Common banking entrance test for public sector banks proposed

Public sector banks (PSBs) will also be having common entrance test for hiring new talent.

A K Khandelwal committee had recommended the common entrance test which has been accepted by the government. The Indian Banks Association has also accepted a common recruitment program for PSBs which will be conducted by the Institute of Banking Personnel Selection (IBPS).

Earlier in January, Business Standard had reported that IBA is working on the process of a common test for job aspirants in PSBs. The banks are planning to recruit around 34,000 officers and 51,000 clerical staff over the next three years, through a common entrance test program the issue of manpower shortage in state-owned banks will get solved.

The finance ministry said in a media statement, “Taking note of the fact that many PSBs are already utilising the services of IBPS for recruitment of clerks and officers, the government has decided to entrust IBPS the responsibility to conduct the Common Recruitment Examination for the PSBs.”

IBPS was established in 1984, it is an autonomous body which is responsible for recruitment and internal promotions in banks and financial institutions. For year 2009-10, for the recruitment in PSBs, IBPS conducted written test for around six million candidates at 125 centers across the country.

The Khandelwal committee presented its report in June. In its report the committee had recommended that bankers can design the content of testing, methodology for conducting such tests and also review the existing arrangements. Government is reviewing the full report.

The banks are facing problem in hiring talent, so a need was felt to formulate a program to solve this problem. It is believed the common test will also help in cutting down the recruitment cost and the consumed. Moreover, the jobseeker will also find the proposed selection process convenient as they will not have to take separate tests for different banks.

Before this, the Banking Services Recruitment Board looked after the selection process of bank employees. At that time banks were on the process of massive expansion. In 2002, after the Narasimham Committee recommendation in view of banks rationalizing their branches, this process was done away. With this banks got more autonomy in choosing candidates.