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Part - IV

HR Management

The current thoughts in banks, focuses on employee empowerment, productivity linked reward-punishment system, zero defect-service oriented training and total quality management. Till today, the Personnel Management has been an inflexible reward punishment structure. With the change in the profile of the customers and the products at the service-level acceptable to the customers, results in a need for different skill set on the part of Bank Staff. This major shift has been as a result of the role perception of the Banks.

Shared ATMs

Till last year, each bank was interested on opening its own ATM to provide access and anytime banking to its customers. Cost of Installation of ATM is about Rs. 15 lacks with an additional cost of Rs.1.5 lakh per month. To break even, 300 transactions are to be put through each ATM per day. The cost of transaction in the branch of the Bank is Rs. 60 while it is Rs. 10 if carried out through ATM. To take advantage of this lower transaction cost there is need for banks to induce customers to use more and more ATMs. In view of the huge investment cost of ATMs, Banks have now come to an understanding by which the customer of one Bank can use the ATM of other Banks/s. This is in the right direction.

Banks no more mere Banks

Banks, in the future, will no more be restricted to performing their banking activities alone. Banks would be an "Integrated Financial Institution" where the customer would be provided under one roof or under one brand name, the services of Banking. Mutual Fund, Insurance and any other financial services, the customer needs. Already, we have seen the emergence of "Bancassurance" where the Banks have started selling life and general insurance products from their branches.

Role of Bank Staff

Hitherto, there was a premises where the branch of a Bank is located and there were three categories of staff to attend to the customers viz., Supervisory, Clerical and Sub-ordinate staff.

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* Contributed by -
Aditya Khemani, PGDM - II Year,
Tuhina Singh, PGDM - I Year,
IIM Lucknow.