)
During the reporting year, Bank had granted 36,19,450 stock options to all the eligible
employees under the KBL-ESOS 2018 Scheme, and the option grantees are yet to exercise
any options. (For information pertaining to ESOPs, please refer Annexure-II to the Directors’
Report).

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Human Resource Management in Banking Sector in India

 6. CHALLENGES FACED BY HR’S IN PANDEMIC

The ongoing COVID- 19 pandemic has wreaked havoc on businesses all around the world.
Organizational processes have undergone considerable reshuffles at the micro level in order to meet
the ever-changing dynamics. Because of the recasting of employee experience, the HR department
appears to have taken the brunt of the blow. COVID-19 has presented HR professionals with issues
they had not anticipated. The economy has been crushed by uncertainty, employees are under stress,
though HR experts are doing their best to keep things in perspective and coordinated but it isn't as
easy as it sounds like. HR's are facing new issues as a result of the abrupt transformation in work
culture.
MENTAL HEALTH
Organizations have traditionally implemented wellness programmes and provide security, health
benefits, and flexibility to employees in order to assist them in overcoming their health concerns.
However, the unexpected COVID-19 epidemic has brought the employees' mental health issues to the
forefront. When your employees work in an office setting, you get a better sense of their sensitivity,
which helps you deal with problems more effectively. However, as more employees work from
home these days due to COVID, communication lines have been severely harmed, leaving supervisors
unaware.
UNCERTAINTY
Uncertainty has the ability to cripple everyone. The fear of not knowing what the future contains or
what steps to take to keep the company running is a tremendous problem.  Employees are affected
psychologically because they don't know what the future holds for them. The HR departments are
working hard to get things in order, but it is becoming harder day by day to respond to the situation
and devise effective actions and tactics that will benefit everyone.
EMPLOYEE’S PRODUCTIVITY
The ultimate purpose of the organisation is for its employees to be productive. When staff are working
remotely, especially during a crisis, it can be difficult to keep them interested. Internal communication
is hampered, making it difficult to keep everyone on the same page. It's challenging to stick to a
routine and even embrace a structured workflow when you're working from home. When teams are
cross-functional, you have little control over how they are managed. Not updating them on a regular
basis or failing to schedule meetings/ sessions can have a significant negative influence on their
morale. Working in such kind of environment during these times is not an easy task. These are just
three issues mentioned over here but there are several more and these issues are being constantly
faced by HRs which is a commendable job.

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Human Resource Management in Banking Sector in India

 7. CONCLUSION

For the organization’s success or to run an organization profitably, managing human resource is the
major concern of any organization as it sketches the effectively completion of the tasks assigned to
individuals. That further is responsible for an effective organization. This has been the major highlight
of this report, that the HRM policies that banks practices, ameliorates the contribution given by
employees through their works. Banking has been and is going to be a "Company with People”
always. Without effective and professional manpower, successful risk control will not be achievable.
While optimum remuneration is crucial, there can be other legitimate reasons why individuals choose
a specific bank and stick with it. The holistic success of the banks in the coming times will depend on
employees’ satisfaction.

The overall review of this report is centred to one idea; that the public sector banks’ work culture and
dynamics differs from that of the private sector. Their background falls under different aspects of
work culture and employees’ satisfaction. The public sector banks emphasize more on bourgeois
responsibility and profit is not the matter of first priority. And on the other hand, private banks are
profit oriented. It is essential to understand the reason behind the gap between these two sectors and to
study them, because these factors are responsible to shape the organizational culture and maintain
employees’ satisfaction. Employee satisfaction further denotes the proper optimum work done by
them. It is important to understand and note the influence by the HR policies on the employees. HR
practices will lead to the employee satisfaction, and which further will constitute as a part of
organization’s success and growth. The studies have shown that, despite conventional or
unconventional, modern, or traditional, similar, or different, the major objective of HR policies of
banks remains the same, improving productivity, job security and satisfaction, remuneration structure
and working environment, etc. It is observed that the HR policies need to be fully moulded in form of
policies and practices, and strategies for an effective and efficient organization.

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 8. REFERENCES

LITERATURE REVIEW
1. Review on HR practices and trends by Esha Mehta 2016
https://www.researchgate.net/publication/305079178_Literature_Review_on_HR_Practice_in
_Banking_Sector
2. A Study on HRM Practices in Public Sector Banks in Krishnagiri District Dr.B.Mathivana
http://www.iosrjournals.org/iosr-jdms/papers/Vol12-issue4/A01240114.pdf
3. A research paper was published by Esha Mehta on ‘Review on HR practice in banking sector.
4. A research paper titled ‘Human Resource Management Practices and Organizational
Commitment in Different Organizations’ M.G. Shahnawaz and Rakesh C. Juyal.
5. A study of HRM and Employees Performance in Banking Sector in India” by Dr. Manoj
Kumar Mishra (2015).
6. A study by Selvaraj (2009), revealing that private sector banks are more successful than
public sector in terms of implementing HRM practices
7. Anuradha and Prasanth (2016) examined the employee perceptions of HRM practices among
public sector banks in Puducherry region in India

SBI
 https://bank.sbi/corporate/AR2021/assets/PDF/English/00-SBI%20AR%202021.pdf
 http://www.sachdevajk.in/2017/09/14/significance-between-stocks-of-nifty50-and-sbi/

HDFC
 https://v1.hdfcbank.com/assets/pdf/Compensation-Policy.pdf
 https://v1.hdfcbank.com/htdocs/common/2020/July/AR/hdfc-AR/pdf/Our_people.pdf
 https://www.ripublication.com/ijbamspl17/ijbamv7n2spl_04.pdf
 https://www.academia.edu/34892421/RECRUITMENT_AND_SELECTION_PROCESS_OF
_HDFC_BANK
 https://en.wikipedia.org/wiki/HDFC_Bank

KARNATAKA BANK LIMITED

 https://karnatakabank.com/about-us
 https://karnatakabank.com/sites/default/files/2017-09/AgmNotice-93rd.pdf
 https://karnatakabank.com/investor-portal/annual-report
 https://karnatakabank.com/careers

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